Autodesk 2008 Annual Report Download - page 132

AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Accounts Receivable, Net
Accounts receivable, net consisted of the following as of January 31:
2008 2007
Trade accounts receivable ....................................... $439.0 $341.5
Less: Allowance for doubtful accounts ............................. (7.8) (9.9)
Less: Product returns and other reserves ............................ (44.7) (30.3)
Accounts receivable, net ........................................ $386.5 $301.3
Allowances for uncollectible trade receivables are based upon historical loss patterns, the number of days
that billings are past due and an evaluation of the potential risk of loss associated with problem accounts.
The product returns and other reserves are based on historical experience of actual product returns,
estimated channel inventory levels, the timing of new product introductions, channel sell-in for applicable
markets and other factors.
Concentration of Credit Risk
Autodesk places its cash, cash equivalents and marketable securities with and in the custody of financial
institutions with high credit standing and, by policy, limits the amounts invested with any one institution, type of
security and issuer. Approximately 21% and 26% of Autodesk’s consolidated cash, cash equivalents and
marketable securities were held with financial institutions in the United States at January 31, 2008 and 2007,
respectively. Cash held in the Other Americas; Europe, Middle East and Africa; and Asia/Pacific regions
accounted for 1%, 42% and 36% of total consolidated cash, cash equivalents and marketable securities,
respectively, at January 31, 2008. Cash held in the Other Americas; Europe, Middle East and Africa; and Asia/
Pacific regions accounted for 2%, 48% and 24% of total consolidated cash, cash equivalents and marketable
securities, respectively, at January 31, 2007.
At January 31, 2008, Autodesk’s investment portfolio included auction rate securities with an estimated fair
value of $8.4 million ($9.0 million cost basis). See Note 12, “Financial Instruments,” for further discussion of
Autodesk’s financial instruments including its auction rate securities.
Autodesk’s accounts receivable are derived from sales to a large number of resellers, distributors and direct
customers in the Americas; Europe, Middle East and Africa; and Asia/Pacific regions. Autodesk performs
ongoing evaluations of its customers’ financial condition and limits the amount of credit extended when deemed
necessary, but generally requires no collateral. In fiscal 2008, 2007 and 2006, total sales to Tech Data
Corporation, including its affiliates (“Tech Data”), accounted for 14%, 12% and 11% of Autodesk’s consolidated
net revenue, respectively. The majority of the net revenue from sales to Tech Data relates to Autodesk’s Design
Solutions Segment. In addition, Tech Data accounted for 15% and 16% of gross accounts receivable at
January 31, 2008 and 2007, respectively.
Computer Equipment, Software, Furniture and Leasehold Improvements, Net
Computer equipment, software and furniture are depreciated using the straight-line method over the
estimated useful lives of the assets, which range from two to five years. Leasehold improvements are amortized
on a straight-line basis over the shorter of the estimated useful life or the lease term. Depreciation expense was
$33.9 million in fiscal 2008, $31.0 million in fiscal 2007 and $33.8 million in fiscal 2006.
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