Autodesk 2004 Annual Report Download - page 78

being allocated. Additionally, the Locations Services Division is no longer included with the Design
Solutions Segment and is reflected as Other. Prior period numbers have been restated to reflect the current
segment alignment.
The Design Solutions Segment derives revenues from the sale of design software products and services
for professionals or consumers who design, build, manage and own building projects or manufactured
goods and from the sale of mapping and geographic information systems technology to public and private
users. The Design Solutions Segment consists primarily of the following business divisions: Manufacturing
Solutions Division, Infrastructure Solutions Division, Building Solutions Division and the Platform
Technology Division and Other, which includes Autodesk Consulting. Sales of AutoCAD, AutoCAD
upgrades and AutoCAD LT in the aggregate accounted for 45%, 43% and 46% of our consolidated net
revenues in fiscal 2004, 2003 and 2002, respectively.
The Discreet Segment derives revenues from the sale of its products to creative professionals for a
variety of applications, including feature films, television programs, commercials, music and corporate
videos, game production, web design and interactive web streaming.
Both segments primarily distribute their respective products through authorized dealers and
distributors, and, in some cases, they also sell their products directly to end-users.
The accounting policies of the reportable segments are the same as those described in Note 1,
“Business and Summary of Significant Accounting Policies”. Autodesk evaluates each segment’s
performance on the basis of income from operations before income taxes. Autodesk currently does not
separately accumulate and report asset information by segment, except for certain assets such as goodwill.
Information concerning the operations of Autodesk’s reportable segments is as follows:
Fiscal year ended January 31,
2004 2003 2002
(In millions)
Net revenues:
Design Solutions ................................. $811.7 $ 694.4 $ 790.2
Discreet ........................................... 139.6 128.5 156.1
Other .............................................. 0.3 2.0 1.2
$ 951.6 $ 824.9 $ 947.5
Income (loss) from operations:
Design Solutions ................................. $314.9 $ 242.9 $ 318.2
Discreet ........................................... 3.1 (17.3) (2.4)
Unallocated amounts (1) ......................... (211.8) (200.6) (217.6)
$ 106.2 $ 25.0 $ 98.2
Depreciation and amortization:
Design Solutions ................................. $ 22.8 $ 23.8 $ 31.0
Discreet ........................................... 6.2 7.4 10.3
Unallocated amounts ............................ 21.3 17.6 21.6
$ 50.3 $ 48.8 $ 62.9
(1) Unallocated amounts are attributed primarily to corporate expenses and other geographic costs and
expenses that are managed outside the reportable segments. Unallocated amounts in fiscal 2004, 2003
and 2002 also include $3.2 million, $25.9 million and $33.6 million of charges, respectively, primarily
resulting from restructuring activity.
AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 13. Segments (Continued)
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