Autodesk 2002 Annual Report Download - page 34

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Investments in privately-held businesses
We have an investment portfolio with a net book value of approximately $4.1 million as of January 31, 2002
that includes minority equity investments in several privately-held technology companies, many of which are in
the development stage. We account for these minority equity investments using the cost method of accounting
because our ownership interests are less than 20 percent and we do not have the ability to exert significant
influence on the investees.
These investments are inherently risky because the markets for the technologies or products they have under
development are typically in the early stages and may never develop into commercially viable businesses. We
assess the value of these investments on a regular basis and when we identify other than temporary declines in
the values of these investments, we write down the carrying values to their fair values. Write downs totaled $2.9
million in fiscal 2002, $2.6 million in fiscal 2001 and $0 in fiscal 2000. Due to the inherently risky nature of
these investments, we may incur additional losses in the future.
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