Autodesk 2014 Annual Report Download - page 145

2013 Annual Report
2014 Form 10-K 71
The risk-free interest rate used in the Black-Scholes-Merton option pricing model and the Monte Carlo simulation model
for stock-based awards is the historical yield on U.S. Treasury securities with equivalent remaining lives.
Autodesk recognizes expense only for the stock-based awards that are ultimately expected to vest. Therefore, Autodesk
has developed an estimate of the number of awards expected to cancel prior to vesting (“forfeiture rate”). The forfeiture rate is
estimated based on historical pre-vest cancellation experience and is applied to all stock-based awards. The Company estimates
forfeitures at the time of grant and revises those estimates in subsequent periods if actual forfeitures differ from those estimates.
Advertising Expenses
Advertising costs are expensed as incurred. Total advertising expenses incurred were $15.6 million in fiscal 2014, $15.6
million in fiscal 2013 and $21.3 million in fiscal 2012.
Net Income Per Share
Basic net income per share is computed based on the weighted average number of shares of common stock outstanding
for the period, excluding stock options and restricted stock units. Diluted net income per share is computed based upon the
weighted average shares of common shares outstanding for the period and potentially dilutive common shares, including the
effect of stock options and restricted stock units under the treasury stock method.
Accounting Standards in Fiscal 2014
With the exception of those discussed below, there have been no recent changes in accounting pronouncements issued by
the FASB or adopted by the Company during the fiscal year ended January 31, 2014, that are of significance, or potential
significance, to the Company.
Accounting Standards Adopted
Effective February 1, 2013, Autodesk adopted FASB's Accounting Standards Update (“ASU”) 2013-02, Comprehensive
Income (Topic 220) - Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This ASU
requires additional disclosure about the changes in the components of accumulated other comprehensive income, including
amounts reclassified and amounts due to current period other comprehensive income. The adoption of this standard did not
impact the Company's financial condition, results of operations or cash flows.
Effective February 1, 2013, Autodesk adopted FASB's ASU 2011-11 and ASU 2013-01 regarding ASC Topic 210
“Balance Sheet: Disclosure about Offsetting Assets and Liabilities.” This ASU requires that entities disclose additional
information about offsetting and related arrangements to enable users of the financial statements to understand the effect of
those arrangements on the financial position. The adoption of this standard did not impact the Company's financial condition,
results of operations or cash flows.
Recently Issued Accounting Standards
In July 2013, the FASB issued ASU 2013-11 regarding ASC Topic 740 “Income Tax.” This ASU clarifies the guidance on
the presentation of an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a
reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. This ASU
will be effective for Autodesk's fiscal year beginning February 1, 2014. Early adoption is permitted. At this time, Autodesk
expects that the adoption of this ASU will impact the presentation of tax assets and liabilities on the statement of financial
position, but will not impact its consolidated financial position, results of operations or cash flows.