Autodesk 2014 Annual Report Download - page 138

2013 Annual Report
2014 Form 10-K 64
Accounts Receivable, Net
Accounts receivable, net, consisted of the following as of January 31:
2014 2013
Trade accounts receivable $ 464.6 $ 531.1
Less: Allowance for doubtful accounts (4.9) (5.6)
Product returns reserve (4.0) (4.9)
Partner programs and other obligations (32.0) (25.5)
Accounts receivable, net $ 423.7 $ 495.1
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 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.
As part of the indirect channel model, Autodesk has a partner incentive program that uses quarterly attainment monetary
rewards to motivate distributors and resellers to achieve mutually agreed upon business goals in a specified time period. A
portion of these incentives reduce license and other revenue in the current period. The remainder, which relates to incentives on
our Subscription Program, is recorded as a reduction to deferred revenue in the period the maintenance transaction is billed and
subsequently recognized as a reduction to maintenance revenue over the contract period. These incentive balances do not
require significant assumptions or judgments. The reserves associated with the partner incentive program are treated on the
balance sheet as either contra account receivable (when due to distributors and direct resellers) or accounts payable (when due
to indirect resellers).
Concentration of Credit Risk
Autodesk places its cash, cash equivalents and marketable securities in highly liquid instruments with, and in the custody
of, diversified financial institutions globally with high credit ratings and limits the amounts invested with any one institution,
type of security and issuer.
Geographical concentrations of consolidated cash, cash equivalents and marketable securities held by Autodesk as of
January 31:
2014 2013
United States 25% 29%
Other Americas 1% 1%
Europe, Middle East and Africa (“EMEA”) 57% 38%
Asia Pacific (“APAC”) 17% 32%
Autodesk’s primary commercial banking relationship is with Citigroup Inc. and its global affiliates. Citibank, N.A., an
affiliate of Citigroup, is one of the lead lenders and an agent in the syndicate of Autodesk’s $400.0 million line of credit facility.
It is Autodesk’s policy to limit the amounts invested with any one institution by type of security and issuer.
Autodesk’s accounts receivable are derived from sales to a large number of resellers, distributors and direct customers in
the Americas; EMEA; and APAC geographies. Autodesk performs ongoing evaluations of these partners' financial condition
and limits the amount of credit extended when deemed necessary, but generally does not require collateral from such parties.
Total sales to the Company's largest distributor Tech Data Corporation, and its global affiliates (“Tech Data”), accounted for
24%, 23% and 21% of Autodesk's net revenue for fiscal years ended 2014, 2013 and 2012, respectively. The majority of the net
revenue from sales to Tech Data relates to Autodesk's Platform Solutions and Emerging Business ("PSEB") segment and is for
sales made outside of the United States. In addition, Tech Data accounted for 24% and 23% of trade accounts receivable at
January 31, 2014 and 2013, respectively.