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Business and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Jan. 31, 2013
Business and Summary of Significant Accounting Policies [Abstract]  
Business, Policy
Business

Autodesk, Inc. (“Autodesk” or the “Company”) is a world leading design software and services company, offering customers productive business solutions through powerful technology products and services. The Company serves customers in the architecture, engineering and construction; manufacturing; and digital media and entertainment industries. The Company’s sophisticated software products enable its customers to experience their ideas before they are real by allowing them to imagine, design, and create their ideas and to visualize, simulate and analyze real-world performance early in the design process by creating digital prototypes. These capabilities allow Autodesk’s customers to optimize and improve their designs, help save time and money, improve quality and foster innovation. Autodesk software products are sold globally, both directly to customers and through a network of resellers and distributors.
Principles of Consolidation, Policy
Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Autodesk and its wholly-owned and majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated.
Use of Estimates, Policy
Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in Autodesk’s consolidated financial statements and notes thereto. These estimates are based on information available as of the date of the consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions. Actual results may differ materially from these estimates.

Examples of significant estimates and assumptions made by management involve the determination of the fair value of acquired assets and liabilities, goodwill, financial instruments, long-lived assets and other intangible assets, the realizability of deferred tax assets and the fair value of stock awards (see “Stock-based Compensation Expense” within this Note 1 and Note 3 “Employee and Director Stock Plans” for further discussion). The Company also makes assumptions, judgments and estimates in determining the accruals for uncertain tax positions, variable compensation, partner incentive programs, product returns reserves, allowances for doubtful accounts, asset retirement obligations and legal contingencies. 
Foreign Currency Translation Policy
Foreign Currency Translation

The assets and liabilities of Autodesk’s foreign subsidiaries are translated from their respective functional currencies into U.S. dollars at the rates in effect at the balance sheet date, and revenue and expense amounts are translated at weighted average rates during the period. Foreign currency translation adjustments are recorded as other comprehensive income (loss).

Gains and losses realized from foreign currency transactions, those transactions denominated in currencies other than the foreign subsidiary’s functional currency, are included in interest and other income, net.
Derivatives, Policy
Derivative Financial Instruments

Under its risk management strategy, Autodesk uses derivative instruments to manage its short-term exposures to fluctuations in foreign currency exchange rates which exist as part of ongoing business operations. Autodesk’s general practice is to hedge a majority of transaction exposures denominated in euros, Japanese yen, Swiss francs, British pounds, Canadian dollars, and Australian dollars. These instruments have maturities between one to 12 months in the future. Autodesk does not enter into any derivative instruments for trading or speculative purposes.

The bank counterparties in all contracts expose Autodesk to credit-related losses in the event of their nonperformance. However, to mitigate that risk, Autodesk only contracts with counterparties who meet the Company’s minimum requirements under its counterparty risk assessment process. Autodesk monitors ratings, credit spreads and potential downgrades on at least a quarterly basis. Based on Autodesk’s on-going assessment of counterparty risk, the Company will adjust its exposure to various counterparties. Autodesk generally enters into master netting arrangements, which reduce credit risk by permitting net settlement of transactions with the same counterparty. However, Autodesk does not have any master netting arrangements in place with collateral features.

Autodesk accounts for its derivative instruments as either assets or liabilities on the balance sheet and carries them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. Derivatives that do not qualify for hedge accounting are adjusted to fair value through earnings. See Note 2, "Financial Instruments" for information regarding Autodesk's hedging activities.
Cash and Cash Equivalents, Policy
Cash and Cash Equivalents

Autodesk considers all highly liquid investments with insignificant interest rate risk and remaining maturities of three months or less at the date of purchase to be cash equivalents. Cash equivalents are recorded at cost, which approximates fair value.
Marketable Securities, Policy
Marketable Securities

Marketable securities are stated at fair value. Marketable securities maturing within one year that are not restricted are classified as current assets.

Autodesk determines the appropriate classification of its marketable securities at the time of purchase and re-evaluates such classification as of each balance sheet date. Autodesk carries all “available-for-sale securities” at fair value, with unrealized gains and losses, net of tax, reported in stockholders’ equity until disposition or maturity. Autodesk carries all “trading securities” at fair value, with unrealized gains and losses, recorded in “Interest and other income, net” in the Company’s Consolidated Statements of Operations.

All of Autodesk’s marketable securities are subject to a periodic impairment review. The Company recognizes an impairment charge when a decline in the fair value of its investments below the cost basis is judged to be other-than-temporary. Autodesk considers various factors in determining whether to recognize an impairment charge, including the length of time and extent to which the fair value has been less than Autodesk’s cost basis, the financial condition and near-term prospects of the investee, and Autodesk’s intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in the market value. Autodesk did not record any other-than temporary impairment charges during fiscal years ended 2013, 2012 and 2011. For additional information, see “Concentration of Credit Risk” within this Note 1 and Note 2, “Financial Instruments.”
Accounts Receivable, Net, Policy
Accounts Receivable, Net

Accounts receivable, net, consisted of the following as of January 31:

 
2013
 
2012
Trade accounts receivable (1)
$
531.1

 
$
432.5

Less: Allowance for doubtful accounts (1)
(5.6
)
 
(5.4
)
Product returns reserve
(4.9
)
 
(5.8
)
Partner programs and other obligations (1)
(25.5
)
 
(26.2
)
Accounts receivable, net
$
495.1

 
$
395.1


____________________ 
(1)
For comparability, the presentation of the balances at January 31, 2012 was adjusted to align to current year presentation.

Allowances for uncollectible trade receivables are based upon historical loss patterns, the number of days that billings are past due and an evaluation of the potential risk of loss associated with problem accounts.

The product returns reserves are based on historical experience of actual product returns, estimated channel inventory levels, the timing of new product introductions, channel sell-in for applicable markets and other factors.

Partner program and other obligations are primarily related to partner incentives that use quarterly attainment monetary rewards to motivate distributors and resellers to achieve mutually agreed upon business goals in a specified time period.
Concentration of Credit Risk, Policy
Concentration of Credit Risk

Autodesk places its cash, cash equivalents and marketable securities in highly liquid instruments with, and in the custody of, financial institutions with high credit ratings and limits the amounts invested with any one institution, type of security and issuer.

Geographical concentrations of consolidated cash, cash equivalents and marketable securities held by Autodesk as of January 31:
 
 
2013
 
2012
United States
29
%
 
11
%
Other Americas
1
%
 
1
%
Europe, Middle East and Africa (“EMEA”)
38
%
 
51
%
Asia Pacific (“APAC”)
32
%
 
37
%


Autodesk's primary commercial banking relationship is with Citibank and its global affiliates (“Citibank”). The Company's cash and cash equivalents are held by diversified financial institutions globally. Citicorp USA, Inc., an affiliate of Citibank, is one of the lead lenders and agent in the syndicate of Autodesk's $400.0 million line of credit facility.

Autodesk’s accounts receivable are derived from sales to a large number of resellers, distributors and direct customers in the Americas; EMEA; and APAC geographies. Autodesk performs ongoing evaluations of these partners' financial condition and limits the amount of credit extended when deemed necessary, but generally does not require collateral from such parties. Total sales to the Company's largest distributor Tech Data Corporation, and its global affiliates (“Tech Data”), accounted for 23%, 17% and 16% of Autodesk's net revenue for fiscal years ended 2013, 2012 and 2011, respectively. The majority of the net revenue from sales to Tech Data relates to Autodesk's Platform Solutions and Emerging Business ("PSEB") segment and is for sales made outside of the United States. In addition, Tech Data accounted for 23% and 21% of trade accounts receivable at January 31, 2013 and 2012, respectively. In October 2011, Tech Data purchased certain assets of Mensch and Maschine Software (“MuM”), which had been a distributor of Autodesk's products in Europe. The acquisition concentrated additional sales through Tech Data, which on a consolidated basis would have accounted for 21% and 22% of Autodesk's net revenue for fiscal years 2012 and 2011, if the acquisition had taken place at the beginning of fiscal 2011.
Computer Equipment, Software, Furniture and Leasehold Improvements, Net, Policy
Computer Equipment, Software, Furniture and Leasehold Improvements, Net

Computer equipment, software and furniture are depreciated using the straight-line method over the estimated useful lives of the assets, which range from three to five years. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the lease term. Depreciation expense was $45.6 million in fiscal 2013, $43.7 million in fiscal 2012 and $47.6 million in fiscal 2011.

Computer equipment, software, furniture, leasehold improvements and the related accumulated depreciation at January 31 were as follows:

 
2013
 
2012
Computer hardware, at cost
$
152.3

 
$
153.3

Computer software, at cost
95.1

 
133.5

Leasehold improvements, land and buildings, at cost
152.4

 
139.5

Furniture and equipment, at cost
46.0

 
47.7

Computer software, hardware, leasehold improvements, furniture and equipment, at cost
445.8

 
474.0

Less: Accumulated depreciation
(330.9
)
 
(369.5
)
Computer software, hardware, leasehold improvements, furniture and equipment, net
$
114.9

 
$
104.5



Costs incurred for computer software developed or obtained for internal use are capitalized for application development activities, if material, and immediately expensed for preliminary project activities and post-implementation activities. These capitalized costs are amortized over the software’s expected useful life, which is generally three years. During fiscal 2013, Autodesk wrote-off $83.9 million of fully depreciated assets.
Software Development Costs, Policy

Software Development Costs

Software development costs incurred prior to the establishment of technological feasibility are included in research and development expenses. Autodesk defines establishment of technological feasibility as the completion of a working model. Software development costs incurred subsequent to the establishment of technological feasibility through the period of general market availability of the products are capitalized and generally amortized over a one year period, if material. Autodesk had no capitalized software development costs at January 31, 2013 and January 31, 2012.
Other Intangible Assets, Policy

Other Intangible Assets, Net

Other intangible assets include purchased technologies, customer relationships, trade names and the related accumulated amortization. These assets are shown as “Purchased technologies, net” and as part of “Other assets” in the Consolidated Balance Sheet. The majority of Autodesk’s other intangible assets are amortized to expense over the estimated economic life of the product, which ranges from one to ten years. Amortization expense for purchased technologies, customer relationships, trade names, patents, and user lists was $82.0 million in fiscal 2013, $71.8 million in fiscal 2012 and $57.8 million in fiscal 2011.

Other intangible assets and related accumulated amortization at January 31 were as follows:

 
2013
 
2012
Purchased technologies, at cost(1)
$
431.0

 
$
400.5

Customer relationships, trade names, patents, and user lists, at cost(2)
259.5

 
215.3

 
690.5

 
615.8

Less: Accumulated amortization
(546.3
)
 
(467.0
)
Other intangible assets, net
$
144.2

 
$
148.8

____________________ 
(1)
Beginning in fiscal 2013, the purchased technologies balances are presented gross. Previously, Autodesk reported the cost and amortization balance for purchased technologies net of fully amortized intangible assets. For comparability, the presentation of the purchased technologies cost and amortization balances at January 31, 2012 were adjusted to align to current year presentation.
(2)
Included as a net balance in “Other assets” in the Consolidated Balance Sheet. Customer relationships and trade names include the effects of foreign currency translation.

The weighted average amortization period for purchased technologies, customer relationships and trade names during fiscal 2013 was 4.9 years. Expected future amortization expense for purchased technologies, customer relationships and trade names for each of the fiscal years ended thereafter is as follows:

 
Fiscal Year ended
January 31,
2014
$
72.8

2015
45.0

2016
18.6

2017
4.9

2018
1.1

Thereafter
1.1

Total
$
143.5
Goodwill, Policy


Goodwill

Goodwill consists of the excess of cost over the fair value of net assets acquired in business combinations. Autodesk assigns goodwill to the reportable segment associated with each business combination, and tests goodwill for impairment annually in its fourth fiscal quarter or more often if circumstances indicate a potential impairment. For purposes of the goodwill impairment test, a reporting unit is an operating segment or one level below. Autodesk's operating segments are aligned with the management principles of Autodesk's business.

In September 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2011-08 regarding Accounting Standards Codification (“ASC”) Topic 350 “Intangibles – Goodwill and Other. Autodesk adopted the provisions of ASU 2011-08 for its annual goodwill impairment test performed in the fourth quarter of fiscal 2013. This update gives companies the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount before performing the two-step goodwill impairment test mandated prior to the update. Companies are not required to perform the qualitative assessment and may instead proceed directly to the first step of the two-part test.

In performing the qualitative assessments, Autodesk must consider events and circumstances, including but not limited to, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy, changes in customers, changes in the composition or carrying amount of a reporting unit's net assets and changes in the price of Autodesk's common stock. If, after assessing the totality of events or circumstances, it is determine that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then the two-step goodwill impairment test is not performed.

If the two-step impairment test is necessary, Autodesk uses discounted cash flow models which include assumptions regarding projected cash flows. Variances in these assumptions could have a significant impact on Autodesk's conclusion as to whether goodwill is impaired, or the amount of any impairment charge. Impairment charges, if any, result from instances where the fair values of net assets associated with goodwill are less than their carrying values. The process of evaluating the potential impairment of goodwill is subjective and requires significant judgment at many points during the analysis. The value of Autodesk's goodwill could also be impacted by future adverse changes such as: (i) declines in Autodesk's actual financial results, (ii) a sustained decline in Autodesk's market capitalization, (iii) significant slowdown in the worldwide economy or the industries Autodesk serves, or (iv) changes in Autodesk's business strategy or internal financial results forecasts.

For the fiscal 2013 annual goodwill impairment testing, Autodesk had four reporting units: PSEB, Manufacturing ("MFG"), Architecture, Engineering and Construction ("AEC") and Media and Entertainment ("M&E"). Autodesk assessed qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of Autodesk's PSEB, MFG, and AEC reporting units was less than the reporting units' carrying amount. Autodesk determined, after assessing the totality of the events and circumstances described above, that it was more likely than not that the fair value of each of the PSEB, MFG, and AEC reporting units was greater than the carrying amount for such reporting unit. Accordingly, there was no indication of impairment and the two-step goodwill impairment test was not performed for these reporting units.

For the M&E reporting unit, Autodesk deemed the two-step impairment test was necessary and used a discounted cash flow model which included assumptions regarding projected cash flows. Based on this testing, Autodesk determined that there was no impairment of goodwill for the M&E reporting unit during the year ended January 31, 2013. In addition, Autodesk did not recognize any goodwill impairment losses in fiscal 2012 or 2011.

The change in the carrying amount of goodwill during the year ended January 31, 2013 is as follows:

 
Platform
Solutions and
Emerging
Business
 
Architecture,
Engineering
and
Construction
 
Manufacturing
 
Media and
Entertainment
 
Total
Balance as of January 31, 2012
 
 
 
 
 
 
 
 
 
Goodwill
$
76.6

 
$
247.7

 
$
323.3

 
$
184.0

 
$
831.6

Accumulated impairment losses
—

 
—

 
—

 
(149.2
)
 
(149.2
)
 
76.6

 
247.7

 
323.3

 
34.8

 
682.4

Vela Systems
—

 
57.6

 
—

 
—

 
57.6

Socialcam
23.0

 
—

 
—

 
—

 
23.0

Qontext
24.0

 
—

 
—

 
—

 
24.0

PI-VR
—

 
—

 
36.8

 
—

 
36.8

Goodwill acquired from other acquisitions
5.6

 
4.3

 
29.2

 
7.0

 
46.1

Effect of foreign currency translation, purchase accounting adjustments and other
0.3

 
0.7

 
0.6

 
—

 
1.6

Balance as of January 31, 2013
 
 
 
 
 
 
 
 
 
Goodwill
129.5

 
310.3

 
389.9

 
191.0

 
1,020.7

Accumulated impairment losses
—

 
—

 
—

 
(149.2
)
 
(149.2
)
 
$
129.5

 
$
310.3

 
$
389.9

 
$
41.8

 
$
871.5



The change in the carrying amount of goodwill during the year ended January 31, 2012 is as follows:

 
Platform
Solutions and
Emerging
Business
 
Architecture,
Engineering
and
Construction
 
Manufacturing
 
Media and
Entertainment
 
Total
Balance as of January 31, 2011
 
 
 
 
 
 
 
 
 
Goodwill
$
45.3

 
$
224.2

 
$
279.1

 
$
154.7

 
$
703.3

Accumulated impairment losses
—

 
—

 
—

 
(149.2
)
 
(149.2
)
 
45.3

 
224.2

 
279.1

 
5.5

 
554.1

Scaleform acquisition
—

 
—

 
—

 
22.6

 
22.6

Blue Ridge acquisition
—

 
—

 
22.3

 
—

 
22.3

Instructables acquisition
24.4

 
—

 
—

 
—

 
24.4

Micro Application Packages Limited acquisition
—

 
12.7

 
—

 
—

 
12.7

T-Splines acquisition
—

 
—

 
19.8

 
—

 
19.8

Goodwill acquired from other acquisitions
7.6

 
12.0

 
2.0

 
6.7

 
28.3

Effect of foreign currency translation, purchase accounting adjustments and other
(0.7
)
 
(1.2
)
 
0.1

 
—

 
(1.8
)
Balance as of January 31, 2012
 
 
 
 
 
 
 
 
 
Goodwill
76.6

 
247.7

 
323.3

 
184.0

 
831.6

Accumulated impairment losses
—

 
—

 
—

 
(149.2
)
 
(149.2
)
 
$
76.6

 
$
247.7

 
$
323.3

 
$
34.8

 
$
682.4
Impairment of Long-Lived Assets, Policy

Impairment of Long-Lived Assets

At least annually or more frequently as circumstances dictate Autodesk reviews its long-lived assets for impairment whenever impairment indicators exist.  Autodesk continually monitors events and changes in circumstances that could indicate the carrying amounts of its long-lived assets may not be recoverable. When such events or changes in circumstances occur, Autodesk assesses recoverability of these assets.  Recoverability is measured by comparison of the carrying amounts of the assets to the future undiscounted cash flows the assets are expected to generate.  If the long-lived assets are considered to be impaired, the impairment to be recognized is equal to the amount by which the carrying value of the assets exceeds its fair market value.  There was no impairment of long-lived assets during the years ended January 31, 2013 and 2012.

In addition to the recoverability assessments, Autodesk routinely reviews the remaining estimated useful lives of its long-lived assets. Any reduction in the useful life assumption will result in increased depreciation and amortization expense in the quarter when such determinations are made, as well as in subsequent quarters
Deferred Tax Assets, Policy

Deferred Tax Assets

Deferred tax assets arise primarily from tax credits, net operating losses, and timing differences for reserves, accrued liabilities, stock options, purchased technologies and capitalized intangibles, partially offset by the establishment of U.S. deferred tax liabilities on unremitted earnings from certain foreign subsidiaries, deferred tax liabilities associated with tax method change on advance payments, and a valuation allowance against California and Canadian deferred tax assets. They are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. Valuation allowances are established when necessary to reduce gross deferred tax assets to the amount “more likely than not” expected to be realized
Revenue Recognition, Policy

Revenue Recognition

Autodesk recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable, and collection is probable.

For multiple element arrangements containing only software and software-related elements, Autodesk allocates the sales price among each of the deliverables using the residual method, under which revenue is allocated to undelivered elements based on their vendor-specific objective evidence (“VSOE”) of fair value. VSOE is the price charged when an element is sold separately or a price set by management with the relevant authority. If Autodesk does not have VSOE of an undelivered software license, revenue recognition is deferred on the entire sales arrangement until all elements for which Autodesk does not have VSOE are delivered. If Autodesk does not have VSOE for undelivered maintenance or services, the revenue for the arrangement is recognized over the longest contractual service period in the arrangement. Revenue recognition for significant lines of business is discussed further below.

For multiple elements arrangements involving non-software elements, including cloud subscription services, our revenue recognition policy is based upon the accounting guidance contained in ASC 605, Revenue Recognition. For these arrangements, we first allocate the total arrangement consideration based on the relative selling prices of the software group of elements as a whole and to the non-software elements. We then further allocate consideration within the software group to the respective elements within that group using the residual method as described above. Autodesk exercises judgment and uses estimates in connection with the determination of the amount of revenue to be recognized in each accounting period.

Autodesk’s assessment of likelihood of collection is also a critical element in determining the timing of revenue recognition. If collection is not probable, the revenue will be deferred until the earlier of when collection is deemed probable or cash is received.

License and other revenue are comprised of two components: (1) all forms of product license revenue and (2) other revenue:
(1) All Forms of Product License Revenue

Product license revenue includes: software license revenue from the sale of new seat licenses, upgrades, product revenue for Creative Finishing and revenue from cloud subscription services. Autodesk’s existing customers who are using a currently supported version of a product can upgrade to the latest release of the product by paying a separate fee at current available prices. An existing customer also has the option to upgrade to a different product, which generally has a higher price, for a premium fee.

Autodesk’s product license revenue from distributors and resellers is generally recognized at the time title to Autodesk’s product passes to the distributor or reseller, provided all other criteria for revenue recognition are met.

Autodesk establishes reserves for product returns based on historical experience of actual product returns, estimated channel inventory levels, the timing of new product introductions, channel sell-in for 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.

Revenues for Autodesk's cloud subscription services are recognized ratably over the contract term commencing with the date the service is made available to the customer and all other revenue recognition criteria have been satisfied.

(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 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

Taxes Collected from Customers

Autodesk nets taxes collected from customers against those remitted to government authorities in the consolidated financial statements. Accordingly, taxes collected from customers are not reported as revenue
Shipping and Handling Cost, Policy

Shipping and Handling Costs

Shipping and handling costs are included in cost of revenue for all periods presented
Stock-Based Compensation Expense, Policy

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 units) to employees and directors and records the related expense in Autodesk’s Consolidated Statements of Operations. Share-based compensation cost for stock options and employee stock purchases related to the ESP Plan ("stock-based awards") are estimated at the grant date based on the fair-value as calculated using the Black-Scholes-Merton (“BSM”) option-pricing model. Share-based compensation cost for restricted stock units is measured based on the closing fair market value of the Company's common stock on the date of grant. The estimated fair value of stock-based awards and restricted stock is amortized to expense on a straight-line basis over the awards’ vesting period. The following table summarizes stock-based compensation expense for fiscal 2013, 2012 and 2011, respectively, as follows:

 
Fiscal Year Ended January 31,
 
2013
 
2012
 
2011
Cost of license and other revenue
$
5.2

 
$
3.9

 
$
2.9

Marketing and sales
64.3

 
48.3

 
35.5

Research and development
61.8

 
38.1

 
27.4

General and administrative
25.0

 
18.5

 
14.9

Stock-based compensation expense related to stock awards and ESP Plan purchases
156.3

 
108.8

 
80.7

Tax benefit
(35.5
)
 
(27.1
)
 
(22.0
)
Stock-based compensation expense related to stock awards and ESP Plan purchases
$
120.8

 
$
81.7

 
$
58.7


    
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, Policy

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, Policy

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 2012, Policy
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 to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, it is more likely than not that the fair value of the reporting unit is greater than its carrying value, then performing the two-step impairment test is unnecessary. Autodesk adopted ASU 2011-8 effective February 1, 2012. The adoption of this ASU did not have a material impact on Autodesk's consolidated statements of financial position, results of operations or cash flows.

In June 2011, the FASB issued ASU 2011-5 regarding ASC Topic 220 “Comprehensive Income.” This ASU eliminates the option to present components of other comprehensive income as part of the statement of changes in stockholders’ equity and requires the presentation of the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In December 2011, the FASB issued ASU 2011-12, an amendment to an existing accounting standard which defers the requirement to present components of reclassifications of other comprehensive income on the face of the income statement. Autodesk adopted ASU 2011-5 and ASU 2011-12 effective February 1, 2012. This accounting pronouncement impacted the presentation of other comprehensive income but did not impact Autodesk's consolidated financial position, results of operations or cash flows.

In May 2011, FASB issued ASU 2011-4 regarding ASC Topic 820 “Fair Value Measurement.” This ASU amends the fair value measurement guidance and includes enhanced disclosure requirements primarily around Level 3 fair value measurements based on unobservable inputs. Autodesk adopted ASU 2011-4 effective February 1, 2012. The adoption of this ASU did not have a material impact on Autodesk's consolidated statements of financial position, results of operations or cash flows.