Business and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jan. 31, 2019

Accounting Policies [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

Accounts receivable, net, consisted of the following as of January 31:

	2019			2018
Trade accounts receivable	$	526.6		$	469.2
Less: Allowance for doubtful accounts	(2.2		)	(2.3		)
Product returns reserve	(0.3		)	(0.2		)
Partner programs and other obligations	(49.8		)	(28.5		)
Accounts receivable, net (1)	$	474.3		$	438.2

_______________

(1)

Autodesk adopted ASU No. 2014-09, “Revenue from Contracts with Customers" regarding Accounting Standards Codification (ASC Topic 606) during the first quarter of fiscal 2019. As such, current year balances are shown under ASC Topic 606 and prior year balances are shown under ASC Topic 605. See Note 1, "Business and Summary of Significant Accounting Policies-Accounting Standards Adopted", of our consolidated financial statements for additional information.

Property, Plant and Equipment

Computer equipment, software, furniture, leasehold improvements and the related accumulated depreciation at January 31 were as follows:

	2019			2018
Computer hardware, at cost	$	190.2		$	217.1
Computer software, at cost	66.7			72.6
Leasehold improvements, land and buildings, at cost	247.8			228.9
Furniture and equipment, at cost	67.2			63.4
Computer software, hardware, leasehold improvements, furniture, and equipment, at cost	571.9			582.0
Less: Accumulated depreciation	(422.2		)	(437.0		)
Computer software, hardware, leasehold improvements, furniture, and equipment, net	$	149.7		$	145.0

Schedule of Finite-Lived Intangible Assets by Major Class

Other intangible assets and related accumulated amortization at January 31 were as follows:

	2019			2018
Developed technologies, at cost	$	670.2		$	578.5
Customer relationships, trade names, patents, and user lists, at cost (1)	533.1			372.5
Other intangible assets, at cost (2)	1,203.3			951.0
Less: accumulated amortization	(922.5		)	(895.8		)
Other intangible assets, net	$	280.8		$	55.2

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(1) Included in “Other assets” in the accompanying Consolidated Balance Sheets.

(2)

Includes the effects of foreign currency translation.

Schedule of Expected Amortization Expense

Excluding in-process research and development, expected future amortization expense for developed technologies, customer relationships, trade names, patents, and user lists for each of the fiscal years ended thereafter is as follows:

	Fiscal Year ended January 31,
2020	$	73.6
2021	64.8
2022	49.1
2023	37.6
Thereafter	19.2
Total	$	244.3

Schedule of Goodwill

The following table summarizes the changes in the carrying amount of goodwill during the fiscal years ended January 31, 2019 and 2018:

	January 31, 2019			January 31, 2018
Goodwill, beginning of the year	$	1,769.4		$	1,710.3
Less: accumulated impairment losses, beginning of the year	(149.2		)	(149.2		)
Additions arising from acquisitions during the year	866.9			—
Effect of foreign currency translation, measurement period adjustments, and other (1)	(36.3		)	59.1
Goodwill, end of the year	$	2,450.8		$	1,620.2

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(1) Purchase accounting adjustments reflect revisions made to the Company’s preliminary determination of estimated fair value of assets and liabilities assumed during fiscal 2019 and 2018.

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

The following table summarizes stock-based compensation expense for fiscal 2019, 2018, and 2017, respectively, as follows:

	Fiscal Year Ended January 31,
	2019			2018			2017
Cost of subscription and maintenance revenue	$	13.2		$	11.9		$	8.6
Cost of other revenue	4.3			4.0			5.5
Marketing and sales	109.4			107.3			94.1
Research and development	82.6			82.9			81.3
General and administrative	40.0			55.3			32.3
Stock-based compensation expense related to stock awards and Employee Qualified Stock Purchase Plan ("ESPP") purchases	249.5			261.4			221.8
Tax benefit	(2.6		)	(2.6		)	(2.6		)
Stock-based compensation expense related to stock awards and ESPP purchases, net	$	246.9		$	258.8		$	219.2

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award

Autodesk uses the following assumptions to estimate the fair value of stock-based awards:

	Fiscal Year Ended			Fiscal Year Ended		Fiscal Year Ended
	January 31, 2019			January 31, 2018		January 31, 2017
	Stock Option Plans	Performance Stock Unit	ESPP	Performance Stock Unit	ESPP	Performance Stock Unit	ESPP
Range of expected volatilities	37 - 42%	36%	33 - 38%	32%	31 - 34%	38 - 39%	30 - 40%
Range of expected lives (in years)	0.5 - 3.8	N/A	0.5 - 2.0	N/A	0.5 - 2.0	N/A	0.5 - 2.0
Expected dividends	—%	—%	—%	—%	—%	—%	—%
Range of risk-free interest rates	2.3 - 2.7%	2.0%	1.9 - 2.8%	1.0 - 1.2%	0.9 - 1.4%	0.6 - 0.7%	0.5 - 0.9%

Schedule of New Accounting Pronouncements

The following table shows select line items that were materially impacted by the adoption of ASC Topics 606 and 340-40 on Autodesk’s Consolidated Statements of Operations for the fiscal year ended January 31, 2019:

	For the Fiscal Year ended January 31, 2019
	As reported			Impact from the adoption of ASC 606 and 340-40			As adjusted
Net revenue (1)
Subscription	$	1,802.3		$	(16.6	)	$	1,785.7
Maintenance	635.1			5.7			640.8
Other	132.4			(11.3		)	121.1
Cost of revenue (1)
Cost of subscription and maintenance revenue	216.0			(0.1		)	215.9
Cost of other revenue	54.4			1.1			55.5
Operating expenses (1):
Marketing and sales	1,183.9			(17.9		)	1,166.0
Provision for income taxes	(38.1		)	(4.8		)	(42.9		)
Net loss (2)	$	(80.8	)	$	(10.1	)	$	(90.9	)
Basic net loss per share	$	(0.37	)	$	(0.05	)	$	(0.42	)
Diluted net loss per share	$	(0.37	)	$	(0.05	)	$	(0.42	)

____________________ 

(1) While not shown here, gross margin, loss from operations, and loss before income taxes have consequently been affected as a result of the net effect of the adjustments noted above.

(2) The impact on the Consolidated Statements of Comprehensive Loss is limited to the net effects of the impacts noted above on the Consolidated Statements of Operations, specifically on the line item "Net loss."

The following table shows select line items that were materially impacted by the adoption of ASC Topics 606 and 340-40 on Autodesk’s Consolidated Balance Sheet as of January 31, 2019:

	As reported			Impact from the adoption of ASC 606 and 340-40			As adjusted
ASSETS
Current assets:
Accounts receivable, net	$	474.3		$	73.4		$	547.7
Prepaid expenses and other current assets (1)	192.1			(79.4		)	112.7
Deferred income taxes, net	65.3			7.0			72.3
Other assets (1)	337.8			(17.9		)	319.9
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Deferred revenue	1,763.3			140.6			1,903.9
Other accrued liabilities	142.3			1.7			144.0
Long-term deferred revenue	328.1			37.2			365.3
Long-term income taxes payable	21.5			(0.2		)	21.3
Long-term deferred income taxes	79.8			(6.7		)	73.1
Stockholders’ deficit:
Accumulated deficit (2)	$	(2,147.4	)	$	(189.5	)	$	(2,336.9	)

____________________ 

(1) Short term and long term "contract assets" under ASC Topic 606 are included within "Prepaid expenses and other current assets" and "Other assets", respectively, on the Consolidated Balance Sheet.

(2)

Included in the "Accumulated deficit" adjustment is $179.4 million for the cumulative effect adjustment of adopting ASC Topic 606 and 340-40 on the opening balance as of February 1, 2018.