Autodesk 2015 Annual Report Download - page 168

2015 Form 10-K 76
Autodesk's cash equivalents, marketable securities, and financial instruments are primarily classified within Level 1 or
Level 2 of the fair value hierarchy. Autodesk values it's available for sale securities on pricing from pricing vendors, who may
use quoted prices in active markets for identical assets (Level 1) or inputs other than quoted prices that are observable either
directly or indirectly in determining fair value (Level 2). Autodesk's Level 2 securities are valued primarily using observable
inputs other than quoted prices in active markets for identical assets and liabilities. Autodesk's Level 3 securities consist of
investments held in auction rate securities, convertible debt securities, and derivative contracts which are valued using
probability weighted discounted cash flow models and some of the inputs to the models are unobservable in the market.
A reconciliation of the change in Autodesk’s Level 3 items for the fiscal years ended January 31, 2015 and 2014 was as
follows:
Fair Value Measurements Using
Significant Unobservable Inputs
(Level 3)
Derivative
Contracts
Convertible
Debt
Securities
Taxable
Auction-Rate
Securities Total
Balance at January 31, 2013 $ 10.7 $ 17.5 $ 4.2 $ 32.4
Purchases 1.3 3.1 — 4.4
Settlements — — (4.0) (4.0)
Losses included in earnings (1) (2.9) — (0.2) (3.1)
Losses included in OCI (1) — (0.4) — (0.4)
Balance at January 31, 2014 9.1 20.2 — 29.3
Purchases 0.1 0.6 — 0.7
Settlements (0.8) (3.0) — (3.8)
Losses included in earnings (7.5) (13.3) — (20.8)
Gains included in OCI — 0.6 — 0.6
Balance at January 31, 2015 $ 0.9 $ 5.1 $ — $ 6.0
(1) For comparability, the presentation of prior period balances were adjusted to align with current year presentation.
The following table summarizes the estimated fair value of Autodesk's “available-for-sale securities” classified by the
contractual maturity date of the security:
January 31, 2015
Cost Fair Value
Due in 1 year $ 575.4 $ 575.5
Due in 1 year through 5 years 276.9 278.1
Total $ 852.3 $ 853.6
As of January 31, 2015 and 2014, Autodesk did not have any securities in a continuous unrealized loss position for greater
than twelve months.
As of January 31, 2015 and 2014 Autodesk had $52.6 million and $49.8 million, respectively, in direct investments of
privately held companies accounted for under the cost method, which are periodically assessed for other-than-temporary
impairment. If Autodesk determines that an other-than-temporary impairment has occurred, Autodesk writes down the
investment to its fair value. Autodesk estimates fair value of its cost method investments considering available information such
as pricing in recent rounds of financing, current cash positions, earnings and cash flow forecasts, recent operational
performance, and any other readily available market data. During fiscal 2015, Autodesk recorded $19.2 million in other-than-
temporary impairments on its privately held equity investments. During fiscal 2014, Autodesk recorded no other-than-
temporary impairment on its privately held equity investments. The impairment expense was recorded in “Interest and other
(expense) income, net” on the Company's Consolidated Statement of Operations.
2015 Annual Report