Financial Instruments (Tables)

6 Months Ended

Jul. 31, 2018

Investments, All Other Investments [Abstract]

Summary of financial instruments' amortized cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category

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, 2018 and January 31, 2018:

			July 31, 2018
			Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value			Level 1		Level 2			Level 3
Cash equivalents (1):
	Agency bonds		$	5.0	$	—	$	—		$	5.0		$	—	$	5.0		$	—
	Certificates of deposit		11.5		—		—			11.5			—		11.5			—
	Commercial paper		269.5		—		—			269.5			—		269.5			—
	Custody cash deposit		1.7		—		—			1.7			1.7		—			—
	Municipal bonds		5.0		—		—			5.0			—		5.0			—
	Money market funds		122.9		—		—			122.9			122.9		—			—
	Sovereign debt		5.0		—		—			5.0			—		5.0			—
	U.S. government securities		11.5		—		—			11.5			—		11.5			—
Marketable securities:
	Short-term
		Agency bonds	12.5		—		—			12.5			—		12.5			—
		Asset backed securities	12.1		—		—			12.1			—		12.1			—
		Certificates of deposit	7.7		—		—			7.7			—		7.7			—
		Commercial paper	62.7		—		—			62.7			—		62.7			—
		Corporate debt securities	64.9		—		(0.2		)	64.7			—		64.7			—
		Municipal bonds	5.0		—		—			5.0			—		5.0			—
		Sovereign debt	6.5		—		—			6.5			—		6.5			—
		U.S. government securities	41.4		—		(0.2		)	41.2			—		41.2			—
	Short-term trading securities
		Mutual funds	53.9		8.1		—			62.0			62.0		—			—
	Long-term
		Agency bonds	12.5		—		(0.1		)	12.4			—		12.4			—
		Asset backed securities	27.1		—		(0.3		)	26.8			—		26.8			—
		Corporate debt securities	74.0		0.1		(0.5		)	73.6			—		73.6			—
		Municipal bonds	7.7		—		(0.1		)	7.6			—		7.6			—
		U.S. government securities	5.0		—		—			5.0			—		5.0			—
		Sovereign debt	2.7		—		—			2.7			—		2.7			—
Convertible debt securities (2)			7.5		1.4		(2.3		)	6.6			—		—			6.6
Derivative contract assets (3)			1.7		12.8		(1.6		)	12.9			—		12.0			0.9
Derivative contract liabilities (4)			—		—		(6.9		)	(6.9		)	—		(6.9		)	—
		Total	$	837.0	$	22.4	$	(12.2	)	$	847.2		$	186.6	$	653.1		$	7.5

____________________ 

(1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets.

(2) Included in “Other assets” in the accompanying Condensed Consolidated Balance Sheets.

(3) Included in “Prepaid expenses and other current assets” or “Other assets” in the accompanying Condensed Consolidated Balance Sheets.

(4) Included in “Other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets.

 

			January 31, 2018
			Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value			Level 1		Level 2			Level 3
Cash equivalents (1):
	Agency bonds		$	5.0	$	—	$	—		$	5.0		$	5.0	$	—		$	—
	Certificates of deposit		17.4		—		—			17.4			17.4		—			—
	Commercial paper		324.2		—		—			324.2			—		324.2			—
	Corporate debt securities		5.0		—		—			5.0			5.0		—			—
	Custody cash deposit		5.2		—		—			5.2			5.2		—			—
	Money market funds		278.8		—		—			278.8			—		278.8			—
	Municipal bonds		5.0		—		—			5.0			5.0		—			—
	Sovereign debt		2.0		—		—			2.0			—		2.0			—
Marketable securities:
	Short-term
		Asset backed securities	13.1		—		—			13.1			—		13.1			—
		Commercial paper	27.5		—		—			27.5			—		27.5			—
		Corporate debt securities	99.4		—		(0.1		)	99.3			99.3		—			—
		Other (2)	9.2		—		—			9.2			7.7		1.5			—
		U.S. government securities	37.1		—		—			37.1			37.1		—			—
	Short-term trading securities
		Mutual funds	50.1		8.9		—			59.0			59.0		—			—
	Long-term
		Agency bonds	13.7		—		(0.1		)	13.6			13.6		—			—
		Asset backed securities	36.8		—		(0.2		)	36.6			—		36.6			—
		Corporate debt securities	100.2		0.1		(0.4		)	99.9			99.9		—			—
		Municipal bonds	12.7		—		(0.1		)	12.6			12.6		—			—
		Sovereign debt	2.8		—		—			2.8			—		2.8			—
		U.S. government securities	25.5		—		(0.2		)	25.3			25.3		—			—
Convertible debt securities (3)			7.5		0.5		(0.2		)	7.8			—		—			7.8
Derivative contract assets (4)			2.0		7.5		(1.3		)	8.2			—		7.2			1.0
Derivative contract liabilities (5)			—		—		(26.6		)	(26.6		)	—		(26.6		)	—
		Total	$	1,080.2	$	17.0	$	(29.2	)	$	1,068.0		$	392.1	$	667.1		$	8.8

____________________ 

(1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets.

(2) Consists of agency bonds, certificates of deposit, sovereign debt, and municipal bonds.

(3) Included in “Other assets” in the accompanying Condensed Consolidated Balance Sheets.

(4) Included in “Prepaid expenses and other current assets,” “Other assets,” or “Other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets.

(5)

Included in “Other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets.

Reconciliation of the change in Autodesk’s Level 3 items

A reconciliation of the change in Autodesk’s Level 3 items for the six months ended July 31, 2018 follows:

	Fair Value Measurements Using Significant Unobservable Inputs
	(Level 3)
		Derivative Contracts			Convertible Debt Securities			Total
Balances, January 31, 2018		$	1.0		$	7.8		$	8.8
Purchases		—			—			—
Loss included in earnings		(0.1		)	—			(0.1		)
Loss included in OCI		—			(1.2		)	(1.2		)
Balances, July 31, 2018		$	0.9		$	6.6		$	7.5

Securities classified by contractual maturity

The following table summarizes the estimated fair value of Autodesk's securities classified by the contractual maturity date of the security:

	July 31, 2018
	Cost		Fair Value
Due within 1 year	$	220.3	$	219.0
Due in 1 year through 5 years	124.3		123.4
Due in 5 years through 10 years	3.7		3.7
Due after 10 years	1.0		1.0
Total	$	349.3	$	347.1

Schedule of fair values of derivative instruments

The fair values of derivative instruments in Autodesk’s Condensed Consolidated Balance Sheets were as follows as of July 31, 2018 and January 31, 2018:

	Balance Sheet Location	Fair Value at
		July 31, 2018		January 31, 2018
Derivative Assets
Foreign currency contracts designated as cash flow hedges	Prepaid expenses and other current assets	$	10.4	$	6.2
Derivatives not designated as hedging instruments	Prepaid expenses and other current assets and Other assets	2.5		2.0
Total derivative assets		$	12.9	$	8.2
Derivative Liabilities
Foreign currency contracts designated as cash flow hedges	Other accrued liabilities	$	4.6	$	18.7
Derivatives not designated as hedging instruments	Other accrued liabilities	2.3		7.9
Total derivative liabilities		$	6.9	$	26.6

The effects of derivatives designated as hedging instruments

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, 2018 and 2017 (amounts presented include any income tax effects):

	Foreign Currency Contracts
	Three Months Ended July 31,						Six Months Ended July 31,
	2018			2017			2018			2017
Amount of gain (loss) recognized in accumulated other comprehensive loss on derivatives (effective portion)	$	6.4		$	(9.3	)	$	13.3		$	(11.4	)
Amount and location of (loss) gain reclassified from accumulated other comprehensive loss into (loss) income (effective portion)
Net revenue	$	(3.5	)	$	2.8		$	(6.0	)	$	4.8
Operating expenses	(1.6		)	(0.5		)	1.7			(3.2		)
Total	$	(5.1	)	$	2.3		$	(4.3	)	$	1.6
Amount and location of gain (loss) recognized in (loss) income on derivatives (ineffective portion and amount excluded from effectiveness testing)
Interest and other income (expense), net	$	0.7		$	0.1		$	0.5		$	(0.1	)

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, 2018 and 2017 (amounts presented include any income tax effects):

	Three Months Ended July 31,					Six Months Ended July 31,
	2018		2017			2018		2017
Amount and location of gain (loss) recognized on derivatives in net (loss)
Interest and other income (expense), net	$	1.4	$	(6.5	)	$	6.0	$	(8.3	)