Autodesk 2013 Annual Report Download - page 131

Concentration of Credit Risk
Autodesk places its cash, cash equivalents and marketable securities in highly liquid instruments with, and in the custody
of, financial institutions with high credit ratings and limits the amounts invested with any one institution, type of security and
issuer.
Geographical concentrations of consolidated cash, cash equivalents and marketable securities held by Autodesk as of
January 31:
2013 2012
United States 29% 11%
Other Americas 1% 1%
Europe, Middle East and Africa (“EMEA”) 38% 51%
Asia Pacific (“APAC”) 32% 37%
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 one of the lead lenders and agent in the syndicate of Autodesk's $400.0 million line of credit facility.
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 these partners' financial condition
and limits the amount of credit extended when deemed necessary, but generally does not require collateral from such parties.
Total sales to the Company's largest distributor Tech Data Corporation, and its global affiliates (“Tech Data”), accounted for
23%, 17% and 16% of Autodesk's net revenue for fiscal years ended 2013, 2012 and 2011, respectively. The majority of the net
revenue from sales to Tech Data relates to Autodesk's Platform Solutions and Emerging Business ("PSEB") segment and is for
sales made outside of the United States. In addition, Tech Data accounted for 23% and 21% of trade accounts receivable at
January 31, 2013 and 2012, respectively. In October 2011, Tech Data purchased certain assets of Mensch and Maschine
Software (“MuM”), which had been a distributor of Autodesk's products in Europe. The acquisition concentrated additional
sales through Tech Data, which on a consolidated basis would have accounted for 21% and 22% of Autodesk's net revenue for
fiscal years 2012 and 2011, if the acquisition had taken place at the beginning of fiscal 2011.
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 three 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 $45.6 million in fiscal 2013, $43.7 million in
fiscal 2012 and $47.6 million in fiscal 2011.
Computer equipment, software, furniture, leasehold improvements and the related accumulated depreciation at
January 31 were as follows:
2013 2012
Computer hardware, at cost $ 152.3 $ 153.3
Computer software, at cost 95.1 133.5
Leasehold improvements, land and buildings, at cost 152.4 139.5
Furniture and equipment, at cost 46.0 47.7
Computer software, hardware, leasehold improvements, furniture and equipment, at cost 445.8 474.0
Less: Accumulated depreciation (330.9) (369.5)
Computer software, hardware, leasehold improvements, furniture and equipment, net $ 114.9 $ 104.5
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 software’s expected useful life, which is generally three years. During fiscal 2013,
Autodesk wrote-off $83.9 million of fully depreciated assets.
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2013 Annual Report