Autodesk 2010 Annual Report Download - page 152

AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Autodesk’s primary commercial banking relationship is with Citibank and its global affiliates (“Citibank”).
The Company’s cash and cash equivalents are held by diversified financial institutions globally. Citicorp USA,
Inc., an affiliate of Citibank, is the lead lender and agent in the syndicate of Autodesk’s $250.0 million U.S. line
of credit facility.
At January 31, 2010, Autodesk’s investment portfolio included money market funds with an estimated fair
value of $10.0 million, and auction rate securities with an estimated fair value of $7.6 million. See Note 2,
“Financial Instruments and Hedging Activities,” for further discussion of Autodesk’s financial instruments
including its auction rate securities.
Autodesk’s accounts receivable are derived from sales to a large number of resellers, distributors and direct
customers in the Americas; EMEA; and APAC geographies. Autodesk performs ongoing evaluations of its
customers’ financial condition and limits the amount of credit extended when deemed necessary, but generally
requires no collateral. Total sales to Tech Data Corporation, including its affiliates (“Tech Data”), accounted for
14% of Autodesk’s consolidated net revenue in each of the fiscal years ended 2010, 2009 and 2008. The majority
of the net revenue from sales to Tech Data relates to Autodesk’s Platform Solutions and Emerging Business
segment and is for sales made outside of the United States. In addition, Tech Data accounted for 15% and 12% of
trade accounts receivable at January 31, 2010 and 2009, respectively.
Computer Equipment, Software, Furniture and Leasehold Improvements, Net
Computer equipment, software and furniture are depreciated using the straight-line method over the
estimated useful lives of the assets, which range from two to five years. Leasehold improvements are amortized
on a straight-line basis over the shorter of their estimated useful lives or the lease term. Depreciation expense was
$50.4 million in fiscal 2010, $46.2 million in fiscal 2009 and $38.9 million in fiscal 2008.
Computer equipment, software, furniture, leasehold improvements and the related accumulated depreciation
at January 31 were as follows:
2010 2009
Computer software, at cost ..................................... $127.3 $ 135.0
Computer hardware, at cost .................................... 108.5 103.1
Leasehold improvements, land and buildings, at cost ................ 113.7 115.0
Furniture and equipment, at cost ................................ 42.9 41.6
392.4 394.7
Less: Accumulated depreciation ................................. (290.8) (274.1)
Computer software, hardware, leasehold improvements, furniture and
equipment, net ............................................ $101.6 $ 120.6
Costs incurred for computer software developed or obtained for internal use are capitalized for application
development activities, if material, and immediately expensed for preliminary project activities and post-
implementation activities. These capitalized costs are amortized over the expected useful life of the software,
which is generally three years.
Software Development Costs
Software development costs incurred prior to the establishment of technological feasibility are included in
research and development expenses. Autodesk defines establishment of technological feasibility as the
completion of a working model. Software development costs incurred subsequent to the establishment of
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