Autodesk 2008 Annual Report Download - page 155

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AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Marketable Securities
Marketable securities include the following available-for-sale securities at January 31, 2008 and 2007:
January 31, 2008
Cost
Gross
unrealized
gains
Gross
unrealized
losses
Estimated
Fair
Value
Short-term:
Mutual funds ......................................... $ 26.7 $— $— $ 26.7
Bank time deposits ..................................... 4.7 — — 4.7
$ 31.4 $— $— $ 31.4
Long-term:
Taxable auction-rate securities ........................... $ 9.0 $— $(0.6) $ 8.4
$ 9.0 $— $(0.6) $ 8.4
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
The sales of available-for-sale securities in fiscal 2008, 2007 and 2006 resulted in no gross gains or losses.
The cost of securities sold is based on the specific identification method. Proceeds from the sale and maturity of
marketable securities were $799.1 million in fiscal 2008, $325.2 million in fiscal 2007 and $204.0 million in
fiscal 2006.
The following table shows the gross unrealized losses and fair value of Autodesk’s investments with
unrealized losses that are deemed not to be other-than temporarily impaired, aggregated by investment category and
length of time that individual securities have been in a continuous unrealized loss position at January 31, 2008.
Less Than 12
Months
12 Months or
Greater Total
Description of Securities
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Taxable auction-rate securities .................... $8.4 $ 0.6 $— $ — $8.4 $ 0.6
At January 31, 2008, Autodesk’s investment portfolio included two auction rate securities with an estimated
fair value of $8.4 million ($9.0 million cost basis). Autodesk’s auction rate securities are variable rate debt
instruments that have underlying securities with contractual maturities greater than ten years and interest rates
that are reset at auction every 28 days. These AAA-rated auction rate securities, which met Autodesk’s
investment guidelines at the time the investments were made, have failed to settle in auctions since August 2007.
The failed auctions resulted in the interest rate on these investments resetting at Libor plus 125 basis points,
which represents a premium interest rate on these investments. At this time, these investments are not currently
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2008 Annua
l Report