Autodesk 2010 Annual Report Download - page 179

AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
the period and potentially dilutive common shares, including the effect of stock options and restricted stock units
under the treasury stock method. The following table sets forth the computation of the numerators and
denominators used in the basic and diluted net income per share amounts:
Fiscal Year Ended January 31,
2010 2009 2008
Numerator:
Net income ............................................ $ 58.0 $183.6 $356.2
Denominator:
Denominator for basic net income per share—weighted average
shares .............................................. 228.7 225.5 230.3
Effect of dilutive securities ................................ 3.4 4.6 11.7
Denominator for dilutive net income per share ................ 232.1 230.1 242.0
Basic net income per share .................................... $ 0.25 $ 0.81 $ 1.55
Diluted net income per share .................................. $ 0.25 $ 0.80 $ 1.47
The computation of diluted net income per share does not include shares that are anti-dilutive under the
treasury stock method because their exercise prices are higher than the average market value of Autodesk’s stock
during the fiscal year. For the fiscal years ended January 31, 2010, 2009 and 2008, 21.3 million, 15.8 million and
6.8 million potentially anti-dilutive shares, respectively, were excluded from the computation of net income per
share.
Note 13. Segments
Autodesk reports segment information based on the “management” approach. The management approach
designates the internal reporting used by management for making decisions and assessing performance as the
source of the Company’s reportable segments. Autodesk has four reportable segments: Platform Solutions and
Emerging Business (“PSEB”), Architecture, Engineering and Construction (“AEC”), Manufacturing (“MFG”)
and Media and Entertainment (“M&E”). Location Services, which Autodesk disposed of in February 2009, is not
included in any of the above reportable segments, and is reflected as Other. Autodesk has no material inter-
segment revenue.
The PSEB, AEC and MFG segments derive revenue from the sale of licenses for software products and
services to customers who design, build, manage or own building, manufacturing and infrastructure projects. Our
M&E segment derives revenue from the sale of products to creative professionals, post-production facilities, and
broadcasters for a variety of applications, including feature films, television programs, commercials, music and
corporate videos, interactive game production, web design and interactive web streaming.
PSEB includes Autodesk’s horizontal design product AutoCAD product. Autodesk’s AutoCAD product is a
platform product that underpins the Company’s vertical design product offerings for the industries it serves. For
example, AEC and MFG offer tailored versions of AutoCAD software for the industries they serve. Autodesk’s
AutoCAD product also provides a platform for Autodesk’s developer partners to build custom solutions for a
range of diverse design-oriented markets. PSEB’s revenue primarily includes revenue from sales of licenses of
Autodesk’s horizontal design products, AutoCAD and AutoCAD LT, as well as many of Autodesk’s vertical
design products.
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