Financial Instruments | Financial Instruments The following tables summarize the Company's financial instruments by significant investment category as of July 31, 2024, and January 31, 2024: July 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents (1): Money market funds $ 456 $ — $ — $ 456 Commercial paper 242 — — 242 Certificates of deposit 77 — — 77 U.S. government securities 18 — — 18 Other (2) 10 — — 10 Marketable securities: Short-term Commercial paper 188 — — 188 Corporate debt securities 93 — — 93 U.S. government securities 45 — — 45 Asset-backed securities 26 — — 26 Other (3) 13 — — 13 Long-term Corporate debt securities 93 1 (1) 93 Asset-backed securities 62 — — 62 Agency mortgage-backed securities 42 — — 42 U.S. government securities 24 — — 24 Other (4) 10 — — 10 Mutual funds (5) (6) 96 21 (1) 116 Total $ 1,495 $ 22 $ (2) $ 1,515 ___________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Primarily consists of agency discount bonds and corporate debt securities. (3) Primarily consists of agency discount bonds and mortgage-backed securities. (4) Primarily consists of agency bonds and agency collateralized mortgage obligations. (5) See Note 12, “Deferred Compensation” for more information. (6) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets. January 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents (1): Money market funds $ 693 $ — $ — $ 693 Commercial paper 250 — — 250 U.S government securities 92 — — 92 Certificates of deposit 80 — — 80 Other (2) 6 — — 6 Marketable securities: Short-term Commercial paper 159 — — 159 Corporate debt securities 75 — — 75 U.S. government securities 70 — — 70 Asset-backed securities 28 — — 28 Other (3) 22 — — 22 Long-term Corporate debt securities 103 1 — 104 Asset backed securities 59 — — 59 Agency mortgage-backed securities 36 — — 36 U.S. government securities 24 — — 24 Other (4) 11 — — 11 Mutual funds (5) (6) 89 12 (1) 100 Total $ 1,797 $ 13 $ (1) $ 1,809 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists primarily of mortgage-backed securities and corporate debt securities. (3) Consists primarily of agency discount bonds, U.S. government securities, mortgage-backed securities, certificates of deposit, and agency bonds. (4) Consists primarily of agency bonds, agency collateralized mortgage obligations, and mortgage-backed securities. (5) See Note 12, “Deferred Compensation” for more information. (6) Included in “Prepaid expenses and other current assets,” or “Long-term other assets,” in the accompanying Condensed Consolidated Balance Sheets. The following table summarizes the fair values of investments classified as marketable debt securities by contractual maturity date as of July 31, 2024: Fair Value Due within 1 year $ 332 Due in 1 year through 5 years 227 Due in 5 years through 10 years 11 Due after 10 years 26 Total $ 596 As of both July 31, 2024, and January 31, 2024, Autodesk had no material unrealized losses, individually and in the aggregate, for marketable debt securities that are in a continuous unrealized loss position for greater than 12 months. Total unrealized gains for securities with net gains in accumulated other comprehensive income were not material for the six months ended July 31, 2024. Autodesk monitors all marketable debt securities for potential credit losses by reviewing indicators such as, but not limited to, current credit rating, change in credit rating, credit outlook, and default risk. There were no allowances for credit losses as of both July 31, 2024, and January 31, 2024. There were no write offs of accrued interest receivables for both the six months ended July 31, 2024 and 2023. There were no material realized gains or losses for the sales or redemptions of marketable debt securities during both the six months ended July 31, 2024 and 2023. Realized gains and losses from the sales or redemptions of marketable debt securities are recorded in “Interest and other income (expense), net” on the Company's Condensed Consolidated Statements of Operations. Proceeds from the sale and maturity of marketable debt securities were as follows: Three Months Ended July 31, Six Months Ended July 31, 2024 2023 2024 2023 Marketable debt securities $ 168 $ 176 $ 430 $ 339 Strategic investments in equity securities As of July 31, 2024, and January 31, 2024, Autodesk had $160 million and $162 million, respectively, in direct investments in privately held companies. These strategic investments in equity securities do not have readily determined fair values, and Autodesk uses the measurement alternative to account for the adjustment to these investments in a given quarter. If Autodesk determines that an impairment has occurred, Autodesk writes down the investment to its fair value. These strategic investments in equity securities are generally subject to a security-specific restriction which limits the sale or transfer of the respective equity security during the holding period. Adjustments to the carrying value of our strategic investment equity securities with no readily determined fair values measured using the measurement alternative are included in “Interest and other income (expense), net” on the Company's Condensed Consolidated Statements of Operations. These adjustments were as follows: Six Months Ended July 31, Cumulative Amount as of 2024 2023 July 31, 2024 Upward adjustments $ — $ — $ 29 Negative adjustments, including impairments (6) (11) (120) Net unrealized adjustments $ (6) $ (11) $ (91) Realized gains for the disposition of strategic investment equity securities for both the three and six months ended July 31, 2024 and 2023 were immaterial. Fair Value Autodesk applies fair value accounting for certain financial assets and liabilities, which consist of cash equivalents, marketable securities, and other financial instruments, on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following tables summarize the Company's financial instruments measured at fair value on a recurring basis by significant investment category as of July 31, 2024, and January 31, 2024: July 31, 2024 Level 1 Level 2 Level 3 Total Assets: Cash equivalents (1): Money market funds $ 456 $ — $ — $ 456 Commercial paper — 242 — 242 Certificates of deposit — 77 — 77 U.S. government securities — 18 — 18 Other (2) — 10 — 10 Marketable securities: Short-term Commercial paper — 188 — 188 Corporate debt securities — 93 — 93 U.S. government securities — 45 — 45 Asset-backed securities — 26 — 26 Other (3) — 13 — 13 Long-term Corporate debt securities — 93 — 93 Asset-backed securities — 62 — 62 Agency mortgage-backed securities — 42 — 42 U.S. government securities — 24 — 24 Other (4) — 10 — 10 Long-term other assets: Mutual funds (5)(6) 116 — — 116 Derivative assets: Derivative contract assets (6) — 12 — 12 Derivative liabilities: Derivative contract liabilities (7) — (10) — (10) Total $ 572 $ 945 $ — $ 1,517 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Primarily consists of agency discount bonds and corporate debt securities. (3) Primarily consists of agency discount bonds and mortgage-backed securities. (4) Primarily consists of agency bonds and agency collateralized mortgage obligations. (5) See Note 12, “Deferred Compensation” for more information. (6) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets. (7) Included in “Other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets. January 31, 2024 Level 1 Level 2 Level 3 Total Assets: Cash equivalents (1): Money market funds $ 693 $ — $ — $ 693 Commercial paper — 250 — 250 U.S government securities — 92 — 92 Certificates of deposit — 80 — 80 Other (2) — 6 — 6 Marketable securities: Short-term Commercial paper — 159 — 159 Corporate debt securities — 75 — 75 U.S. government securities — 70 — 70 Asset backed securities — 28 — 28 Other (3) — 22 — 22 Long-term Corporate debt securities — 104 — 104 Asset backed securities — 59 — 59 Agency bonds — 36 — 36 U.S. government securities — 24 — 24 Other (4) — 11 — 11 Long-term other assets: Mutual funds (5) (6) 100 — — 100 Derivative assets: Derivative contract assets (6) — 21 — 21 Derivative liabilities: Derivative contract liabilities (7) — (15) — (15) Total $ 793 $ 1,022 $ — $ 1,815 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists primarily of mortgage-backed securities and corporate debt securities. (3) Consists primarily of agency discount bonds, U.S. government securities, mortgage-backed securities, certificates of deposit, and agency bonds. (4) Consists primarily of agency bonds, agency collateralized mortgage obligations, and mortgage-backed securities. (5) See Note 12, “Deferred Compensation” for more information. (6) Included in “Prepaid expenses and other current assets,” or “Long-term other assets,” in the accompanying Condensed Consolidated Balance Sheets. (7) |