Stock-based Compensation Expense (Tables)

9 Months Ended

Oct. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of summary of restricted stock activity

A summary of restricted stock activity for the nine months ended October 31, 2018, is as follows:

	Unvested Restricted Stock Units		Weighted average grant date fair value per share
	(in thousands)
Unvested restricted stock units at January 31, 2018	5,670.7		$	82.94
Granted	1,784.6		147.10
Vested	(2,452.3	)	75.71
Canceled/Forfeited	(559.3	)	90.77
Performance Adjustment (1)	29.9		101.74
Unvested restricted stock units at October 31, 2018	4,473.6		$	113.37

 _______________

(1) Based on Autodesk's financial results and relative total stockholder return for the fiscal 2018 performance period. The performance stock units were attained at rates ranging from 90.0% to 117.6% of the target award.

Schedule of summary of the ESPP activity

A summary of the ESPP activity for the three and nine months ended October 31, 2018 and 2017, is as follows:

	Three Months Ended October 31,				Nine Months Ended October 31,
	2018		2017		2018		2017
Issued shares	0.5		0.9		1.0		2.0
Average price of issued shares	$	92.50	$	39.92	$	90.25	$	39.03
Weighted average grant date fair value of awards granted under the ESPP (1)	$	47.21	$	33.04	$	42.75	$	32.41

 _______________

(1)

Calculated as of the award grant date using the Black-Scholes Merton (“BSM") option pricing model.

Schedule of stock-based compensation expense

The following table summarizes stock-based compensation expense for the three and nine months ended October 31, 2018 and 2017, respectively, as follows:

	Three Months Ended October 31,						Nine Months Ended October 31,
	2018			2017			2018			2017
Cost of subscription and maintenance revenue	$	3.6		$	2.8		$	9.4		$	8.5
Cost of other revenue	1.3			1.0			3.0			3.1
Marketing and sales	27.8			27.7			77.7			80.1
Research and development	20.6			20.1			57.1			61.7
General and administrative	10.9			13.5			28.3			46.1
Stock-based compensation expense related to stock awards and ESPP purchases	64.2			65.1			175.5			199.5
Tax benefit	(1.6		)	(1.3		)	(2.2		)	(1.6		)
Stock-based compensation expense related to stock awards and ESPP purchases, net of tax	$	62.6		$	63.8		$	173.3		$	197.9

Schedule of assumptions to estimate the fair value of stock-based awards

Autodesk uses the following assumptions to estimate the fair value of stock-based awards:

 

	Three Months Ended October 31, 2018		Three Months Ended October 31, 2017
	Performance Stock Unit	ESPP	Performance Stock Unit	ESPP
Range of expected volatilities	N/A	32.7 - 34.6%	N/A	31.7 - 33.4%
Range of expected lives (in years)	N/A	0.5 - 2.0	N/A	0.5 - 2.0
Expected dividends	N/A	—%	N/A	—%
Range of risk-free interest rates	N/A	2.3 - 2.8%	N/A	1.2 - 1.4%
	Nine Months Ended October 31, 2018		Nine Months Ended October 31, 2017
	Performance Stock Unit	ESPP	Performance Stock Unit	ESPP
Range of expected volatilities	35.7%	32.7 - 37.5%	31.8%	31.4 - 33.7%
Range of expected lives (in years)	N/A	0.5 - 2.0	N/A	0.5 - 2.0
Expected dividends	—%	—%	—%	—%
Range of risk-free interest rates	2.0%	1.9 - 2.8%	1.0 - 1.2%	0.9 - 1.4%