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Income Tax | 6 Months Ended
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Jul. 31, 2016
Income Tax Disclosure [Abstract] |
Income Tax | Income Tax Autodesk's income tax expense was $25.2 million and $269.5 million for the three months ended July 31, 2016 and 2015, respectively, relative to a pre-tax loss of $73.0 million and pre-tax income of $0.9 million, respectively, for the same periods. Autodesk's income tax expense was $39.6 million and $272.2 million for the six months ended July 31, 2016 and 2015, respectively, relative to a pre-tax loss of $226.3 million and pre-tax income of $22.7 million, respectively, for the same periods. The decrease in income tax expense was primarily due to the valuation allowance that was established during the three months ended July 31, 2015. Income tax expense consists primarily of foreign taxes and U.S. tax expense related to indefinite-lived intangibles. Autodesk regularly assesses the need for a valuation allowance against its deferred tax assets. In making that assessment, Autodesk considers both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized. In evaluating the need for a valuation allowance, Autodesk considered cumulative losses in the United States arising from the Company's business model transition as a significant piece of negative evidence and established a valuation allowance against the Company’s deferred tax assets in the three months ended July 31, 2015. Subsequently, Autodesk determined that it had understated income tax expense by $33.1 million for the three and six months ended July 31, 2015, primarily related to an error in the establishment of the valuation allowance, which had been understated at July 31, 2015. Autodesk evaluated the materiality of the error, quantitatively and qualitatively, and concluded it was not material to the Company’s condensed consolidated financial statements for the quarter ended July 31, 2015 but chose to correct the error by revising the previously reported results for the three and six months ended July 31, 2015. The following table summarizes the impact of adjusting the condensed consolidated income statement balances presented for the three and six months ended July 31, 2015:
| As previously reported |  |  |  | As adjusted
(In millions, except per share data) | Three Months Ended July 31, 2015 |  | Adjustment |  | Three Months Ended July 31, 2015
Provision for income tax | $ | (236.4 | ) |  | $ | (33.1 | ) |  | $ | (269.5 | )
Net loss | (235.5 | ) |  | (33.1 | ) |  | (268.6 | )
Basic and diluted net loss per share | $ | (1.04 | ) |  | $ | (0.14 | ) |  | $ | (1.18 | )
| Six Months Ended July 31, 2015 |  | Adjustment |  | Six Months Ended July 31, 2015
Provision for income tax | $ | (239.1 | ) |  | $ | (33.1 | ) |  | $ | (272.2 | )
Net loss | (216.4 | ) |  | (33.1 | ) |  | (249.5 | )
Basic and diluted net loss per share | $ | (0.95 | ) |  | $ | (0.15 | ) |  | $ | (1.10 | )
The following table summarizes the impact of adjusting the Condensed Consolidated Balance Sheet balances as of July 31, 2015:
| As previously reported |  |  |  | As adjusted
(In millions) | July 31, 2015 |  | Adjustment |  | July 31, 2015
Current deferred tax liabilities (1) | $ | 8.3 |  |  | $ | 1.2 |  |  | $ | 9.5 |
Accrued income taxes | 52.3 |  |  | (29.4 | ) |  | 22.9 |
Long-term deferred tax liabilities | 28.9 |  |  | 25.1 |  |  | 54.0 |
Long-term income tax payable | 124.0 |  |  | 36.2 |  |  | 160.2 |
Retained earnings | $ | 164.4 |  |  | $ | (33.1 | ) |  | $ | 131.3 |
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(1) | Included in "Other accrued liabilities" in the accompanying Condensed Consolidated Balance Sheets.
As of July 31, 2016, the Company had $261.6 million of gross unrecognized tax benefits, excluding interest, of which approximately $246.9 million represents the amount of unrecognized tax benefits that would impact the effective tax rate, if recognized. However, this rate impact would be offset to the extent that recognition of unrecognized tax benefits currently presented as a reduction of deferred tax assets would increase the valuation allowance. 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. During the three months ended July 31, 2016, the Company proposed a settlement of a tax audit in China covering certain transfer pricing matters from 2004-2013. The settlement is currently under review by the State Administration of Taxation. The estimated tax liability, including interest, is approximately $11.4 million for the years under audit and calendar years 2014 and 2015. The Company accrued this tax liability during the three months ended July 31, 2016. The Internal Revenue Service has notified the Company that it intends to begin an examination of the Company's U.S. consolidated federal income tax returns for fiscal years 2014 and 2015. While it is possible that the Company's tax positions may be challenged, the Company believes its positions are consistent with the tax law, and the balance sheet reflects appropriate liabilities for uncertain federal tax positions for the years to be examined.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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