XML 21 R11.htm IDEA: XBRL DOCUMENT
v3.20.2

Financial Instruments | 6 Months Ended
--- | ---
Jul. 31, 2020
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 July 31, 2020, and January 31, 2020:
|  |  | July 31, 2020
|  | (in millions) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Cash equivalents (1): |  |  |  |  |  |  |  |  |  |  |  |  |
| Commercial paper | $ | 36.0 |  |  | $ | — |  |  | $ | — |  |  | $ | 36.0 |  |  | $ | — |  |  | $ | 36.0 |  |  | $ | — |
| Money market funds | 712.3 |  |  | — |  |  | — |  |  | 712.3 |  |  | 712.3 |  |  | — |  |  | — |
| Other (2) | 2.5 |  |  | — |  |  | — |  |  | 2.5 |  |  | 2.0 |  |  | 0.5 |  |  | — |
Marketable securities: |  |  |  |  |  |  |  |  |  |  |  |  |
| Short-term available for sale |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Other (3) | 6.0 |  |  | — |  |  | — |  |  | 6.0 |  |  | — |  |  | 6.0 |  |  | — |
| Short-term trading securities |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Mutual funds (4) | 63.4 |  |  | 10.8 |  |  | (0.5 | ) |  | 73.7 |  |  | 73.7 |  |  | — |  |  | — |
Non-marketable securities derivative assets (5) | 1.8 |  |  | 0.4 |  |  | (0.2 | ) |  | 2.0 |  |  | — |  |  | — |  |  | 2.0 |
Derivative contract assets (5) | 0.3 |  |  | 14.1 |  |  | (0.2 | ) |  | 14.2 |  |  | — |  |  | 14.2 |  |  | — |
Derivative contract liabilities (6) | — |  |  | — |  |  | (30.7 | ) |  | (30.7 | ) |  | — |  |  | (30.7 | ) |  | — |
|  | Total | $ | 822.3 |  |  | $ | 25.3 |  |  | $ | (31.6 | ) |  | $ | 816.0 |  |  | $ | 788.0 |  |  | $ | 26.0 |  |  | $ | 2.0 |
____________________
(1) | Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities with stated contractual maturities due within one year.
(2) | Consists of custody cash deposits and certificates of deposit.
(3) | Consists of commercial paper and municipal bonds.
(4) | See Note 11, "Deferred Compensation " for more information.
(5) | Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets.
(6) | Included in “Other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets.
|  |  | January 31, 2020
|  | (in millions) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Cash equivalents (1): |  |  |  |  |  |  |  |  |  |  |  |  |
| Agency bonds | $ | 6.0 |  |  | $ | — |  |  | $ | — |  |  | $ | 6.0 |  |  | $ | — |  |  | $ | 6.0 |  |  | $ | — |
| Commercial paper | 36.8 |  |  | — |  |  | — |  |  | 36.8 |  |  | — |  |  | 36.8 |  |  | — |
| Money market funds | 1,135.5 |  |  | — |  |  | — |  |  | 1,135.5 |  |  | 1,135.5 |  |  | — |  |  | — |
| Other (2) | 2.3 |  |  | — |  |  | — |  |  | 2.3 |  |  | 1.3 |  |  | 1.0 |  |  | — |
Marketable securities: |  |  |  |  |  |  |  |  |  |  |  |  |
| Short-term trading securities |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Mutual funds (3) | 59.9 |  |  | 9.2 |  |  | (0.1 | ) |  | 69.0 |  |  | 69.0 |  |  | — |  |  | — |
Non-marketable equity security derivative asset (4) | 0.1 |  |  | 0.5 |  |  | — |  |  | 0.6 |  |  | — |  |  | — |  |  | 0.6 |
Derivative contract assets (4) | 1.0 |  |  | 9.2 |  |  | (1.3 | ) |  | 8.9 |  |  | — |  |  | 8.9 |  |  | — |
Derivative contract liabilities (5) | — |  |  | — |  |  | (4.7 | ) |  | (4.7 | ) |  | — |  |  | (4.7 | ) |  | — |
|  | Total | $ | 1,241.6 |  |  | $ | 18.9 |  |  | $ | (6.1 | ) |  | $ | 1,254.4 |  |  | $ | 1,205.8 |  |  | $ | 48.0 |  |  | $ | 0.6 |
____________________
(1) | Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities with stated contractual maturities due in one year.
(2) | Consists of custody cash deposits and certificates of deposit.
(3) | See Note 11, "Deferred Compensation " for more information.
(4) | Included in “Prepaid expenses and other current assets,” or "Long-term other assets," in the accompanying Condensed Consolidated Balance Sheets.
(5) | Included in “Other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets.
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. As of both July 31, 2020, and January 31, 2020, Autodesk had no material unrealized losses, individually and in the aggregate, for marketable debt securities that are in a continuous unrealized loss position for greater than twelve months. Total unrealized gains for securities with net gains in accumulated other comprehensive income was not material for the six months ended July 31, 2020. Autodesk monitors all marketable debt securities for potential credit losses by reviewing indicators such as, but not limited to, current credit rating, change in credit rating, credit outlook, and default risk. There were no allowances for credit losses for the six months ended July 31, 2020. There were no write offs of accrued interest receivables for the six months ended July 31, 2020. There was no realized gain or loss for the sales or redemptions of debt securities during the six months ended July 31, 2020 and 2019. Gains and losses resulting from the sale or redemption of debt securities are recorded in “Interest and other expense, net” on the Company's Condensed Consolidated Statements of Operations. There was $11.0 million in proceeds from the sale and maturity of marketable debt securities for the three and six months ended July 31, 2020. Proceeds from the sale and maturity of marketable debt securities for the three and six months ended July 31, 2019, was $22.8 million and $27.4 million, respectively. As of July 31, 2020, Autodesk had $5.3 million in non-marketable debt securities in privately held companies. As of July 31, 2020, both the amortized cost and fair value was $5.3 million and is classified as level 3 in the fair value hierarchy. There were no allowances for credit losses for the six months ended July 31, 2020. Non-marketable equity securities As of July 31, 2020, and January 31, 2020, Autodesk had $136.2 million and $122.5 million in direct investments in privately held companies, respectively. These non-marketable equity security investments do not have readily determined fair values, and Autodesk uses the measurement alternative to account for the adjustment to these investments in a given quarter. If Autodesk determines that an impairment has occurred, Autodesk writes down the investment to its fair value. Adjustments to the carrying value of our non-marketable equity securities with no readily determined fair values measured using the measurement alternative were as follows:
| Six Months Ended July 31, |  | Cumulative Amount as of
(in millions) | 2020 |  | 2019 |  | July 31, 2020
Upward adjustments (1) | $ | 3.0 |  |  | $ | 1.7 |  |  | $ | 12.4 |
Negative adjustments, including impairments (1) | (34.8 | ) |  | (3.4 | ) |  | (43.8 | )
Net adjustments | $ | (31.8 | ) |  | $ | (1.7 | ) |  | $ | (31.4 | )
____________________
(1) | Included in "Interest and other expense, net" on the Company's Condensed Consolidated Statements of Operations.
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 currency collars and forward contracts are designated and documented as cash flow hedges. The notional amounts of these contracts are presented net settled and were $1.18 billion at July 31, 2020, and $981.3 million at January 31, 2020. Outstanding contracts are recognized as either assets or liabilities on the Company's Condensed Consolidated Balance Sheet at fair value. The majority of the net loss of $7.1 million remaining in “Accumulated other comprehensive loss” as of July 31, 2020, is expected to be recognized into earnings within the next twenty-four months. The location and amount of gain or loss recognized in income on cash flow hedges together with the total amount of income or expense presented in the Company's Condensed Consolidated Statements of Operations where the effects of the hedge are recorded were as follows for the three and six months ended July 31, 2020 and 2019:
|  | Three Months Ended July 31, 2020
|  | Net revenue |  | Cost of revenue |  | Operating expenses
(in millions) |  | Subscription revenue |  | Maintenance revenue |  | Cost of subscription and maintenance revenue |  | Marketing and sales |  | Research and development |  | General and administrative
Total amounts of income and expense line items presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded |  | $ | 841.2 |  |  | $ | 51.2 |  |  | $ | 58.5 |  |  | $ | 350.9 |  |  | $ | 232.5 |  |  | $ | 93.2 |
Gain (loss) on cash flow hedging relationships in Subtopic ASC 815-20 |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  |  |  |  |  |  |  |  |  |  |
Amount of gain (loss) reclassified from accumulated other comprehensive income into income |  | $ | 1.6 |  |  | $ | — |  |  | $ | (0.1 | ) |  | $ | (0.5 | ) |  | $ | — |  |  | $ | (0.2 | )
|  | Six Months Ended July 31, 2020
|  | Net revenue |  | Cost of revenue |  | Operating expenses
|  | Subscription revenue |  | Maintenance Revenue |  | Cost of subscription and maintenance revenue |  | Marketing and sales |  | Research and development |  | General and administrative
Total amounts of income and expense line items presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded |  | $ | 1,644.2 |  |  | $ | 113.3 |  |  | $ | 115.9 |  |  | $ | 692.2 |  |  | $ | 449.9 |  |  | $ | 198.0 |
Gain (loss) on cash flow hedging relationships in Subtopic ASC 815-20 |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  |  |  |  |  |  |  |  |  |  |
Amount of gain (loss) reclassified from accumulated other comprehensive income into income |  | $ | 3.7 |  |  | $ | 0.6 |  |  | $ | (0.3 | ) |  | $ | (1.3 | ) |  | $ | (0.1 | ) |  | $ | (0.6 | )
|  | Three Months Ended July 31, 2019
|  | Net Revenue |  | Cost of revenue |  | Operating expenses
(in millions) |  | Subscription Revenue |  | Maintenance Revenue |  | Cost of subscription and maintenance revenue |  | Marketing and sales |  | Research and development |  | General and administrative
Total amounts of income and expense line items presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded |  | $ | 663.7 |  |  | $ | 103.5 |  |  | $ | 53.0 |  |  | $ | 316.8 |  |  | $ | 215.4 |  |  | $ | 101.4 |
Gain (loss) on cash flow hedging relationships in Subtopic ASC 815-20 |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  |  |  |  |  |  |  |  |  |  |
Amount of gain (loss) reclassified from accumulated other comprehensive income into income |  | $ | 3.2 |  |  | $ | 1.8 |  |  | $ | (0.2 | ) |  | $ | (0.8 | ) |  | $ | (0.2 | ) |  | $ | (0.4 | )
|  | Six Months Ended July 31, 2019
|  | Net revenue |  | Cost of revenue |  | Operating expenses
|  | Subscription revenue |  | Maintenance Revenue |  | Cost of subscription and maintenance revenue |  | Marketing and sales |  | Research and development |  | General and administrative
Total amounts of income and expense line items presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded |  | $ | 1,259.5 |  |  | $ | 215.5 |  |  | $ | 112.7 |  |  | $ | 630.1 |  |  | $ | 421.0 |  |  | $ | 200.5 |
Gain (loss) on cash flow hedging relationships in Subtopic ASC 815-20 |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  |  |  |  |  |  |  |  |  |  |
Amount of gain (loss) reclassified from accumulated other comprehensive income into income |  | $ | 5.4 |  |  | $ | 3.1 |  |  | $ | (0.3 | ) |  | $ | (2.4 | ) |  | $ | (0.5 | ) |  | $ | (1.2 | )
Derivatives not designated as hedging instruments Autodesk uses foreign currency contracts that are not designated as hedging instruments to reduce the exchange rate risk associated primarily with foreign currency denominated receivables, payables, and cash. The notional amounts of these foreign currency contracts are presented net settled and were $182.1 million at July 31, 2020, and $736.2 million at January 31, 2020. Fair Value of Derivative Instruments The fair values of derivative instruments in Autodesk’s Condensed Consolidated Balance Sheets were as follows as of July 31, 2020, and January 31, 2020:
| Balance Sheet Location |  | Fair Value at
(in millions) | July 31, 2020 |  | January 31, 2020
Derivative Assets |  |  |  |  |
Foreign currency contracts designated as cash flow hedges | Prepaid expenses and other current assets |  | $ | 7.3 |  |  | $ | 1.0 |
Derivatives not designated as hedging instruments | Prepaid expenses and other current assets and long-term other assets |  | 7.2 |  |  | 8.4 |
Total derivative assets |  |  | $ | 14.5 |  |  | $ | 9.4 |
Derivative Liabilities |  |  |  |  |
Foreign currency contracts designated as cash flow hedges | Other accrued liabilities |  | $ | 21.6 |  |  | $ | 2.8 |
Derivatives not designated as hedging instruments | Other accrued liabilities |  | 9.1 |  |  | 1.9 |
Total derivative liabilities |  |  | $ | 30.7 |  |  | $ | 4.7 |
The effects of derivatives designated as hedging instruments on Autodesk’s Condensed Consolidated Statements of Operations were as follows for the three and six months ended July 31, 2020 and 2019, (amounts presented include any income tax effects):
| Foreign Currency Contracts
| Three Months Ended July 31, |  | Six Months Ended July 31,
(in millions) | 2020 |  | 2019 |  | 2020 |  | 2019
Am ount of (loss) gain recognized in accumulated other comprehensive loss on derivatives (effective portion) | $ | (18.6 | ) |  | $ | (0.9 | ) |  | $ | (13.5 | ) |  | $ | 3.1 |
Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) |  |  |  |  |  |  |
Net revenue | $ | 1.6 |  |  | $ | 5.0 |  |  | $ | 4.3 |  |  | $ | 8.5 |
Cost of revenue | (0.1 | ) |  | (0.2 | ) |  | (0.3 | ) |  | (0.3 | )
Operating expenses | (0.7 | ) |  | (1.4 | ) |  | (2.0 | ) |  | (4.1 | )
Total | $ | 0.8 |  |  | $ | 3.4 |  |  | $ | 2.0 |  |  | $ | 4.1 |
The effects of derivatives not designated as hedging instruments on Autodesk’s Condensed Consolidated Statements of Operations were as follows for the three and six months ended July 31, 2020 and 2019, (amounts presented include any income tax effects):
| Three Months Ended July 31, |  | Six Months Ended July 31,
(in millions) | 2020 |  | 2019 |  | 2020 |  | 2019
Amount and location of (loss) gain recognized on derivatives in net income |  |  |  |  |  |  |
Interest and other expense, net | $ | (4.4 | ) |  | $ | (2.4 | ) |  | $ | (5.4 | ) |  | $ | 1.7 |

X
- 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
Name: | us-gaap_FinancialInstrumentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsAllOtherInvestmentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration