Autodesk 2013 Annual Report Download - page 132

Software Development Costs
Software development costs incurred prior to the establishment of technological feasibility are included in research and
development expenses. Autodesk defines establishment of technological feasibility as the completion of a working model.
Software development costs incurred subsequent to the establishment of technological feasibility through the period of general
market availability of the products are capitalized and generally amortized over a one year period, if material. Autodesk had no
capitalized software development costs at January 31, 2013 and January 31, 2012.
Other Intangible Assets, Net
Other intangible assets include purchased technologies, customer relationships, trade names and the related accumulated
amortization. These assets are shown as “Purchased technologies, net” and as part of “Other assets” in the Consolidated
Balance Sheet. The majority of Autodesk’s other intangible assets are amortized to expense over the estimated economic life of
the product, which ranges from one to ten years. Amortization expense for purchased technologies, customer relationships,
trade names, patents, and user lists was $82.0 million in fiscal 2013, $71.8 million in fiscal 2012 and $57.8 million in fiscal
2011.
Other intangible assets and related accumulated amortization at January 31 were as follows:
2013 2012
Purchased technologies, at cost(1) $ 431.0 $ 400.5
Customer relationships, trade names, patents, and user lists, at cost(2) 259.5 215.3
690.5 615.8
Less: Accumulated amortization (546.3) (467.0)
Other intangible assets, net $ 144.2 $ 148.8
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(1) Beginning in fiscal 2013, the purchased technologies balances are presented gross. Previously, Autodesk reported the cost and
amortization balance for purchased technologies net of fully amortized intangible assets. For comparability, the presentation of the
purchased technologies cost and amortization balances at January 31, 2012 were adjusted to align to current year presentation.
(2) Included as a net balance in “Other assets” in the Consolidated Balance Sheet. Customer relationships and trade names include the
effects of foreign currency translation.
The weighted average amortization period for purchased technologies, customer relationships and trade names during
fiscal 2013 was 4.9 years. Expected future amortization expense for purchased technologies, customer relationships and trade
names for each of the fiscal years ended thereafter is as follows:
Fiscal Year ended
January 31,
2014 $ 72.8
2015 45.0
2016 18.6
2017 4.9
2018 1.1
Thereafter 1.1
Total $ 143.5
Goodwill
Goodwill consists of the excess of cost over the fair value of net assets acquired in business combinations. Autodesk
assigns goodwill to the reportable segment associated with each business combination, and tests goodwill for impairment
annually in its fourth fiscal quarter or more often if circumstances indicate a potential impairment. For purposes of the
goodwill impairment test, a reporting unit is an operating segment or one level below. Autodesk's operating segments are
aligned with the management principles of Autodesk's business.
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