Autodesk 2014 Annual Report Download - page 120

2013 Annual Report
2014 Form 10-K 46
Marketing and Sales
Fiscal Year
Ended
January 31,
2014
Decrease compared to
prior fiscal year
Fiscal Year
Ended
January 31,
2013
Increase compared to
prior fiscal year
Fiscal Year
Ended
January 31,
2012
$ % $ %
(in millions)
Marketing and sales $ 842.6 $ (32.9) (4)% $ 875.5 $ 32.9 4% $ 842.6
As a percentage of net revenue 37% 38% 38%
Marketing and sales expenses include salaries, bonuses, benefits and stock-based compensation expense for our
marketing and sales employees, the expense of travel, entertainment and training for such personnel, the costs of programs
aimed at increasing revenue, such as advertising, trade shows and expositions, and various sales and promotional programs.
Marketing and sales expenses also include labor costs of sales and order processing, sales and dealer commissions, rent and
occupancy, and the cost of supplies and equipment.
Marketing and sales expenses decreased 4% during fiscal 2014, as compared to fiscal 2013, primarily due to lower
advertising and promotional expenses and employee-related costs from salaries, bonus and commissions. Marketing and sales
expenses increased 4% during fiscal 2013, as compared to fiscal 2012, primarily due to higher employee-related costs from
salaries and fringe benefits and stock-based compensation primarily associated with increased headcount and merit increases in
fiscal 2013. These costs were partially offset by a decrease in professional fees and advertising costs.
We expect to balance our need to invest in the marketing and sales of our products with our desire to actively manage our
sales and marketing operating expenses. As a result, we expect marketing and sales expense to increase in absolute dollars and
slightly increase as a percentage of net revenue in fiscal 2015 as compared to fiscal 2014, primarily due to an increase in costs
as we work towards meeting our major business initiatives.
Research and Development
Fiscal Year
Ended
January 31,
2014
Increase compared to
prior fiscal year
Fiscal Year
Ended
January 31,
2013
Increase
compared to
prior fiscal year
Fiscal Year
Ended
January 31,
2012 $ % $ %
(in millions)
Research and development $ 611.1 $ 11.1 2% $ 600.0 $ 33.5 6% $ 566.5
As a percentage of net revenue 27% 26% 26%
Research and development expenses, which are expensed as incurred, consist primarily of salaries, bonuses, benefits and
stock-based compensation expense for research and development employees, and the expense of travel, entertainment and
training for such personnel, rent and occupancy, and professional services such as fees paid to software development firms and
independent contractors.
Research and development expenses increased 2% during fiscal 2014, as compared to fiscal 2013, primarily due to an
increase in employee-related costs from salaries and fringe benefits and an increase in professional fees partially offset by a
decline in stock-based compensation expense due to a one-time charge associated with the acquisition of Socialcam in fiscal
2013. Research and development expenses increased 6% during fiscal 2013, as compared to fiscal 2012, primarily due to an
increase in stock-based compensation expense associated with the acquisition of Socialcam in the third quarter of fiscal 2013
and an increase in salaries and fringe benefits primarily due to merit increases in fiscal 2013.
We expect research and development expense to increase in absolute dollars, and slightly increase as a percentage of net
revenue during fiscal 2015, as compared to fiscal 2014, as we continue to invest in product development in fiscal 2015.