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Revenue Recognition | 12 Months Ended
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Jan. 31, 2020
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | Revenue Recognition Revenue Disaggregation Autodesk recognizes revenue from the sale of (1) product subscriptions, cloud service offerings, and EBAs, (2) renewal fees for existing maintenance plan agreements that were initially purchased with a perpetual software license, and (3) consulting, training and other goods and services. The three categories are presented as line items on Autodesk's Consolidated Statements of Operations. Information regarding the components of Autodesk's net revenue from contracts with customers by geographic location, product family, and sales channel is as follows:
| Fiscal Year ended January 31,
| 2020 |  | 2019 |  | 2018
Net revenue by product family: |  |  |  |  |
Architecture, Engineering and Construction | $ | 1,377.1 |  |  | $ | 1,021.6 |  |  | $ | 787.5 |
Manufacturing | 726.1 |  |  | 616.2 |  |  | 528.8 |
AutoCAD and AutoCAD LT | 948.2 |  |  | 731.8 |  |  | 561.4 |
Media and Entertainment | 199.2 |  |  | 182.0 |  |  | 152.1 |
Other | 23.7 |  |  | 18.2 |  |  | 26.8 |
Total net revenue | $ | 3,274.3 |  |  | $ | 2,569.8 |  |  | $ | 2,056.6 |
Net revenue by geographic area: |  |  |  |  |
Americas |  |  |  |  |
U.S. | $ | 1,108.9 |  |  | $ | 874.6 |  |  | $ | 740.4 |
Other Americas | 226.9 |  |  | 175.3 |  |  | 130.7 |
Total Americas | 1,335.8 |  |  | 1,049.9 |  |  | 871.1 |
Europe, Middle East and Africa | 1,303.5 |  |  | 1,034.3 |  |  | 815.4 |
Asia Pacific | 635.0 |  |  | 485.6 |  |  | 370.1 |
Total net revenue | $ | 3,274.3 |  |  | $ | 2,569.8 |  |  | $ | 2,056.6 |
Net revenue by sales channel: |  |  |  |  |
Indirect | $ | 2,282.2 |  |  | $ | 1,830.8 |  |  | $ | 1,443.8 |
Direct | 992.1 |  |  | 739.0 |  |  | 612.8 |
Total net revenue | $ | 3,274.3 |  |  | $ | 2,569.8 |  |  | $ | 2,056.6 |
Payments for product subscriptions, industry collections, cloud subscriptions, and maintenance subscriptions are typically due up front with payment terms of 30 to 45 days. Payments on EBAs are typically due in annual installments over the contract term, with payment terms of 30 to 60 days. Autodesk does not have any material variable consideration, such as obligations for returns, refunds, warranties or amounts payable to customers for which significant estimation or judgment is required as of the reporting date. Remaining performance obligations consist of total billed and unbilled deferred revenue. As of January 31, 2020, Autodesk had remaining performance obligations of $3.6 billion, which represents the total contract price allocated to remaining performance obligations, which are generally recognized over the next three years. We expect to recognize $2.4 billion or 67% of our remaining performance obligations as revenue during the next 12 months. We expect to recognize the remaining $1.2 billion or 33% of our remaining performance obligations as revenue thereafter. The amount of remaining performance obligations may be impacted by the specific timing, duration and size of customer subscription and support agreements, varying billing cycles of such agreements, the specific timing of customer renewals, and foreign currency fluctuations. Contract Balances We receive payments from customers based on a billing schedule as established in our contracts. Contract assets relate to performance completed in advance of scheduled billings. Contract assets were not material as of January 31, 2020. Deferred revenue relates to billings in advance of performance under the contract. The primary changes in our contract assets and deferred revenues are due to our performance under the contracts and billings. Revenue recognized during the fiscal year ended January 31, 2020 and 2019, that was included in the deferred revenue balances at January 31, 2019 and 2018, was $1.8 billion and $1.5 billion, respectively. The satisfaction of performance obligations typically lags behind payments received under revenue contracts from customers. Revenue from contracts with customers adopted in Fiscal 2019 Effective in the first quarter of fiscal 2019, Autodesk adopted ASU No. 2014-09, “Revenue from Contracts with Customers" regarding Accounting Standards Codification (ASC Topic 606)” and the subsequent and related ASU No. 2015-14, ASU No. 2016-08, ASU No. 2016-10, ASU No. 2016-12, and ASU No. 2016-20. Under ASC Topic 606, the Company has concluded that the desktop software and related substantial cloud functionality that are included in the majority of its product subscription offerings and enterprise arrangements are not distinct in the context of the contract as they are considered highly interrelated and represent a single combined performance obligation that should be recognized over time. Therefore, the adoption of ASC Topic 606 has not resulted in a material change in the timing and amount of the recognition of revenue for the majority of the Company's product subscription offerings and enterprise arrangements. One impact of the new standard relates to product subscriptions that do not incorporate substantial cloud functionality. A limited number of Autodesk's product subscriptions do not incorporate substantial cloud functionality, and therefore are not considered highly interrelated. Under ASU No. 2014-09, these limited number of product subscriptions are recognized as separate and distinct license and service performance obligations. Under ASU No. 2009-13, "Revenue Recognition" regarding Accounting Standards Codification (ASC Topic 605), licenses sold with undelivered elements without vendor-specific objective evidence ("VSOE") are recognized ratably over the term of the undelivered elements. Under ASC Topic 606, Autodesk is no longer required to establish VSOE to recognize software license revenue separately from the other elements and recognizes software licenses once the customer obtains control of the license, which is generally upon delivery of the license. Therefore, revenue allocated to the licenses in these offerings under ASC Topic 606 is recognized at a point in time instead of over the contract term. Autodesk adopted ASC Topic 606 using the modified retrospective method, with a cumulative decrease of $89.0 million to the opening balance of "Accumulated deficit" at February 1, 2018. Autodesk applied the standard only to contracts that are not completed as of the date of initial application. The comparative information has not been adjusted and continues to be reported under ASC Topic 605. The details of the quantitative impact of the adoption on the fiscal year ended January 31, 2019, are shown below. Costs to acquire a contract from a customer With the adoption of ASC Topic 606, Autodesk also adopted ASC Topic 340-40, "Other Assets and Deferred Costs—Contracts with Customers." Prior to the adoption of ASC Topic 340-40, Autodesk previously recognized compensation paid to sales employees and certain resellers related to obtaining customer contracts in marketing and sales expense in the Consolidated Statements of Operations when incurred. Under ASC Topic 340-40, Autodesk capitalizes this sales compensation as contract costs when they are incremental, directly incurred to obtain a contract with a customer and expected to be recoverable. The contract costs are amortized based on the transfer of goods or services to which the contract costs relate. Under the modified retrospective method, Autodesk booked a cumulative decrease of $90.4 million to the opening balance of "Accumulated deficit" at February 1, 2018. The comparative information has not been adjusted and continues to be reported as incurred. The details of the quantitative impact of the adoption on the fiscal year ended January 31, 2019, are shown below. See Note 7, "Deferred Compensation" for disclosures under the new standard. Quantitative effect of ASC Topics 606 and 340-40 adoption Under the modified retrospective adoption, Autodesk calculated the impact of the adoption during fiscal 2019, as the first year of adoption. 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.
Adoption of the standard had no impact to net cash provided by or (used in) operating, financing, or investing activities on the Company’s Consolidated Statements of Cash Flows.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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