Financial Instruments (Tables)

3 Months Ended

Apr. 30, 2020

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 April 30, 2020, and January 31, 2020:

			April 30, 2020
		(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value			Level 1		Level 2			Level 3
Cash equivalents (1):
	Commercial paper		$	29.0	$	—	$	—		$	29.0		$	—	$	29.0		$	—
	Money market funds		690.2		—		—			690.2			690.2		—			—
	Other (2)		5.1		—		—			5.1			4.1		1.0			—
Marketable securities:
	Short-term available for sale
		Commercial paper	11.0		—		—			11.0			—		11.0			—
	Short-term trading securities
		Mutual funds (3)	62.1		5.4		(1.3		)	66.2			66.2		—			—
Non-marketable equity security derivative asset (4)			0.1		0.4		(0.2		)	0.3			—		—			0.3
Derivative contract assets (4)			0.2		12.0		(0.1		)	12.1			—		12.1			—
Derivative contract liabilities (5)			—		—		(6.5		)	(6.5		)	—		(6.5		)	—
		Total	$	797.7	$	17.8	$	(8.1	)	$	807.4		$	760.5	$	46.6		$	0.3

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(1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities with stated contractual maturities due within one year.

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

(3) See Note 11, "Deferred Compensation " for more information.

(4) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets.

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

			January 31, 2020
		(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value			Level 1		Level 2			Level 3
Cash equivalents (1):
	Agency bonds		$	6.0	$	—	$	—		$	6.0		$	—	$	6.0		$	—
	Commercial paper		36.8		—		—			36.8			—		36.8			—
	Money market funds		1,135.5		—		—			1,135.5			1,135.5		—			—
	Other (2)		2.3		—		—			2.3			1.3		1.0			—
Marketable securities:
	Short-term trading securities
		Mutual funds (3)	59.9		9.2		(0.1		)	69.0			69.0		—			—
Non-marketable equity security derivative asset (4)			0.1		0.5		—			0.6			—		—			0.6
Derivative contract assets (4)			1.0		9.2		(1.3		)	8.9			—		8.9			—
Derivative contract liabilities (5)			—		—		(4.7		)	(4.7		)	—		(4.7		)	—
		Total	$	1,241.6	$	18.9	$	(6.1	)	$	1,254.4		$	1,205.8	$	48.0		$	0.6

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(1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities with stated contractual maturities due in one year.

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

(3) See Note 11, "Deferred Compensation " for more information.

(4) Included in “Prepaid expenses and other current assets,” or "Long-term other assets," in the accompanying Condensed Consolidated Balance Sheets.

(5)

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

Equity securities without readily determinable fair value

Adjustments to the carrying value of our non-marketable equity securities with no readily determined fair values measured using the measurement alternative were as follows:

	Three Months Ended April 30,						Cumulative Amount as of April 30, 2020
(in millions)	2020			2019
Upward adjustments (1)	$	3.0		$	0.5		$	12.4
Negative adjustments, including impairments (1)	(19.1		)	(3.2		)	(28.1		)
Net adjustments	$	(16.1	)	$	(2.7	)	$	(15.7	)

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(1)

Included in "Interest and other expense, net" on the Company's 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 months ended April 30, 2020 and 2019:

	Three Months Ended April 30, 2020
	Net revenue				Cost of revenue			Operating expenses
(in millions)	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	$	803.0	$	62.1	$	57.4		$	341.3		$	217.4		$	104.8
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	$	2.1	$	0.6	$	(0.2	)	$	(0.8	)	$	(0.1	)	$	(0.4	)

	Three Months Ended April 30, 2019
	Net Revenue				Cost of revenue			Operating expenses
(in millions)	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	$	595.8	$	112.0	$	59.7		$	313.3		$	205.6		$	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	$	2.2	$	1.3	$	(0.1	)	$	(1.6	)	$	(0.3	)	$	(0.8	)

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 April 30, 2020 and January 31, 2020:

	Balance Sheet Location	Fair Value at
(in millions)		April 30, 2020		January 31, 2020
Derivative Assets
Foreign currency contracts designated as cash flow hedges	Prepaid expenses and other current assets	$	7.4	$	1.0
Derivatives not designated as hedging instruments	Prepaid expenses and other current assets and long-term other assets	5.0		8.4
Total derivative assets		$	12.4	$	9.4
Derivative Liabilities
Foreign currency contracts designated as cash flow hedges	Other accrued liabilities	$	4.0	$	2.8
Derivatives not designated as hedging instruments	Other accrued liabilities	2.5		1.9
Total derivative liabilities		$	6.5	$	4.7

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 months ended April 30, 2020 and 2019, (amounts presented include any income tax effects):

	Foreign Currency Contracts
	Three Months Ended April 30,
(in millions)	2020			2019
Amount of gain recognized in accumulated other comprehensive loss on derivatives (effective portion)	$	5.1		$	4.0
Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion)
Net revenue	$	2.7		$	3.5
Cost of revenue	(0.2		)	(0.1		)
Operating expenses	(1.3		)	(2.7		)
Total	$	1.2		$	0.7

The effects of derivatives not designated as hedging instruments on Autodesk’s Condensed Consolidated Statements of Operations were as follows for the three months ended April 30, 2020 and 2019, (amounts presented include any income tax effects):

	Three Months Ended April 30,
(in millions)	2020			2019
Amount and location of (loss) gain recognized on derivatives in net income (loss)
Interest and other expense, net	$	(1.0	)	$	4.1