(1) Effective in second quarter of fiscal 2015, Autodesk elected to present amortization of purchased customer relationships, trade names, patents, and user lists as a separate line item within operating expenses. As a result, amortization previously reflected in "General and Administrative" expense was reclassified to "Amortization of Purchased Intangibles" within Operating Expenses. Prior period amounts have been revised to conform to the current period presentation.
(2) Autodesk previously established a valuation allowance against the Company’s deferred tax assets in the three months ended July 31, 2015. In the course of preparing the consolidated financial statements for the quarter ended October 31, 2015, Autodesk determined that it had understated tax expense by $33 million primarily related to the establishment of the valuation allowance. Autodesk evaluated the materiality of the error, quantitatively and qualitatively, and concluded it was not material to the Company’s condensed consolidated financial statements for the three and six month periods ended July 31, 2015.
However, in light of the significance of the error to the results for the three months ended October 31, 2015, Autodesk has determined to correct the error by revising the previously reported results for the three and six months ended July 31, 2015, to include the additional $33 million of income tax expense associated with the valuation allowance.
Incorporating these non-cash, GAAP only, revisions results in a ($269.5 million) provision for income taxes, a GAAP net loss of ($268.6 million) and GAAP diluted net loss per share of $(1.18) for the three months ended July 31, 2015 and a ($272.2 million) provision for income taxes, a GAAP net loss of ($249.5 million) and GAAP diluted net loss per share of $(1.10) for the six months ended July 31, 2015. Autodesk is in the process of assessing the effect of these errors in connection with its evaluation of the effectiveness of the design and operation of its internal control over financial reporting and disclosure controls and procedures.
| Autodesk, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (In millions) | ||||||||
|
October 31, 2015 |
January 31, 2015 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,337.5 | $ | 1,410.6 | ||||
| Marketable securities | 946.8 | 615.8 | ||||||
| Accounts receivable, net | 362.3 | 458.9 | ||||||
| Deferred income taxes, net | 10.2 | 85.1 | ||||||
| Prepaid expenses and other current assets | 90.7 | 100.9 | ||||||
| Total current assets | 2,747.5 | 2,671.3 | ||||||
| Marketable securities | 540.1 | 273.0 | ||||||
| Computer equipment, software, furniture and leasehold improvements, net | 155.3 | 159.2 | ||||||
| Developed technologies, net | 76.1 | 86.5 | ||||||
| Goodwill | 1,515.0 | 1,456.2 | ||||||
| Deferred income taxes, net | 4.4 | 100.0 | ||||||
| Other assets (1) | 181.6 | 163.5 | ||||||
| Total assets | $ | 5,220.0 | $ | 4,909.7 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 104.6 | $ | 100.5 | ||||
| Accrued compensation | 193.8 | 253.3 | ||||||
| Accrued income taxes | 28.2 | 28.2 | ||||||
| Deferred revenue | 877.0 | 900.8 | ||||||
| Other accrued liabilities |
107.6 |
117.3 | ||||||
| Total current liabilities |
1,311.2 |
1,400.1 | ||||||
| Deferred revenue | 335.3 | 256.3 | ||||||
| Long term income taxes payable | 163.8 | 158.8 | ||||||
| Long term deferred income taxes |
54.9 |
— | ||||||
| Long term notes payable, net (1) | 1,486.9 | 743.1 | ||||||
| Other liabilities | 134.8 | 132.2 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock | — | — | ||||||
| Common stock and additional paid-in capital | 1,809.9 | 1,773.1 | ||||||
| Accumulated other comprehensive loss | (86.5 | ) | (53.3 | ) | ||||
| Retained earnings | 9.7 | 499.4 | ||||||
| Total stockholders’ equity | 1,733.1 | 2,219.2 | ||||||
| Total liabilities and stockholders' equity | $ | 5,220.0 | $ | 4,909.7 | ||||
