Autodesk 2011 Annual Report Download - page 131

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AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
applicable markets and other factors. These reserves are recorded as a direct reduction of revenue and
accounts receivable at the time the related revenue is recognized.
(2) Other Revenue
Other revenue includes revenue from consulting, training, Autodesk Developers Network and
Creative Finishing customer support, and is recognized over time, as the services are performed.
Maintenance Revenue
Maintenance revenue consists of revenue from the Company’s maintenance program. Under this
program, customers are eligible to receive unspecified upgrades when-and-if-available, downloadable
training courses and on-line support. Autodesk recognizes maintenance revenue from its maintenance
program ratably over the maintenance service contract periods.
Taxes Collected from Customers
Autodesk nets taxes collected from customers against those remitted to government authorities in our
financial statements. Accordingly, taxes collected from customers are not reported as revenue.
Shipping and Handling Costs
Shipping and handling costs are included in cost of revenue for all periods presented.
Stock-based Compensation Expense
On the date of grant, Autodesk measures the fair value of all stock-based payments (including grants of
stock options, employee stock purchases related to the employee stock purchase plan (“ESP Plan”), and restricted
stock) to employees and directors and records the related expense in Autodesk’s Consolidated Statements of
Operations. The estimated fair value of stock-based awards is amortized to expense on a straight-line basis over
the awards’ vesting period. The following table summarizes stock-based compensation expense for fiscal 2011,
2010 and 2009, respectively, as follows:
Fiscal Year Ended January 31,
2011 2010 2009
Cost of license and other revenue ....................................... $ 2.9 $ 3.1 $ 3.6
Marketing and sales ................................................. 35.5 41.1 39.2
Research and development ............................................ 27.4 30.0 29.3
General and administrative ............................................ 14.9 19.4 17.4
Stock-based compensation expense related to stock awards and ESP Plan
purchases ........................................................ 80.7 93.6 89.5
Tax benefit ........................................................ (22.0) (22.2) (21.6)
Stock-based compensation expense related to stock awards and ESP Plan
purchases ........................................................ $58.7 $ 71.4 $ 67.9
In fiscal 2010, Autodesk identified errors in the calculation of stock-based compensation expense. The
Company had been incorrectly calculating stock-based compensation expense by applying a weighted average
forfeiture rate to the vested portion of stock option awards until the grant’s final vest date rather than calculating
stock based compensation expense based upon the actual vested portion of the grant date fair value, resulting in
an understatement of stock-based compensation expense in certain periods prior to the grant’s vest date. The
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