Autodesk 2012 Annual Report Download - page 125

56
Taxes Collected from Customers
Autodesk nets taxes collected from customers against those remitted to government authorities in the consolidated
financial statements. Accordingly, taxes collected from customers are not reported as revenue.
Shipping and Handling Costs
Shipping and handling costs are included in cost of revenue for all periods presented.
Stock-based Compensation Expense
On the date of grant, Autodesk measures the fair value of all stock-based payments (including grants of stock options,
employee stock purchases related to the employee stock purchase plan (“ESP Plan”), and restricted stock) to employees and
directors and records the related expense in Autodesk’s Consolidated Statements of Operations. Share-based compensation cost
for stock options and employee stock purchases related to the ESP Plan ("stock-based awards") are estimated at the grant date
based on the fair-value as calculated using the Black-Scholes-Merton (“BSM”) option-pricing model. Share-based
compensation cost for restricted stock is measured based on the closing fair market value of the Company's common stock on
the date of grant. The estimated fair value of stock-based awards and restricted stock is amortized to expense on a straight-line
basis over the awards’ vesting period. The following table summarizes stock-based compensation expense for fiscal 2012, 2011
and 2010, respectively, as follows:
Cost of license and other revenue
Marketing and sales
Research and development
General and administrative
Stock-based compensation expense related to stock awards and ESP Plan
purchases
Tax benefit
Stock-based compensation expense related to stock awards and ESP Plan
purchases
Fiscal Year Ended January 31,
2012
$ 3.9
48.3
38.1
18.5
108.8
(27.1)
$ 81.7
2011
$ 2.9
35.5
27.4
14.9
80.7
(22.0)
$ 58.7
2010
$ 3.1
41.1
30.0
19.4
93.6
(22.2)
$ 71.4
In fiscal 2010, Autodesk identified errors in the calculation of stock-based compensation expense. The Company had
been incorrectly calculating stock-based compensation expense by applying a weighted average forfeiture rate to the vested
portion of stock option awards until the grant’s final vest date rather than calculating stock based compensation expense based
upon the actual vested portion of the grant date fair value, resulting in an understatement of stock-based compensation expense
in certain periods prior to the grant’s vest date. The cumulative error from the understatement of stock-based compensation
expense related to the periods prior to fiscal 2010 totaled $6.8 million, net of tax effects. Accordingly, additional expenses of
$0.4 million for Cost of license and other revenue, $4.4 million for Marketing and sales, $2.9 million for Research and
development, $2.1 million for General and Administrative and $3.0 million for additional tax benefit are included in the stock-
based compensation expenses in the table above for the fiscal year ended January 31, 2010.
Autodesk uses the BSM option-pricing model to estimate the fair value of stock-based awards based on the following
assumptions:
Range of expected
volatilities
Range of expected lives
(in years)
Expected dividends
Range of risk-free
interest rates
Expected forfeitures
Fiscal Year Ended
January 31, 2012
Stock Option
Plans
40 - 49%
2.6 - 4.8
—%
0.5 - 1.9%
7.8 - 10.5%
ESP Plan
34 - 44%
0.5 - 2.0
—%
0.1 - 0.8%
7.8 - 10.5%
Fiscal Year Ended
January 31, 2011
Stock Option
Plans
40 - 45%
2.6 - 4.4
—%
0.8 - 1.9%
10.5 - 13.5%
ESP Plan
33 - 47%
0.5 - 2.0
—%
0.2 - 1.1%
10.5 - 13.5%
Fiscal Year Ended
January 31, 2010
Stock Option
Plans
43 - 55%
2.7 - 4.0
—%
1.0 - 2.4%
13.5%
ESP Plan
43 - 73%
0.5 - 2.0
—%
0.2 - 1.0%
13.5%
57
2012 Annual Report