Autodesk 2007 Annual Report Download - page 183

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123
2007 Annual Report
AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 14. Financial Instruments (Continued)
underlying exposure. Gains, if any, from the effective portion of the option contracts, as determinable
under SFAS 133, are recognized as net revenues, while the ineffective portion of the option contract is
recorded in interest and other income, net. There were $0.2 million net settlement gains recorded as net
revenues during fiscal 2007 and $2.8 million net settlement gains recorded as net revenues during fiscal
2006. Amounts associated with the cost of the options, which were recorded in interest and other income,
net, totaled $0.6 million during fiscal 2007 and $0.8 million during fiscal 2006.
Marketable Securities
Marketable securities include the following available-for-sale securities at January 31, 2007 and
2006:
January 31, 2007
Cost
Gross
unrealized
gains
Gross
unrealized
losses
Estimated
Fair
Value
Short term:
Mutual funds............................. $ 14.7 $— $— $ 14.7
Taxable auction-rate securities . . . . . . . . . . . . . 94.5 — — 94.5
Bank time deposits . . . . . . . . . . . . . . . . . . . . . . . 2.8 — — 2.8
$112.0 $— $— $112.0
January 31, 2006
Cost
Gross
unrealized
gains
Gross
unrealized
losses
Estimated
Fair
Value
Short term:
Mutual funds............................. $ 14.3 $— $— $ 14.3
Taxable auction-rate securities . . . . . . . . . . . . . 74.2 — — 74.2
Bank time deposits . . . . . . . . . . . . . . . . . . . . . . . 1.8 — — 1.8
$ 90.3 $— $— $ 90.3
The sales of available-for-sale securities in fiscal 2007 and 2006 resulted in no gross gains or losses.
Gross gains realized on the sale of available-for-sale securities were $1.4 million in fiscal 2005. Gross losses
realized on the sale of available-for-sale securities was $0.9 million in fiscal 2005. The cost of securities
sold is based on the specific identification method. Proceeds from the sale of marketable securities were
$547.1 million in fiscal 2007, $204.0 million in fiscal 2006 and $301.6 million in fiscal 2005.
Note 15. Business Combinations
The following acquisitions were accounted for under Statement of Financial Accounting Standards
No. 141, “Business Combinations (“SFAS 141”). Accordingly, the results of operations of each acquisition
are included in the accompanying Consolidated Statements of Income since the acquisition dates, and
the related assets and liabilities were recorded based upon their relative fair values at their respective
acquisition dates. Pro forma financial information has been presented for the Alias acquisition. Pro
forma financial information for the other acquired entities has not been presented, as their historical
operations were not material to Autodesk’s consolidated financial statements either individually or in the
aggregate.