Autodesk 2000 Annual Report Download - page 44

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Autodesk, Inc. FY 00
These options will expire if not exercised at specific
dates ranging from February 2000 to January 2010.
A total of 18.6 million shares of Autodesk’s common
stock have been reserved for future issuance under
existing stock option programs.
Employee Stock Purchase Plan
Under Autodesk’s employee stock purchase plan,
eligible employees may purchase shares of Autodesk’s
common stock, at their discretion up to 15 percent of
their compensation subject to certain limitations, at
not less than 85 percent of fair market value as defined
in the plan agreement. In fiscal 2000, 1999 and 1998,
shares totaling 0.8 million, 0.6 million and 0.5 million,
respectively, were issued under the plan at average
prices of $20.25, $23.21 and $22.35 per share.At Janu-
ary 31,2000,a total of 1.9 million shares were available
for future issuance under the plan.
Pro Forma Net Income (Loss) Information
Autodesk applies APB 25 in accounting for its employee
stock plans. Accordingly, no compensation expense
is recognized in Autodesk’s consolidated statement
of operations, other than for stock awards that have
exercise prices less than the fair market value of
Autodesk’s common stock at the date of grant. Had
compensation expense been determined in accor-
dance with the fair value method prescribed by SFAS
123, Autodesk’s pro forma net loss for fiscal 2000 and
net income for fiscal 1999 and 1998 was $(44.7) mil-
lion, $52.2 million and $13.9 million, respectively.
Pro forma basic net income (loss) per share was
$(0.74), $0.93 and $0.25 in fiscal 2000, 1999 and 1998,
respectively. Pro forma diluted net income (loss) per
share was $(0.74), $0.88 and $0.23 in fiscal 2000,
1999 and 1998, respectively.
The weighted average estimated fair value of stock
options granted during fiscal 2000,1999 and 1998 was
$22.60, $14.14 and $13.53 per share, respectively.
These were estimated using the Black-Scholes option-
pricing model, based on the following assumptions:
expected volatility of 1.6, 0.6 and 0.5 for fiscal 2000,
1999 and 1998; the weighted average estimated life
was 5 years for fiscal 2000 and 3 years for 1999 and
1998; the weighted average risk-free rate was 5.8%,
5.6% and 5.7% for fiscal 2000, 1999 and 1998; and the
dividend yield was 0.9%,0.7% and 0.6% for fiscal 2000,
1999 and 1998, respectively.
The weighted average estimated fair value of shares
granted under the employee stock purchase plan
during fiscal 2000, 1999 and 1998 was $7.64, $9.07
and $7.27, respectively. These were estimated using
the Black-Scholes option-pricing model, based on the
following assumptions: expected volatility of 0.6, 0.6
and 0.5 for fiscal 2000, 1999 and 1998; the weighted
average estimated life was 0.5 years for fiscal 2000,
1999 and 1998; the weighted average risk-free rate
was 4.2%, 5.1% and 5.4% for fiscal 2000, 1999 and
1998; and the dividend yield was 0.9%, 0.7% and 0.6%
for fiscal 2000, 1999 and 1998, respectively.
Pretax Savings Plan
Autodesk has a 401(k) plan that covers nearly all U.S.
employees. Eligible employees may contribute up
to 20 percent of their pretax salary, subject to certain
limitations. Autodesk makes voluntary contribu-
tions and matches a portion of employee contri-
butions. Autodesk’s contributions were $5.0 million,
$4.6 million and $4.1 million in fiscal 2000, 1999
and 1998, respectively.
Autodesk provides defined-contribution plans in
certain foreign countries where required by statute.
Autodesk’s funding policy for foreign defined-
contribution plans is consistent with the local require-
ments in each country. Autodesk’s contributions to
these plans during fiscal 2000, 1999 and 1998 were
$2.4 million,$1.7 million and $1.4 million,respectively.
Note 9. Business Combinations
In addition to the acquisition of Discreet,the following
acquisitions occurred over the past three years. Pro
forma financial results, as defined by Accounting
Principles Board Opinion No. 16, “Business Combina-
tions,” have not been provided since the acquisitions
were not material.
VISION
On April 22, 1999,Autodesk acquired VISION, a vendor
of enterprise automated mapping/facilities manage-
ment/geographic information systems (AM/FM/GIS)
solutions. Of the $26.0 million purchase price, which
was paid in cash, $3.3 million represented the value of
in-process research and development (“IPR&D”) that
had not yet reached technological feasibility and had
no alternative future use, and as such, was expensed
during fiscal 2000. Of the remaining purchase price,
$17.6 million and $2.1 million were allocated to good-
will and other intangibles, respectively.