Deferred Compensation

6 Months Ended

Jul. 31, 2024

Compensation Related Costs [Abstract]

Deferred Compensation

Deferred Compensation

At July 31, 2024, Autodesk had investments in debt and equity securities that are held in a rabbi trust under non-qualified deferred compensation plans and a corresponding deferred compensation liability totaling $116 million. Of this amount, $12 million was classified as current and $104 million was classified as non-current in the Condensed Consolidated Balance Sheets. Of the $100 million related to the investments in a rabbi trust as of January 31, 2024, $10 million was classified as current and $90 million was classified as non-current. The current and non-current asset portions of the investments in debt and equity securities that are held in a rabbi trust under non-qualified deferred compensation plans are recorded in the Condensed Consolidated Balance Sheets under “Prepaid expenses and other current assets” and “Long-term other assets,” respectively. The current and non-current portions of the liability are recorded in the Condensed Consolidated Balance Sheets under “Accrued compensation” and “Long-term other liabilities,” respectively.

Costs to obtain a contract with a customer

Sales commissions earned by our internal sales personnel and our solution providers are considered incremental and recoverable costs of obtaining a contract with a customer. The ending balance of assets recognized from costs to obtain a contract with a customer was $240 million as of July 31, 2024, and $210 million as of January 31, 2024. These assets are recorded in “Prepaid expenses and other current assets” and “Long-term other assets” in the Condensed Consolidated Balance Sheet. Of the total amount as of July 31, 2024, $133 million was recorded in “Prepaid expenses and other current assets” and $107 million was recorded in “Long-term other assets” in the Condensed Consolidated Balance Sheets. Amortization expense related to assets recognized from costs to obtain a contract with a customer was $44 million and $85 million during the three and six months ended July 31, 2024, respectively. Amortization expense related to assets recognized from costs to obtain a contract with a customer was $33 million and $63 million during the three and six months ended July 31, 2023, respectively. Autodesk did not recognize any contract cost impairment losses during the three and six months ended July 31, 2024 and 2023.