Autodesk 2011 Annual Report Download - page 156

AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
In-process research and development represents incomplete research and development projects that had not
reached the stage of fully developed technology and is an indefinite lived asset that is held and tested at least
annually for impairment until such time that it becomes fully developed technology. During fiscal 2011, the total
in-process research and development related to PlanPlatform of $1.3 million reached the stage of fully developed
technology and began being amortized to expense.
The $14.1 million of goodwill, which represents the excess of the purchase price over the fair value of the
acquired net tangible and intangible assets, is deductible for tax purposes.
Note 15. Retirement Benefit Plans
Pretax Savings Plan
Autodesk has a 401(k) plan that covers nearly all U.S. employees. Eligible employees may contribute up to
50% of their pretax salary, subject to limitations mandated by the Internal Revenue Service. Autodesk makes
voluntary cash contributions and matches a portion of employee contributions in cash. Autodesk’s contributions
were $6.7 million in fiscal 2011, $7.1 million in fiscal 2010 and $7.8 million in fiscal 2009. Autodesk does not
allow participants to invest in Autodesk common stock through the 401(k) plan.
Other Plans
Autodesk provides certain defined benefit pension plans to employees primarily located in countries outside
of the U.S. The Company deposits funds for specific plans, consistent with the requirements of local law, with
insurance companies or third-party trustees, and accrues for the unfunded portion of the obligation, where
material. The assumptions used in calculating the obligation for these plans depend on the local economic
environment. The net liability related to the funded status of the plans was approximately $18.2 million and
$12.5 million as of January 31, 2011 and 2010, respectively. The projected benefit obligation was $47.3 million
and $36.2 million as of January 31, 2011 and 2010, respectively. The related fair value of plan assets was $29.1
million and $23.7 million as of January 31, 2011 and 2010, respectively. Our practice is to fund the pension plans
in amounts at least sufficient to meet the minimum requirements of local laws and regulations. The assets of the
plans are primarily invested in high quality fixed income investments. Our contributions were approximately
$3.5 million, $3.4 million and $3.2 million in fiscal 2011, 2010 and 2009, respectively. As of January 31, 2011,
our estimated future benefit payments are an aggregate $10.6 million for fiscal 2012 through fiscal 2016 and an
aggregate of $9.8 million for fiscal 2017 through fiscal 2021. Autodesk recorded $9.8 million and $5.9 million of
unrealized changes in the unfunded portion of Autodesk’s defined benefit plans in fiscal 2011 and fiscal 2010,
respectively. The unrealized changes in the unfunded portion of Autodesk’s defined benefit plans were not
recorded in years prior to fiscal 2010 because the amounts were immaterial.
Autodesk also provides defined contribution plans in certain foreign countries where required by statute.
Autodesk’s funding policy for foreign defined contribution plans is consistent with the local requirements in each
country. Autodesk’s contributions to these plans were $13.6 million in fiscal 2011, $13.4 million in fiscal 2010
and $12.0 million in fiscal 2009.
In addition, Autodesk offers a non-qualified deferred compensation plan to certain key employees whereby
they may defer a portion (or all) of their annual compensation until retirement or a different date specified by the
employee in accordance with terms of the plan. See Note 6, “Deferred Compensation,” for further discussion.
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