v3.22.2.2
Financial Instruments
 9 Months Ended
Oct. 31, 2022
Investments, All Other Investments [Abstract]  
Financial Instruments Financial Instruments
The following tables summarize the Company's financial instruments by significant investment category as of October 31, 2022, and January 31, 2022:
October 31, 2022
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Cash equivalents (1):
Money market funds$515 $— $— $515 
Commercial paper 299 — — 299 
Certificates of deposit21 — — 21 
Agency discount notes7 — — 7 
Other (2)5 — — 5 
Marketable securities:
Short-term
Commercial paper87 — — 87 
Corporate debt securities35 — — 35 
Asset-backed securities7 — — 7 
Other (3)8 2 — 10 
Long-term
Corporate debt securities27 — (1)26 
Asset-backed securities6 — — 6 
Other (4)5 — — 5 
Mutual funds (5) (6)81 4 (3)82 
Convertible debt securities (6) 3 — — 3 
Total$1,106 $6 $(4)$1,108 
___________________ 
(1)Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities.
(2)Consists of municipal bonds and custody cash deposits.
(3)Consists of U.S. government securities, common stock, certificates of deposit, agency mortgage-backed securities, mortgage-backed securities, and agency collateralized mortgage obligations.
(4)Consists of U.S. government securities, agency mortgage-backed securities, mortgage-backed securities, and 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, 2022
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Cash equivalents (1):
Money market funds$302 $— $— $302 
Commercial paper55 — — 55 
U.S government securities25 — — 25 
Custody cash deposit18 — — 18 
Corporate debt securities18 — — 18 
Certificates of deposit6 — — 6 
Other (2)4 — — 4 
Marketable securities:
Short-term
Commercial paper103 — — 103 
Corporate debt securities61 — — 61 
Asset-backed securities 26 — — 26 
Certificate of deposit14 — — 14 
U.S. government securities 13 — — 13 
Municipal bonds11 — — 11 
Common Stock— 4 — 4 
Other (3)4 — — 4 
Long-term
Corporate debt securities44 — — 44 
Other (4)1 — — 1 
Mutual funds (5) (6)74 16 (1)89 
Total$779 $20 $(1)$798 
____________________ 
(1)Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities.
(2)Consists of sovereign bonds and municipal bonds.
(3)Consists of sovereign bonds and supranational bonds.
(4)Consists of asset-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 October 31, 2022:
Fair Value
Due within 1 year$113 
Due in 1 year through 5 years55 
Due in 5 years through 10 years2 
Due after 10 years4 
Total
$174 
    
As of both October 31, 2022, and January 31, 2022, 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 nine months ended October 31, 2022.
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 October 31, 2022, and January 31, 2022. There were no write offs of accrued interest receivables for both the nine months ended October 31, 2022 and 2021.

There was no material realized gain or loss for the sales or redemptions of marketable debt securities during both the nine months ended October 31, 2022 and 2021. Realized gains and losses from the sales or redemptions of marketable debt securities are recorded in “Interest and other 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 October 31,Nine Months Ended October 31,
2022202120222021
Marketable debt securities$57 $— $302 $4 

Strategic investments in equity securities

As of October 31, 2022, and January 31, 2022, Autodesk had $181 million and $134 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.

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 expense, net” on the Company's Condensed Consolidated Statements of Operations. These adjustments were as follows:
 Nine Months Ended October 31,Cumulative Amount as of
20222021October 31, 2022
Upward adjustments$6 $7 $29 
Negative adjustments, including impairments (5)(10)(82)
Net unrealized adjustments$1 $(3)$(53)

Autodesk recognized realized gains of zero and $1 million for the three and nine months ended October 31, 2022, respectively, on the disposition of strategic investment equity securities. During the three and nine months ended October 31, 2021, Autodesk recognized gains of zero and $8 million on the disposition of strategic investment equity securities, respectively.

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 October 31, 2022, and January 31, 2022:
 
October 31, 2022
Level 1Level 2Level 3Total
Assets:
Cash equivalents (1):
Money market funds$515 $— $— $515 
Commercial paper — 299 — 299 
Certificates of deposit— 21 — 21 
Agency discount notes— 7 — 7 
Other (2)2 3 — 5 
Marketable securities:
Short-term
Commercial paper— 87 — 87 
Corporate debt securities— 35 — 35 
Asset-backed securities— 7 — 7 
Other (3)2 8 — 10 
Long-term
Corporate debt securities— 26 — 26 
Asset-backed securities— 6 — 6 
Other (4)— 5 — 5 
Long-term other assets:
Mutual funds (5)(6)82 — — 82 
Convertible debt securities (6)— — 3 3 
Derivative assets:
Derivative contract assets (6)— 72 — 72 
Strategic investments derivative assets (6)— — 2 2 
Derivative liabilities:
Derivative contract liabilities (7)— (15)— (15)
Total$601 $561 $5 $1,167 
____________________ 
(1)Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities.
(2)Consists of municipal bonds and custody cash deposits.
(3)Consists of U.S. government securities, common stock, certificates of deposit, agency mortgage-backed securities, mortgage-backed securities, and agency collateralized mortgage obligations.
(4)Consists of U.S. government securities, agency mortgage-backed securities, mortgage-backed securities, and 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, 2022
Level 1Level 2Level 3Total
Assets:
Cash equivalents (1):
Money market funds$302 $— $— $302 
Commercial paper— 55 — 55 
U.S government securities— 25 — 25 
Custody cash deposit18 — — 18 
Corporate debt securities — 18 — 18 
Certificates of deposit— 6 — 6 
Other (2)— 4 — 4 
Marketable securities:
Short-term
Commercial paper— 103 — 103 
Corporate debt securities— 61 — 61 
Asset backed securities — 26 — 26 
Certificate of deposit— 14 — 14 
U.S. government securities — 13 — 13 
Municipal bonds— 11 — 11 
Common Stock4 — — 4 
Other (3)— 4 — 4 
Long-term
Corporate debt securities— 44 — 44 
Other (4)— 1 — 1 
Long-term other assets:
Mutual funds (5) (6)89 — — 89 
Derivative assets:
Derivative contract assets (6)— 18 — 18 
Derivative liabilities:
Derivative contract liabilities (7)— (11)— (11)
Total$413 $392 $— $805 
____________________ 
(1)Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities.
(2)Consists of sovereign bonds and municipal bonds.
(3)Consists of sovereign bonds and supranational bonds.
(4)Consists of asset 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)Included in “Other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets.


A reconciliation of the change in Autodesk’s Level 3 items for the nine months ended October 31, 2022, is as follows:
Fair Value Measurements Using
Significant Unobservable Inputs (Level 3)
Derivative ContractConvertible Debt SecuritiesTotal
Balances, January 31, 2022
$— $— $— 
Purchases2 3 5 
Balances, October 31, 2022
$2 $3 $5