Autodesk 2013 Annual Report Download - page 137

Download and view the complete annual report

Please find page 137 of the 2013 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 176

  • 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

Autodesk uses the BSM option-pricing model to estimate the fair value of stock-based awards based on the following
assumptions:
Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended
January 31, 2013 January 31, 2012 January 31, 2011
Stock Option
Plans ESP Plan Stock Option
Plans ESP Plan Stock Option
Plans ESP Plan
Range of expected
volatilities 41 - 45% 41 - 44% 40 - 49% 34 - 44% 40 - 45% 33 - 47%
Range of expected lives
(in years) 3.6 - 4.6 0.5 - 2.0 2.6 - 4.8 0.5 - 2.0 2.6 - 4.4 0.5 - 2.0
Expected dividends —% —% —% —% —% —%
Range of risk-free interest
rates 0.5 - 0.8% 0.1 - 0.3% 0.5 - 1.9% 0.1 - 0.8% 0.8 - 1.9% 0.2 - 1.1%
Expected forfeitures 7.7 - 7.8% 7.7 - 7.8% 7.8 - 10.5% 7.8 - 10.5% 10.5 - 13.5% 10.5 - 13.5%
Autodesk estimates expected volatility for stock-based awards based on the average of the following two measures. The
first is a measure of historical volatility in the trading market for the Company’s common stock, and the second is the implied
volatility of traded forward call options to purchase shares of the Company’s common stock.
Autodesk estimates the expected life of stock-based awards using both exercise behavior and post-vesting termination
behavior as well as consideration of outstanding options.
Autodesk did not pay cash dividends in fiscal 2013, 2012 or 2011 and does not anticipate paying any cash dividends in
the foreseeable future. Consequently, an expected dividend yield of zero is used in the BSM option pricing model.
The risk-free interest rate used in the BSM option pricing model for stock-based awards is the historical yield on U.S.
Treasury securities with equivalent remaining lives.
Autodesk only recognizes expense for the stock-based awards that are ultimately expected to vest. Therefore, Autodesk
has developed an estimate of the number of awards expected to cancel prior to vesting (“forfeiture rate”). The forfeiture rate is
estimated based on historical pre-vest cancellation experience, and is applied to all stock-based awards. The Company
estimates forfeitures at the time of grant and revises those estimates in subsequent periods if actual forfeitures differ from those
estimates.
Advertising Expenses
Advertising costs are expensed as incurred. Total advertising expenses incurred were $15.6 million in fiscal 2013, $21.3
million in fiscal 2012 and $18.8 million in fiscal 2011.
Net Income Per Share
Basic net income per share is computed based on the weighted average number of shares of common stock outstanding
for the period, excluding stock options and restricted stock units. Diluted net income per share is computed based upon the
weighted average shares of common shares outstanding for the period and potentially dilutive common shares, including the
effect of stock options and restricted stock units under the treasury stock method.
Accounting Standards in Fiscal 2013
With the exception of those discussed below, there have been no recent changes in accounting pronouncements issued by
the FASB or adopted by the Company during the fiscal year ended January 31, 2013, that are of significance, or potential
significance, to the Company.
Accounting Standards Adopted
In September 2011, the FASB issued ASU 2011-8 regarding ASC Topic 350 “Intangibles – Goodwill and Other.” This
ASU allows for the option to first assess qualitative factors to determine whether the existence of events or circumstances leads
65
2013 Annual Report