Autodesk 2015 Annual Report Download - page 157

2015 Form 10-K 65
Autodesk determines the appropriate classification of its marketable securities at the time of purchase and re-evaluates
such classification as of each balance sheet date. Autodesk carries all “available-for-sale securities” at fair value, with
unrealized gains and losses, net of tax, reported in stockholders’ equity until disposition or maturity. Autodesk carries all
“trading securities” at fair value, with unrealized gains and losses, recorded in “Interest and other income, net” in the
Company’s Consolidated Statements of Operations.
All of Autodesk’s marketable securities are subject to a periodic impairment review. The Company recognizes an
impairment charge when a decline in the fair value of its investments below the cost basis is judged to be other-than-temporary.
Autodesk considers various factors in determining whether to recognize an impairment charge, including the length of time and
extent to which the fair value has been less than Autodesk’s cost basis, the financial condition and near-term prospects of the
investee, and Autodesk’s intent and ability to hold the investment for a period of time sufficient to allow for any anticipated
recovery in the market value. Autodesk did not record any other-than temporary impairment charges during fiscal years ended
January 31, 2015, 2014, and 2013. For additional information, see “Concentration of Credit Risk” within this Note 1 and Note
2, “Financial Instruments.”
Accounts Receivable, Net
Accounts receivable, net, consisted of the following as of January 31:
2015 2014
Trade accounts receivable $ 495.4 $ 464.6
Less: Allowance for doubtful accounts (6.3) (4.9)
Product returns reserve (2.6) (4.0)
Partner programs and other obligations (27.6) (32.0)
Accounts receivable, net $ 458.9 $ 423.7
Allowances for uncollectible trade receivables are based upon historical loss patterns, the number of days that billings are
past due, and an evaluation of the potential risk of loss associated with problem accounts.
The product returns reserves are based on historical experience of actual product returns, estimated channel inventory
levels, the timing of new product introductions, channel sell-in for applicable markets, and other factors.
As part of the indirect channel model, Autodesk has a partner incentive program that uses quarterly attainment of
monetary rewards to motivate distributors and resellers to achieve mutually agreed upon business goals in a specified time
period. A portion of these incentives reduce license and other revenue in the current period. The remainder, which relates to
incentives on our Subscription Program, is recorded as a reduction to deferred revenue in the period the maintenance
transaction is billed and subsequently recognized as a reduction to maintenance revenue over the contract period. These
incentive balances do not require significant assumptions or judgments. The reserves associated with the partner incentive
program are treated on the consolidated balance sheet as either contra account receivable (when due to distributors and direct
resellers) or accounts payable (when due to indirect resellers).
Concentration of Credit Risk
Autodesk places its cash, cash equivalents, and marketable securities in highly liquid instruments with, and in the custody
of, diversified financial institutions globally 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:
2015 2014
United States 19% 25%
Other Americas 1% 1%
Europe, Middle East, and Africa (“EMEA”) 56% 57%
Asia Pacific (“APAC”) 24% 17%
2015 Annual Report