Revenue Recognition |
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| 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 and other products 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:
Payments for product subscriptions, cloud subscriptions, and maintenance subscriptions are typically due in annual installments or up front with payment terms of 30 to 45 days. Payments on EBAs are due upfront or 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 April 30, 2024, Autodesk had remaining performance obligations of $5.89 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 $3.92 billion or 66% of our remaining performance obligations as revenue during the next 12 months. We expect to recognize the remaining $1.97 billion or 34% 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 April 30, 2024. 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 April 30, 2024 and 2023, that was included in the deferred revenue balances at January 31, 2024 and 2023, was $1.19 billion and $1.06 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 $271 million and $254 million at April 30, 2024, and January 31, 2024, respectively. Accumulated amortization was $96 million and $83 million at April 30, 2024, and January 31, 2024, respectively. Amortization expense for the three months ended April 30, 2024 and 2023, was $13 million and $9 million, respectively.
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