Autodesk 2008 Annual Report Download - page 134

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AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Expected future amortization expense for purchased technologies for each of the fiscal years ended
thereafter is as follows:
Year ending
January 31,
2009 ...................................................................... $17.0
2010 ...................................................................... 15.4
2011 ...................................................................... 14.3
2012 ...................................................................... 11.8
2013 ...................................................................... 3.5
Thereafter .................................................................. 2.4
Total ...................................................................... $64.4
Goodwill
Goodwill consists of the excess of cost over the fair value of net assets acquired in business combinations
accounted for as purchases. Autodesk assigns goodwill to the reportable segment associated with each business
combination. As required under Statement of Financial Accounting Standards No. 142 “Goodwill and Other
Intangible Assets,” Autodesk does not amortize goodwill but instead tests it for impairment annually in the fourth
quarter or more often if and when circumstances indicate potential impairment. When assessing goodwill for
impairment, Autodesk uses discounted cash flow models which include assumptions regarding projected cash
flows. Variances in these assumptions could have a significant impact on the conclusion as to whether goodwill
assets are impaired or the amount of the impairment charge. Impairment charges, if any, result from instances
where the fair value of net assets associated with goodwill are less than their carrying values. There was no
impairment of goodwill during the years ended January 31, 2008, 2007 and 2006.
The changes in the carrying amount of goodwill during the years ended January 31, 2008 and 2007 are as
follows:
Design
Solutions
Media and
Entertainment Total
Balance as of January 31, 2006 ...................................... $227.7 $ 90.5 $318.2
Constructware acquisition ...................................... 35.9 — 35.9
Other acquisitions, purchase accounting adjustments, effect of foreign
currency translation and other ................................. (3.8) 5.0 1.2
Balance as of January 31, 2007 ...................................... 259.8 95.5 355.3
Robobat acquisition ........................................... 25.9 — 25.9
NavisWorks acquisition ........................................ 9.3 — 9.3
Other acquisitions ............................................ 38.1 12.2 50.3
Effect of foreign currency translation, purchase accounting adjustments
and other ................................................. 2.6 — 2.6
Balance as of January 31, 2008 ...................................... $335.7 $107.7 $443.4
Purchase accounting adjustments reflect revisions made to the Company’s preliminary purchase price
allocation during fiscal 2008 and 2007.
58