Autodesk 2014 Annual Report Download - page 136

2013 Annual Report
2014 Form 10-K 62
AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
January 31, 2014
(Tables in millions of dollars, except per share data, unless otherwise indicated)
1. Business and Summary of Significant Accounting Policies
Business
Autodesk, Inc. (“Autodesk” or the “Company”) is a world leading design software and services company, offering
customers productive business solutions through powerful technology products and services. The Company serves customers in
the architecture, engineering and construction; manufacturing; and digital media, consumer and entertainment industries. The
Company’s sophisticated software products enable its customers to experience their ideas before they are real by allowing them
to imagine, design, and create their ideas and to visualize, simulate and analyze real-world performance early in the design
process by creating digital prototypes. These capabilities allow Autodesk’s customers to foster innovation, optimize and
improve their designs, help save time and money, improve quality, and collaborate with others. Autodesk software products are
sold globally, both directly to customers and through a network of resellers and distributors.
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of Autodesk and its wholly-owned subsidiaries.
All significant intercompany accounts and transactions have been eliminated.
Reclassifications
During the first quarter of fiscal 2014, Autodesk combined maintenance revenue and cloud services offering-related
revenue into one category named “Subscription.” As a result, revenue and cost of revenue related to cloud service offerings
previously reflected in “License and other revenue” and “Cost of license and other revenue” were reclassified to “Subscription
revenue” and “Cost of subscription revenue.” These revenues and expenses have been reclassified in the Consolidated
Statements of Operations for fiscal years 2013 and 2012 to conform to the current period presentation as follows:
Fiscal year ended January 31,
2013 2012
Reclassifications within revenue:
Decrease to License and other revenue $ (26.5) $ (23.2)
Increase to Subscription revenue 26.5 23.2
Reclassifications within cost of revenue:
Decrease to Cost of license and other revenue $ (32.1) $ (20.5)
Increase to Cost of subscription revenue 32.1 20.5
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management
to make estimates and assumptions that affect the amounts reported in Autodesk’s consolidated financial statements and notes
thereto. These estimates are based on information available as of the date of the consolidated financial statements. On a regular
basis, management evaluates these estimates and assumptions. Actual results may differ materially from these estimates.
Examples of significant estimates and assumptions made by management involve the determination of the fair value of
acquired assets and liabilities, goodwill, financial instruments, long-lived assets and other intangible assets, the realizability of
deferred tax assets and the fair value of stock awards (see “Stock-based Compensation Expense” within this Note 1 and Note 3
“Employee and Director Stock Plans” for further discussion). The Company also makes assumptions, judgments and estimates
in determining the accruals for uncertain tax positions, variable compensation, partner incentive programs, product returns
reserves, allowances for doubtful accounts, asset retirement obligations and legal contingencies.