Autodesk 2016 Annual Report Download - page 145

2016 Form 10-K 73
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:
2016 2015
United States 26% 19%
Other Americas 1% 1%
Europe, Middle East, and Africa (“EMEA”) 50% 56%
Asia Pacific (“APAC”) 23% 24%
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%, 25%, and 24% of Autodesk's net revenue for fiscal years ended January 31, 2016, 2015, and 2014, 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% of trade accounts
receivable at both January 31, 2016 and 2015, 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 $60.6 million in fiscal 2016, $52.1 million in
fiscal 2015, and $47.2 million in fiscal 2014.
Computer equipment, software, furniture, leasehold improvements and the related accumulated depreciation at January 31
were as follows:
2016 2015
Computer hardware, at cost $ 202.7 $ 194.0
Computer software, at cost 85.6 84.9
Leasehold improvements, land, and buildings, at cost 202.9 176.3
Furniture and equipment, at cost 59.0 53.0
Computer software, hardware, leasehold improvements, furniture, and equipment, at cost 550.2 508.2
Less: Accumulated depreciation (380.9) (349.0)
Computer software, hardware, leasehold improvements, furniture, and equipment, net $ 169.3 $ 159.2
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.
2016 Annual Report