Autodesk 2008 Annual Report Download - page 138

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AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Maintenance Revenue
Maintenance revenue consists of revenue from the Company’s Subscription Program. Under this
program, customers are eligible to receive unspecified upgrades when-and-if-available, downloadable
training courses and on-line support. Autodesk recognizes maintenance revenue from its Subscription
Program ratably over the maintenance subscription contract periods.
Shipping and Handling Costs
Shipping and handling costs are included in cost of revenue for all periods presented.
Advertising Expenses
Advertising costs are expensed as incurred. Total advertising expenses incurred were $27.6 million in fiscal
2008, $21.8 million in fiscal 2007 and $26.2 million in fiscal 2006.
Net Income Per Share
Basic net income per share is computed using the weighted average number of common shares outstanding
during the period. Diluted net income per share is computed using the combination of the dilutive effect of stock
options and the weighted average number of common shares outstanding. Autodesk has no potentially dilutive
securities other than stock options.
Recently Issued Accounting Standards
In December 2007, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial
Accounting Standards No. 141 (revised 2007) “Business Combinations” (“SFAS 141R”). SFAS 141R establishes
principles and requirements for how an acquirer recognizes and measures in its financial statements the
identifiable assets acquired, the liabilities assumed, any noncontrolling interest in the acquiree and the goodwill
acquired. SFAS 141R also establishes disclosure requirements to enable the evaluation of the nature and financial
effects of the business combination. This statement will be effective for Autodesk’s fiscal year beginning
February 1, 2009, and will be adopted on a prospective basis. Autodesk is currently evaluating the impact that
SFAS 141R will have on its consolidated financial position, results of operations or cash flows.
In December 2007, the FASB also issued Statement of Financial Accounting Standards No. 160
“Noncontrolling Interests in Consolidated Financial Statements—an amendment of ARB No. 51” (“SFAS 160”).
SFAS 160 establishes accounting and reporting standards for ownership interests in subsidiaries held by parties
other than the parent, the amount of consolidated net income attributable to the parent and to the noncontrolling
interest, changes in a parent’s ownership interest, and the valuation of retained noncontrolling equity investments
when a subsidiary is deconsolidated. SFAS 160 also establishes disclosure requirements that clearly identify and
distinguish between the interests of the parent and the interests of the noncontrolling owners. This statement will
be effective for Autodesk’s fiscal year beginning February 1, 2009. Autodesk does not believe the adoption of
SFAS 160 will have a material effect on its consolidated financial position, results of operations or cash flows.
In February 2007, the FASB issued Statement of Financial Accounting Standards No. 159, “The Fair Value
Option for Financial Assets and Financial Liabilities—including an amendment of FASB Statement No. 115”
(“SFAS 159”), which expands the use of fair value measurement by permitting entities to choose to measure
many financial instruments and certain other items at fair value at specified election dates. This statement is
required to be adopted by Autodesk as of February 1, 2008. Autodesk does not believe the adoption of SFAS 159
will have a material effect on its consolidated financial position, results of operations or cash flows.
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