Autodesk 2007 Annual Report Download - page 143

Download and view the complete annual report

Please find page 143 of the 2007 Autodesk annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 244

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234
  • 235
  • 236
  • 237
  • 238
  • 239
  • 240
  • 241
  • 242
  • 243
  • 244

83
2007 Annual Report
AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 1. Business and Summary of Significant Accounting Policies (Continued)
Autodesk uses the Black-Scholes-Merton (“Black-Scholes”) option-pricing model as a method for
determining the estimated fair value for employee stock awards. This is the same option-pricing model
used in prior years to calculate pro forma compensation expense under SFAS 123 footnote disclosures.
Compensation expense for employee stock awards is recognized on a straight-line basis over the vesting
period of the award. The adoption of SFAS 123R also requires certain changes to the accounting for income
taxes, the method used in determining diluted shares, the application of a pre-vesting forfeiture rate
against both pre- and post-adoption grants, and additional disclosure related to the cash flow effects
resulting from share-based compensation. The relevant interpretive guidance of SAB 107 was applied in
connection with the Company’s implementation and adoption of SFAS 123R.
The following table summarizes the impact of adopting SFAS 123R on stock-based compensation
expense related to employee stock options and employee stock purchases for fiscal 2007, which was
recorded as follows:
Fiscal Year Ended
January 31, 2007
Cost of license and other revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5.4
Marketing and sales ........................................................ 41.9
Research and development .................................................. 30.1
General and administrative.................................................. 16.9
Stock-based compensation expense related to employee
options and employee stock purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94.3
Tax benefit................................................................. (22.8)
Stock-based compensation expense related to employee
stock options and employee stock purchases, net of tax . . . . . . . . . . . . . . . . . . . . . . $ 71.5
Reduction of net income per share:
Basic .................................................................... $ 0.31
Diluted .................................................................. $0.29
The weighted average grant date fair value of stock options granted during fiscal 2007 was $13.25 per
share. As of January 31, 2007, $87.5 million of total compensation cost related to non-vested stock option
awards not yet recognized is expected to be recognized over a weighted average period of 1.65 years. The
weighted average estimated fair value of shares granted under the ESP Plan was $12.21 per share for fiscal
2007.