Autodesk 2004 Annual Report Download - page 26

For the Manufacturing Solutions Division, our focus is to enable our customers to rapidly adopt 3D
design, create designs in a simple 2D/3D environment, manage design data for additional business
processes and share design data across the enterprise with the supply chain. Our primary solution offering
is the Autodesk Inventor Series, which delivers Autodesk Mechanical Desktop, based on AutoCAD software,
and Autodesk Inventor, a 3D mechanical design software with built in collaboration and design
management tools, in one solution.
For the Infrastructure Solutions Division, our focus is to enable our customers to compile, analyze and
maintain digital design information, manage physical infrastructure projects and securely distribute
information to remote locations. Our primary offerings are Autodesk Map for precision mapping and
geographic information system analysis in the AutoCAD environment and Autodesk Land Desktop, our
land development design tool for the AutoCAD environment.
For the Building Solutions Division, our focus is to enable our customers to create high quality designs
and documentation, securely distribute digital design data, accurately estimate project costs, manage
project workflow and securely collaborate with project team and downstream users. Our primary offerings
are Autodesk Architectural Desktop, based on AutoCAD software, and Autodesk Revit, a platform providing
a complete architectural design and documentation platform supporting all phases of design and all the
architectural drawings and schedules required for a building project.
For the Platform Technology Division our focus is on providing CAD design tools and technologies that
allow our customers in multiple markets to create, manage, and share design data. Our primary offerings are
AutoCAD, AutoCAD LT and Autodesk Buzzsaw.
Discreet Segment
The Discreet Segment serves the digital media sector. Our strategy is to provide powerful and
sophisticated solutions that enable our customers to extend the use of digital content, increase their
creative capability, increase their productivity and enable content distribution across multiple media and
formats. Our primary offerings include visual effects solutions, editing and color grading solutions, 3D
animation for next generation games development, design visualization solutions and media mastering
and streaming solutions.
Location Services Division
For the Locations Services Division focus is on providing a technology platform designed to deliver
location-based applications to wired, mobile and wireless users. Our primary offering is LocationLogic.
Critical Accounting Policies
Our consolidated financial statements are prepared in accordance with accounting principles
generally accepted in the United States. The preparation of these financial statements requires us to make
estimates and assumptions that affect the reported amount of assets, liabilities, net revenues, costs and
expenses and related disclosures. We regularly re-evaluate our estimates and assumptions. Actual results
may differ from these estimates under different assumptions or conditions.
We believe that of our significant accounting policies, which are described in Note 1, “Notes to
Consolidated Financial Statements”, the following policies involve a higher degree of judgment and
complexity. Accordingly, these are the policies we believe are the most critical to aid in fully understanding
and evaluating our financial condition and results of operations.
Revenue Recognition. Our accounting policies and practices are in compliance with Statement of
Position 97-2, “Software Revenue Recognition,” as amended, and SEC Staff Accounting Bulletin No. 101,
“Revenue Recognition in Financial Statements.”
We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred or
services have been rendered, the price is fixed or determinable and collection is probable. However,
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