Autodesk 2012 Annual Report Download - page 107

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2010, respectively. The one-time termination benefits for these three restructuring programs were substantially paid as of
January 31, 2011. We expect to pay the facility-related liabilities through fiscal 2018. See Note 15, “Restructuring Reserves,” in
Notes to Consolidated Financial Statements for further discussion.
Impairment of Goodwill and Intangibles
Impairment of goodwill
As a percentage of net
revenue
Fiscal Year
Ended
January 31,
2012
(in millions)
$—
—%
Increase compared to
prior fiscal year
$
$—
%
—%
Fiscal Year
Ended
January 31,
2011
$—
—%
Decrease compared to
prior fiscal year
$
$(21.0)
%
(100)%
Fiscal Year
Ended
January 31,
2010
$ 21.0
1%
We did not record an impairment charge during fiscal 2012 or 2011. During fiscal 2010, we recorded an impairment
charge of $21.0 million representing the entire goodwill balance of our M&E segment as of April 30, 2009. This goodwill
balance related to our M&E segment’s fourth quarter fiscal 2009 acquisition of substantially all of the assets of Softimage.
Should our revenue and cash flow projections decline significantly in the future, additional impairment charges may be
recorded to goodwill. As of January 31, 2012, a hypothetical 10% decrease in the fair value of our reporting units would not
have an impact on the carrying value of goodwill, nor result in impairment of goodwill. See Note 1, “Business and Summary of
Significant Accounting Policies,” in Notes to Consolidated Financial Statements for further discussion.
Interest and Other Income, Net
The following table sets forth the components of interest and other income, net:
Interest and investment income, net
Gain (loss) on foreign currency
Other income
Interest and other income, net
Fiscal Year Ended
January 31,
2012
(in millions)
$ 5.7
(1.1)
2.7
$ 7.3
2011
$ 10.9
(14.0)
3.7
$ 0.6
2010
$ 10.0
5.0
4.1
$ 19.1
Interest and other income, net, increased $6.7 million during fiscal 2012, as compared to fiscal 2011, primarily due to
improved foreign currency remeasurements. The loss on foreign currency in fiscal 2012 and 2011 is primarily due to the impact
of re-measuring foreign currency transactions into the functional currency of the corresponding entity. The amount of gain
(loss) on foreign currency is driven by the volume of foreign currency transactions and the foreign currency exchange rates for
the period.
Interest and investment income, net, fluctuates based on average cash and marketable securities balances, average
maturities and interest rates. The decrease in Interest and investment income, net, during fiscal 2012 as compared to fiscal 2011
is primarily due to the decrease in the fair value of our trading securities that are marked to market each period.
Interest and other income, net, decreased $18.5 million during fiscal 2011, as compared to fiscal 2010, primarily due
to foreign currency losses.
Provision for Income Taxes
We account for income taxes and the related accounts under the liability method. Deferred tax liabilities and assets are
determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted rates
expected to be in effect during the year in which the basis differences reverse.
Our effective tax rate was 21% and 22% during fiscal 2012 and 2011, respectively. Our effective tax rate decreased one
percentage point from fiscal 2011 to fiscal 2012 primarily due to an increase in tax benefits from foreign earnings taxed at
different rates in fiscal 2012 compared to fiscal 2011, partially offset by tax benefits associated with closure of audits in fiscal
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2011.
2012 Annual Report