Autodesk 2013 Annual Report Download - page 114

Cost of revenue, at least over the near term, is affected by the volume and mix of product sales, mix of physical versus
electronic fulfillment, fluctuations in consulting costs, amortization of purchased technology, new customer support offerings,
royalty rates for licensed technology embedded in our products, and employee stock-based compensation expense.
We expect cost of revenue to increase in absolute dollars and slightly increase as a percentage of net revenue during fiscal
2014, as compared to fiscal 2013, primarily due to an increase in costs associated with meeting our major business initiatives.
Marketing and Sales
Fiscal Year
Ended
January 31,
2013
Increase compared to
prior fiscal year Fiscal Year
Ended
January 31,
2012
Increase compared to
prior fiscal year Fiscal Year
Ended
January 31,
2011
$ % $ %
(in millions)
Marketing and sales $ 875.5 $ 32.9 4% $ 842.6 $ 66.6 9% $ 776.0
As a percentage of net revenue 38% 38% 40%
Marketing and sales expenses include salaries, bonuses, benefits, and stock-based compensation expense for our
marketing and sales employees, and the expense of travel, entertainment and training for such personnel, and the costs of
programs aimed at increasing revenue, such as advertising, trade shows and expositions, and various sales and promotional
programs. Marketing and sales expenses also include labor costs of sales and order processing, sales and dealer commissions,
rent and occupancy, and the cost of supplies and equipment.
Marketing and sales expenses increased 4% during fiscal 2013, as compared to fiscal 2012, primarily due to higher
employee-related costs from salaries and fringe benefits and stock-based compensation primarily associated with increased
headcount and merit increases in fiscal 2013. These costs were partially offset by a decrease in professional fees and
advertising costs. Marketing and sales expenses increased 9% during fiscal 2012, as compared to fiscal 2011, primarily due to
higher employee-related costs related to salaries and fringe benefits primarily associated with increased head count and the
reinstatement of merit increases in fiscal 2012.
We expect to balance our need to invest in the marketing and sales of our products with our desire to actively manage our
sales and marketing operating expenses. As a result, we expect marketing and sales expense to increase in absolute dollars but
remain relatively consistent as a percentage of net revenue in fiscal 2014 as compared to fiscal 2013, primarily due to an
increase in costs as we work towards meeting our major business initiatives.
Research and Development
Fiscal Year
Ended
January 31,
2013
Increase compared to
prior fiscal year
Fiscal Year
Ended
January 31,
2012
Increase
compared to
prior fiscal year
Fiscal Year
Ended
January 31,
2011 $ % $ %
(in millions)
Research and development $ 600.0 $ 33.5 6% $ 566.5 $ 70.3 14% $ 496.2
As a percentage of net revenue 26% 26% 25%
Research and development expenses, which are expensed as incurred, consist primarily of salaries, bonuses, benefits and
stock-based compensation expense for research and development employees, and the expense of travel, entertainment and
training for such personnel, rent and occupancy, and professional services, such as fees paid to software development firms and
independent contractors.
Research and development expenses increased 6% during fiscal 2013, as compared to fiscal 2012, primarily due to an
increase in stock-based compensation expense associated with the acquisition of Socialcam in the third quarter of fiscal 2013
and an increase in salaries and fringe benefits primarily due to merit increases in fiscal 2013. Research and development
expenses increased 14% during fiscal 2012, as compared to fiscal 2011, primarily due to an increase in salaries and fringe
benefits primarily associated with increased headcount and the reinstatement of merit increases in fiscal 2012 and an increase
in professional service fees in fiscal 2012 as compared to fiscal 2011.
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