Autodesk 2004 Annual Report Download - page 60

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In May 2003, the FASB issued Statement of Financial Accounting Standards No. 150, “Accounting for
Certain Financial Instruments with Characteristics of Both Liabilities and Equity” (“SFAS 150”) which requires
that certain financial instruments, which under previous guidance were accounted for as equity, must now
be accounted for as liabilities. SFAS 150 is effective for financial instruments entered into or modified after
May 31, 2003, and otherwise was effective at the beginning of the first interim period beginning after
June 15, 2003. The adoption of this statement had no effect on Autodesk’s consolidated financial position,
results of operations or cash flows.
Stock Split
On March 14, 2002, the Board of Directors authorized a two-for-one stock split in the form of a stock
dividend to stockholders of record as of April 4, 2002. All references in the consolidated financial statements
and notes thereto with respect to the number of shares, per share amounts and market prices of Autodesk’s
common stock have been restated to reflect the effect of the stock split.
Reclassifications
Certain reclassifications have been made to the fiscal 2003 and 2002 balances to conform to the 2004
presentation. Autodesk previously classified Information Technology and other corporate service costs that
benefit the entire organization as General and Administrative expenses in our Consolidated Statements of
Income. During the fourth quarter of fiscal 2004, Autodesk re-evaluated its cost allocation methodology and
reclassified these costs to other functional areas of the business that benefit from these services. As a result,
fiscal 2004 General and Administrative expenses have been reduced by $46.4 million and fiscal 2004 total
Cost of Revenues, Marketing and Sales and Research and Development have been increased by $5.1 million,
$23.6 million and $17.7 million, respectively. This reclassification has no impact on Autodesk’s income from
operations or net income. Fiscal 2003 and 2002 balances have been reclassified to conform to the
2004 presentation.
The effect of this reclassification on previously reported consolidated financial statements are as follows:
Fiscal year ended January 31,
2003 2002
As previously
reported
As
reclassified
As previously
reported
As
reclassified
(In thousands)
Cost of revenues .................. $140,162 $145,810 $151,203 $157,628
Marketing and sales ............... 331,721 357,667 343,508 367,930
Research and development ...... 172,985 190,252 168,574 185,084
General and administrative ....... 128,929 80,068 131,499 84,142
Income from operations .......... 24,962 24,962 98,174 98,174
AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 1. Business and Summary of Significant Accounting Policies (Continued)
50