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Financial Instruments
 3 Months Ended
Apr. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Financial Instruments Financial Instruments
The following tables summarize the Company's financial instruments by significant investment category as of April 30, 2023, and January 31, 2023:
April 30, 2023
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Cash equivalents (1):
Money market funds$576 $— $— $576 
Commercial paper 203 — — 203 
Certificates of deposit137 — — 137 
Other (2)20 — — 20 
Marketable securities:
Short-term
Commercial paper120 — — 120 
Corporate debt securities40 — — 40 
U.S. government securities33 — — 33 
Asset-backed securities21 — — 21 
Other (3)8 — — 8 
Long-term
Corporate debt securities74 1 (1)74 
U.S. government securities55 — — 55 
Asset-backed securities22 — — 22 
Agency mortgage backed securities19 — — 19 
Other (4)15 — — 15 
Mutual funds (5) (6)84 7 (1)90 
Convertible debt securities (6) 3 1 (2)2 
Total$1,430 $9 $(4)$1,435 
___________________ 
(1)Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities.
(2)Agency discount notes, sovereign bonds, mortgage-backed securities, municipal bonds, and asset-backed securities.
(3)Consists of mortgage-backed securities, agency discount notes, and agency mortgage-backed securities.
(4)Consists of agency bonds, agency collateralized mortgage obligations, mortgage-backed securities, and collateralized mortgage obligations.
(5)See Note 11, “Deferred Compensation” for more information.
(6)Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets.
January 31, 2023
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Cash equivalents (1):
Money market funds$737 $— $— $737 
Commercial paper169 — — 169 
Certificates of deposit35 — — 35 
U.S government securities13 — — 13 
Other (2)12 — — 12 
Marketable securities:
Short-term
Corporate debt securities44 — — 44 
Commercial paper42 — — 42 
Asset-backed securities 19 — — 19 
U.S. government securities 17 — — 17 
Other (3)3 — — 3 
Long-term
Corporate debt securities45 — — 45 
U.S. government securities35 — — 35 
Asset backed securities13 — — 13 
Other (4)9 — — 9 
Mutual funds (5) (6)81 6 (1)86 
Convertible debt securities (6)3 1 (2)2 
Strategic investments derivative asset (6)2 — (2)— 
Total$1,279 $7 $(5)$1,281 
____________________ 
(1)Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities.
(2)Consists of custody cash deposits, agency discount notes, municipal bonds, corporate debt securities, asset-backed securities, and mortgage-backed securities.
(3)Consists of mortgage-backed securities, agency mortgage-backed securities, common stock, and agency collateralized mortgage obligations.
(4)Consists of agency mortgage-backed securities, agency bonds, agency collateralized mortgage obligations, mortgage-backed securities, and collateralized mortgage obligations.
(5)See Note 11, “Deferred Compensation” for more information.
(6)Included in “Prepaid expenses and other current assets,” or “Long-term other assets,” in the accompanying Condensed Consolidated Balance Sheets.

The following table summarizes the fair values of investments classified as marketable debt securities by contractual maturity date as of April 30, 2023:
Fair Value
Due within 1 year$191 
Due in 1 year through 5 years197 
Due in 5 years through 10 years8 
Due after 10 years11 
Total
$407 
    
As of both April 30, 2023, and January 31, 2023, Autodesk had no material unrealized losses, individually and in the aggregate, for marketable debt securities that are in a continuous unrealized loss position for greater than 12 months. Total
unrealized gains for securities with net gains in accumulated other comprehensive income were not material for the three months ended April 30, 2023.

Autodesk monitors all marketable debt securities for potential credit losses by reviewing indicators such as, but not limited to, current credit rating, change in credit rating, credit outlook, and default risk. There were no allowances for credit losses as of both April 30, 2023, and January 31, 2023. There were no write offs of accrued interest receivables for both the three months ended April 30, 2023 and 2022.

There were no material realized gain or loss for the sales or redemptions of marketable debt securities during both the three months ended April 30, 2023 and 2022. Realized gains and losses from the sales or redemptions of marketable debt securities are recorded in “Interest and other income (expense), net” on the Company's Condensed Consolidated Statements of Operations.

Proceeds from the sale and maturity of marketable debt securities were as follows:
Three Months Ended April 30,
20232022
Marketable debt securities$163 $202 

Strategic investments in equity securities

As of April 30, 2023, and January 31, 2023, Autodesk had $182 million and $177 million, respectively, in direct investments in privately held companies. These strategic investments in equity securities do not have readily determined fair values, and Autodesk uses the measurement alternative to account for the adjustment to these investments in a given quarter. If Autodesk determines that an impairment has occurred, Autodesk writes down the investment to its fair value. These strategic investments in equity securities are generally subject to a security-specific restriction which limits the sale or transfer of the respective equity security during the holding period.

Adjustments to the carrying value of our strategic investment equity securities with no readily determined fair values measured using the measurement alternative are included in “Interest and other income (expense), net” on the Company's Condensed Consolidated Statements of Operations. These adjustments were as follows:
 Three Months Ended April 30,Cumulative Amount as of
20232022April 30, 2023
Upward adjustments$— $— $29 
Negative adjustments, including impairments — (2)(86)
Net unrealized adjustments$— $(2)$(57)

Autodesk recognized no realized gains for both the three months ended April 30, 2023 and 2022 on the disposition of strategic investment equity securities.

Fair Value

Autodesk applies fair value accounting for certain financial assets and liabilities, which consist of cash equivalents, marketable securities, and other financial instruments, on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The following tables summarize the Company's financial instruments measured at fair value on a recurring basis by significant investment category as of April 30, 2023, and January 31, 2023:  
April 30, 2023
Level 1Level 2Level 3Total
Assets:
Cash equivalents (1):
Money market funds$576 $— $— $576 
Commercial paper — 203 — 203 
Certificates of deposit— 137 — 137 
Other (2)— 20 — 20 
Marketable securities:
Short-term
Commercial paper— 120 — 120 
Corporate debt securities— 40 — 40 
U.S. government securities— 33 — 33 
Asset-backed securities— 21 — 21 
Other (3)— 8 — 8 
Long-term
Corporate debt securities— 74 — 74 
U.S. government securities— 55 — 55 
Asset-backed securities— 22 — 22 
Agency mortgage backed securities— 19 — 19 
Other (4)— 15 — 15 
Long-term other assets:
Mutual funds (5)(6)90 — — 90 
Convertible debt securities (6)— — 2 2 
Derivative assets:
Derivative contract assets (6)— 14 — 14 
Strategic investments derivative assets (6)— — 1 1 
Derivative liabilities:
Derivative contract liabilities (7)— (17)— (17)
Total$666 $764 $3 $1,433 
____________________ 
(1)Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities.
(2)Agency discount notes, sovereign bonds, mortgage-backed securities, municipal bonds, and asset-backed securities.
(3)Consists of mortgage-backed securities, agency discount notes, and agency mortgage-backed securities.
(4)Consists of agency bonds, agency collateralized mortgage obligations, mortgage-backed securities, and collateralized mortgage obligations.
(5)See Note 11, “Deferred Compensation” for more information.
(6)Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets.
(7)Included in “Other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets.
January 31, 2023
Level 1Level 2Level 3Total
Assets:
Cash equivalents (1):
Money market funds$737 $— $— $737 
Commercial paper— 169 — 169 
Certificates of deposit— 35 — 35 
U.S government securities— 13 — 13 
Other (2)4 8 — 12 
Marketable securities:
Short-term
Corporate debt securities— 44 — 44 
Commercial paper— 42 — 42 
Asset backed securities — 19 — 19 
U.S. government securities — 17 — 17 
Other (3)— 3 — 3 
Long-term
Corporate debt securities— 45 — 45 
U.S. government securities— 35 — 35 
Asset backed securities— 13 — 13 
Other (4)— 9 — 9 
Long-term other assets:
Mutual funds (5) (6)86 — — 86 
Convertible debt securities (6)— — 2 2 
Derivative assets:
Derivative contract assets (6)— 14 — 14 
Derivative liabilities:
Derivative contract liabilities (7)— (31)— (31)
Total$827 $435 $2 $1,264 
____________________ 
(1)Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities.
(2)Consists of custody cash deposits, agency discount notes, municipal bonds, corporate debt securities, asset-backed securities, and mortgage-backed securities.
(3)Consists of mortgage-backed securities, agency mortgage-backed securities, common stock, and agency collateralized mortgage obligations.
(4)Consists of agency mortgage-backed securities, agency bonds, agency collateralized mortgage obligations, mortgage-backed securities, and collateralized mortgage obligations.
(5)See Note 11, “Deferred Compensation” for more information.
(6)Included in “Prepaid expenses and other current assets,” or “Long-term other assets,” in the accompanying Condensed Consolidated Balance Sheets.
(7)Included in “Other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets.
A reconciliation of the change in Autodesk’s Level 3 items for the three months ended April 30, 2023, is as follows:
Fair Value Measurements Using
Significant Unobservable Inputs (Level 3)
Derivative ContractConvertible Debt SecuritiesTotal
Balances, January 31, 2023
$— $2 $2 
Gain included in earnings1 — 1 
Balances, April 30, 2023
$1 $2 $3