Autodesk 2011 Annual Report Download - page 123

Download and view the complete annual report

Please find page 123 of the 2011 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
January 31, 2011
(Tables in millions of dollars, except per share data, unless otherwise indicated)
Note 1. Business and Summary of Significant Accounting Policies
Business
Autodesk, Inc. (“Autodesk” or the “Company”) is a world leading design software and services company,
offering customers productive business solutions through powerful technology products and services. The
Company serves customers in the architecture, engineering and construction; manufacturing; and digital media
and entertainment markets. The Company’s sophisticated software products enable its customers to experience
their ideas before they are real by allowing them to create and document their designs and to visualize, simulate
and analyze real-world performance early in the design process by creating digital prototypes. These capabilities
allow Autodesk’s customers to optimize and improve their designs, help save time and money, improve quality
and foster innovation. Autodesk software products are sold globally, both directly to customers and through a
network of resellers and distributors.
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of Autodesk and its wholly-
owned and majority-owned subsidiaries. All significant intercompany accounts and transactions have been
eliminated.
Reclassifications
During the first quarter of fiscal 2011, Autodesk reclassified certain costs of revenue, which primarily
included reclassifying shipping and fulfillment expenses from “Cost of license and other revenue” to “Cost of
maintenance revenue,” due to a change in the Company’s cost allocation methodology. These expenses have
been reclassified in the Consolidated Statements of Operations for the fiscal years ended January 31, 2010 and
2009, to conform to the current period presentation as follows:
2010 2009
Increase (Decrease) to Expense
Cost of license and other revenue ................................ $(7.9) $(6.5)
Cost of maintenance revenue ................................... 7.9 6.5
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the amounts reported in Autodesk’s consolidated
financial statements and notes thereto. These estimates are based on information available as of the date of the
consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions.
Actual results may differ materially from these estimates.
Examples of significant estimates and assumptions made by management involve the determination of the
fair value of goodwill, financial instruments, long-lived assets and other intangible assets, the realizability of
deferred tax assets and the fair value of stock awards (see “Stock-Based Compensation Expense” within this
Note 1 and Note 4 “Employee and Director Stock Plans,” for further discussion). We also make assumptions,
judgments and estimates in determining the accruals for uncertain tax positions, variable compensation, partner
incentive programs, product returns reserves, allowances for doubtful accounts, asset retirement obligations and
legal contingencies.
57