Autodesk 2000 Annual Report Download - page 35

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34 FY 00 Autodesk, Inc.
Autodesk, Inc.
Notes to Consolidated Financial Statements
January 31,2000
Note 1. Autodesk and Summary of Significant
Accounting Policies
Autodesk and Basis of Presentation
Autodesk, Inc. (“Autodesk”) is the world’s leading
supplier of PC and web design software and digital
content creation tools.
On March 16, 1999, Autodesk acquired Discreet Logic
Inc. (“Discreet”) by issuing approximately 10.0 million
shares of Autodesk common stock in exchange for
Discreet’s outstanding common stock. Discreet devel-
ops,assembles,markets and supports nonlinear digital
systems and software for creating, editing and com-
positing imagery for film, video and HDTV.
Autodesk accounted for this acquisition under the
pooling of interests method. Accordingly, all prior
period consolidated financial statements presented
have been restated to include the combined results of
operations, financial position and cash flows as
though Discreet had always been part of Autodesk.
Separate results of the combined entities for the three
months ended April 30, 1999 and the fiscal years
ended January 31, 1999 and 1998 are as follows:
(in millions)
Three months
ended
April 30, 1999
(unaudited) 1999 1998
Net revenues:
Autodesk $ 170.0 $ 740.2 $ 617.1
Discreet 24.9 131.7 151.6
$ 194.9 $ 871.9 $ 768.7
Net income (loss):
Autodesk $ (7.3) $ 90.6 $ 45.2
Discreet (9.8) 6.5 11.0
$ (17.1) $ 97.1 $ 56.2
Prior to the acquisition, Discreet’s fiscal year ended on
June 30. As a result of differing year-ends, Autodesk’s
consolidated statements of operations, stockholders’
equity and cash flows for the fiscal years ended Janu-
ary 31, 1999 and 1998 were combined with Discreet’s
financial statements for the twelve months ended
December 31, 1998 and the fiscal year ended June 30,
1998,respectively.As such,Discreet’s operating results
for the period from January 1, 1998 to June 30, 1998
were duplicated in the accompanying consolidated
statement of operations for the year ended Janu-
ary 31, 1999 and 1998. Discreet’s net revenues and
net income for this six-month period were $75.9 mil-
lion and $9.1 million, respectively.The net income was
recorded as an adjustment to retained earnings dur-
ing fiscal 1999.
Additionally,Discreet’s January 1999 results have been
excluded from the accompanying statements of oper-
ations as a result of changing Discreet’s year-end to
January 31. In January 1999, Discreet recognized net
revenues of $3.8 million and incurred a net loss of
$5.0 million. The loss was recorded as an adjustment
to retained earnings during fiscal 2000.
On April 22, 1999, in an acquisition accounted for
under the purchase method of accounting, Autodesk
acquired VISION* Solutions (“VISION”) from MCI Sys-
temhouse Corporation,a subsidiary of MCI WorldCom
Inc. Accordingly, VISION’s operating results, which are
not material in relation to those of Autodesk, have
been included in Autodesk’s consolidated financial
statements since the date of acquisition.