Statement Of Income
Statement Of Income (USD $) | ||
In Millions, except Per Share data | 3 Months Ended
Apr. 30, 2009 | 3 Months Ended
Apr. 30, 2008 |
Net revenue: | ||
License and other | 243.6 | 432.2 |
Maintenance | 182.2 | 166.6 |
Total net revenue | 425.8 | 598.8 |
Costs of revenue: | ||
Cost of license and other revenue | 49.5 | 56 |
Cost of maintenance revenue | 2.8 | 2 |
Total cost of revenue | 52.3 | 58 |
Gross profit | 373.5 | 540.8 |
Operating expenses: | ||
Marketing and sales | 185.8 | 225.5 |
Research and development | 124.1 | 145.6 |
General and administrative | 45.5 | 49.8 |
Impairment of goodwill | 21 | 0 |
Restructuring charges | 16.5 | 0 |
Total operating expenses | 392.9 | 420.9 |
Income (loss) from operations | -19.4 | 119.9 |
Interest and other income (expense), net | 0 | 6.9 |
Income (loss) before income taxes | -19.4 | 126.8 |
Provision for income taxes | -12.7 | -32.2 |
Net income (loss) | -32.1 | 94.6 |
Basic net income (loss) per share | -0.14 | 0.42 |
Diluted net income (loss) per share | -0.14 | 0.41 |
Shares used in computing basic net income (loss) per share | 227.1 | 226.2 |
Shares used in computing diluted net income (loss) per share | 227.1 | 232.6 |
Statement Of Financial Position
Statement Of Financial Position Classified (USD $) | ||
In Millions | Apr. 30, 2009
| Jan. 31, 2009
|
Current assets: | ||
Cash and cash equivalents | 880.5 | 917.6 |
Marketable securities | 78.4 | 63.5 |
Accounts receivable, net | 228.6 | 316.5 |
Deferred income taxes | 47 | 31.1 |
Prepaid expenses and other current assets | 67.7 | 59.3 |
Total current assets | 1302.2 | 1,388 |
Marketable securities | 7.6 | 7.6 |
Computer equipment, software, furniture and leasehold improvements, net | 120.7 | 120.6 |
Purchased technologies, net | 105 | 113.3 |
Goodwill | 520.7 | 542.5 |
Long term deferred income taxes, net | 88.3 | 125.7 |
Other assets | 125 | 123 |
Assets, Total | 2269.5 | 2420.7 |
Current liabilities: | ||
Accounts payable | 65 | 62.4 |
Accrued compensation | 83.9 | 124.3 |
Accrued income taxes | 19.1 | 16.7 |
Deferred revenue | 453.1 | 438.8 |
Borrowings under line of credit | 2.1 | 52.1 |
Other accrued liabilities | 58.6 | 105.8 |
Total current liabilities | 681.8 | 800.1 |
Deferred revenue | 80.9 | 113.3 |
Long term income taxes payable | 120.5 | 116.9 |
Long term deferred income taxes | 0 | 22.7 |
Other liabilities | 57.8 | 57 |
Commitments and contingencies | 0 | 0 |
Stockholders' equity: | ||
Preferred stock | 0 | 0 |
Common stock and additional paid-in capital | 1128.8 | 1080.4 |
Accumulated other comprehensive income (loss) | -9.7 | -11.2 |
Retained earnings | 209.4 | 241.5 |
Total stockholders' equity | 1328.5 | 1310.7 |
Liabilities and Stockholders' Equity, Total | 2269.5 | 2420.7 |
Statement Of Cash Flows Indirec
Statement Of Cash Flows Indirect (USD $) | ||
In Millions | 3 Months Ended
Apr. 30, 2009 | 3 Months Ended
Apr. 30, 2008 |
Operating Activities | ||
Net income (loss) | -32.1 | 94.6 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 27 | 16.9 |
Stock-based compensation expense | 23 | 25.2 |
Impairment of goodwill | 21 | 0 |
Loss on disposition of assets | 1.1 | 0 |
Restructuring charges | 16.5 | 0 |
Changes in operating assets and liabilities, net of business combinations | -29.3 | 48.6 |
Net cash provided by operating activities | 27.2 | 185.3 |
Investing Activities | ||
Purchases of marketable securities | -26.6 | -2.1 |
Sales of marketable securities | 11.7 | 0.8 |
Purchase of equity investment | (10) | 0 |
Capitalization of software development costs | 0 | (1) |
Capital expenditures | -13.6 | -13.4 |
Business combinations, net of cash acquired | 0 | 0.2 |
Net cash used in investing activities | -38.5 | -15.5 |
Financing Activities | ||
Draws on line of credit | 2.2 | 40 |
Repayments of line of credit | -52.2 | 0 |
Proceeds from issuance of common stock, net of issuance costs | 25.4 | 35.3 |
Repurchases of common stock | 0 | -256.6 |
Net cash used in financing activities | -24.6 | -181.3 |
Effect of exchange rate changes on cash and cash equivalents | -1.2 | 2.7 |
Net decrease in cash and cash equivalents | -37.1 | -8.8 |
Cash and cash equivalents at beginning of fiscal year | 917.6 | 917.9 |
Cash and cash equivalents at end of period | 880.5 | 909.1 |
Notes to Financial Statements
Notes to Financial Statements | |
3 Months Ended
Apr. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
1.Basis of Presentation | 1. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Autodesk, Inc. (Autodesk or the Company) as of April30, 2009, and for the three months ended April30, 2009, have been prepared in accordance with accounting principles generally accepted in the U.S. 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 generally accepted accounting principles (GAAP) for annual financial statements. In managements opinion, Autodesk has made all adjustments (consisting of normal, recurring and non-recurring adjustments) during the quarter that were considered necessary for fair presentation 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. These estimates are based on information available as of the date of the unaudited Condensed Consolidated Financial Statements. Actual results could differ from those estimates. In addition, the results of operations for the three months ended April30, 2009 are not necessarily indicative of the results for the entire fiscal year ending January31, 2010, or for any other period. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes, together with managements discussion and analysis of financial position and results of operations contained in Autodesks Annual Report on Form 10-K for the fiscal year ended January31, 2009 (the 2009 Form 10-K) filed on March20, 2009. Reclassifications Certain reclassifications to segment revenue and gross profit have been made to prior year amounts to conform to the current presentation. See Note 17, Segments for additional information regarding these reclassifications. |
2.Recently Issued Accounting Standards | 2. Recently Issued Accounting Standards In April2009, the Financial Accounting Standards Board (FASB) issued Staff Position FSP No.141R-1 Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise from Contingencies (FSP 141R-1). FSP 141R-1 amends the provisions in Statement of Financial Accounting Standards No.141 (revised 2007) Business Combinations (SFAS 141R) for the initial recognition and measurement, subsequent measurement and accounting, and disclosures for assets and liabilities arising from contingencies in business combinations. FSP 141R-1 eliminates the distinction between contractual and non-contractual contingencies, including the initial recognition and measurement criteria in SFAS 141R and instead carries forward most of the provisions in SFAS 141 for acquired contingencies. FSP 141R-1 is effective for Autodesk for contingent assets and contingent liabilities acquired in business combinations for which the acquisition date is on or after February1, 2009. Autodesk expects that FSP 141R-1 will have an impact on its consolidated financial statements, but the nature and magnitude of the specific effects will depend upon the nature, term and size of the acquired contingencies. In April2009, the FASB issued three related Staff Positions: (i)FSP 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability have Significantly Decreased and Identifying Transactions That Are Not Orderly (FSP 157-4), (ii)FSPStatement of Financial Accounting Standard(SFAS) 115-2 and SFAS 124-2, Recognition and Presentation of Other-Than-Temporary Impairments, (FSP SFAS 115-2 and SFAS 124-2), and (iii)FSPSFAS 107-1 and Accounting Principles Board (APB) 28-1, Interim Disclosures about Fair Value of Financial Instruments, (FSP SFAS 107 and APB 28-1), each of which will be effective for Autodesk for interim and annual periods beginning with its second quarter of fiscal 2010. FSP 157-4 provides guidance on how to determine the fair value of assets and liabilities under SFAS 157 Fair Value Measurements, in the current economic environment and reemphasizes that the objective of a fair value measurement remains the determination of an exit price. If Autodesk were to conclude that there has been a significant decrease in the volume and level of activity of the asset or liability in relation to normal market activities, quoted market values may not be representative of fair value and the Company may conclude that a change in valuation technique or the use of multiple valuation techniques may be appropriate. FSP SFAS 115-2 and SFAS 124-2 modify the requirements for recognizing other-than-temporarily impaired debt securities and revise the existing impairment model for such securities by modifying the current intent and ability indicator in determining whether a debt security is other-than-temporarily impaired. FSP SFAS 107 and APB 28-1 enhance the disclosure of instruments under the scope of SFAS 157 for both interim and annual periods. Autodesk does not believe the adoption of these Staff Positions will have a material effect on its consolidated financial position, results of operations |
3.Concentration of Credit Risks and Significant Customers | 3. Concentration of Credit Risks and Significant Customers It is Autodesks policy that its cash, cash equivalents and marketable securities are held with, and in the custody of, financial institutions with high credit standing. Autodesks primary commercial banking relationship is with Citibank and its global affiliates (Citibank). Autodesks cash and cash equivalents are held by diversified institutions globally. Citicorp USA, Inc., an affiliate of Citibank, is the lead lender and agent in the syndicate of the Companys $250.0 million U.S. line of credit. Citibank, like many financial institutions, has obtained government assistance. It is Autodesks policy to limit the amounts invested with any one institution by type of security and issuer. See further discussion in Note 4, Financial Instruments below. Total sales to the distributors Tech Data Corporation and its global affiliates (Tech Data) accounted for 14% and 17% of Autodesks consolidated net revenue for the first quarters of fiscal 2010 and 2009, respectively. The majority of the net revenue from sales to Tech Data relates to Autodesks Platform Solutions and Emerging Business segment and comes from outside the U.S. In addition, Tech Data accounted for 19% and 12% of gross accounts receivable at April30, 2009 and January31, 2009, respectively. |
4.Financial Instruments | 4. Financial Instruments Derivative Financial Instruments On February1, 2009, Autodesk adopted FASB Statement of Financial Accounting Standards No.161, Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement 133, (SFAS 161). The adoption of SFAS 161 had no financial impact on Autodesks consolidated financial statements and only required additional financial statement disclosures. Autodesk has applied the requirements of SFAS 161 on a prospective basis. Accordingly, disclosures related to interim periods prior to the date of adoption have not been presented. Under its risk management strategy, Autodesk uses derivative instruments to manage its short-term exposures to fluctuations in foreign currency exchange rates which exist as part of ongoing international business operations. Autodesks general practice is to use forward and option collar contracts to hedge a majority of transaction exposures denominated in euros, Japanese yen, Swiss francs, British pounds and Canadian dollars. These foreign currency instruments have maturities between one to 12 months in the future. Autodesk does not enter into any foreign exchange derivative instruments for trading or speculative purposes. Cash Flow Hedges Autodesk utilizes purchased foreign currency option collar contracts and forwards to reduce the exchange rate impact on a portion of the net revenue or operating expense of certain anticipated transactions. These option collar and forward contracts, which are designated and documented as cash flow hedges, qualify for special hedge accounting treatment under Statement of Financial Accounting Standards No.133, Accounting for Derivative Instruments and Hedging Activities (SFAS 133). The effectiveness of the cash flow hedge contracts is assessed quarterly using regression as well as other timing and probability criteria required by SFAS 133. For cash flow hedges designated for the quarter ending April30, 2009 time value was excluded from the assessment of hedge effectiveness. Changes in the excluded time value component of hedges designated for the quarter ended April30, 2009 were reported in Interest and other income (expense), net in the Companys Condensed Consolidated Statements of Operations. For cash flow hedges designated for periods after April30, 2009 time value is included in the assessment of hedge effectiveness and changes in the time value of these derivatives are recorded in Accumulated other comprehensive income (loss) in the Companys Condensed Consolidated Balance Sheets. To receive special hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge and the hedges are expected to be highly effective in offsetting changes to future cash flows on hedged transactions. The gains and losses on these hedges are included in Accumulated other comprehensive income (loss) and are reclassified into earnings at the time the forecasted revenue or expense is recognized. In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, Autodesk reclassifies the gain or loss on the related cash flow hed |
5.Stock-Based Compensation | 5. Stock-Based Compensation Stock Plans As of April30, 2009, Autodesk maintained two active stock plans for the purpose of granting stock awards to employees and to non-employee members of Autodesks Board of Directors: the 2008 Employee Stock Plan (2008 Plan), which is available only to employees, and the 2000 Directors Option Plan, as amended (2000 Plan), which is available only to non-employee directors. Additionally, there are six expired or terminated plans with options outstanding, including the 2006 Employee Stock Plan (2006 Plan), which was replaced by the 2008 Plan in March 2008. The 2008 Plan was approved by Autodesks stockholders in November 2007. Under this plan, 16.5million shares of Autodesk common stock, in addition to 0.5million shares that remained available for issuance under the 2006 Plan upon its expiration, were reserved for issuance. The 2008 Plan permits the grant of stock options, restricted stock awards and restricted stock units; however, no more than 2.5million of the shares reserved for issuance under the 2008 Plan may be issued pursuant to awards of restricted stock and restricted stock units. At April30, 2009, 7.2million shares were available for future issuance under the 2008 Plan. The 2008 Plan will expire in March 2011. The 2000 Plan, which was originally approved by the stockholders in June 2000, allows for an automatic annual grant of options to non-employee members of Autodesks Board of Directors. At April30, 2009, 0.8million shares were available for future issuance. The 2000 Plan will expire in March 2010. Autodesks Board of Directors adopted the 2010 Outside Directors Stock Plan on March12, 2009, and it is subject to the approval of the Companys shareholders at the Annual Shareholders meeting on June11, 2009. Options granted under the 2008 Plan and the 2000 Plan vest over periods ranging from one to four years and expire within four to seven years from the date of grant. The exercise price of all stock options granted under these plans was equal to the fair market value of the stock on the grant date. The following section, Stock Options, summarizes activity under Autodesks stock option plans. While there was no restricted stock awarded under Autodesks stock plans during the first quarter of fiscal 2010, there were 77,316 restricted stock units awarded during the first quarter of fiscal 2010. Stock Options: A summary of stock option activity for the first quarter of fiscal 2010 was as follows: Number of Shares Weighted average price per share (inthousands) Options outstanding at January31, 2009 26,818 $ 30.13 Granted 6,357 $ 14.70 Exercised (188 ) $ 8.50 Forfeited (671 ) $ 36.53 Expired (119 ) $ 35.18 Options outstanding at April30, 2009 32,197 $ 27.06 Options exercisable at April30, 2009 17,652 $ 26.45 Options available for grant at April30, 2009 8,006 The total pre-tax intrinsic value of options exercised during the first quarter of fiscal 2010 and 2009 was $1.6million and $12.0 million, respectively. |
6.Income Taxes | 6. Income Taxes Autodesks effective tax rate was negative 65% and 25% during the first quarter of fiscal 2010 and 2009, respectively. Autodesks effective tax rate during the first quarter of fiscal 2010 differs from the effective tax rate during the first quarter of fiscal 2009 primarily due to a $20.9 million discrete non-cash tax charge from recording a valuation allowance against certain California deferred tax assets partially offset by a discrete tax benefit of $7.7 million associated with the impairment of goodwill that were recorded during the first quarter of fiscal 2010. Excluding the impact of discrete tax items, the effective tax rate of negative 65% for the first quarter of fiscal 2010 is lower than the Federal statutory tax rate of 35% primarily due to foreign income taxes at lower rates and Federal and state research tax credits, partially offset by the impact of SFAS 123R. During the first quarter of fiscal 2010, the State of California enacted significant California tax law changes. As a result of the enacted legislation, the Company expects that in fiscal years 2012 and beyond the Companysincome subject to tax in California will be less than under prior tax law and accordinglyits California deferred tax assets are less likely to be realized. The Company recorded a net discrete tax charge of $20.9 million related to the re-measurement of the Companys California deferred tax assets to account for this change in tax law, as well as an increase in the valuation allowance for the Companys California deferred tax assets that existed as of January31, 2009. The Company will continue to assessits valuation allowance onits California deferred tax assets in future periods. At April30, 2009, Autodesk had net deferred tax assets of $134.9 million. The Company believes that it will generate sufficient future taxable income in appropriate tax jurisdictions to realize these assets. |
7.Restructuring Reserve | 7. Restructuring Reserve In the fourth quarter of fiscal 2009, Autodesk initiated a restructuring program in order to reduce operating costs. This program has reduced the number of employees by approximately 700 positions globally and will result in the consolidation of up to 27 leased facilities. In connection with this restructuring, Autodesk recorded charges totaling $16.5 million in the first quarter of fiscal 2010 related to the consolidation of fifteen leased facilities globally, and one-time termination benefits for the elimination of approximately 80 positions. These restructuring charges have been recorded in accordance with SFAS No.146, Accounting for Costs Associated with Exit or Disposal Activities. As of April30, 2009, of the $55.6 million in total accrued restructuring charges, $35.3 million has been paid. The remaining accrual associated with the termination benefits is expected to be substantially paid during the second quarter of fiscal 2010. Autodesk expects to pay the facility related liabilities through fiscal 2018. A summary of the restructuring and other costs by segment recognized during the three months ended April30, 2009 are as follows: EmployeeSeverance and Benefits Facilities Total Amounts incurred in the first quarter of fiscal 2010: Platform Solutions and Emerging Business $ 0.3 $ $ 0.3 Manufacturing 0.9 0.9 Architecture, Engineering and Construction Media and Entertainment 0.8 0.8 Unallocated(1) 3.3 11.2 14.5 Cummulative amount incurred as of April30, 2009 $ 5.3 $ 11.2 $ 16.5 (1) Includes employee severance and benefits and all facilities charges for corporate expenses that are managed outside the reportable segments. The following table summarizes the restructuring activity recorded in the Condensed Consolidated Balance Sheets under Other accrued liabilities during the three months ended April30, 2009: EmployeeSeverance and Benefits Facilities Total Accrued liability as of January31, 2009 $ 36.5 $ 7.4 $ 43.9 Charges 5.3 11.2 16.5 Payments (32.6 ) (2.8 ) (35.4 ) Adjustments(1) (2.0 ) (1.0 ) (3.0 ) Accrued liability as of April30, 2009 $ 7.2 $ 14.8 $ 22.0 (1) Adjustments include the impact of foreign currency translation. In May 2009, Autodesk approved and began implementing a new restructuring plan. See Note 18, Subsequent Events for additional information regarding this restructuring. If Autodesks revenue should continue to decline significantly the Company may further reduce its operating expenses to align them with its financial condition, including the possibility of a further restructuring. If additional actions are taken, Autodesk may incur additional costs which could negatively impact the Companys net income and cash flows from operating activities. |
8.Deferred Compensation | 8. Deferred Compensation At April30, 2009, Autodesk had marketable securities totaling $86.0 million, of which $22.8 million related to investments in debt and equity securities that are held in a rabbi trust under non-qualified deferred compensation plans. The total related deferred compensation liability was $22.8 million at April30, 2009, of which $1.6 million was classified as current and $21.2 million was classified as non-current liabilities. The value of debt and equity securities held in the rabbi trust at January31, 2009 was $19.9 million. The total related deferred compensation liability at January31, 2009 was $19.9 million, of which $1.2 million was classified as current and $18.7 million was classified as non-current liabilities. The current and non-current portions of the liability are recorded in the Condensed Consolidated Balance Sheets under Accrued compensation and Other liabilities, respectively. |
9.Computer Equipment, Software, Furniture and Leasehold Improvements, Net | 9. Computer Equipment, Software, Furniture and Leasehold Improvements, Net Computer software and hardware, leasehold improvements, furniture and equipment and the related accumulated depreciation were as follows: April30, 2009 January31, 2009 Computer software, at cost $ 128.2 $ 135.0 Computer hardware, at cost 109.0 103.1 Leasehold improvements, land and buildings, at cost 107.0 115.0 Furniture and equipment, at cost 42.2 41.6 386.4 394.7 Less: Accumulated depreciation (265.7 ) (274.1 ) Computer software, hardware, leasehold improvements, furniture and equipment, net $ 120.7 $ 120.6 |
10.Purchased Technologies, Net | 10. Purchased Technologies, Net Purchased technologies and the related accumulated amortization were as follows: April30, 2009 January31, 2009 Purchased technologies $ 302.4 $ 302.4 Less: Accumulated amortization (197.4 ) (189.1 ) Purchased technologies, net $ 105.0 $ 113.3 |
11.Goodwill | 11. Goodwill The changes in the carrying amount of goodwill during the first quarter of fiscal 2010 were as follows: Platform Solutionsand Emerging Business Architecture, Engineeringand Construction Manufacturing Media and Entertainment Total Balance as of January31, 2009 $ 36.3 $ 209.4 $ 275.8 $ 21.0 $ 542.5 Transfer of assets between segments (10.1 ) 10.1 Impairment (21.0 ) (21.0 ) Effect of foreign currency translation, purchase accounting adjustments and other (0.2 ) (0.6 ) (0.8 ) Balance as of April30, 2009 $ 26.2 $ 219.3 $ 275.2 $ $ 520.7 Autodesk recorded an impairment charge of approximately $21.0 million affecting the first quarter of fiscal 2010 representing the entire goodwill balance of the Media and Entertainment (ME) segment as of April30, 2009. This goodwill balance related to the ME segments fourth quarter fiscal 2009 acquisition of Softimage. In May 2009, the Company concluded that an impairment of goodwill had occurred as of April30, 2009 due to revisions to the Companys revenue and cash flow projections prepared in the second half of the first quarter of fiscal 2010 in response to the significant and sustained revenue declines it was experiencing in all segments and geographies in the first quarter of fiscal 2010. The revenue and cash flow projections were substantially impacted for all segments; the ME segment was the only segment which had a current fair value of its future discounted cash flows that fell below the carrying value of its assets. |
12.Borrowing Arrangements | 12. Borrowing Arrangements As of April30, 2009, Autodesk had $2.1 million of outstanding borrowings, which were recorded in Borrowings under line of credit on the balance sheet. Autodesk has two lines of credit, a U.S. line of credit and a China line of credit. Autodesks U.S. line of credit facility permits unsecured short-term borrowings of up to $250.0 million, and is available for working capital or other business needs. The credit agreement contains customary covenants, which could restrict liens, certain types of additional debt and dispositions of assets if Autodesk fails to maintain its financial covenants. The line of credit is syndicated with various financial institutions, including Citicorp USA, Inc., a Citibank affiliate, which is the primary lender and agent. Autodesk had no outstanding borrowings on this line at April30, 2009. This facility expires in August 2012. Autodesks China line of credit facility permits unsecured short-term borrowings of up to $5.0 million, and is available for working capital needs. At April30, 2009, Autodesk had $2.1 million of outstanding borrowings on this line of credit, which contains customary covenants. Autodesk drew on this line of credit during the first quarter of fiscal 2009 for working capital purposes. This facility has no contractual expiration. The weighted average interest rate on Autodesks line of credit facilities was 5.10% and 1.01% at April30, 2009 and January31, 2009, respectively. |
13.Commitments and Contingencies | 13. 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, but because potential future costs are highly variable, Autodesk is unable to estimate the maximum potential effect of these indemnifications on its future results of operations. In connection with the purchase, sale or license transactions 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 or guarantees have not been significant, but because potential future costs are highly variable, Autodesk is unable to estimate the maximum potential effect 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 Autodesks 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 The following is a summary of material pending matters for which there were material developments during the first quarter of fiscal 2010. During the fourth quarter of fiscal 2007, three stockholder derivative lawsuits were filed against Autodesk and certain of the Companys current and former directors and officers relating to its historical stock option practices and related accounting. On November20, 2006, the Company and certain of its current and former members of the Board were sued in U.S. Federal District Court for the Northern District of California in a stockholder derivative action, entitled Giles v. Bartz, et al., Case No. C06-8175 (the Giles Case). On December29, 2006, the Company, certain of its current and former members of the Board, and certain current and past executive officers were sued in U.S. Federal District Court for the Northern District of California in a stockholder derivative action, entitled Campion v. Sutton, et al., Case No. C06-07967. The Campion lawsuit was consolidated into the Giles Case and later voluntarily dismissed by the plaintiff on January31, 2007. On January9, 2007, the Company, certain of its current and former members of the Board, and current and former execut |
14.Stock Repurchase Program | 14. Stock Repurchase Program Autodesk has a stock repurchase program that helps offset the dilution to net income per share caused by the issuance of stock under the Companys employee stock plans and returns excess cash generated from its business to stockholders. During the first quarter of fiscal 2010 Autodesk did not repurchase or retire any shares of its common stock. As of April30, 2009, 16.1million shares remained available for repurchase under this program. The number of shares acquired and the timing of the purchases are based on several factors, including anticipated employee stock purchases during the period, the level of the Companys cash balances, general business and market conditions, the market price of Autodesk stock, cash on hand and available in the U.S., Company defined trading windows and other investment opportunities. |
15.Comprehensive Income (Loss) | 15. Comprehensive Income (Loss) The changes in the components of other comprehensive income (loss), net of taxes, were as follows: ThreemonthsendedApril30, 2009 2008 Net income (loss) $ (32.1 ) $ 94.6 Other comprehensive income (loss): Net gain on derivative instruments, net of taxes 3.2 Change in net unrealized loss on available-for-sale securities, net of tax benefit (0.1 ) Net change in cumulative foreign currency translation adjustment (1.7 ) 6.4 Other comprehensive income (loss) 1.5 6.3 Total comprehensive income (loss) $ (30.6 ) $ 100.9 During the first quarter of fiscal quarter 2010, Autodesk entered into foreign currency instruments to hedge its exposure to foreign currency exchange. These hedges resulted in $3.2 million of other comprehensive income as of April30, 2009. See Note 4, Financial Instruments, for further information regarding Autodesks foreign currency instruments. |
16.Net Income (Loss) Per Share | 16. Net Income (Loss) Per Share Basic net income (loss) per share is computed using the weighted average number of shares of common stock outstanding for the period, including restricted stock awards and excluding unvested stock options and restricted stock units. Diluted net income (loss) per share is based upon the weighted average shares of common stock outstanding for the period and dilutive potential common shares, including the effect of unvested stock options and restricted stock units under the treasury stock method. The following table sets forth the computation of the numerators and denominators used in the basic and diluted net income (loss) per share amounts: ThreemonthsEnded April30, 2009 2008 Numerator: Net income (loss) $ (32.1 ) $ 94.6 Denominator: Denominator for basic net income (loss) per shareweighted average shares 227.1 226.2 Effect of dilutive securities 6.4 Denominator for dilutive net income (loss) per share 227.1 232.6 Basic net income (loss) per share $ (0.14 ) $ 0.42 Diluted net income (loss) per share $ (0.14 ) $ 0.41 In accordance with the FASBs Statement of Financial Accounting Standards No.128, Earnings per Share, the computation of diluted net income (loss) per share does not include shares that are anti-dilutive under the treasury stock method because their exercise prices are higher than the average market value of Autodesks stock during the period. For the first quarter of fiscal 2010 and 2009, 31.2million and 13.8million potentially dilutive shares, respectively, were excluded from the computation of diluted net income per share. |
17.Segments | 17. Segments Autodesk has four reportable segments: Platform Solutions and Emerging Business (PSEB), Architecture, Engineering and Construction (AEC), Manufacturing (MFG, renamed from Manufacturing Solutions in February 2009) and Media and Entertainment (ME). Location Services, which Autodesk disposed of in February 2009, is not included in any of the above reportable segments, and is reflected as Other. In the first quarter of fiscal 2010 Autodesk reorganized its business to better align with its customers and accelerate product innovation. As part of this change there has been some product movement between business segments, including the movement of Geospatial and Process and Power design market products from PSEB to AEC. Certain reclassifications to segment revenue and gross profit have been made to prior year amounts to conform to the current presentation. Autodesk believes that reporting in these four segments is consistent with Statement of Financial Accounting Standards No.131, Disclosures about Segments of an Enterprise and Related Information (as amended). Autodesk has no material inter-segment revenue. The PSEB, AEC and MFG segments derive revenue from the sale of licenses for software products and services to customers who design, build, manage or own building, manufacturing and infrastructure projects. The ME segment derives revenue from the sale of products to creative professionals, post-production facilities, and broadcasters for a variety of applications, including feature films, television programs, commercials, music and corporate videos, interactive game production, web design and interactive web streaming. PSEB, consisting of Autodesks core platform, AutoCAD, underpins the Companys design offerings for all industries. AutoCAD provides a platform for Autodesks developer partners to build custom solutions for a range of diverse design-oriented markets and for AEC and MFG to offer tailored versions of AutoCAD for their markets. PSEBs revenue primarily includes revenue from sales of licenses of Autodesks 2D horizontal products, AutoCAD and AutoCAD LT. AEC solutions enable customers and their clients to reduce inefficiencies in building design, civil engineering, and construction. AEC solutions also support information needs across the project lifecycle. The segments solutions include advanced technology for building information modeling (BIM), AutoCAD-based design and documentation productivity software, and collaborative project management software. BIM, a paradigm for building and civil engineering design, documentation and construction, enables users to exchange and analyze complex design and construction information in digital form, and through its use enables users to design and construct more environmentally sustainable or green projects through analysis of land use, drainage patterns, materials, quantities, energy use, and lighting in a virtual model. AEC also includes technology developed specifically for Geospatial and Process and Power design markets. AECs revenue primarily includes revenue from the sales of licenses of Autodesk Revit products, AutoCAD Civil 3D and AutoCAD Architecture. MFG |
18.Subsequent Events | 18. Subsequent Events Autodesk approved and began implementing a new restructuring plan in May 2009. The restructuring plan is expected to result in a staff reduction of approximately 430 positions and consolidation of up to 32 leased facilities around the world in order to reduce Autodesks operating expenses. Autodesk anticipates incurring restructuring and impairment charges of $33 million to $40 million, of which, $20 million to $25 million would be for one-time employee termination benefits and $13 million to $15 million would be for facilities-related costs. Substantially all of these charges will be expensed in the second quarter of fiscal 2010, and third quarter of fiscal 2010. These charges would result in cash payments of approximately $31 million to $38 million, consisting of one-time employee termination and lease termination payments. |
Document Information
Document Information | |
3 Months Ended
Apr. 30, 2009 USD / shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Amendment Description | N.A. |
Document Period End Date | 2009-04-30 |
Entity Information
Entity Information (USD $) | |
3 Months Ended
Apr. 30, 2009 | |
Entity Information [Line Items] | |
Entity Registrant Name | AUTODESK INC |
Entity Central Index Key | 0000769397 |
Current Fiscal Year End Date | --01-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Public Float | $4,600,000,000 |
Entity Common Stock, Shares Outstanding | 228,408,965 |
Entity Listings [Line Items] | |
Trading Symbol | ADSK |