Deferred Compensation

3 Months Ended

Apr. 30, 2018

Deferred Compensation Arrangements [Abstract]

Deferred Compensation

Deferred Compensation

At April 30, 2018, Autodesk had marketable securities totaling $371.4 million, of which $59.4 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 $59.4 million at April 30, 2018, of which $2.9 million was classified as current and $56.5 million was classified as non-current liabilities. The total related deferred compensation liability at January 31, 2018, was $59.0 million, of which $3.4 million was classified as current and $55.6 million was classified as non-current liabilities. The securities are recorded in the Condensed Consolidated Balance Sheets under the current portion of "Marketable securities." The current and non-current portions of the liability are recorded in the Condensed Consolidated Balance Sheets under “Accrued compensation” and “Other liabilities,” respectively.

Costs to obtain a contract with a customer

Sales commissions earned by our internal sales personnel and our reseller partners are considered incremental and recoverable costs of obtaining a contract with a customer. The commission costs are capitalized and included in prepaid expenses and other current assets on our consolidated balance sheet. The deferred costs are then amortized over the period of benefit. Autodesk determined that sales commissions earned by internal sales personnel that are related to contract renewals are commensurate with sales commissions earned on the initial contract, but commissions paid to our reseller partners that are related to contract renewals are not. We determined the estimated period of benefit by taking into consideration our sales compensation plans, customer retention data, customer contracts, our technology and other factors. Deferred costs are periodically reviewed for impairment. Amortization expense is included in sales and marketing expenses in the Condensed Consolidated Statements of Operations.

The ending balance of assets recognized from costs to obtain a contract with a customer was $93.3 million as of April 30, 2018. Amortization expense related to assets recognized from costs to obtain a contract with a customer was $26.2 million during the three months ended April 30, 2018. Autodesk did not recognize any contract cost impairment losses during the three months ended April 30, 2018.