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Retirement Benefit Plans
 12 Months Ended
Jan. 31, 2019
Retirement Benefits [Abstract]  
Retirement Benefit Plans Retirement Benefit Plans

Pretax Savings Plan

Autodesk has a 401(k) plan that covers nearly all U.S. employees. Eligible employees may contribute up to 75% of their pretax salary, subject to limitations mandated by the Internal Revenue Service. Autodesk makes voluntary cash contributions and matches a portion of employee contributions in cash. Autodesk’s contributions were $17.1 million in fiscal 2019, $17.3 million in fiscal 2018, and $16.4 million in fiscal 2017. Autodesk does not allow participants to invest in Autodesk common stock through the 401(k) plan.

Defined Benefit Pension Plans

Autodesk maintains certain defined benefit pension plans to employees primarily located in countries outside of the U.S, particularly the United Kingdom, Switzerland, and Japan. The Company deposits funds for specific plans, consistent with the requirements of local law, with insurance companies, third-party trustees, or into government-managed accounts, and accrues for the unfunded portion of the obligation, where material. Depending on the design of the plan, local customs, and market circumstances, the liabilities of a plan may exceed qualified plan assets.

Benefit Obligation and Plan Assets

The changes in the projected benefit obligations and plan assets for the plans described above were as follows:
 
Fiscal year ended January 31,
 
2019
 
2018
Beginning projected benefit obligation
$
158.1

 
$
146.4

Service cost
4.1

 
5.2

Interest cost
2.3

 
2.7

Actuarial (gain) loss
(4.3
)
 
(2.8
)
Benefits paid
(2.6
)
 
(3.3
)
Foreign currency exchange rate changes
(10.0
)
 
13.9

Curtailments and settlements
(61.0
)
 
(8.2
)
Contributions by plan participants
5.0

 
4.0

Plan amendment
—

 
0.2

Ending projected benefit obligation
$
91.6

 
$
158.1

 
 
 
 
Beginning fair value of plan assets
$
121.1

 
$
107.4

Actual return on plan assets
1.4

 
3.8

Contributions paid by employer
5.9

 
6.5

Contributions paid by plan participants
5.0

 
4.0

Benefit payments
(2.6
)
 
(3.3
)
Curtailments and settlements
(42.3
)
 
(8.0
)
Foreign currency exchange rate changes
(7.7
)
 
10.7

Ending fair value of plan assets
$
80.8

 
$
121.1

Funded status
$
(10.8
)
 
$
(37.0
)


The amounts recognized on the consolidated balance sheets at the end of each period were as follows:
 
Fiscal Year Ended January 31,
 
2019
 
2018
Other long-term liabilities
$
10.8

 
$
37.0

Accumulated other comprehensive loss, before tax
16.3

 
31.7

Net amount recognized
$
27.1

 
$
68.7



On a worldwide basis, the Company's defined benefit pension plans were 88% funded as of January 31, 2019.

As of January 31, 2019, the aggregate accumulated benefit obligation was $85.1 million for the defined benefit pension plans compared to $139.5 million as of January 31, 2018. Included in the aggregate data in the following tables are the amounts applicable to the Company's defined benefit pension plans, with accumulated benefit obligations in excess of plan assets, as well as plans with projected benefit obligations in excess of plan assets. Amounts related to such plans at the end of each period were as follows:
 
 
Fiscal Year Ended January 31,
 
 
2019
 
2018
Plans with accumulated benefit obligations in excess of plan assets:
 
 
 
 
Accumulated benefit obligations
 
$
75.6

 
$
130.7

Plan assets
 
70.0

 
112.1

Plans with projected benefit obligations in excess of plan assets:
 
 
 
 
Projected benefit obligations
 
$
91.6

 
$
158.1

Plan assets
 
80.8

 
121.1



Defined Benefit Pension Plan Assets

The investments of the plans are managed by insurance companies or third-party investment managers selected by Autodesk's Trustees, consistent with regulations or market practice of the country where the assets are invested. Investments managed by qualified insurance companies or third-party investment managers under standard contracts follow local regulations, and Autodesk is not actively involved in their investment strategies.

Defined benefit pension plan assets measured at fair value on a recurring basis consisted of the following investment categories at the end of each period as follows:
 
Fiscal Year Ended January 31,
 
2019
 
2018
 
Level 1

 
Level 2

 
Level 3

 
Total

 
Total
Insurance contracts
$
—

 
$
28.0

 
$
—

 
$
28.0

 
$
53.0

Other investments
—

 
14.5

 
—

 
14.5

 
17.0

Total assets measured at fair value
$
—

 
$
42.5

 
$
—

 
42.5

 
70.0

Cash
 
 
 
 
 
 
4.3

 
0.2

Investment Fund valued using net asset value
 
 
 
 
 
 
34.0

 
50.9

Total pension plan assets at fair value

 

 

 
$
80.8

 
$
121.1



The insurance contracts in the preceding table represent the immediate cash surrender value of assets managed by qualified insurance companies. Autodesk does not have control over the target allocation or visibility of the investment strategies of those investments. Insurance contracts and investments held by insurance companies made up 35% and 44% of total plan assets as of January 31, 2019 and January 31, 2018, respectively.

The assets held in the investment fund in the preceding table are invested in a diversified growth fund actively managed by Russell Investments in association with Aon Hewitt. The objective of the fund is to generate capital appreciation on a long-term basis through a diversified portfolio of investments. The fund aims to deliver equity-like returns in the medium to long term with around two-thirds the volatility of equity markets. The fair value of the assets held in the investment fund are priced monthly at net asset value without restrictions on redemption.

Estimated Future Benefit Payments

Estimated benefit payments over the next 10 fiscal years are as follows:
 
Pension Benefits
2020
$
2.4

2021
2.3

2022
2.3

2023
2.3

2024
2.3

2025-2029
13.9

Total
$
25.5



Funding Expectations

Our expected required funding for the plans during fiscal 2020 is approximately $4.6 million.

Net Periodic Benefit Cost

The components of net periodic pension cost for the defined benefit pension plans for fiscal 2019, 2018, and 2017 are as follows:
 
Fiscal Year Ended January 31,
 
2019
 
2018
 
2017
Service cost for benefits earned during the period
$
4.1

 
$
5.2

 
$
5.6

Interest cost on projected benefit obligation (1)
2.3

 
2.7

 
3.0

Expected return on plan assets (1)
(3.2
)
 
(3.9
)


(4.2
)
Amortization of prior service credit (1)
(0.2
)
 
(0.3
)
 
(0.3
)
Amortization of loss (1)
0.5


1.2


1.5

Settlement loss (1)
4.3

 
1.9

 
1.2

Curtailment gain (1)
(10.9
)
 
(0.1
)
 
—

Net periodic (benefit) cost
$
(3.1
)
 
$
6.7

 
$
6.8


____________________
(1)
Included in Interest and other expense, net in Autodesk's fiscal 2019 Consolidated Statements of Operations as a result of the adoption of ASU No. 2017-07 in the first quarter of fiscal 2019.

Amounts Recorded in OCI

The components of other comprehensive income (loss) for the defined benefit pension plans before taxes for fiscal 2019, 2018, and 2017 are as follows:
 
Fiscal Year Ended January 31,
 
2019
 
2018
 
2017
Prior service credit for period
$
(0.1
)
 
$
0.2

 
$
—

Net (gain) loss for period
(2.4
)
 
(2.5
)
 
7.2

Effect of settlement
(4.3
)
 
(1.9
)
 
(1.2
)
Effect of curtailment
(7.9
)
 
(0.2
)
 
—

Amortization of prior service credit
0.2

 
0.3

 
0.3

Amortization of net loss
(0.5
)
 
(1.2
)
 
(1.5
)
Other comprehensive (income) loss
$
(15.0
)
 
$
(5.3
)
 
$
4.8



Amounts Recorded in Accumulated Other Comprehensive Loss

The amounts recorded in accumulated other comprehensive loss before taxes at the end of each period were as follows:
 
Fiscal Year Ended January 31,
 
2019
 
2018
Net prior service credit
$
(1.4
)
 
$
(3.1
)
Net actuarial loss
17.7

 
34.8

Accumulated other comprehensive loss, before tax
$
16.3

 
$
31.7



Assumptions

Weighted average actuarial assumptions used to determine costs for the plans for each period were as follows:
 
Fiscal Year Ended January 31,
 
2019
 
2018
 
2017
Discount rate
2.5
%
 
2.4
%
 
3.2
%
Expected long-term rate of return on plan assets
3.3
%
 
3.3
%
 
4.3
%
Rate of compensation increase
2.3
%
 
2.3
%
 
2.2
%


The weighted-average expected long-term rate of return for the plan assets is 3.3%. The weighted-average expected long-term rate of return on plan assets is based on the interest rates guaranteed under the insurance contracts, and the expected rate of
return appropriate for each category of assets weighted for the distribution within the diversified investment fund. The assumptions used for the plans are based upon customary rates and practices for the location of the plans. Factors such as asset class allocations, long-term rates of return (actual and expected), and results of periodic asset liability modeling studies are considered when constructing the long-term rate of return assumption for our defined benefit pension plans.

Weighted average actuarial assumptions used to determine benefit obligations for the plans at the end of each period were as follows:
 
Fiscal Year Ended January 31,
 
2019
 
2018
 
2017
Discount rate
2.0
%
 
1.8
%
 
1.7
%
Rate of compensation increase
2.7
%
 
2.6
%
 
2.6
%


In selecting the appropriate discount rate for the plans, the Company uses country-specific information, adjusted to reflect the duration of the particular plan. The discount rate was based on highly rated long-term bond indexes and yield curves that match the duration of the plan’s benefit obligations.

Defined Contribution Plans

Autodesk also provides defined contribution plans in certain foreign countries where required by statute. Autodesk’s funding policy for foreign defined contribution plans is consistent with the local requirements in each country. Autodesk’s contributions to these plans were $29.6 million in fiscal 2019, $27.2 million in fiscal 2018, and $26.6 million in fiscal 2017.

Cash Balance Plans

Autodesk provides a cash balance plan that insures the risks of disability, death, and longevity, in which the vested pension capital is reinvested and provides a 100% capital and interest guarantee. The weighted-average guaranteed interest crediting rate for cash balance plans was 1.0%, 1.0%, and 1.3% for mandatory retirement savings and 0.3%, 0.3%, and 0.8% for supplementary retirement savings for fiscal 2019, 2018, and 2017, respectively.

Other Plans

In addition, Autodesk offers a non-qualified deferred compensation plan to certain key employees whereby they may defer a portion (or all) of their annual compensation until retirement or a different date specified by the employee in accordance with terms of the plan. See Note 7, “Deferred Compensation,” for further discussion.