Autodesk 2004 Annual Report Download - page 71

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The weighted average estimated fair value of stock options granted was $8.07 per share during fiscal
2004, $7.82 during fiscal 2003 and $8.93 during fiscal 2002. These were estimated using the Black-Scholes
option-pricing model, based on the following assumptions:
2004 2003 2002
Volatility ............................................. 0.6 0.6 0.6
Weighted-average estimated life ................... 5years 5 years 5 years
Weighted-average risk-free interest rate ........... 3.2% 3.0% 4.8%
Dividend yield ....................................... 0.7% 0.8% 0.7%
The weighted average estimated fair value of shares granted under the employee qualified stock
purchase plan was $3.93 per share during fiscal 2004, $4.81 during fiscal 2003 and $4.14 during fiscal 2002.
These were estimated using the Black-Scholes option-pricing model, based on the following assumptions:
2004 2003 2002
Volatility ............................................. 0.5 0.5 0.6
Weighted-average estimated life ................... 0.5years 0.5 years 0.5 years
Weighted-average risk-free interest rate ........... 1.2% 2.1% 3.3%
Dividend yield ....................................... 0.7% 0.8% 0.7%
Pretax Savings Plan
Autodesk has a 401(k) plan that covers nearly all U.S. employees. Eligible employees may contribute up
to 20% of their pretax salary, subject to limitations mandated by the Internal Revenue Service. Autodesk
makes voluntary cash contributions and matches a portion of employee contributions in cash. Autodesk’s
contributions were $6.2 million in fiscal 2004, $6.3 million in fiscal 2003 and $5.8 million in fiscal 2002.
Autodesk does not allow participants to invest in Autodesk common stock through the 401(k) plan.
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 requirements
in each country. Autodesk’s contributions to these plans were $4.4 million in fiscal 2004, $4.2 million in fiscal
2003 and $4.4 million in fiscal 2002.
Note 10. Business Combinations
The following acquisitions were accounted for under Statement of Financial Accounting Standards No.
141, “Business Combinations (“SFAS 141”). Accordingly, the results of operations of each acquisition are
included in the accompanying consolidated statements of income since the acquisition date, and the
related assets and liabilities were recorded based upon their relative fair values at the date of acquisition. Pro
forma results of operations have not been presented for any of the acquisitions, except the Buzzsaw
acquisition, because the effects of these acquisitions were not significant to Autodesk on either an
individual or an aggregate basis.
VIA Development Corporation (“VIA”)
In March 2003, Autodesk acquired certain assets of VIA for approximately $4.2 million in cash. This
acquisition provides Autodesk with electrical schematics, wire diagram, and controls engineering
automation technology. Autodesk allocated the purchase consideration to the following intangible assets,
which are deductible for tax purposes: $0.7 million to purchased technology and $3.5 million to goodwill.
The purchased technology is being amortized on a straight-line basis over an estimated useful life of 2 years.
The goodwill was assigned to the Manufacturing Solutions Division of the Design Solutions Segment.
AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 9. Stock Compensation and Employee Benefit Plans (Continued)
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