Autodesk 2014 Annual Report Download - page 142

2013 Annual Report
2014 Form 10-K 68
The change in the carrying amount of goodwill during the year ended January 31, 2013 is as follows:
Platform
Solutions and
Emerging
Business
Architecture,
Engineering
and
Construction Manufacturing
Media and
Entertainment Total
Balance as of January 31, 2012
Goodwill $ 76.6 $ 247.7 $ 323.3 $ 184.0 $ 831.6
Accumulated impairment losses — — — (149.2) (149.2)
76.6 247.7 323.3 34.8 682.4
Vela Systems — 57.6 — — 57.6
Socialcam 23.0———23.0
Qontext 24.0———24.0
PI-VR
— — 36.8 — 36.8
Goodwill acquired from other
acquisitions 5.6 4.3 29.2 7.0 46.1
Effect of foreign currency translation,
purchase accounting adjustments and
other 0.3 0.7 0.6 — 1.6
Balance as of January 31, 2013
Goodwill 129.5 310.3 389.9 191.0 1,020.7
Accumulated impairment losses — — — (149.2) (149.2)
$ 129.5 $ 310.3 $ 389.9 $ 41.8 $ 871.5
Purchase accounting adjustments reflect revisions made to the Company’s preliminary purchase price allocations during
fiscal 2014 and 2013.
Impairment of Long-Lived Assets
At least annually or more frequently as circumstances dictate, Autodesk reviews its long-lived assets for impairment
whenever impairment indicators exist. Autodesk continually monitors events and changes in circumstances that could indicate
the carrying amounts of its long-lived assets may not be recoverable. When such events or changes in circumstances occur,
Autodesk assesses recoverability of these assets. Recoverability is measured by comparison of the carrying amounts of the
assets to the future undiscounted cash flows the assets are expected to generate. If the long-lived assets are considered to be
impaired, the impairment to be recognized is equal to the amount by which the carrying value of the assets exceeds its fair
market value. There was no impairment of long-lived assets during the year ended January 31, 2014. In addition, Autodesk did
not recognize any impairment of long-lived assets during the years ended January 31, 2013 and 2012.
In addition to the recoverability assessments, Autodesk routinely reviews the remaining estimated useful lives of its long-
lived assets. Any reduction in the useful life assumption will result in increased depreciation and amortization expense in the
quarter when such determinations are made, as well as in subsequent quarters.
Deferred Tax Assets
Deferred tax assets arise primarily from tax credits, net operating losses, and timing differences for reserves, accrued
liabilities, stock options, purchased technologies and capitalized intangibles, partially offset by the establishment of U.S.
deferred tax liabilities on unremitted earnings from certain foreign subsidiaries, deferred tax liabilities associated with tax
method change on advance payments, and a valuation allowance against California and Canadian deferred tax assets. They are
measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are
expected to reverse. Valuation allowances are established when necessary to reduce gross deferred tax assets to the amount
“more likely than not” expected to be realized.