Autodesk, Inc.ADSK
Autodesk, Inc. Leases Disclosure
Leases
Autodesk has operating leases for real estate and certain equipment. Leases have remaining lease terms of less than 1 year to 64 years, some of which include options to extend the lease with renewal terms ranging from 1 year to 5 years and some of which include options to terminate the leases within less than 1 year to 4 years. Options to extend or terminate the lease are considered in determining the lease term when it is reasonably certain that the option will be exercised. Payments under our lease arrangements are primarily fixed, however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease assets and liabilities. These amounts include payments affected by the Consumer Price Index, payments for common area maintenance that are subject to annual reconciliation, and payments for maintenance and utilities. The Company’s leases do not contain residual value guarantees or material restrictive covenants. Short-term leases are recognized in the Consolidated Statement of Operations on a straight-line basis over the lease term. Short-term lease expense was not material for the periods presented. Changes in operating lease right-of-use assets and operating lease liabilities are presented net in the “accounts payable and other liabilities” line in the Consolidated Statements of Cash Flows with the exception of “Lease-related asset impairments” which is presented in “Adjustments to reconcile net income to net cash provided by operating activities”.
During the fiscal years ended January 31, 2026, 2025, and 2024, Autodesk recorded total operating lease right-of-use
assets impairment charges of $12 million, nil and $9 million, respectively. Autodesk assessed the asset groupings for disaggregation based on the proposed changes in use of the facilities. For asset groups where impairment was triggered, Autodesk utilized an income approach to value the asset groups by developing discounted cash flow models. The significant assumptions used in the discounted cash flow models for each of the asset groups included projected sublease income over the remaining lease terms, expected downtime prior to the commencement of future subleases, expected lease incentives offered to future tenants, and discount rates that reflected the level of risk associated with these future cash flows. These significant assumptions are considered Level 1 and Level 2 inputs in accordance with the fair value hierarchy described in Note 1, “Business and Summary of Significant Accounting Policies.” The operating lease right-of-use assets and other lease-related assets charges are included in “Restructuring, other exit costs, and facility reductions” in the Company’s Consolidated Statements of Operations.
The components of lease cost were as follows:
| Fiscal Year Ended January 31, 2026 | ||||||||||||||||||||
| Cost of subscription and maintenance revenue | Cost of other revenue | Marketing and sales | Research and development | General and administrative | Total | |||||||||||||||
| Operating lease cost | $ | 6 | $ | 2 | $ | 20 | $ | 21 | $ | 9 | $ | 58 | ||||||||
| Variable lease cost | 1 | — | 3 | 4 | 2 | 10 | ||||||||||||||
| Fiscal Year Ended January 31, 2025 | ||||||||||||||||||||
| Cost of subscription and maintenance revenue | Cost of other revenue | Marketing and sales | Research and development | General and administrative | Total | |||||||||||||||
| Operating lease cost | $ | 6 | $ | 2 | $ | 25 | $ | 22 | $ | 11 | $ | 66 | ||||||||
| Variable lease cost | 1 | — | 5 | 5 | 2 | 13 | ||||||||||||||
| Fiscal Year Ended January 31, 2024 | ||||||||||||||||||||
| Cost of subscription and maintenance revenue | Cost of other revenue | Marketing and sales | Research and development | General and administrative | Total | |||||||||||||||
| Operating lease cost | $ | 7 | $ | 2 | $ | 28 | $ | 23 | $ | 11 | $ | 71 | ||||||||
| Variable lease cost | 1 | 1 | 6 | 5 | 3 | 16 | ||||||||||||||
Supplemental operating cash flow information related to leases was as follows:
| Fiscal Year Ended January 31, 2026 | Fiscal Year Ended January 31, 2025 | Fiscal Year Ended January 31, 2024 | |||||||||||||||
| Cash paid for operating leases included in operating cash flows (1) | $ | 89 | $ | 93 | $ | 112 | |||||||||||
| Non-cash operating lease liabilities arising from obtaining operating right-of-use assets | 45 | 3 | 48 | ||||||||||||||
_______________
(1) Includes $10 million, $13 million, and $16 million in variable lease payments not included in “Operating lease liabilities” and “Long-term operating lease liabilities” on the Consolidated Balance Sheet for fiscal years ended January 31, 2026, 2025, and 2024, respectively.
The weighted average remaining lease term for operating leases is 5.3 years and 5.8 years at January 31, 2026 and 2025, respectively. The weighted average discount rate was 3.42% and 2.90% at January 31, 2026 and 2025, respectively,
Maturities of operating lease liabilities were as follows:
| Fiscal year ending | |||||
| 2027 | $ | 60 | |||
| 2028 | 61 | ||||
| 2029 | 56 | ||||
| 2030 | 37 | ||||
| 2031 | 30 | ||||
| Thereafter | 31 | ||||
| 275 | |||||
| Less imputed interest | 24 | ||||
| Present value of operating lease liabilities | $ | 251 | |||
Operating lease amounts in the table above do not include sublease income payments of $55 million. Autodesk expects to receive sublease income payments of approximately $45 million for fiscal 2027 through fiscal 2031 and $10 million thereafter.
As of January 31, 2026, Autodesk had no material operating lease minimum lease payments for executed leases that have not yet commenced.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 3, 2026 | Showing above |
| 2025 | Mar 6, 2025 | |
| 2024 | Jun 10, 2024 | |
| 2023 | Mar 14, 2023 | |
| 2022 | Mar 14, 2022 | |
| 2021 | Mar 19, 2021 | |
| 2020 | Mar 19, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.