Autodesk 2015 Annual Report Download - page 161

2015 Form 10-K 69
The change in the carrying amount of goodwill during the fiscal year ended January 31, 2014 is as follows:
Platform
Solutions and
Emerging
Business
Architecture,
Engineering, and
Construction Manufacturing Media and Entertainment Total
Balance as of January 31, 2013
Goodwill $ 129.5 $ 310.3 $ 389.9 $ 191.0 $ 1,020.7
Accumulated impairment losses — — — (149.2) (149.2)
129.5 310.3 389.9 41.8 871.5
Graitec SA — 73.4 — — 73.4
Goodwill acquired from other
acquisitions 12.8 32.0 22.2 — 67.0
Effect of foreign currency translation,
purchase accounting adjustments, and
other — (0.5) (0.5) (1.0) (2.0)
Balance as of January 31, 2014
Goodwill 142.3 415.2 411.6 190.0 1,159.1
Accumulated impairment losses — — — (149.2) (149.2)
$ 142.3 $ 415.2 $ 411.6 $ 40.8 $ 1,009.9
Purchase accounting adjustments reflect revisions made to the Company’s preliminary purchase price allocations during
fiscal 2015 and 2014.
Impairment of Long-Lived Assets
At least annually or more frequently as circumstances dictate, Autodesk reviews its long-lived assets for impairment
whenever impairment indicators exist. Autodesk continually monitors events and changes in circumstances that could indicate
the carrying amounts of its long-lived assets may not be recoverable. When such events or changes in circumstances occur,
Autodesk assesses recoverability of these assets. Recoverability is measured by comparison of the carrying amounts of the
assets to the future undiscounted cash flows the assets are expected to generate. If the long-lived assets are considered to be
impaired, the impairment to be recognized is equal to the amount by which the carrying value of the assets exceeds its fair
market value. Autodesk did not recognize any impairment of long-lived assets during the fiscal years ended January 31, 2015,
2014, and 2013, respectively.
In addition to the recoverability assessments, Autodesk routinely reviews the remaining estimated useful lives of its long-
lived assets. Any reduction in the useful life assumption will result in increased depreciation and amortization expense in the
quarter when such determinations are made, as well as in subsequent quarters.
Deferred Tax Assets
Deferred tax assets arise primarily from tax credits, net operating losses, and timing differences for reserves, accrued
liabilities, stock options, deferred revenue, purchased technologies, and capitalized intangibles, partially offset by the
establishment of U.S. deferred tax liabilities on unremitted earnings from certain foreign subsidiaries, and valuation allowances
against U.S. and foreign deferred tax assets. We perform a quarterly assessment of the recoverability of these net deferred tax
assets and believe that we will generate sufficient future taxable income in appropriate tax jurisdictions to realize the net
deferred tax assets. They are measured using enacted tax rates expected to apply to taxable income in the years in which those
temporary differences are expected to reverse. Valuation allowances are established when necessary to reduce gross deferred
tax assets to the amount “more likely than not” expected to be realized.
Revenue Recognition
Autodesk recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have
been rendered, the price is fixed or determinable, and collection is probable.
2015 Annual Report