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Financial Instruments | 12 Months Ended
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Jan. 31, 2016
Investments, All Other Investments [Abstract] |
Financial Instruments | Financial Instruments The following tables summarize the Company's financial instruments' amortized cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category as of January 31, 2016 and 2015.
|  |  | January 31, 2016
|  |  | Amortized Cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Cash equivalents (1): |  |  |  |  |  |  |  |  |  |  |  |  |
| Agency bonds | $ | 8.5 |  |  | $ | — |  |  | $ | — |  |  | $ | 8.5 |  |  | $ | 8.5 |  |  | $ | — |  |  | $ | — |
| Certificates of deposit | 267.6 |  |  | — |  |  | — |  |  | 267.6 |  |  | 267.6 |  |  | — |  |  | — |
| Commercial paper | 106.6 |  |  | — |  |  | — |  |  | 106.6 |  |  | — |  |  | 106.6 |  |  | — |
| Custody cash deposit | 2.1 |  |  | — |  |  | — |  |  | 2.1 |  |  | 2.1 |  |  | — |  |  | — |
| Money market funds | 382.4 |  |  | — |  |  | — |  |  | 382.4 |  |  | — |  |  | 382.4 |  |  | — |
| Municipal bonds | 5.0 |  |  | — |  |  | — |  |  | 5.0 |  |  | 5.0 |  |  | — |  |  | — |
| U.S. treasury bills | 103.0 |  |  | — |  |  | — |  |  | 103.0 |  |  | 103.0 |  |  | — |  |  | — |
Marketable securities: |  |  |  |  |  |  |  |  |  |  |  |  |
| Short-term available for sale |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Asset backed securities | 7.3 |  |  | — |  |  | — |  |  | 7.3 |  |  | — |  |  | 7.3 |  |  | — |
|  | Certificates of deposit | 190.3 |  |  | — |  |  | — |  |  | 190.3 |  |  | 190.3 |  |  | — |  |  | — |
|  | Commercial paper | 141.1 |  |  | — |  |  | — |  |  | 141.1 |  |  | — |  |  | 141.1 |  |  | — |
|  | Corporate debt securities | 377.1 |  |  | 0.1 |  |  | (0.3 | ) |  | 376.9 |  |  | 376.9 |  |  | — |  |  | — |
|  | Municipal bonds | 9.7 |  |  | — |  |  | — |  |  | 9.7 |  |  | 9.7 |  |  | — |  |  | — |
|  | Sovereign debt | 20.1 |  |  | — |  |  | — |  |  | 20.1 |  |  | — |  |  | 20.1 |  |  | — |
|  | U.S. government agency bonds | 40.0 |  |  | — |  |  | (0.1 | ) |  | 39.9 |  |  | 39.9 |  |  | — |  |  | — |
|  | U.S. treasury bills | 74.6 |  |  | — |  |  | — |  |  | 74.6 |  |  | 74.6 |  |  | — |  |  | — |
| Short-term trading securities |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Mutual funds | 38.8 |  |  | 0.4 |  |  | (1.2 | ) |  | 38.0 |  |  | 38.0 |  |  | — |  |  | — |
| Long-term available for sale |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Agency bonds | 56.8 |  |  | 0.1 |  |  | — |  |  | 56.9 |  |  | 56.9 |  |  | — |  |  | — |
|  | Asset backed securities | 36.5 |  |  | 0.1 |  |  | — |  |  | 36.6 |  |  | — |  |  | 36.6 |  |  | — |
|  | Corporate debt securities | 320.9 |  |  | 0.3 |  |  | (0.8 | ) |  | 320.4 |  |  | 320.4 |  |  | — |  |  | — |
|  | Municipal securities | 2.9 |  |  | — |  |  | — |  |  | 2.9 |  |  | 2.9 |  |  | — |  |  | — |
|  | Sovereign debt | 16.9 |  |  | — |  |  | — |  |  | 16.9 |  |  | — |  |  | 16.9 |  |  | — |
|  | U.S. government agency securities | 98.4 |  |  | 0.3 |  |  | (0.1 | ) |  | 98.6 |  |  | 98.6 |  |  | — |  |  | — |
Convertible debt securities (2) | 2.5 |  |  | 2.0 |  |  | (1.1 | ) |  | 3.4 |  |  | — |  |  | — |  |  | 3.4 |
Derivative contracts (3) | 1.5 |  |  | 7.8 |  |  | (7.4 | ) |  | 1.9 |  |  | — |  |  | 1.6 |  |  | 0.3 |
|  | Total | $ | 2,310.6 |  |  | $ | 11.1 |  |  | $ | (11.0 | ) |  | $ | 2,310.7 |  |  | $ | 1,594.4 |  |  | $ | 712.6 |  |  | $ | 3.7 |
____________________
(1) | Included in “Cash and cash equivalents” in the accompanying Consolidated Balance Sheets.
(2) | Considered "available for sale" and included in "Other assets" in the accompanying Consolidated Balance Sheets.
(3) | Included in “Prepaid expenses and other current assets,” "Other assets," or “Other accrued liabilities” in the accompanying Consolidated Balance Sheets.
|  |  | January 31, 2015
|  |  | Amortized Cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Cash equivalents (1): |  |  |  |  |  |  |  |  |  |  |  |  |
| Certificates of deposit | $ | 258.6 |  |  | $ | — |  |  | $ | — |  |  | $ | 258.6 |  |  | $ | 258.6 |  |  | $ | — |  |  | $ | — |
| Commercial paper | 161.0 |  |  | — |  |  | — |  |  | 161.0 |  |  | — |  |  | 161.0 |  |  | — |
| Corporate bond | 11.5 |  |  | — |  |  | — |  |  | 11.5 |  |  | 11.5 |  |  | — |  |  | — |
| Custody cash deposit | 141.5 |  |  | — |  |  | — |  |  | 141.5 |  |  | 141.5 |  |  | — |  |  | — |
| Money market funds | 127.3 |  |  | — |  |  | — |  |  | 127.3 |  |  | — |  |  | 127.3 |  |  | — |
Marketable securities: |  |  |  |  |  |  |  |  |  |  |  |  |
| Short-term available for sale |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Agency bonds | 37.9 |  |  | — |  |  | — |  |  | 37.9 |  |  | 37.9 |  |  | — |  |  | — |
|  | Certificates of deposit | 101.9 |  |  | — |  |  | — |  |  | 101.9 |  |  | 101.9 |  |  | — |  |  | — |
|  | Commercial paper | 258.4 |  |  | — |  |  | — |  |  | 258.4 |  |  | — |  |  | 258.4 |  |  | — |
|  | Corporate debt securities | 148.0 |  |  | 0.1 |  |  | (0.1 | ) |  | 148.0 |  |  | 148.0 |  |  | — |  |  | — |
|  | Municipal bond | 29.2 |  |  | 0.1 |  |  | — |  |  | 29.3 |  |  | 29.3 |  |  | — |  |  | — |
| Short-term trading securities |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Mutual funds | 36.9 |  |  | 3.4 |  |  | — |  |  | 40.3 |  |  | 40.3 |  |  | — |  |  | — |
| Long-term available for sale |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Agency bond | 50.6 |  |  | 0.2 |  |  | — |  |  | 50.8 |  |  | 50.8 |  |  | — |  |  | — |
|  | Corporate debt securities | 199.4 |  |  | 0.6 |  |  | (0.2 | ) |  | 199.8 |  |  | 199.8 |  |  | — |  |  | — |
|  | Municipal securities | 13.3 |  |  | 0.1 |  |  | — |  |  | 13.4 |  |  | 13.4 |  |  | — |  |  | — |
|  | U.S. government agency securities | 8.9 |  |  | 0.1 |  |  | — |  |  | 9.0 |  |  | 9.0 |  |  | — |  |  | — |
Convertible debt securities (2) | 4.7 |  |  | 2.5 |  |  | (2.1 | ) |  | 5.1 |  |  | — |  |  | — |  |  | 5.1 |
Derivative contracts (3) | 3.5 |  |  | 19.5 |  |  | (7.0 | ) |  | 16.0 |  |  | — |  |  | 15.1 |  |  | 0.9 |
|  | Total | $ | 1,592.6 |  |  | $ | 26.6 |  |  | $ | (9.4 | ) |  | $ | 1,609.8 |  |  | $ | 1,042.0 |  |  | $ | 561.8 |  |  | $ | 6.0 |
____________________
(1) | Included in “Cash and cash equivalents” in the accompanying Consolidated Balance Sheets.
(2) | Considered "available for sale" securities and included in "Other assets" in the accompanying Consolidated Balance Sheets.
(3) | Included in “Prepaid expenses and other current assets,” "Other assets," or “Other accrued liabilities” in the accompanying Consolidated Balance Sheets.
Autodesk classifies its marketable securities as either short-term or long-term based on each instrument’s underlying contractual maturity date. Marketable securities with remaining maturities of less than 12 months are classified as short-term and marketable securities with remaining 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 or in anticipation of credit deterioration. Autodesk applies fair value accounting for certain financial assets and liabilities, which consist of cash equivalents, marketable securities, and other financial instruments, on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and (Level 3) unobservable inputs for which there is little or no market data, which require Autodesk to develop its own assumptions. When determining fair value, Autodesk uses observable market data and relies on unobservable inputs only when observable market data is not available. There have been no transfers between fair value measurement levels during the year ended January 31, 2016. Autodesk's cash equivalents, marketable securities, and financial instruments are primarily classified within Level 1 or Level 2 of the fair value hierarchy. Autodesk values it's available for sale securities on pricing from pricing vendors, who may use quoted prices in active markets for identical assets (Level 1) or inputs other than quoted prices that are observable either directly or indirectly in determining fair value (Level 2). Autodesk's Level 2 securities are valued primarily using observable inputs other than quoted prices in active markets for identical assets and liabilities. Autodesk's Level 3 securities consist of investments held in auction rate securities, convertible debt securities, and derivative contracts which are valued using probability weighted discounted cash flow models and some of the inputs to the models are unobservable in the market. A reconciliation of the change in Autodesk’s Level 3 items for the fiscal years ended January 31, 2016 and 2015 was as follows:
| Fair Value Measurements Using Significant Unobservable Inputs
| (Level 3)
|  | Derivative Contracts |  | Convertible Debt Securities |  | Total
Balances, January 31, 2014 |  | $ | 9.1 |  |  | $ | 20.2 |  |  | $ | 29.3 |
Purchases |  | 0.1 |  |  | 0.6 |  |  | 0.7 |
Settlements |  | (0.8 | ) |  | (3.0 | ) |  | (3.8 | )
Losses included in interest and other expense |  | (7.5 | ) |  | (13.3 | ) |  | (20.8 | )
Gains included in OCI |  | — |  |  | 0.6 |  |  | 0.6 |
Balances, January 31, 2015 |  | 0.9 |  |  | 5.1 |  |  | 6.0 |
Purchases |  | 4.3 |  |  | 6.2 |  |  | 10.5 |
Settlements |  | (5.9 | ) |  | (8.3 | ) |  | (14.2 | )
Gains included in interest and other expense |  | 1.0 |  |  | — |  |  | 1.0 |
Gains included in OCI |  | — |  |  | 0.4 |  |  | 0.4 |
Balances, January 31, 2016 |  | $ | 0.3 |  |  | $ | 3.4 |  |  | $ | 3.7 |
The following table summarizes the estimated fair value of Autodesk's “available-for-sale securities” classified by the contractual maturity date of the security:
| January 31, 2016
| Cost |  | Fair Value
Due in 1 year | $ | 849.2 |  |  | $ | 849.0 |
Due in 1 year through 5 years | 542.5 |  |  | 543.2 |
Due in 5 years through 10 years | 3.4 |  |  | 3.4 |
Total | $ | 1,395.1 |  |  | $ | 1,395.6 |
As of January 31, 2016 and 2015, Autodesk did not have any material securities in a continuous unrealized loss position for greater than twelve months. As of January 31, 2016 and 2015 Autodesk had $104.3 million and $52.6 million, respectively, in direct investments of privately held companies accounted for under the cost method. The increase from fiscal 2015 was primarily due to an approximately $27.4 million investment in FIT AG that was entered into simultaneously with the netfabb GmbH acquisition. Refer to Note 5. "Acquisitions" for further discussion regarding the acquisition and investment. The privately held investments are periodically assessed for other-than-temporary impairment. If Autodesk determines that an other-than-temporary impairment has occurred, Autodesk writes down the investment to its estimated fair value. Autodesk estimates fair value of its cost method investments considering available information such as pricing in recent rounds of financing, current cash positions, earnings and cash flow forecasts, recent operational performance, and any other readily available market data. During fiscal 2016, Autodesk recorded $0.2 million in other-than-temporary impairment on its privately held equity and debt investments. During fiscal 2015, Autodesk recorded $19.2 million other-than-temporary impairment on its privately held equity and debt investments. The impairment expense was recorded in “Interest and other expense, net” on the Company's Consolidated Statement of Operations. The sales or settlement of “available-for-sale securities” in fiscal 2016, 2015, and 2014 resulted in a gain of $0.1 million, a gain of $0.7 million, and a loss of $0.2 million, respectively. The losses and gains were recorded in "Interest and other expense, net" on the Company's Consolidated Statement of Operations. Proceeds from the sale and maturity of marketable securities for fiscal 2016 and fiscal 2015 were $1.7 billion and $1.2 billion, respectively. Derivative Financial Instruments Under its risk management strategy, Autodesk uses derivative instruments to manage its short-term exposures to fluctuations in foreign currency exchange rates that exist as part of ongoing business operations. Autodesk's general practice is to hedge a portion of transaction exposures denominated in euros, Japanese yen, Swiss francs, British pounds, Canadian dollars and Australian dollars. These instruments have maturities between one to twelve months in the future. Autodesk does not enter into derivative instrument transactions for trading or speculative purposes. The bank counterparties to the derivative contracts potentially expose Autodesk to credit-related losses in the event of their nonperformance. However, to mitigate that risk, Autodesk only contracts with counterparties who meet the Company's minimum requirements under its counterparty risk assessment process. Autodesk monitors ratings, credit spreads, and potential downgrades on at least a quarterly basis. Based on Autodesk's on-going assessment of counterparty risk, the Company will adjust its exposure to various counterparties. Autodesk generally enters into master netting arrangements, which reduce credit risk by permitting net settlement of transactions with the same counterparty. However, Autodesk does not have any master netting arrangements in place with collateral features. Foreign currency contracts designated as cash flow hedges Autodesk uses foreign currency contracts to reduce the exchange rate impact on a portion of the net revenue or operating expense of certain anticipated transactions. These contracts are designated and documented as cash flow hedges. The effectiveness of the cash flow hedge contracts is assessed quarterly using regression analysis as well as other timing and probability criteria. To receive cash flow 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 gross gains and losses on these hedges are included in “Accumulated other comprehensive 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 hedge from “Accumulated other comprehensive loss” to “Interest and other expense, net” in the Company's Consolidated Financial Statements at that time. The net notional amount of these contracts are presented net settled and were $142.4 million at January 31, 2016 and $336.6 million at January 31, 2015. Outstanding contracts are recognized as either assets or liabilities on the Consolidated Balance Sheet at fair value. The majority of the net gain of $15.7 million remaining in “Accumulated other comprehensive loss” as of January 31, 2016 is expected to be recognized into earnings within the next twelve months. Derivatives not designated as hedging instruments Autodesk uses foreign currency contracts which are not designated as hedging instruments to reduce the exchange rate risk associated primarily with foreign currency denominated receivables and payables. These forward contracts are marked-to-market at the end of each fiscal quarter with gains and losses recognized as “Interest and other expense, net.” These derivative instruments do not subject the Company to material balance sheet risk due to exchange rate movements because gains and losses on these derivative instruments are intended to offset the gains or losses resulting from the settlement of the underlying foreign currency denominated receivables and payables. The net notional amounts of these foreign currency contracts are presented net settled and were $231.6 million at January 31, 2016 and $44.6 million at January 31, 2015. From time to time and consistent with its risk management policy, Autodesk also uses derivative instruments to hedge its economic exposure related to committed, in-process acquisitions priced in foreign currency. Such derivatives do not qualify for hedge accounting and are marked-to-market through earnings, with any gain or loss reflected immediately in “Interest and other expense, net,” in each period. In addition to these foreign currency contracts, Autodesk holds derivative instruments issued by privately held companies, which are not designated as hedging instruments. These derivatives consist of certain conversion options on the convertible debt securities held by Autodesk and an option to acquire a privately held company. These derivatives are recorded at fair value as of each balance sheet date and are recorded in “Other assets.” Changes in the fair values of these instruments are recognized in income as “Interest and other expense, net.” Fair Value of Derivative Instruments: The fair value of derivative instruments in Autodesk’s Consolidated Balance Sheets were as follows as of January 31, 2016 and January 31, 2015:
| Balance Sheet Location |  | Fair Value at
| January 31, 2016 |  | January 31, 2015
Derivative Assets |  |  |  |  |
Foreign currency contracts designated as cash flow hedges | Prepaid expenses and other current assets (1) |  | $ | 3.4 |  |  | $ | 20.4 |
Derivatives not designated as hedging instruments | Prepaid expenses and other current assets and Other assets |  | 4.9 |  |  | 0.9 |
Total derivative assets |  |  | $ | 8.3 |  |  | $ | 21.3 |
Derivative Liabilities |  |  |  |  |
Foreign currency contracts designated as cash flow hedges | Other accrued liabilities (2) |  | $ | 3.4 |  |  | $ | 5.4 |
Derivatives not designated as hedging instrument | Other accrued liabilities |  | 3.0 |  |  | — |
Total derivative liabilities |  |  | $ | 6.4 |  |  | $ | 5.4 |
_______________
(1) | Considering Autodesk's master netting arrangements, these contracts are presented net settled. The gross balance is $5.1 million and $23.8 million at January 31, 2016 and January 31, 2015, respectively.
(2) | Considering Autodesk's master netting arrangements, these contracts are presented net settled. The gross balance is $5.1 million and $8.7 million at January 31, 2016 and January 31, 2015, respectively.
The effects of derivatives designated as hedging instruments on Autodesk’s Consolidated Statements of Operations were as follows for the fiscal years ended January 31, 2016, 2015, and 2014, respectively (amounts presented include any income tax effects):
| Foreign Currency Contracts
| Fiscal Year Ended January 31,
| 2016 |  | 2015 |  | 2014
Amount of gain recognized in accumulated other comprehensive income on derivatives (effective portion) | $ | 2.2 |  |  | $ | 46.4 |  |  | $ | 12.2 |
Amount and location of gain reclassified from accumulated other comprehensive income into income (effective portion) |  |  |  |  |
Net revenue | $ | 39.8 |  |  | $ | 10.5 |  |  | $ | 13.1 |
Operating expenses | (10.5 | ) |  | (3.5 | ) |  | (1.6 | )
Total | $ | 29.3 |  |  | $ | 7.0 |  |  | $ | 11.5 |
Amount and location of (loss) gain recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) |  |  |  |  |
Interest and other expense, net | $ | (0.7 | ) |  | $ | 0.9 |  |  | $ | (0.1 | )
The effects of derivatives not designated as hedging instruments on Autodesk’s Consolidated Statements of Operations were as follows for the fiscal years ended January 31, 2016, 2015, and 2014, respectively (amounts presented include any income tax effects):
| Foreign Exchange Contracts
| Fiscal Year Ended January 31,
| 2016 |  | 2015 |  | 2014
Amount and location of (loss) gain recognized in income on derivatives not designated as hedging instruments |  |  |  |  |
Interest and other expense, net | $ | (1.7 | ) |  | $ | (25.5 | ) |  | $ | 12.8 |

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- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
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