Autodesk 2016 Annual Report Download - page 156

2016 Form 10-K 84
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, 2016 and 2015 was as
follows:
Fair Value Measurements Using
Significant Unobservable Inputs
(Level 3)
Derivative
Contracts
Convertible
Debt
Securities Total
Balances, 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 interest and other expense (7.5) (13.3) (20.8)
Gains included in OCI — 0.6 0.6
Balances, January 31, 2015 0.9 5.1 6.0
Purchases 4.3 6.2 10.5
Settlements (5.9) (8.3) (14.2)
Gains included in interest and other expense 1.0 — 1.0
Gains included in OCI — 0.4 0.4
Balances, January 31, 2016 $ 0.3 $ 3.4 $ 3.7
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, 2016
Cost Fair Value
Due in 1 year $ 849.2 $ 849.0
Due in 1 year through 5 years 542.5 543.2
Due in 5 years through 10 years 3.4 3.4
Total $ 1,395.1 $ 1,395.6
As of January 31, 2016 and 2015, Autodesk did not have any material securities in a continuous unrealized loss position
for greater than twelve months.
As of January 31, 2016 and 2015 Autodesk had $104.3 million and $52.6 million, respectively, in direct investments of
privately held companies accounted for under the cost method. The increase from fiscal 2015 was primarily due to an
approximately $27.4 million investment in FIT AG that was entered into simultaneously with the netfabb GmbH acquisition.
Refer to Note 5. "Acquisitions" for further discussion regarding the acquisition and investment. The privately held investments
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 estimated 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 2016, Autodesk recorded $0.2 million in other-than-temporary impairment on its privately held equity and
debt investments. During fiscal 2015, Autodesk recorded $19.2 million other-than-temporary impairment on its privately held
equity and debt investments. The impairment expense was recorded in “Interest and other expense, net” on the Company's
Consolidated Statement of Operations.
2016 Annual Report