Autodesk 2009 Annual Report Download - page 160

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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, 2009 and 2008:
January 31, 2009
Cost
Gross
unrealized
gains
Gross
unrealized
losses
Estimated
Fair
Value
Short-term:
Mutual funds .......................................... $57.7 $— $(4.5) $53.2
Bank time deposits ...................................... 10.3 — — 10.3
$68.0 $— $(4.5) $63.5
Long-term:
Taxable auction-rate securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9.0 $— $(1.4) $ 7.6
$ 9.0 $— $(1.4) $ 7.6
January 31, 2008
Cost
Gross
unrealized
gains
Gross
unrealized
losses
Estimated
Fair
Value
Short-term:
Mutual funds .......................................... $26.7 $— $— $26.7
Banktimedeposits...................................... 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
The sales of available-for-sale securities in fiscal 2009, 2008 and 2007 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 $83.4 million in fiscal 2009, $799.1 million in fiscal 2008 and $325.2 million in fiscal
2007.
At January 31, 2009, Autodesk had $35.1 million invested in The Reserve International Liquidity Fund and
$2.7 million invested in The Reserve Primary Fund (collectively, the “Reserve Funds”). The fair value of the
investment in the Reserve Funds was $33.3 million. In mid-September 2008, the net asset value of the Reserve
Funds decreased below $1 per share. Accordingly, Autodesk recorded a $4.5 million other-than-temporary
impairment charge in fiscal 2009 to recognize the estimated loss in these investments. At January 31, 2009,
Autodesk’s investment portfolio included two auction rate securities with an estimated fair value of $7.6 million
($9.0 million cost basis). These auction rate securities have failed to settle in auctions since August 2007. The
failed auctions resulted in the interest rate on these investments resetting at LIBOR plus 200 basis points, which
represents a premium interest rate on these investments. At this time, these investments are not currently liquid,
and in the event Autodesk needs to access these funds, the Company will not be able to do so without a loss of
principal unless a future auction on these investments is successful. In fiscal 2009 Autodesk recorded an other-
than-temporary impairment of $1.4 million related to these investments. The impairment expense was recorded
in “Interest and other income (expense), net” in the Consolidated Statements of Income. The Company will
continue to evaluate its accounting for these investments quarterly.
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