Autodesk 2011 Annual Report Download - page 134

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AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
under ASU 2010-06 were effective for Autodesk’s fiscal year beginning February 1, 2010, except for the
disclosures about purchases, sales, issuances and settlements in the roll forward of activity in Level 3 fair value
measurements, which are effective for Autodesk’s fiscal year beginning February 1, 2011. The adoption of the
portion of this ASU that was effective as of February 1, 2010 did not have a material impact on Autodesk’s
consolidated statements of financial position, results of operations or cash flows. Autodesk believes that the
adoption of the remaining portion of the ASU that is effective for Autodesk’s fiscal year beginning February 1,
2011 will not have a material impact on its consolidated statements of financial position, results of operations or
cash flows.
In October 2009, the FASB issued ASU 2009-13 regarding ASC Subtopic 605-25 “Revenue Recognition—
Multiple-element Arrangements.” This ASU addresses criteria for separating the consideration in multiple-
element arrangements. ASU 2009-13 will require companies to allocate the overall consideration to each
deliverable by using a best estimate of the selling price of individual deliverables in the arrangement in the
absence of vendor-specific objective evidence or other third-party evidence of the selling price. In October 2009,
the FASB also issued ASU 2009-14 regarding ASC Topic 985 “Software: Certain Revenue Arrangements That
Include Software Elements.” This ASU modifies the scope of ASC Subtopic 985-605, “Software Revenue
Recognition,” to exclude (a) non-software components of tangible products and (b) software components of
tangible products that are sold, licensed or leased with tangible products when the software components and
non-software components of the tangible product function together to deliver the tangible product’s essential
functionality. The changes under ASU 2009-13 and 2009-14 will be effective prospectively for revenue
arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. Autodesk
will adopt the changes under ASU 2009-13 and 2009-14 effective February 1, 2011. Autodesk believes that the
adoption of ASU 2009-13 and 2009-14 will not have a material impact on its consolidated statements of financial
position, results of operations or cash flows.
Note 2. Financial Instruments and Hedging Activities
Financial Instruments
Market values were determined for each individual security in the investment portfolio. The cost and fair
value of Autodesk’s financial instruments are as follows:
January 31, 2011 January 31, 2010
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Cash and cash equivalents ................................... $1,075.1 $1,075.1 $838.7 $838.7
Marketable securities—short-term ............................ 197.5 199.2 164.8 161.9
Marketable securities—long-term ............................. 190.8 192.6 124.4 125.6
Foreign currency forward and option contracts .................. 3.9 3.9 2.3 3.9
Autodesk classifies its marketable securities as either short-term or long-term based on each instrument’s
underlying contractual maturity date. Marketable securities with remaining maturities of less than 12 months are
classified as short-term and marketable securities with remaining maturities greater than 12 months are classified
as long-term. Autodesk may sell certain of its marketable securities prior to their stated maturities for strategic
purposes or in anticipation of credit deterioration. Foreign currency forward and options contracts are included in
“Prepaid expenses and other current assets” in the Consolidated Balance Sheets.
Autodesk has marketable securities that are classified as either “available-for-sale” or “trading securities.”
At January 31, 2011 and January 31, 2010, Autodesk’s short-term investment portfolio included $31.3 million
and $26.3 million, respectively, of “trading securities” invested in a defined set of mutual funds directed by the
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