Autodesk 2005 Annual Report Download - page 59

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.
Investments in Privately-held Businesses
Autodesk has several minority investments in privately-held technology companies, many of which are in the
development stage. These investments are accounted for using the cost method of accounting because Autodesk’s
ownership interest in the investees is less than 20% and Autodesk does not have the ability to exercise significant
influence on the investees. The value of these investments is included in other assets in the accompanying
consolidated balance sheets. Autodeskmonitors these investments for impairment and makes appropriate reductions
in carrying values when declines in their fair value are determined to be other-than-temporary.
During fiscal 2004, the carrying value of these investments was reduced to zero.
Accounts Receivable, Net
Accounts receivable, net consisted of the following as of January 31:
2005 2004
(In thousands)
Trade accounts receivable ............................................. $224,062 $201,251
Less: Allowance for doubtful accounts ................................ (7,153) (9,654)
Less: Product returns, price adjustment and other reserves ........... (20,082) (24,781)
$ 196,827 $166,816
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.
The product returns and price adjustment reserves are based on historical experience of actual product
returns and price adjustment rates, estimated channel inventory levels, the timing of new product introductions,
channel sell-in for applicable markets and other factors.
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. Approximately 10% and 54% of our consolidated cash, cash equivalents and marketable
securities were held with financial institutions in the United States at January 31, 2005 and 2004, respectively.
Autodesk intends to utilize the repatriation provision of the American Jobs Creation Act of 2004 (see Note 4,
“Income Taxes,” for further discussion).
AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 1. Business and Summary of Significant Accounting Policies (Continued)
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