Autodesk 2006 Annual Report Download - page 103

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individually significant, Autodesk has included amortization of purchased intangibles in general and
administrative expenses on its Consolidated Statements of Income. Amortization of purchased intangibles was
$1.7 million, $0.6 million, and $0.5 million during fiscal 2006, 2005, and 2004, respectively.
Note 2. Net Income Per Share
The following table sets forth the computation of the numerators and denominators used in the basic and
diluted net income per share amounts:
Year ended January 31,
2006 2005 2004
Numerator:
Numerator for basic and diluted net income per
share — net income ............................ $328.9 $ 221.5 $120.3
Denominator:
Denominator for basic net income per
share — weighted average shares .............. 229.0 227.0 223.0
Effect of dilutive common stock options .......... 18.5 20.0 8.3
Denominator for diluted net income per share ..... 247.5 247.0 231.3
The computation of diluted net income per share does not include 0.2 million options for fiscal 2006,
0.3 million options for fiscal 2005 and 16.4 million options for fiscal 2004. These options were excluded in the
computation of basic and diluted net income per share because they had exercise prices greater than the average
market prices of common stock during the respective periods and therefore were not dilutive.
Note 3. Financial Instruments
Fair Values of Financial Instruments
Estimated fair values of financial instruments are based on quoted market prices. The carrying amounts and
fair value of Autodesk’s financial instruments are as follows:
January 31, 2006 January 31, 2005
Cost Fair value Cost Fair value
Cash and cash equivalents ............... $287.2 $287.2 $517.7 $517.7
Marketable securities .................... 90.3(1) 90.3(1) 15.0 15.0
Foreign currency option contracts ....... 0.2 0.2 0.2 0.2
(1) Includes $8.1 million of marketable securities classified as a non-current asset and recorded in Other assets.
Autodesk uses derivative instruments to manage its earnings and cash flow exposures to fluctuations in
foreign currency exchange rates. Under its risk management strategy, Autodesk uses foreign currency forward
and option contracts to manage its exposures of underlying assets, liabilities and other obligations, which exist
as part of the ongoing business operations. These foreign currency instruments have maturities of less than three
months. Autodesk’s general practice is to hedge a majority of its short-term foreign exchange transaction
exposures. Contracts are primarily denominated in euros, Swiss francs, Canadian dollars, British pounds and
Japanese yen. Autodesk does not enter into any foreign exchange derivative instruments for trading or
speculative purposes.
2006 Annual Report
AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 1. Business and Summary of Significant Accounting Policies (Continued)
57