Autodesk 2014 Annual Report Download - page 140

2013 Annual Report
2014 Form 10-K 66
Other intangible assets and related accumulated amortization at January 31 were as follows:
2014 2013
Purchased technologies, at cost $ 462.4 $ 431.0
Customer relationships, trade names, patents and user lists, at cost (1) 268.1 259.5
730.5 690.5
Less: Accumulated amortization (626.2) (546.3)
Other intangible assets, net $ 104.3 $ 144.2
____________________
(1) Included as a net balance in “Other assets” in the Consolidated Balance Sheet. Customer relationships and trade names include the
effects of foreign currency translation.
The weighted average amortization period for purchased technologies, customer relationships and trade names during
fiscal 2014 was 4.1 years. Expected future amortization expense for purchased technologies, customer relationships and trade
names, patents and user lists for each of the fiscal years ended thereafter is as follows:
Fiscal Year ended
January 31,
2015 $ 59.1
2016 30.8
2017 11.1
2018 1.2
2019 0.5
Thereafter 0.8
Total $ 103.5
Goodwill
Goodwill consists of the excess of cost over the fair value of net assets acquired in business combinations. Autodesk
assigns goodwill to the reportable segment associated with each business combination, and tests goodwill for impairment
annually in its fourth fiscal quarter or more often if circumstances indicate a potential impairment. For purposes of the goodwill
impairment test, a reporting unit is an operating segment or one level below. Autodesk's operating segments are aligned with the
management principles of Autodesk's business.
Accounting Standard Update No. 2011-08, "Testing Goodwill for Impairment" provides Autodesk the option to perform
an assessment of qualitative factors of impairment (“optional assessment”) prior to necessitating a two-step quantitative
impairment test. Should the optional assessment be utilized for any given fiscal year, qualitative factors to consider include
cost factors; financial performance; legal, regulatory, contractual, political, business, or other factors; entity specific factors;
industry and market considerations, macroeconomic conditions, and other relevant events and factors affecting the reporting
unit. If, after assessing the totality of events or circumstances, it is more likely than not that the fair value of the reporting unit is
greater than its carrying value, then performing the two-step impairment test is unnecessary.
Therefore, the two-step quantitative impairment test is necessary when either Autodesk does not utilize the optional
assessment or, as a result of the optional assessment, it is not more likely than not that the fair value of the reporting unit is
greater than its carrying value. In performing the two-step impairment test, Autodesk uses discounted cash flow models which
include assumptions regarding projected cash flows. Variances in these assumptions could have a significant impact on
Autodesk's conclusion as to whether goodwill is impaired, or the amount of any impairment charge. Impairment charges, if any,
result from instances where the fair values of net assets associated with goodwill are less than their carrying values. As changes
in business conditions and assumptions occur, Autodesk may be required to record impairment charges. The process of
evaluating the potential impairment of goodwill is subjective and requires significant judgment at many points during the
analysis. The value of Autodesk’s goodwill could also be impacted by future adverse changes such as: (i) declines in Autodesk’s
actual financial results, (ii) a sustained decline in Autodesk’s market capitalization, (iii) significant slowdown in the worldwide