Autodesk 2008 Annual Report Download - page 161

Download and view the complete annual report

Please find page 161 of the 2008 Autodesk annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 176

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176

AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Autodesk’s acquisitions are accounted for under Statement of Financial Accounting Standards No. 141,
“Business Combinations.” Accordingly, the results of operations are included in the accompanying Consolidated
Statements of Income since the acquisition date, and the related assets and liabilities were recorded based upon
their fair values at the date of acquisition. Pro forma financial information has not been presented as their
historical operations were not material to Autodesk’s Consolidated Financial Statements.
Note 14. Related Parties
In April 2006, Autodesk acquired a 28% ownership in Hanna Strategies, a privately-held software
development firm with operations in the U.S. and China, for cash consideration of $12.5 million. Autodesk also
acquired an option to purchase the remaining 72% of Hanna Strategies at a price that approximates fair value. In
January 2008, Autodesk acquired the remaining 72% of Hanna Strategies for $13.5 million, net of cash acquired.
The original investment was accounted for under Accounting Principles Board Opinion No. 18, “The Equity
Method of Accounting for Investments in Common Stock” and Financial Accounting Standards Board
Interpretation No. 35, “Criteria for Applying the Equity Method of Accounting for Investments in Common
Stock.” Accordingly, the carrying value of the investment was included in the Consolidated Balance Sheets under
“Other assets” and was adjusted by Autodesk’s ownership percentage of Hanna Strategies’ results of operations
and after the elimination of intercompany profit or loss.
Beginning from the date of Autodesk’s initial 28% investment in Hanna Strategies in April 2006, through
January 2, 2008, when Autodesk acquired the remaining 72% ownership interest, the Consolidated Statements of
Income include 28% of Hanna Strategies’ operating expenses in “Interest and other income, net;” see Note 8,
“Interest and Other Income, net.” Autodesk incurred approximately $38.3 million during fiscal 2008, $26.7
million during fiscal 2007, and $27.0 million during fiscal 2006 for consulting services and purchased in-process
technology from Hanna Strategies, which were included in “Research and Development.” The in-process
technologies purchased were recorded as expense as of the date the technologies were delivered as they had not
yet reached technological feasibility and had no alternative future use as stand-alone products.
Effective with the acquisition of the remaining 72% ownership interest of Hanna Strategies, Autodesk
consolidated Hanna Strategies and accounted for the acquisition as a step acquisition in accordance with
Statement of Financial Accounting Standards No. 141, “Business Combinations.” Autodesk has incorporated the
business of Hanna Strategies into its Design Solutions segment.
85
2008 Annua
l Report