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Business and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jan. 31, 2020

Information regarding Autodesk's long-lived assets by geographic area is as follows:



	January 31,
	2020		2019
Long-lived assets (1):
Americas
U.S.	$	434.2	$	97.5
Other Americas	33.2		17.5
Total Americas	467.4		115.0
Europe, Middle East, and Africa	75.8		23.0
Asia Pacific	57.3		11.7
Total long-lived assets	$	600.5	$	149.7

____________________

(1)

Long-lived assets exclude deferred tax assets, marketable securities, goodwill, and other intangible assets

Schedule of Accounts, Notes, Loans and Financing Receivable

Accounts receivable, net, consisted of the following as of January 31:



	2020			2019
Trade accounts receivable	$	716.1		$	529.3
Less: Allowance for doubtful accounts	(4.9		)	(4.9		)
Product returns reserve	(0.5		)	(0.3		)
Partner programs and other obligations	(58.4		)	(49.8		)
Accounts receivable, net	$	652.3		$	474.3

Property, Plant and Equipment

Computer equipment, software, furniture, leasehold improvements and the related accumulated depreciation at January 31 were as follows:



	2020			2019
Computer hardware, at cost	$	159.7		$	190.2
Computer software, at cost	64.0			66.7
Leasehold improvements, land and buildings, at cost	284.0			247.8
Furniture and equipment, at cost	69.0			67.2
Computer software, hardware, leasehold improvements, furniture, and equipment, at cost	576.7			571.9
Less: Accumulated depreciation	(415.0		)	(422.2		)
Computer software, hardware, leasehold improvements, furniture, and equipment, net	$	161.7		$	149.7

Schedule of Finite-Lived Intangible Assets by Major Class

Other intangible assets and related accumulated amortization at January 31 were as follows:



	2020			2019
Developed technologies, at cost	$	647.1		$	670.2
Customer relationships, trade names, patents, and user lists, at cost (1)	532.2			533.1
Other intangible assets, at cost (2)	1,179.3			1,203.3
Less: accumulated amortization	(972.2		)	(922.5		)
Other intangible assets, net	$	207.1		$	280.8

_______________


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

(2)

Includes the effects of foreign currency translation.

Schedule of Expected Amortization Expense

Excluding in-process research and development, expected future amortization expense for developed technologies, customer relationships, trade names, patents, and user lists for each of the fiscal years ended thereafter is as follows:



	Fiscal Year ended January 31,
2021	$	64.7
2022	49.0
2023	37.6
2024	19.2
2025	13.0
Thereafter	23.6
Total	$	207.1

Schedule of Goodwill

The following table summarizes the changes in the carrying amount of goodwill during the fiscal years ended January 31, 2020 and 2019:



	January 31, 2020			January 31, 2019
Goodwill, beginning of the year	$	2,600.0		$	1,769.4
Less: accumulated impairment losses, beginning of the year	(149.2		)	(149.2		)
Additions arising from acquisitions during the year	—			866.9
Effect of foreign currency translation and measurement period adjustments (1)	(5.8		)	(36.3		)
Goodwill, end of the year	$	2,445.0		$	2,450.8

_______________

(1)

Measurement period adjustments reflect revisions made to the Company's preliminary determination of estimated fair value of assets and liabilities assumed.

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

The following table summarizes stock-based compensation expense for fiscal 2020, 2019, and 2018, respectively, as follows:



	Fiscal Year Ended January 31,
	2020			2019			2018
Cost of subscription and maintenance revenue	$	13.8		$	13.2		$	11.9
Cost of other revenue	5.8			4.3			4.0
Marketing and sales	149.0			109.4			107.3
Research and development	120.8			82.6			82.9
General and administrative	73.0			40.0			55.3
Stock-based compensation expense related to stock awards and Employee Qualified Stock Purchase Plan ("ESPP") purchases	362.4			249.5			261.4
Tax benefit	(1.1		)	(2.6		)	(2.6		)
Stock-based compensation expense related to stock awards and ESPP purchases, net	$	361.3		$	246.9		$	258.8

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award

Autodesk uses the following assumptions to estimate the fair value of stock-based awards:



	Fiscal Year Ended		Fiscal Year Ended			Fiscal Year Ended
	January 31, 2020		January 31, 2019			January 31, 2018
	Performance Stock Unit	ESPP	Stock Option Plans	Performance Stock Unit	ESPP	Performance Stock Unit	ESPP
Range of expected volatilities	36%	33 - 40%	37 - 42%	36%	33 - 38%	32%	31 - 34%
Range of expected lives (in years)	N/A	0.5 - 2.0	0.5 - 3.8	N/A	0.5 - 2.0	N/A	0.5 - 2.0
Expected dividends	—%	—%	—%	—%	—%	—%	—%
Range of risk-free interest rates	2.5%	1.7 - 2.5%	2.3 - 2.7%	2.0%	1.9 - 2.8%	1.0 - 1.2%	0.9 - 1.4%

Schedule of New Accounting Pronouncements

The following table shows line items that were materially impacted by the adoption of ASC Topic 842 on February 1, 2019 on Autodesk’s Consolidated Balance Sheet:



	As reported January 31, 2019			Impact from the adoption (1)			As adjusted
ASSETS
Prepaid expenses and other current assets	$	192.1		$	(5.9	)	$	186.2
Total current assets	1,620.0			(5.9		)	1,614.1
Operating lease right-of-use assets	—			283.4			283.4
Total assets	4,729.2			277.5			5,006.7
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Other accrued liabilities	142.3			(4.9		)	137.4
Operating lease liabilities	—			54.1			54.1
Long-term operating lease liabilities	—			245.9			245.9
Other liabilities	121.8			(16.9		)	104.9
Accumulated deficit	$	(2,147.4	)	$	(0.7	)	$	(2,148.1	)

____________________


(1)	Adoption of ASC Topic 842 did not have any other material impacts on Autodesk's consolidated financial statements.

Under the modified retrospective adoption, Autodesk calculated the impact of the adoption during fiscal 2019, as the first year of adoption. The following table shows select line items that were materially impacted by the adoption of ASC Topics 606 and 340-40 on Autodesk’s Consolidated Statements of Operations for the fiscal year ended January 31, 2019:



	For the Fiscal Year ended January 31, 2019
	As reported			Impact from the adoption of ASC 606 and 340-40			As adjusted
Net revenue (1)
Subscription	$	1,802.3		$	(16.6	)	$	1,785.7
Maintenance	635.1			5.7			640.8
Other	132.4			(11.3		)	121.1
Cost of revenue (1)
Cost of subscription and maintenance revenue	216.0			(0.1		)	215.9
Cost of other revenue	54.4			1.1			55.5
Operating expenses (1):
Marketing and sales	1,183.9			(17.9		)	1,166.0
Provision for income taxes	(38.1		)	(4.8		)	(42.9		)
Net loss (2)	$	(80.8	)	$	(10.1	)	$	(90.9	)
Basic net loss per share	$	(0.37	)	$	(0.05	)	$	(0.42	)
Diluted net loss per share	$	(0.37	)	$	(0.05	)	$	(0.42	)

____________________


(1)	While not shown here, gross margin, loss from operations, and loss before income taxes have consequently been affected as a result of the net effect of the adjustments noted above.


(2)	The impact on the Consolidated Statements of Comprehensive Loss is limited to the net effects of the impacts noted above on the Consolidated Statements of Operations, specifically on the line item "Net loss."

The following table shows select line items that were materially impacted by the adoption of ASC Topics 606 and 340-40 on Autodesk’s Consolidated Balance Sheet as of January 31, 2019:



	As reported			Impact from the adoption of ASC 606 and 340-40			As adjusted
ASSETS
Current assets:
Accounts receivable, net	$	474.3		$	73.4		$	547.7
Prepaid expenses and other current assets (1)	192.1			(79.4		)	112.7
Deferred income taxes, net	65.3			7.0			72.3
Other assets (1)	337.8			(17.9		)	319.9
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Deferred revenue	1,763.3			140.6			1,903.9
Other accrued liabilities	142.3			1.7			144.0
Long-term deferred revenue	328.1			37.2			365.3
Long-term income taxes payable	21.5			(0.2		)	21.3
Long-term deferred income taxes	79.8			(6.7		)	73.1
Stockholders’ deficit:
Accumulated deficit (2)	$	(2,147.4	)	$	(189.5	)	$	(2,336.9	)

____________________


(1)	Short term and long term "contract assets" under ASC Topic 606 are included within "Prepaid expenses and other current assets" and "Other assets", respectively, on the Consolidated Balance Sheet.


(2)	Included in the "Accumulated deficit" adjustment is $179.4 million for the cumulative effect adjustment of adopting ASC Topic 606 and 340-40 on the opening balance as of February 1, 2018.