Derivative Instruments

3 Months Ended

Apr. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The fair values of derivative instruments in Autodesk’s Condensed Consolidated Balance Sheets were as follows as of April 30, 2023, and January 31, 2023:


	Balance Sheet Location	Fair Value at
		April 30, 2023		January 31, 2023
Derivative Assets
Foreign currency contracts designated as cash flow hedges	Prepaid expenses and other current assets	$	9	$	9
Derivatives not designated as hedging instruments	Prepaid expenses and other current assets and long-term other assets	6		5
Total derivative assets		$	15	$	14
Derivative Liabilities
Foreign currency contracts designated as cash flow hedges	Other accrued liabilities	$	12	$	20
Derivatives not designated as hedging instruments	Other accrued liabilities	5		11
Total derivative liabilities		$	17	$	31

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, 2023 and 2022 (amounts presented include any income tax effects):


	Three Months Ended April 30,
	2023		2022
Amount of (loss) gain recognized in accumulated other comprehensive income, net of tax, (effective portion)	$	(13)	$	55
Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion)
Net revenue	$	20	$	6
Cost of revenue	—		(1)
Operating expenses	2		(3)
Total	$	22	$	2

The amount and location of gain recognized in net income 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, 2023 and 2022, (amounts presented include any income tax effects):


	Three Months Ended April 30,
	2023		2022

Interest and other income (expense), net	$	2	$	24

Foreign currency contracts designated as cash flow hedges

Autodesk uses foreign currency contracts to reduce the exchange rate impact on a portion of the net revenue or operating expense of certain anticipated transactions. These currency collars and forward contracts are designated and documented as cash flow hedges. The notional amounts of these contracts are presented net settled and were $990 million at April 30, 2023, and $934 million at January 31, 2023. Outstanding contracts are recognized as either assets or liabilities on the Company's Condensed Consolidated Balance Sheet at fair value. The majority of the net gain of $51 million remaining in “Accumulated other comprehensive loss” as of April 30, 2023, is expected to be recognized into earnings within the next 24 months.

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, 2023 and 2022:


	Three Months Ended April 30, 2023
	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	$	1,193	$	14	$	96	$	456	$	327	$	132

Gain on cash flow hedging relationships in Subtopic ASC 815-20
Foreign exchange contracts
Amount of gain reclassified from accumulated other comprehensive income into income	$	20	$	—	$	—	$	1	$	—	$	1


	Three Months Ended April 30, 2022
	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	$	1,089	$	18	$	84	$	419	$	289	$	120

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	$	6	$	—	$	(1)	$	(2)	$	—	$	(1)

Derivatives not designated as hedging instruments

Autodesk uses foreign currency contracts that are not designated as hedging instruments to reduce the exchange rate risk associated primarily with foreign currency denominated receivables, payables, and cash. The notional amounts of these foreign currency contracts are presented net settled and were $108 million at April 30, 2023, and $951 million at January 31, 2023.