Statement Of Income
Statement Of Income (USD $) | ||||
In Millions, except Per Share data | 3 Months Ended
Jul. 31, 2009 | 3 Months Ended
Jul. 31, 2008 | 6 Months Ended
Jul. 31, 2009 | 6 Months Ended
Jul. 31, 2008 |
Net revenue: | ||||
License and other | $231 | 440.2 | 474.6 | 872.4 |
Maintenance | 183.9 | 179.3 | 366.1 | 345.9 |
Total net revenue | 414.9 | 619.5 | 840.7 | 1218.3 |
Costs of revenue: | ||||
Cost of license and other revenue | 47.1 | 57.6 | 96.6 | 113.6 |
Cost of maintenance revenue | 3 | 2.1 | 5.8 | 4.1 |
Total cost of revenue | 50.1 | 59.7 | 102.4 | 117.7 |
Gross profit | 364.8 | 559.8 | 738.3 | 1100.6 |
Operating expenses: | ||||
Marketing and sales | 176.4 | 230.2 | 360.3 | 455.7 |
Research and development | 109.8 | 154.8 | 231.4 | 300.4 |
General and administrative | 49.5 | 56 | 99.5 | 105.8 |
Restructuring charges | 26.4 | 0 | 42.9 | 0 |
Impairment of goodwill | 0 | 0 | 21 | 0 |
Total operating expenses | 362.1 | 441 | 755.1 | 861.9 |
Income (loss) from operations | 2.7 | 118.8 | -16.8 | 238.7 |
Interest and other income, net | 10.7 | 6.3 | 10.7 | 13.2 |
Income (loss) before income taxes | 13.4 | 125.1 | -6.1 | 251.9 |
Provision for income taxes | -2.9 | -35.3 | -15.6 | -67.5 |
Net income (loss) | 10.5 | 89.8 | -21.7 | 184.4 |
Basic net income (loss) per share | 0.05 | 0.4 | -0.09 | 0.82 |
Diluted net income (loss) per share | 0.05 | 0.39 | -0.09 | 0.8 |
Shares used in computing basic net income (loss) per share | 228.9 | 224.2 | 228 | 225.2 |
Shares used in computing diluted net income (loss) per share | 232.3 | 231.1 | 228 | 232.1 |
Statement Of Financial Position
Statement Of Financial Position Classified (USD $) | ||
In Millions | Jul. 31, 2009
| Jan. 31, 2009
|
Current assets: | ||
Cash and cash equivalents | 668.5 | 917.6 |
Marketable securities | 267.9 | 63.5 |
Accounts receivable, net | 223.9 | 316.5 |
Deferred income taxes | 48.3 | 31.1 |
Prepaid expenses and other current assets | 58.7 | 59.3 |
Total current assets | 1267.3 | 1,388 |
Marketable securities | 92.3 | 7.6 |
Computer equipment, software, furniture and leasehold improvements, net | 118.3 | 120.6 |
Purchased technologies, net | 96.7 | 113.3 |
Goodwill | 525.5 | 542.5 |
Long term deferred income taxes, net | 92.7 | 125.7 |
Other assets | 118.3 | 123 |
Assets, Total | 2311.1 | 2420.7 |
Current liabilities: | ||
Accounts payable | 56.7 | 62.4 |
Accrued compensation | 88.4 | 124.3 |
Accrued income taxes | 17.9 | 16.7 |
Deferred revenue | 424.4 | 438.8 |
Borrowings under line of credit | 0 | 52.1 |
Other accrued liabilities | 74.3 | 105.8 |
Total current liabilities | 661.7 | 800.1 |
Deferred revenue | 77.5 | 113.3 |
Long term income taxes payable | 122.5 | 116.9 |
Long term deferred income taxes | 0 | 22.7 |
Other liabilities | 64.3 | 57 |
Commitments and contingencies | 0 | 0 |
Stockholders' equity: | ||
Preferred stock | 0 | 0 |
Common stock and additional paid-in capital | 1166.6 | 1080.4 |
Accumulated other comprehensive loss | -1.4 | -11.2 |
Retained earnings | 219.9 | 241.5 |
Total stockholders' equity | 1385.1 | 1310.7 |
Liabilities and Stockholders' Equity, Total | 2311.1 | 2420.7 |
Statement Of Cash Flows Indirec
Statement Of Cash Flows Indirect (USD $) | ||
In Millions | 6 Months Ended
Jul. 31, 2009 | 6 Months Ended
Jul. 31, 2008 |
Operating Activities | ||
Net income (loss) | -21.7 | 184.4 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 55.5 | 39.1 |
Stock-based compensation expense | 44.4 | 48.4 |
Restructuring related charges, net | 42.9 | 0 |
Impairment of goodwill | 21 | 0 |
Gain on disposition of assets | -2.3 | 0 |
Charge for acquired in-process research and development | 0 | 16.8 |
Changes in operating assets and liabilities, net of business combinations | -65.3 | 111.6 |
Net cash provided by operating activities | 74.5 | 400.3 |
Investing Activities | ||
Purchases of marketable securities | -298.2 | -5.6 |
Sales of marketable securities | 1.4 | 4.7 |
Maturities of marketable securities | 14.3 | 0 |
Capital expenditures | -24.3 | -39.9 |
Purchase of equity investment | (10) | 0 |
Business combinations, net of cash acquired | 0 | -263.9 |
Net cash used in investing activities | -316.8 | -304.7 |
Financing Activities | ||
Draws on line of credit | 2.2 | 690 |
Repayments of line of credit | -54.3 | (570) |
Proceeds from issuance of common stock, net of issuance costs | 44.1 | 50.1 |
Repurchases of common stock | 0 | -256.6 |
Net cash used in financing activities | (8) | -86.5 |
Effect of exchange rate changes on cash and cash equivalents | 1.2 | 2.6 |
Net increase (decrease) in cash and cash equivalents | -249.1 | 11.7 |
Cash and cash equivalents at beginning of fiscal year | 917.6 | 917.9 |
Cash and cash equivalents at end of period | 668.5 | 929.6 |
Notes to Financial Statements
Notes to Financial Statements | |
6 Months Ended
Jul. 31, 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 July31, 2009, and for the three and six months ended July31, 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 July31, 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 and Corrections For the quarter ended April30, 2009, certain operating expenses were misclassified in the statement of operations. For the six month period ended July31, 2009, these expenses have been corrected in the statement of operations, which included reclassifying expenses from marketing and sales, and research and development to general and administrative expenses. The net of these changes are as follows: Increase(decrease) toexpenseforthe fiscalquarterended April30,2009 Marketing and sales $ (1.9 ) Research and development (2.6 ) General and administrative 4.5 Certain reclassifications to segment gross profit have been made to prior year amounts to conform to the current presentation. See Note 18, Segments for additional information regarding these reclassifications. |
2.Recently Issued Accounting Standards | 2. Recently Issued Accounting Standards With the exception of those discussed below, there have been no recent accounting pronouncements or changes in accounting pronouncements during the six months ended July31, 2009, as compared to the accounting pronouncements described in Autodesks Annual Report on Form10-K for the fiscal year ended January31, 2009, that are of significance, or potential significance, to the Company. In April2009, the Financial Accounting Standards Board (FASB) issued three related FASB Staff Positions (FSP): (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). FSP 157-4 provides guidance on how to determine the fair value of assets and liabilities under SFAS 157, Fair Value Measurements (SFAS 157) 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 adopted these FSPs during the quarter ended July31, 2009. The adoption did not have a material effect on the Companys consolidated financial position, results of operations or cash flows. In May 2009, the FASB issued SFAS 165 Subsequent Events. SFAS 165 establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. Autodesk adopted the provisions of SFAS 165 during the quarter ended July31, 2009. Since SFAS 165 only requires additional disclosures, the adoption did not have an impact on Autodesks consolidated financial position, results of operations or cash flows. Autodesk has evaluated, and disclosed as appropriate, subsequent events through August 28, 2009, which represents the date the financial statements were issued. In June 2009, the FASB issued The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles (SFAS 168). This statement |
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 cash and cash equivalents are held by diversified institutions globally. Autodesks primary commercial banking relationship is with Citibank and its global affiliates (Citibank). In addition, 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. It is Autodesks policy to limit the amounts invested with any one institution by type of security and issuer. Total sales to the distributors Tech Data Corporation and its global affiliates (Tech Data) accounted for 14% of Autodesks consolidated net revenue for the three months ended July31, 2009 and 2008. Sales to Tech Data represented 14% and 15% of Autodesks consolidated net revenue for the six months ended July31, 2009 and 2008, 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 16% and 12% of gross accounts receivable at July31, 2009 and January31, 2009, respectively. |
4.Financial Instruments and Hedging Activities | 4. Financial Instruments and Hedging Activities Financial Instruments Market values were determined for each individual security in the investment portfolio. The cost and fair value of Autodesks financial instruments are as follows: July31, 2009 January31, 2009 Cost FairValue Cost FairValue Cash and cash equivalents $ 668.5 $ 668.5 $ 917.6 $ 917.6 Marketable securities - short-term 277.6 267.9 68.0 63.5 Marketable securities - long-term 93.6 92.3 9.0 7.6 Foreign currency option contracts 0.3 2.0 2.4 2.1 Autodesk classifies its marketable securities as either short-term or long-term based on each instruments underlying contractual maturity date. Marketable securities with maturities of less than 12 months are classified as short-term and marketable securities with maturities greater than 12 months are classified as long-term. Autodesk may sell certain of its marketable securities prior to their stated maturities for strategic purposes, in anticipation of credit deterioration, or for duration management. Marketable securities include the following securities at July31, 2009 and January31, 2009: July31, 2009 Cost Gross unrealized gains Gross unrealized losses Estimated FairValue Short-term available-for-sale securities: Commercial paper and corporate securities $ 95.8 $ $ $ 95.8 Certificates of deposit and time deposits 47.2 47.2 U.S. treasury securities 44.0 44.0 U.S. government agency securities 33.0 33.0 Money market funds 22.5 (4.5 ) 18.0 Municipal securities 2.4 2.4 Available-for-sale equity securities 1.6 1.6 Short-term trading securities: Mutual funds 31.1 0.1 (5.3 ) 25.9 $ 277.6 $ 0.1 $ (9.8 ) $ 360.2 Long-term available-for-sale securities: Commercial paper and corporate securities $ 71.0 $ 0.2 $ (0.1 ) $ 71.1 Taxable auction-rate securities 9.0 (1.4 ) 7.6 U.S. government agency securities 6.1 6.1 Municipal securities 4.7 4.7 U.S. treasury securities 2.8 2.8 $ 93.6 $ 0.2 $ (1.5 ) $ 360.2 January 31, 2009 Cost Gross unrealized gains Gross unrealized losses Estimated FairValue Short-term: Mutual funds $ 57.7 $ $ (4.5 ) $ 53.2 Bank time deposits 10.3 10.3 $ 68.0 $ $ (4.5 ) $ 63.5 Long-term: Taxable auction-rate securities $ 9.0 $ $ (1.4 ) $ 7.6 $ 9.0 $ $ (1.4 ) $ 7.6 The sales of available-for-sale securities resulted in n |
5.Fair Value Measurements | 5. Fair Value Measurements SFAS 157 clarifies that fair value is an exit price, representing the amount that would be received upon the sale of an asset, or the amount paid to transfer a liability in an orderly transaction between market participants.As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability.As a basis for considering such assumptions, SFAS 157 establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly in active markets; and (Level 3) unobservable inputs in which there is little or no market data, which require Autodesk to develop its own assumptions. SFAS 157 requires Autodesk to maximize its use of observable market data, and to minimize its use of unobservable inputs when determining fair value. On a recurring basis, Autodesk measures at fair value certain financial assets and liabilities, which consist of cash equivalents, marketable securities and foreign currency contracts. The Companys investments held in the Reserve Funds are designated as Level 3 securities. The Company conducted its fair value assessment of the Reserve Funds using Level 2 and Level 3 inputs. Management has reviewed the Reserve Funds underlying securities portfolio which is substantially comprised of term deposits, money market funds, U.S. treasury bills and commercial paper. These securities are issued by highly-rated institutions.Normally, the Company would classify such investments within Level 2 of the fair value hierarchy. Management evaluated the fair value of its unit interest in the Reserve Funds, considering risk of collection, timing and other factors. These assumptions are inherently subjective and involve significant management judgment. As a result, the Company has classified its holdings in the Reserve Funds within Level 3 of the fair value hierarchy. Autodesks investments in auction rate securities are classified within Level3 because they are valued using a pricing model, and some of the inputs to this model are unobservable in the market. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table summarizes Autodesks investments and financial instruments measured at fair value on a recurring basis as of July31, 2009: Fair Value Measurements at July31, 2009 Using QuotedPrices inActive Marketsfor IdenticalAssets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Assets Cash equivalents(1) : Certificates of deposit and time deposits $ $ 221.2 $ $ 221.2 Commercial paper and corporate securities 197.1 197.1 U.S. treasury securities 30.0 30.0 U.S. government agency securities 20.0 20.0 Money market funds 3.6 3.6 |
6.Stock-Based Compensation | 6. Stock-Based Compensation Stock Plans As of July31, 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. 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 Employee Stock Plan upon its expiration in March 2008, 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 July31, 2009, 7.3million 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 July31, 2009, 0.7million shares were available for future issuance. The 2000 Plan will expire in March 2010. On June11, 2009, Autodesks stockholders approved the 2010 Outside Directors Stock Plan (2010 Plan), which will become effective March16, 2010. The 2010 Plan reserves 2.5million shares of Autodesk common stock, plus up to 0.5million shares available but not previously granted under the 2000 Plan. The 2010 Plan permits the grant of stock options and restricted stock awards to non-employee members of Autodesks Board of Directors. The 2010 Plan will expire in March 2020. 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 sections, Stock Options and Restricted Stock, summarize activity under Autodesks stock plans. Stock Options: A summary of stock option activity for the six months ended July31, 2009 was as follows: Number of Shares Weighted averageprice pershare (inthousands) Options outstanding at January31, 2009 26,818 $ 30.13 Granted 6,588 $ 14.98 Exercised (1,605 ) $ 12.54 Forfeited (819 ) $ 34.04 Expired (754 ) Options outstanding at July31, 2009 30,228 $ 27.50 Options exercisable at July31, 2009 17,446 $ 28.95 Options available for grant at July31, 2009 7,935 The total pre-tax intrinsic value of options exercised during the three months ended July31, 2009 and 2008 was $11.2million and $19.9 million, respectively. For the |
7.Income Taxes | 7. Income Taxes Autodesks effective tax rate was 22% during the three months ended July31, 2009, and negative 256% during the six months ended July31, 2009, compared to 28% and 27% in the respective periods of the prior fiscal year. Autodesks effective tax rate decreased 6% during the three months ended July31, 2009 as compared to the same period in the prior fiscal year primarily due to non-deductible in-process research and development expense recorded during the second quarter of fiscal 2009. Autodesks effective tax rate decreased 283% during the six months ended July31, 2009 as compared to the same period in the prior fiscal year as a result of a $20.9 million discrete non-cash tax charge from recording a valuation allowance against California deferred tax assets offset by a discrete tax benefit of $7.7 million associated with the impairment of goodwill recorded during the first quarter of fiscal 2010, and the tax impact of non-deductible in-process research and development expenses recorded during the second quarter of fiscal 2009. Excluding the impact of discrete tax items, the effective tax rates for the three and six month periods ended July31, 2009 are lower than the Federal statutory tax rate of 35% primarily due to foreign income taxed at lower rates and Federal and state research tax credits partially offset by the impact of SFAS 123R Share-based Payment. 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. During the first quarter of fiscal 2010, 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 assessthe valuation allowance onits California deferred tax assets in future periods. The amount of unrecognized tax benefits was determined in accordance with FASB Financial Interpretation No.48, Accounting for Uncertainty in Income Taxes-an interpretation of FASB Statement No.109 (FIN 48).As of July31, 2009, the Company had $188.8 million of gross unrecognized tax benefits, excluding interest, of which approximately $178.0 million represents the amount of unrecognized tax benefits that would impact the effective tax rate, if recognized. The remaining $10.8 million relates to items that would result in balance sheet reclassification only, with no impact to income tax expense. It is possible that the amount of unrecognized tax benefits will change in the next twelve months; however an estimate of the range of the possible change cannot be made at this time. At July31, 2009, Autodesk had net deferred tax assets of $141.0 million. The Company believes that it will generate sufficient future taxable income in appro |
8.Restructuring Reserve | 8. Restructuring Reserve In the fourth quarter of fiscal 2009, Autodesk initiated a restructuring program in order to reduce operating costs. This program reduced the number of employees by approximately 700 positions globally and will result in the consolidation of up to 27 leased facilities. In the second quarter of fiscal 2010, Autodesk initiated an additional restructuring program, which will result in a staff reduction of approximately 430 positions globally and the consolidation of up to 32 leased facilities around the world in order to reduce Autodesks operating expenses. The restructuring program, and resulting staff reductions and facilities consolidations, initiated during the quarter ended July31, 2009 is in addition to that initiated in the fourth quarter of fiscal 2009. In connection with these restructuring plans, Autodesk recorded restructuring and impairment charges of $26.4 million and $42.9 million during the three and six months ended July31, 2009, respectively. Of these amounts, $15.5 million and $19.4 million was recorded for one-time employee termination benefits during the three and six months ended July31, 2009, respectively, and $10.9 million and $23.5 million was recorded for facilities-related and other costs during the three and six months ended July31, 2009, respectively. The remainder of the termination benefits will substantially be paid during the third quarter of fiscal 2010. Autodesk expects to pay the facility related liabilities through fiscal 2018. The following table summarizes the restructuring activity recorded in the Condensed Consolidated Balance Sheets during the six months ended July31, 2009: Balance at January31,2009 Additions Payments Adjustments(1) Balanceat July31,2009 Fiscal 2010 Plan Employee Severance and Benefits $ $ 16.3 $ (12.4 ) $ (0.4 ) $ 3.5 Facilities and Other 9.3 (0.8 ) 8.5 Fiscal 2009 Plan Employee Severance and Benefits 35.4 5.8 (36.8 ) (2.3 ) 2.1 Facilities and Other 2.8 10.8 (3.2 ) 10.4 Other Employee Severance and Benefits 0.9 (0.5 ) (0.4 ) Facilities and Other 4.8 (1.4 ) (0.4 ) 3.0 $ 43.9 $ 42.2 $ (55.1 ) $ (3.5 ) $ 27.5 Current portion(2) $ 38.4 $ 16.3 Non-current portion(2) 5.5 11.2 $ 43.9 $ 27.5 (1) Adjustments include the impact of foreign currency translation. (2) The current and non-current portion of the reserve is recorded in the Condensed Consolidated Balance Sheet under Other accrued liabilities and Other liabilities, respectively. 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 o |
9.Deferred Compensation | 9. Deferred Compensation At July31, 2009, Autodesk had marketable securities totaling $360.2 million, of which $25.9 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 $25.9 million at July31, 2009, of which $1.8 million was classified as current and $24.1 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. |
10.Computer Equipment, Software, Furniture and Leasehold Improvements, Net | 10. 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: July31, 2009 January31, 2009 Computer software, at cost $ 126.4 $ 135.0 Computer hardware, at cost 108.2 103.1 Leasehold improvements, land and buildings, at cost 107.4 115.0 Furniture and equipment, at cost 42.0 41.6 384.0 394.7 Less: Accumulated depreciation (265.7 ) (274.1 ) Computer software, hardware, leasehold improvements, furniture and equipment, net $ 118.3 $ 120.6 |
11.Purchased Technologies, Net | 11. Purchased Technologies, Net Purchased technologies and the related accumulated amortization were as follows: July31, 2009 January31, 2009 Purchased technologies $ 303.4 $ 302.4 Less: Accumulated amortization (206.7 ) (189.1 ) Purchased technologies, net $ 96.7 $ 113.3 |
12.Goodwill | 12. Goodwill The changes in the carrying amount of goodwill during the six months ended July31, 2009 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 2.5 1.5 4.0 Balance as of July31, 2009 $ 26.2 $ 222.0 $ 277.3 $ $ 525.5 Autodesk recorded an impairment charge of $21.0 million during 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 substantially all of the assets 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 that had a current fair value of its future discounted cash flows that fell below the carrying value of its assets. When assessing goodwill for impairment, Autodesk uses discounted cash flow models which include assumptions regarding projected cash flows (Income Approach) and corroborates it with the estimated consideration which the Company would receive if there were to be a sale of the reporting segment (Market Approach). Variances in these assumptions could have a significant impact on Autodesks conclusion as to whether goodwill is impaired, or the amount of any impairment charge. Impairment charges, if any, result from instances where the fair values of net assets associated with goodwill are less than their carrying values. The process of evaluating the potential impairment of goodwill is subjective and requires significant judgment at many points during the analysis. The value of Autodesks goodwill could also be impacted by future adverse changes such as: (i)declines in Autodesks actual operating results, (ii)a sustained decline in Autodesks market capitalization, (iii)further significant slowdown in the worldwide economy or the industries Autodesk serves, or (iv)changes in Autodesks business strategy or internal operating results forecasts. As of July31, 2009, a hypothetical 10% decrease in the fair value of Autodesks reporting units would not have an impact on the carrying value of goodwill nor result in additional impairment of goodwill. |
13.Borrowing Arrangements | 13. Borrowing Arrangements 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 July31, 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 July31, 2009, Autodesk had no outstanding borrowings on this line of credit, which contains customary covenants. This facility has no contractual expiration. The weighted average interest rate on Autodesks line of credit facilities was 1.01% at January31, 2009. Autodesk had no borrowings outstanding on either the U.S. or China line of credit at July31, 2009. |
14.Commitments and Contingencies | 14. 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 three and six months ended July31, 2009. 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 November 20, 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 January 9, 2007, the Company, certain of its current and former members of the Board, and current and f |
15.Stock Repurchase Program | 15. 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. Autodesk did not repurchase or retire any shares of its common stock during the three and six month periods ended July31, 2009. As of July31, 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. |
16.Comprehensive Income (Loss) | 16. Comprehensive Income (Loss) The changes in the components of other comprehensive income (loss), net of taxes, were as follows: ThreemonthsendedJuly31, SixmonthsendedJuly31, 2009 2008 2009 2008 Net income (loss) $ 10.5 $ 89.8 $ (21.7 ) $ 184.4 Other comprehensive income (loss): Net loss on derivative instruments, net of taxes (7.1 ) (3.8 ) Change in net unrealized loss on available-for-sale securities, net of tax benefit 0.2 0.2 (0.1 ) Net change in cumulative foreign currency translation adjustment 15.2 (0.1 ) 13.5 6.3 Other comprehensive income (loss) 8.3 (0.1 ) 9.9 6.2 Total comprehensive income (loss) $ 18.8 $ 89.7 $ (11.8 ) $ 190.6 During the three and six months ended July31, 2009, Autodesk entered into foreign currency instruments to hedge its exposure to foreign currency exchange. These hedges resulted in $7.1 million and $3.8 million of other comprehensive loss during the three and six months ended July31, 2009, respectively. See Note 4, Financial Instruments and Hedging Activities, for further information regarding Autodesks foreign currency instruments. |
17.Net Income (Loss) Per Share | 17. 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 July31, Sixmonthsended July31, 2009 2008 2009 2008 Numerator: Net income (loss) $ 10.5 $ 89.8 $ (21.7 ) $ 184.4 Denominator: Denominator for basic net income (loss) per shareweighted average shares 228.9 224.2 228.0 225.2 Effect of dilutive securities 3.4 6.9 6.9 Denominator for dilutive net income (loss) per share 232.3 231.1 228.0 232.1 Basic net income (loss) per share $ 0.05 $ 0.40 $ (0.09 ) $ 0.82 Diluted net income (loss) per share $ 0.05 $ 0.39 $ (0.09 ) $ 0.80 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 three months ended July31, 2009 and 2008, 22.3million and 15.8million potentially dilutive shares, respectively, were excluded from the computation of diluted net income per share. For the six months ended July31, 2009 and 2008, 31.4million and 14.7million potentially dilutive shares, respectively, were excluded from the computation of diluted net income per share. |
18.Segments | 18. Segments Autodesk reports segment information based on the management approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Companys reportable segments. Autodesk has four reportable segments: Platform Solutions and Emerging Business (PSEB), Architecture, Engineering and Construction (AEC), Manufacturing (MFG) 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. 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 provides the manufacturing industry with comprehensive design, data management and digital prototyping solutions, enabling customers to rapidly adopt 3D model-based design, create and validate designs in simple 2D or 3D environments, and manage designs from the conceptual design phase through the manufacturing phase. MFGs revenue primarily includes revenue from the sales of licenses of Autodesk Inventor products, AutoCAD Mechanical and Autodesk Moldflow. ME is comprised of two p |
Document Information
Document Information | |
6 Months Ended
Jul. 31, 2009 USD / shares | |
Document Information [Text Block] | |
Document Type | 10-Q |
Amendment Flag | false |
Amendment Description | N.A. |
Document Period End Date | 2009-07-31 |
Entity Information
Entity Information (USD $) | |||
6 Months Ended
Jul. 31, 2009 | Aug. 21, 2009
| Jul. 31, 2008
| |
Entity [Text Block] | |||
Trading Symbol | ADSK | ||
Entity Registrant Name | AUTODESK INC | ||
Entity Central Index Key | 0000769397 | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 229,732,680 | ||
Entity Public Float | $4,600,000,000 |