Autodesk 2006 Annual Report Download - page 96

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The costs of forwards are amortized on a straight-line basis over the life of the contract to interest and other
income, net, while option premiums are expensed within the quarter because of the short-term life of the options.
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
re-evaluates 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.
Accounts Receivable, Net
Accounts receivable, net consisted of the following as of January 31:
2006 2005
Trade accounts receivable ............................................. $288.7 $224.1
Less: Allowance for doubtful accounts ................................ (8.2) (7.2)
Less: Product returns and other reserves .............................. (19.1) (20.1)
$261.4 $196.8
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 other reserves are based on historical experience of actual product returns,
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 40% and 10% of Autodesk’s consolidated cash, cash equivalents and
marketable securities were held with financial institutions in the United States at January 31, 2006 and 2005,
respectively. During fiscal year 2006, Autodesk utilized the repatriation provision of the American Jobs Creation
Act of 2004 to repatriate approximately $512 million of accumulated foreign earnings under the DRD Legislation
(see Note 5, “Income Taxes,” for further discussion).
Autodesk’s accounts receivable are derived from sales to a large number of direct customers, resellers and
distributors in the Americas, Europe and the Asia/Pacific region. Autodesk performs ongoing evaluations of its
customers’ financial condition and limits the amount of credit extended when deemed necessary, but generally
requires no collateral. Tech Data Corporation, including its affiliates, accounted for 13% and 15% of gross accounts
receivable at January 31, 2006 and 2005, respectively.
AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 1. Business and Summary of Significant Accounting Policies (Continued)
50