Autodesk 2009 Annual Report Download - page 135

AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Marketable Securities
Marketable securities are stated at fair value. Marketable securities maturing within one year that are not
restricted are classified as current assets. Auction rate securities with an estimated fair value of $7.6 million at
January 31, 2009 are classified as non-current marketable securities; for additional information see Note 12,
“Financial Instruments.”
Autodesk determines the appropriate classification of its marketable securities at the time of purchase and
re-evaluates such classification as of each balance sheet date. Autodesk classifies all of its marketable securities
as available-for-sale and carries such securities at fair value, with unrealized gains and losses, net of tax, reported
in stockholders’ equity until disposition or maturity.
All of Autodesk’s available-for-sale marketable securities are subject to a periodic impairment review. The
Company recognizes an impairment charge when a decline in the fair value of its investments below the cost
basis is judged to be other-than-temporary. Autodesk considers various factors in determining whether to
recognize an impairment charge, including the length of time and extent to which the fair value has been less
than Autodesk’s cost basis, the financial condition and near-term prospects of the investee, and Autodesk’s intent
and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in the
market value. Autodesk recorded $5.9 million of other-than-temporary impairment charges through interest and
other income, net during fiscal year 2009. Autodesk recorded $0.6 million of unrealized loss, which was
considered temporary, through other comprehensive income during fiscal year 2008. No impairment charges
were recorded on any investments during the fiscal year ended 2007. For additional information, see
“Concentration of Credit Risk” within this Note 1, and Note 12, “Financial Instruments.”
Accounts Receivable, Net
Accounts receivable, net consisted of the following as of January 31:
2009 2008
Trade accounts receivable ....................................... $351.7 $439.0
Less: Allowance for doubtful accounts ............................. (8.6) (7.8)
Product returns reserve .................................... (12.5) (14.4)
Partner programs and other reserves .......................... (14.1) (30.3)
Accounts receivable, net ........................................ $316.5 $386.5
Allowances for uncollectible trade receivables are based upon historical loss patterns, the number of days
that billings are past due and an evaluation of the potential risk of loss associated with problem accounts.
The product returns and other reserves are based on historical experience of actual product returns,
estimated channel inventory levels, the timing of new product introductions, channel sell-in for applicable
markets and other factors.
Partner program and other reserves are primarily related to partner incentives that use quarterly attainment
monetary rewards to motivate distributors and resellers to achieve mutually agreed upon business goals in a
specified time period.
Concentration of Credit Risk
Autodesk places its cash, cash equivalents and marketable securities with and in the custody of financial
institutions with high credit standing and, by policy, limits the amounts invested with any one institution, type of
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