Autodesk 2014 Annual Report Download - page 148

2013 Annual Report
2014 Form 10-K 74
data and relies on unobservable inputs only when observable market data is not available. There have been no transfers between
fair value measurement levels during the year ended January 31, 2014.
Autodesk's cash equivalents, marketable securities and financial instruments are primarily classified within Level 1 or
Level 2 of the fair value hierarchy. Autodesk values it's available for sale securities on pricing from pricing vendors, who may
use quoted prices in active markets for identical assets (Level 1) or inputs other than quoted prices that are observable either
directly or indirectly in determining fair value (Level 2). Autodesk's Level 2 securities are valued primarily using observable
inputs other than quoted prices in active markets for identical assets and liabilities. Autodesk's Level 3 securities consist of
investments held in auction rate securities, convertible debt securities and derivative contracts which are valued using
probability weighted discounted cash flow models and some of the inputs to the models are unobservable in the market.
A reconciliation of the change in Autodesk’s Level 3 items for the fiscal years ended January 31, 2014 and 2013 was as
follows:
Fair Value Measurements Using
Significant Unobservable Inputs
(Level 3)
Derivative
Contracts
Convertible
Debt
Securities
Taxable
Auction-Rate
Securities Total
Balance at January 31, 2012 $ 6.2 $ 18.3 $ 4.2 $ 28.7
Purchases 2.0 7.0 — 9.0
Settlements (1.3) (7.2) — (8.5)
Total unrealized gains (losses) 3.8 (0.6) — 3.2
Balance at January 31, 2013 10.7 17.5 4.2 32.4
Purchases 1.3 3.1 — 4.4
Settlements — — (4.0) (4.0)
Net realized losses — — (0.2) (0.2)
Total unrealized (losses) (2.9) (0.4) — (3.3)
Balance at January 31, 2014 $ 9.1 $ 20.2 $ — $ 29.3
The following table summarizes the estimated fair value of Autodesk's “available-for-sale securities” classified by the
contractual maturity date of the security:
January 31, 2014
Cost Fair Value
Due in 1 year $ 375.2 $ 375.2
Due in 1 year through 5 years 297.7 297.5
Due in 5 years through 10 years ——
Due after 10 years ——
Total $ 672.9 $ 672.7
As of January 31, 2014 and 2013, Autodesk did not have any securities in a continuous unrealized loss position for greater
than twelve months.
Autodesk also has direct investments in privately held companies accounted for under the cost method, which are
periodically assessed for other-than-temporary impairment. If Autodesk determines that an other-than-temporary impairment
has occurred, Autodesk writes down the investment to its fair value. Autodesk estimates fair value of its cost method
investments considering available information such as pricing in recent rounds of financing, current cash positions, earnings
and cash flow forecasts, recent operational performance and any other readily available market data. During fiscal 2014,
Autodesk recorded no other-than-temporary impairment on its privately held equity investments. During fiscal 2013, Autodesk
recorded a $10.5 million other-than-temporary impairment on its privately held equity investments.The impairment expense
was recorded in “Interest and other (expense) income, net” on the Company's Consolidated Statement of Operations.