Autodesk 2008 Annual Report Download - page 135

AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Impairment of Long-Lived Assets
At least annually or more frequently as circumstances dictate, Autodesk assesses the recoverability of its
long-lived assets by comparing the undiscounted net cash flows associated with such assets against their
respective carrying values. Impairment, if any, is based on the excess of the carrying value over the fair value.
There was no impairment of long-lived assets during the years ended January 31, 2008 and 2007.
In addition to the recoverability assessments, Autodesk routinely reviews the remaining estimated useful
lives of its long-lived assets. Any reduction in the useful life assumption will result in increased depreciation and
amortization expense in the quarter when such determinations are made, as well as in subsequent quarters.
Deferred Tax Assets
Deferred tax assets arise primarily from net operating losses including stock option deductions taken in
fiscal years prior to fiscal 2007, as well as tax credits, non-deductible accruals and timing differences for
purchased technologies and capitalized software, offset by the establishment of U.S. deferred tax liabilities on
unremitted earnings from certain foreign subsidiaries. They are measured using enacted tax rates expected to
apply to taxable income in the years in which those temporary differences are expected to reverse. Valuation
allowances are established when necessary to reduce gross deferred tax assets to the amount “more likely than
not” expected to be realized in accordance with Statement of Financial Accounting Standards No. 109
“Accounting for Income Taxes.”
Employee Stock-Based Compensation
On February 1, 2006, Autodesk adopted Statement of Financial Accounting Standards No. 123R “Share-
Based Payment” (“SFAS 123R”), which requires the measurement of all stock-based payments to employees and
directors, including grants of stock options and purchases related to an employee stock purchase plan (“ESP
Plan”), using a fair-value based method, and the recording of such expense in Autodesk’s Consolidated
Statements of Income. The estimated fair value of stock-based awards is amortized to expense on a straight-line
basis over the awards’ vesting period. The following table summarizes stock-based compensation expense related
to employee stock options and employee stock purchases for fiscal 2008 and 2007, which was recorded as
follows:
Fiscal Year Ended
January 31, 2008
Fiscal Year Ended
January 31, 2007
Cost of license and other revenue ................................... $ 5.0 $ 5.4
Marketing and sales ............................................. 43.1 41.9
Research and development ........................................ 32.4 30.1
General and administrative ........................................ 18.8 16.9
Stock-based compensation expense related to employee options and
employee stock purchases ....................................... 99.3 94.3
Tax benefit .................................................... (21.0) (22.8)
Stock-based compensation expense related to employee stock options and
employee stock purchases, net of tax .............................. $78.3 $ 71.5
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2008 Annua
l Report