v3.22.2.2
Revenue Recognition
 9 Months Ended
Oct. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Revenue Disaggregation

Autodesk recognizes revenue from the sale of (1) product subscriptions, cloud service offerings, and enterprise business agreements (“EBAs”), (2) renewal fees for existing maintenance plan agreements that were initially purchased with a perpetual software license, and (3) consulting, training, and other goods and services. The three categories are presented as line items on Autodesk's Condensed Consolidated Statements of Operations.
Information regarding the components of Autodesk's net revenue from contracts with customers by product family, geographic location, sales channel, and product type is as follows: 
 Three Months Ended October 31,Nine Months Ended October 31,
2022202120222021
Net revenue by product family:
Architecture, Engineering and Construction (1)$575 $507 $1,676 $1,429 
AutoCAD and AutoCAD LT (1)354 323 1,025 912 
Manufacturing254 225 721 630 
Media and Entertainment78 63 217 177 
Other 19 8 48 27 
Total net revenue$1,280 $1,126 $3,687 $3,175 
Net revenue by geographic area:
Americas
U.S.$447 $383 $1,269 $1,055 
Other Americas94 79 271 221 
Total Americas541 462 1,540 1,276 
Europe, Middle East and Africa476 433 1,398 1,226 
Asia Pacific263 231 749 673 
Total net revenue$1,280 $1,126 $3,687 $3,175 
Net revenue by sales channel:
Indirect$827 $730 $2,412 $2,093 
Direct453 396 1,275 1,082 
Total net revenue$1,280 $1,126 $3,687 $3,175 
Net revenue by product type (2):
Design$1,087 $967 $3,155 $2,756 
Make117 94 333 265 
Other76 65 199 154 
Total net revenue$1,280 $1,126 $3,687 $3,175 
___________________ 
(1)During the nine months ended October 31, 2022, the Company corrected an immaterial classification error and reclassified certain revenue amounts between Architecture, Engineering and Construction and AutoCAD and AutoCAD LT. The three months ended April 30, 2022, included within the nine months ended October 31, 2022, and both the three and nine months ended October 31, 2021, have been adjusted to conform to the current period presentation. These reclassifications did not impact total net revenue.
(2)The prior period amount has been adjusted to conform to the current period presentation for a change in presentation of certain subscription plan offerings. See Note 1, “Basis of Presentation” for further detail.

Payments for product subscriptions, industry collections, cloud subscriptions, and maintenance subscriptions are typically due up front with payment terms of 30 to 45 days. Payments on EBAs are typically due in annual installments over the contract term, with payment terms of 30 to 60 days. Autodesk does not have any material variable consideration, such as obligations for returns, refunds, warranties, or amounts due to customers for which significant estimation or judgment is required as of the reporting date.

Remaining performance obligations consist of total short-term, long-term, and unbilled deferred revenue. As of October 31, 2022, Autodesk had remaining performance obligations of $4.68 billion, which represents the total contract price allocated to remaining performance obligations, which are generally recognized over the next three years. We expect to recognize $3.14 billion or 67% of our remaining performance obligations as revenue during the next 12 months. We expect to recognize the remaining $1.54 billion or 33% of our remaining performance obligations as revenue thereafter.

The amount of remaining performance obligations may be impacted by the specific timing, duration, and size of customer subscription and support agreements, the specific timing of customer renewals, and foreign currency fluctuations.
Contract Balances

We receive payments from customers based on a billing schedule as established in our contracts. Contract assets relate to performance completed in advance of scheduled billings. Contract assets were not material as of October 31, 2022. Deferred revenue relates to billings in advance of performance under the contract. The primary changes in our contract assets and deferred revenues are due to our performance under the contracts and billings.

Revenue recognized during the three months ended October 31, 2022 and 2021, that was included in the deferred revenue balances at January 31, 2022 and 2021, was $642 million and $569 million, respectively. Revenue recognized during the nine months ended October 31, 2022 and 2021, that was included in the deferred revenue balances at January 31, 2022 and 2021, was $2.46 billion and $2.13 billion, respectively. The satisfaction of performance obligations typically lags behind payments received under revenue contracts from customers.
Cloud Computing Arrangements Autodesk enters into certain cloud-based software hosting arrangements that are accounted for as service contracts. Costs incurred for these arrangements are capitalized for application development activities, if material, and immediately expensed for preliminary project activities and post-implementation activities. Autodesk amortizes the capitalized development costs straight-line over the fixed, non-cancellable term of the associated hosting arrangement plus any reasonably certain renewal periods. The capitalized costs are included in “Prepaid expenses and other current assets” and “Long-term other assets” on our Condensed Consolidated Balance Sheets. Capitalized costs were $178 million and $128 million at October 31, 2022, and January 31, 2022, respectively. Accumulated amortization was $33 million and $17 million at October 31, 2022, and January 31, 2022, respectively. Amortization expense for the three and nine months ended October 31, 2022, was $7 million and $16 million, respectively. Amortization expense for the three and nine months October 31, 2021, was $4 million and $7 million , respectively.