Autodesk 2005 Annual Report Download - page 82

Note 11. Segments
Autodesk’s operating results are aggregated into two reportable segments: the Design Solutions Segment
and the Discreet Segment. The Location Services Division, which is not included in either reportable segment,
is reflected as Other. During the first quarter of fiscal 2005 and again in the third quarter of fiscal 2005, Autodesk
modified its segment disclosure to align the segment disclosure with the method by which Autodesk’s business
is currently being managed and evaluated. 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 and AutoCAD LT (2D design products) in the aggregate
accounted for 45%, 45% and 43% of consolidated net revenues in fiscal 2005, 2004 and 2003, respectively. Sales
of 3D design products (Autodesk Inventor products, Autodesk Revit Building products and Autodesk Civil 3D)
in aggregate accounted for 14% of consolidated net revenues in fiscal 2005 and 11% of consolidated net revenues
in both fiscal 2004 and 2003.
The Discreet Segment, our Media and Entertainment Division, 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, to a lesser extent, 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,
2005 2004 2003
(In thousands)
Net revenues:
Design Solutions .................................. $1,077,263 $ 818,148 $ 703,529
Discreet ........................................... 154,057 133,127 119,382
Other ............................................. 2,447 368 2,034
$1,233,767 $ 951,643 $824,945
Income (loss) from operations:
Design Solutions .................................. $495,208 $ 348,949 $ 268,141
Discreet ........................................... 21,383 (62) (21,451)
Unallocated amounts (1) ........................... (281,718) (242,650) (221,728)
$ 234,873 $ 106,237 $ 24,962
Depreciation and amortization:
Design Solutions .................................. $ 24,512 $ 22,804 $ 23,890
Discreet ........................................... 3,325 6,196 7,364
Unallocated amounts ............................. 24,112 21,292 17,590
$ 51,949 $ 50,292 $ 48,844
AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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