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Financial Instruments | 12 Months Ended
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Jan. 31, 2022
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, 2022 and 2021.
|  |  | January 31, 2022 |
|  |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3 |
Cash equivalents (1): |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Money market funds | $ | 302.3 |  |  | $ | — |  |  | $ | — |  |  | $ | 302.3 |  |  | $ | 302.3 |  |  | $ | — |  |  | $ | — |  |
| Commercial paper | 54.7 |  |  | — |  |  | — |  |  | 54.7 |  |  | — |  |  | 54.7 |  |  | — |  |
| U.S. government securities | 25.0 |  |  | — |  |  | — |  |  | 25.0 |  |  | — |  |  | 25.0 |  |  | — |  |
| Custody cash deposit | 17.8 |  |  | — |  |  | — |  |  | 17.8 |  |  | 17.8 |  |  | — |  |  | — |  |
| Corporate debt securities | 17.6 |  |  | — |  |  | — |  |  | 17.6 |  |  | — |  |  | 17.6 |  |  | — |  |
| Certificates of deposit | 5.7 |  |  | — |  |  | — |  |  | 5.7 |  |  | — |  |  | 5.7 |  |  | — |  |
| Other (2) | 4.0 |  |  | — |  |  | — |  |  | 4.0 |  |  | — |  |  | 4.0 |  |  | — |  |
Marketable securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Short-term |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Commercial paper | 102.9 |  |  | — |  |  | — |  |  | 102.9 |  |  | — |  |  | 102.9 |  |  | — |  |
|  | Corporate debt securities | 60.7 |  |  | — |  |  |  |  | 60.7 |  |  | — |  |  | 60.7 |  |  | — |  |
|  | Asset backed securities | 26.3 |  |  | — |  |  | — |  |  | 26.3 |  |  | — |  |  | 26.3 |  |  | — |  |
|  | Certificates of deposit | 13.7 |  |  | — |  |  | — |  |  | 13.7 |  |  | — |  |  | 13.7 |  |  | — |  |
|  | U.S. government securities | 12.5 |  |  | — |  |  | — |  |  | 12.5 |  |  | — |  |  | 12.5 |  |  | — |  |
|  | Municipal bonds | 11.1 |  |  | — |  |  | — |  |  | 11.1 |  |  | — |  |  | 11.1 |  |  | — |  |
|  | Common Stock | — |  |  | 4.3 |  |  | — |  |  | 4.3 |  |  | 4.3 |  |  | — |  |  | — |  |
|  | Other (3) | 4.2 |  |  |  |  | — |  |  | 4.2 |  |  |  |  | 4.2 |  |  | — |  |
| Long-term |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Corporate debt securities | 44.7 |  |  | — |  |  | (0.1) |  |  | 44.6 |  |  | — |  |  | 44.6 |  |  | — |  |
|  | Other (4) | 0.8 |  |  | — |  |  | — |  |  | 0.8 |  |  | — |  |  | 0.8 |  |  | — |  |
Mutual funds (5) (6) | 74.2 |  |  | 15.6 |  |  | (0.3) |  |  | 89.5 |  |  | 89.5 |  |  | — |  | — |
Strategic investments derivative asset (6) | 0.1 |  |  | 0.4 |  |  | (0.4) |  |  | 0.1 |  |  | — |  |  | — |  |  | 0.1 |  |
Derivative contract assets (6) | 1.1 |  |  | 17.1 |  |  | (0.2) |  |  | 18.0 |  |  | — |  |  | 18.0 |  |  |  |
Derivative contract liabilities (7) | — |  |  | — |  |  | (10.7) |  |  | (10.7) |  |  | — |  |  | (10.7) |  |  | — |  |
|  | Total | $ | 779.4 |  |  | $ | 37.4 |  |  | $ | (11.7) |  |  | $ | 805.1 |  |  | $ | 413.9 |  |  | $ | 391.1 |  |  | $ | 0.1 |  |
____________________ (1)Included in “Cash and cash equivalents” in the accompanying Consolidated Balance Sheets. These investments are classified as debt securities. (2)Consists of sovereign bonds and municipal bonds. (3)Consists of sovereign bonds and supranational bonds. (4)Consists of asset backed securities. (5)See Note 7, "Deferred Compensation" for more information. (6)Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Consolidated Balance Sheets. (7)Included in “Other accrued liabilities” in the accompanying Consolidated Balance Sheets.
|  |  | January 31, 2021 |
|  |  | 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 | 686.9 |  |  | — |  |  | — |  |  | 686.9 |  |  | 686.9 |  |  | — |  |  | — |  |
| Other (2) | 4.4 |  |  | — |  |  | — |  |  | 4.4 |  |  | 4.0 |  |  | 0.4 |  |  | — |  |
Marketable securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Short-term available-for-sale |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Other (3) | 4.0 |  |  |  |  | — |  |  | 4.0 |  |  |  |  | 4.0 |  |  | — |  |
| Short-term trading securities |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Mutual funds (4) | 64.5 |  |  | 16.5 |  |  | — |  |  | 81.0 |  |  | 81.0 |  |  | — |  |  | — |  |
Strategic investments derivative asset (5) | 0.1 |  |  | 0.4 |  |  | (0.3) |  |  | 0.2 |  |  | — |  |  | — |  |  | 0.2 |  |
Derivative contract assets (5) | 0.4 |  |  | 9.8 |  |  | (0.4) |  |  | 9.8 |  |  | — |  |  | 9.8 |  |  |  |
Derivative contract liabilities (6) | — |  |  | — |  |  | (17.5) |  |  | (17.5) |  |  | — |  |  | (17.5) |  |  | — |  |
|  | Total | $ | 796.3 |  |  | $ | 26.7 |  |  | $ | (18.2) |  |  | $ | 804.8 |  |  | $ | 771.9 |  |  | $ | 32.7 |  |  | $ | 0.2 |  |
____________________ (1)Included in “Cash and cash equivalents” in the accompanying Consolidated Balance Sheets. These investments are classified as debt securities. (2)Consists of custody cash deposits and certificates of deposit. (3)Consists of commercial paper and municipal bonds. (4)See Note 7, "Deferred Compensation" for more information. (5)Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Consolidated Balance Sheets. (6)Included in “Other accrued liabilities” in the accompanying Consolidated Balance Sheets. The following table summarizes the fair values of investments classified as marketable securities by contractual maturity date as of January 31, 2022:
| Fair Value
Due within 1 year | $ | 207.9 |
Due in 1 year through 5 years | 69.2
Total | $ | 277.1 |
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 January 31, 2022 and 2021, 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 12 months. Total unrealized gains for securities with net gains in accumulated other comprehensive income were not material for fiscal 2022. 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 as of both January 31, 2022 and 2021. There were no write offs of accrued interest receivables for fiscal 2022 and 2021. There were no realized gain or loss for the sales or redemptions of debt securities during fiscal 2022. The sales or redemptions of debt securities in fiscal 2021 resulted in a net gain of $0.6 million. There were no realized gain or loss for the sales or redemptions of debt securities during fiscal 2020. Realized gains and losses from the sale or redemption of marketable securities are recorded in “Interest and other expense, net” on the Company’s Consolidated Statements of Operations. Proceeds from the sale and maturity of marketable debt securities for fiscal 2022, 2021, and 2020 were $37.8 million, $17.0 million, and $27.4 million, respectively. Strategic investment equity securities As of January 31, 2022 and 2021, Autodesk had $133.7 million and $134.1 million, respectively, in direct investments in privately held companies. These strategic investment equity securities 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 strategic investment equity securities with no readily determined fair values measured using the measurement alternative were as follows:
| Fiscal Year Ended |  | Cumulative Amount as of
| 2022 |  | 2021 |  | 2020 |  | January 31, 2022
Upward adjustments (1) | $ | 7.2 |  |  | $ | 6.6 |  |  | $ | 3.2 |  |  | $ | 23.2 |
Negative adjustments, including impairments (1) | (16.6) |  |  | (51.6) |  |  | (4.2) |  |  | (77.2) |
Net adjustments | $ | (9.4) |  |  | $ | (45.0) |  |  | $ | (1.0) |  |  | $ | (54.0) |
____________________ (1)Included in “Interest and other expense, net” on the Company’s Consolidated Statements of Operations. Autodesk does not consider the remaining investments to be impaired as of January 31, 2022. During fiscal year ended January 31, 2022, Autodesk recognized gains of $8.1 million on the disposition of strategic investment equity securities. During both fiscal years ended January 31, 2021 and 2020, Autodesk recognized no gains on the dispositions of strategic investment equity securities. 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 $1.08 billion at January 31, 2022, and $1.14 billion at January 31, 2021. Outstanding contracts are recognized as either assets or liabilities on the Company’s Consolidated Balance Sheets at fair value. The majority of the net loss of $24.2 million remaining in “Accumulated other comprehensive loss” as of January 31, 2022, is expected to be recognized into earnings within the next 24 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 Consolidated Statements of Operations where the effects of the hedge are recorded were as follows for the fiscal years ended January 31, 2022 and 2021:
|  | Fiscal Year Ended January 31, 2022
|  | 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 |  | Interest and other expense, net
Total amounts of income and expense line items presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded |  | $ | 4,156.4 |  | $ | 76.3 |  | $ | 299.1 |  | $ | 1,623.1 |  | $ | 1,114.8 |  | $ | 571.7 |  | $ | (52.9)
(Loss) gain on cash flow hedging relationships in Subtopic ASC 815-20 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amount of (loss) gain reclassified from accumulated other comprehensive income into income |  | $ | (10.7) |  | $ | (1.2) |  | $ | (0.5) |  | $ | (2.4) |  | $ | (1.2) |  | $ | (1.2) |  | $ | 0.1
|  | Fiscal Year Ended January 31, 2021
|  | 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 Consolidated Statements of Operations in which the effects of cash flow hedges are recorded |  | $ | 3,478.9 |  | $ | 183.3 |  | $ | 242.1 |  | $ | 1,440.3 |  | $ | 932.5 |  | $ | 413.9
Gain (loss) on cash flow hedging relationships in Subtopic ASC 815-20 |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  |  |  |  |  |  |  |  |  |  |
Amount of (loss) gain reclassified from accumulated other comprehensive income into income |  | $ | (0.4) |  | $ | 0.1 |  | $ | 0.6 |  | $ | 2.4 |  | $ | 0.5 |  | $ | 1.2
Interest rate locks designated as cash flow hedges During fiscal 2022, Autodesk entered into interest rate lock arrangements to mitigate the risk of changes in interest rates prior to completion of a debt offering. The interest rate locks hedged the cash flow risk for each of the interest payments on the planned fixed-rate debt issue. The interest rate lock hedges were terminated in October 2021 in connection with the debt offering completed in that month. See Note 8, “Borrowing Arrangements,” for further discussion. The aggregate fair value of the terminated interest rate lock hedges of $4.0 million, net of tax of $0.9 million, was classified as an increase to accumulated other comprehensive income and is amortized as a reduction to interest expense over the term of the related debt issuance. The Company had cash inflows of $4.0 million in the fiscal year ended January 31, 2022, associated with the termination of the interest rate lock arrangements, included in “Other financing activities” in our Consolidated Statement of Cash Flows. 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 $542.2 million at January 31, 2022, and $434.5 million at January 31, 2021. Fair Value of Derivative Instruments: The fair values of derivative instruments in Autodesk’s Consolidated Balance Sheets were as follows as of January 31, 2022, and January 31, 2021:
| Balance Sheet Location |  | Fair Value at
| January 31, 2022 |  | January 31, 2021
Derivative Assets |  |  |  |  |
Foreign currency contracts designated as cash flow hedges | Prepaid expenses and other current assets |  | $ | 12.2 |  |  | $ | 4.7 |
Derivatives not designated as hedging instruments | Prepaid expenses and other current assets and long-term other assets |  | 5.9 |  |  | 5.3 |
Total derivative assets |  |  | $ | 18.1 |  |  | $ | 10.0 |
Derivative Liabilities |  |  |  |  |
Foreign currency contracts designated as cash flow hedges | Other accrued liabilities |  | $ | 6.9 |  |  | $ | 16.5 |
Derivatives not designated as hedging instruments | Other accrued liabilities |  | 3.8 |  |  | 1.0 |
Total derivative liabilities |  |  | $ | 10.7 |  |  | $ | 17.5 |
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, 2022, 2021, and 2020, respectively (amounts presented include any income tax effects):
| Foreign Currency Contracts
| Fiscal Year Ended January 31,
| 2022 |  | 2021 |  | 2020
Amount of gain (loss), net of tax, recognized in accumulated other comprehensive loss on derivatives (effective portion) | $ | 31.0 |  |  | $ | (28.1) |  |  | $ | 3.0 |
Amount and location of (loss) gain reclassified from accumulated other comprehensive loss into income (effective portion) |  |  |  |  |
Net revenue | $ | (11.9) |  |  | $ | (0.3) |  |  | $ | 17.6 |
Cost of revenue | (0.5) |  |  | 0.6 |  |  | (0.9) |
Operating expenses | (4.8) |  |  | 4.1 |  |  | (7.1) |
Interest and other expense, net | 0.1 |  |  | — |  |  | — |
Total | $ | (17.1) |  |  | $ | 4.4 |  |  | $ | 9.6 |
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, 2022, 2021, and 2020, respectively (amounts presented include any income tax effects):
| Fiscal Year Ended January 31,
| 2022 |  | 2021 |  | 2020
Amount and location of gain (loss) recognized on derivatives in net income (loss) |  |  |  |  |
Interest and other expense, net | $ | 11.2 |  |  | $ | (0.8) |  |  | $ | 6.0 |

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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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