Autodesk 2015 Annual Report Download - page 158

2015 Form 10-K 66
Autodesk’s primary commercial banking relationship is with Citigroup Inc. and its global affiliates. Citibank, N.A., an
affiliate of Citigroup, is one of the lead lenders and an agent in the syndicate of Autodesk’s $400.0 million line of credit facility.
It is Autodesk’s policy to limit the amounts invested with any one institution by type of security and issuer.
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
25%, 24%, and 23% of Autodesk's net revenue for fiscal years ended January 31, 2015, 2014, and 2013, 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 22% and 24% of trade
accounts receivable at January 31, 2015 and 2014, respectively.
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 $52.1 million in fiscal 2015, $47.2 million in
fiscal 2014, and $45.6 million in fiscal 2013.
Computer equipment, software, furniture, leasehold improvements and the related accumulated depreciation at January 31
were as follows:
2015 2014
Computer hardware, at cost $ 194.0 $ 163.0
Computer software, at cost 84.9 80.9
Leasehold improvements, land, and buildings, at cost 176.3 163.7
Furniture and equipment, at cost 53.0 51.7
Computer software, hardware, leasehold improvements, furniture, and equipment, at cost 508.2 459.3
Less: Accumulated depreciation (349.0) (329.0)
Computer software, hardware, leasehold improvements, furniture, and equipment, net $ 159.2 $ 130.3
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 2015,
Autodesk wrote-off $25.8 million of fully depreciated assets.
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 three year period, if material. Autodesk had
no material capitalized software development costs at January 31, 2015 and January 31, 2014.
Other Intangible Assets, Net
Other intangible assets include developed technologies, customer relationships, trade names, patents, user lists, and the
related accumulated amortization. These assets are shown as “Developed 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 developed technologies, customer
relationships, trade names, patents, and user lists was $92.9 million in fiscal 2015, $80.7 million in fiscal 2014 and $82.0
million in fiscal 2013.
2015 Annual Report