Financial Instruments (Tables)

9 Months Ended

Oct. 31, 2019

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 October 31, 2019 and January 31, 2019:

			October 31, 2019
			Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value			Level 1		Level 2			Level 3
Cash equivalents (1):
	Commercial paper		$	42.7	$	—	$	—		$	42.7		$	—	$	42.7		$	—
	Money market funds		377.3		—		—			377.3			377.3		—			—
	Other (2)		1.9		—		—			1.9			0.9		1.0			—
Marketable securities:
	Short-term trading securities
		Mutual funds	59.8		8.5		—			68.3			68.3		—			—
Derivative contract assets (3)			2.3		6.7		(2.6		)	6.4			—		5.8			0.6
Derivative contract liabilities (4)			—		—		(7.2		)	(7.2		)	—		(7.2		)	—
		Total	$	484.0	$	15.2	$	(9.8	)	$	489.4		$	446.5	$	42.3		$	0.6

____________________ 

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

(2) Consists of custody cash deposits and certificates of deposit.

(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, 2019
			Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value			Level 1		Level 2			Level 3
Cash equivalents (1):
	Certificates of deposit		$	1.0	$	—	$	—		$	1.0		$	—	$	1.0		$	—
	Commercial paper		87.9		—		—			87.9			—		87.9			—
	Corporate debt securities		5.0		—		—			5.0			—		5.0			—
	Custody cash deposit		0.8		—		—			0.8			0.8		—			—
	Money market funds		281.4		—		—			281.4			281.4		—			—
Marketable securities:
	Short-term
		Other (2)	6.2		1.1		—			7.3			2.7		4.6			—
	Short-term trading securities
		Mutual funds	56.6		3.7		—			60.3			60.3		—			—
Convertible debt securities (3)			4.6		1.9		(2.1		)	4.4			—		—			4.4
Derivative contract assets (4)			1.7		8.6		(1.8		)	8.5			—		7.7			0.8
Derivative contract liabilities (5)			—		—		(7.4		)	(7.4		)	—		(7.4		)	—
		Total	$	445.2	$	15.3	$	(11.3	)	$	449.2		$	345.2	$	98.8		$	5.2

____________________ 

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

(2) Consists of corporate bonds, commercial paper, and common stock.

(3) Considered "available for sale" and 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 nine months ended October 31, 2019, was as follows:

	Fair Value Measurements Using Significant Unobservable Inputs
	(Level 3)
		Derivative Contracts			Convertible Debt Securities			Total
Balances, January 31, 2019		$	0.8		$	4.4		$	5.2
Impairments		—			(1.0		)	(1.0		)
Settlements		—			(3.5		)	(3.5		)
(Loss) gain included in earnings (1)		(0.2		)	0.2			—
Loss included in OCI		—			(0.1		)	(0.1		)
Balances, October 31, 2019		$	0.6		$	—		$	0.6

____________________

(1) Included in "Interest and other expense, net" in the accompanying Condensed Consolidated Statements of Operations.

Location and amount of gain or (loss) recognized

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 nine months ended October 31, 2019:

	Three Months Ended October 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	$	715.0	$	91.2	$	54.2		$	330.7		$	213		$	99.1
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	$	3.3	$	1.6	$	(0.4	)	$	(1.0	)	$	(0.1	)	$	(0.5	)
	Nine Months Ended October 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	$	1,974.5	$	306.7	$	166.9		$	960.8		$	634.0		$	299.6
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	$	8.7	$	4.7	$	(0.7	)	$	(3.4	)	$	(0.6	)	$	(1.7	)

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 October 31, 2019 and January 31, 2019:

	Balance Sheet Location	Fair Value at
		October 31, 2019		January 31, 2019
Derivative Assets
Foreign currency contracts designated as cash flow hedges	Prepaid expenses and other current assets	$	2.4	$	4.3
Derivatives not designated as hedging instruments	Prepaid expenses and other current assets and Other assets	4.0		4.2
Total derivative assets		$	6.4	$	8.5
Derivative Liabilities
Foreign currency contracts designated as cash flow hedges	Other accrued liabilities	$	3.0	$	3.3
Derivatives not designated as hedging instruments	Other accrued liabilities	4.2		4.1
Total derivative liabilities		$	7.2	$	7.4

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 nine months ended October 31, 2019 and 2018 (amounts presented include any income tax effects):

	Foreign Currency Contracts
	Three Months Ended October 31,						Nine Months Ended October 31,
	2019			2018			2019			2018
Amount of (loss) gain recognized in accumulated other comprehensive loss on derivatives (effective portion)	$	(0.4	)	$	6.8		$	2.7		$	20.1
Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (loss) (effective portion)
Net revenue	$	4.9		$	(2.5	)	$	13.4		$	(8.5	)
Cost of revenue	(0.4		)	—			(0.7		)	—
Operating expenses	(1.6		)	(2.2		)	(5.7		)	(0.5		)
Total	$	2.9		$	(4.7	)	$	7.0		$	(9.0	)
Amount and location of gain recognized in income (loss) on derivatives (ineffective portion and amount excluded from effectiveness testing)
Interest and other expense, net	$	1.5		$	0.9		$	2.8		$	1.4

The effects of derivatives not designated as hedging instruments on Autodesk’s Condensed Consolidated Statements of Operations were as follows for the three and nine months ended October 31, 2019 and 2018 (amounts presented include any income tax effects):

	Three Months Ended October 31,				Nine Months Ended October 31,
	2019		2018		2019		2018
Amount and location of gain recognized on derivatives in net (loss) income
Interest and other expense, net	$	1.5	$	4.7	$	3.2	$	10.7