Leases

9 Months Ended

Oct. 31, 2021

Leases Autodesk has operating leases for real estate, vehicles, and certain equipment. Leases have remaining lease terms of less than 1 year to 68 years, some of which include options to extend the lease with renewal terms from 1 year to 10 years and some of which include options to terminate the leases from less than 1 year to 9 years. Options to extend or terminate the lease are considered in determining the lease term when it is reasonably certain that the option will be exercised. Payments under our lease arrangements are primarily fixed; however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease assets and liabilities. These amounts include payments affected by the Consumer Price Index, payments for common area maintenance that are subject to annual reconciliation, and payments for

maintenance and utilities. The Company’s leases do not contain residual value guarantees or material restrictive covenants. Short-term leases are recognized in the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term. Short-term lease expense was not material for the periods presented. Changes in operating lease right-of-use assets and operating lease liabilities are presented net in the “accounts payable and other liabilities” line in the Condensed Consolidated Statements of Cash Flows.

The components of lease cost were as follows:


	Three Months Ended October 31, 2021
	Cost of subscription and maintenance revenue		Cost of other revenue		Marketing and sales		Research and development		General and administrative		Total
Operating lease cost	$	2.1	$	0.6	$	11.0	$	7.4	$	3.7	$	24.8
Variable lease cost	0.5		0.1		3.0		2.1		1.0		6.7

	Nine Months Ended October 31, 2021
	Cost of subscription and maintenance revenue		Cost of other revenue		Marketing and sales		Research and development		General and administrative		Total
Operating lease cost	$	6.1	$	1.6	$	32.5	$	23.1	$	11.0	$	74.3
Variable lease cost	1.3		0.4		7.2		5.2		2.4		16.5


	Three Months Ended October 31, 2020
	Cost of subscription and maintenance revenue		Cost of other revenue		Marketing and sales		Research and development		General and administrative		Total
Operating lease cost	$	1.9	$	0.6	$	11.9	$	8.6	$	2.9	$	25.9
Variable lease cost	0.2		0.1		1.5		1.0		0.4		3.2

	Nine Months Ended October 31, 2020
	Cost of subscription and maintenance revenue		Cost of other revenue		Marketing and sales		Research and development		General and administrative		Total
Operating lease cost	$	5.6	$	1.7	$	34.0	$	24.3	$	10.5	$	76.1
Variable lease cost	0.6		0.2		4.0		2.8		1.3		8.9

Supplemental operating cash flow information related to leases is as follows:


	Nine Months Ended October 31,
	2021		2020
Cash paid for operating leases included in operating cash flows (1)	$	84.4	$	74.7
Non-cash operating lease liabilities arising from obtaining operating lease right-of-use assets	12.2		50.8

_______________

(1) Includes $16.5 million and $8.9 million in variable lease payments for the nine months ended October 31, 2021 and 2020, respectively, not included in “Operating lease liabilities” and “Long-term operating lease liabilities” on the Condensed Consolidated Balance Sheets.

The weighted average remaining lease term for operating leases is 6.9 and 7.3 years at October 31, 2021, and January 31, 2021, respectively. The weighted average discount rate was 2.59% and 2.69% at October 31, 2021, and January 31, 2021, respectively.

Maturities of operating lease liabilities were as follows:


Fiscal year ending
2022 (remainder)	$	21.8
2023	99.1
2024	81.6
2025	60.7
2026	45.9
Thereafter	148.2
	457.3
Less imputed interest	34.6
Present value of operating lease liabilities	$	422.7

As of October 31, 2021, Autodesk had additional operating lease minimum lease payments of $21.4 million for executed leases that have not yet commenced, primarily for office locations.