Autodesk 2004 Annual Report Download - page 54

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Inaccordance with the provisions of Statement of Financial Accounting Standards No. 133 “Accounting
for Derivative Instruments and Hedging Activities” (“SFAS 133”), Autodesk recognizes 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 within the quarter 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 classifies 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:
2004 2003
(In thousands)
Trade accounts receivable ....................................... $201,251 $165,880
Less: Allowance for doubtful accounts .......................... (9,654) (9,192)
Less: Product returns and price adjustment reserves ........... (24,781) (23,885)
$166,816 $132,803
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.
Autodesk’s accounts receivable are derived from sales to a large number of direct customers, resellers
and distributors in the Americas, Europe and the Asia Pacific region. Autodesk performs ongoing
evaluations of its customers’ financial condition and limits the amount of credit extended when deemed
necessary, but generally requires no collateral. No single customer accounted for more than 10% of
consolidated net revenues or accounts receivable in fiscal 2004, 2003 or 2002.
Allowances for uncollectible trade receivables are based upon historical loss patterns, the number
of days that billings are past due and an evaluation of the potential risk of loss associated with
problem accounts.
AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 1. Business and Summary of Significant Accounting Policies (Continued)
44