Autodesk 2003 Annual Report Download - page 48

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AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
These foreign currency instruments by policy have maturities of less than three months and settle before the end
of each quarterly period.
During fiscal 2001 gains and losses associated with exchange rate fluctuations on forwards and options were
recorded in interest and other income and offset corresponding gains and losses on the underlying assets,
liabilities and anticipated cash flows being hedged.
At the start of fiscal 2002 Autodesk adopted the provisions of Statement of Financial Accounting Standards
No. 133 “Accounting for Derivative Instruments and Hedging Activities” (“SFAS 133”), which required
Autodesk to recognize all derivative instruments on the balance sheet at fair value. Gains and losses resulting
from changes in fair value are accounted for depending upon the use of the derivative and whether it is
designated and qualifies for hedge accounting under SFAS 133.
The costs of forwards are amortized on a straight-line basis over the life of the contract to interest and other
income, while option premiums are expensed entirely on the date of purchase because of the short-term life of
the options.
Cash and Cash Equivalents
Autodesk considers all highly liquid investments with insignificant interest rate risk and original maturities
of three months or less to be cash equivalents. Cash equivalents are recorded at cost, which approximates fair
value.
Marketable Securities
Marketable securities are stated at fair value. Marketable securities maturing within one year that are not
restricted are classified as current assets.
Autodesk determines the appropriate classification of its marketable securities at the time of purchase and
reevaluates such classification as of each balance sheet date. Autodesk has classified all of its marketable
securities as available-for-sale and carries such securities at fair value, with unrealized gains and losses, net of
tax, reported in stockholders’ equity until disposition or maturity.
Accounts Receivable, Net
Accounts receivable, net consisted of the following as of January 31:
2003 2002
(in thousands)
Trade accounts receivable ................................... $161,792 $174,224
Less: Allowance for doubtful accounts ......................... (9,192) (13,181)
Less: Product returns reserve ................................ (19,797) (20,578)
$132,803 $140,465
Concentration of Credit Risk
Autodesk places its cash, cash equivalents and marketable securities with and in the custody of financial
institutions with high credit standing and, by policy, limits the amounts invested with any one institution, type of
security and issuer.
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