Stock-based Compensation Expense (Tables)

6 Months Ended

Jul. 31, 2019

Share-based Payment Arrangement [Abstract]

Schedule of stock options roll forward

A summary of stock option activity for the six months ended July 31, 2019 is as follows:

	Number of shares (in millions)		Weighted average exercise price per share		Weighted average remaining contractual term (in years)	Aggregate intrinsic value (1) (in millions)
Options outstanding at January 31, 2019	0.8		$	23.95
Exercised	(0.2	)	22.76
Options outstanding at July 31, 2019	0.6		$	24.46	6.8	$	78.6
Options vested and exercisable at July 31, 2019	0.2		$	32.71	4.0	$	21.8
Shares available for grant at July 31, 2019	17.4

_______________

(1)

Represents the total pre-tax intrinsic value, based on Autodesk’s closing stock price of $156.17 per share as of July 31, 2019.

Intrinsic value of options exercised

The following table summarizes information about the pre-tax intrinsic value of options exercised during the six months ended July 31, 2019 and 2018:

(in millions)	Six Months Ended July 31,
	2019		2018
Pre-tax intrinsic value of options exercised (1)	$	26.9	$	6.5

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(1)

The intrinsic value of options exercised is calculated as the difference between the exercise price of the option and the market value of the stock on the date of exercise.

Schedule of summary of restricted stock activity

A summary of restricted stock activity for the six months ended July 31, 2019, is as follows:

	Unvested restricted stock units		Weighted average grant date fair value per share
	(in thousands)
Unvested restricted stock units at January 31, 2019	4,287.4		$	120.07
Granted	1,349.0		159.87
Vested	(542.1	)	113.27
Canceled/Forfeited	(205.5	)	125.53
Performance Adjustment (1)	23.8		156.69
Unvested restricted stock units at July 31, 2019	4,912.6		$	131.82

 _______________

(1) Based on Autodesk's financial results and relative total stockholder return for the fiscal 2019 performance period. The performance stock units were attained at rates ranging from 105.2% to 122.5% of the target award.

Schedule of summary of the ESPP activity

A summary of the ESPP activity for the six months ended July 31, 2019 and 2018, is as follows:

	Six Months Ended July 31,
	2019		2018
Issued shares (in millions)	0.5		0.5
Average price of issued shares	$	99.46	$	88.45
Weighted average grant date fair value of awards granted under the ESPP (1)	$	52.41	$	37.64

 _______________

(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 six months ended July 31, 2019 and 2018, respectively, as follows:

	Three Months Ended July 31,						Six Months Ended July 31,
	2019			2018			2019			2018
Cost of subscription and maintenance revenue	$	3.4		$	3.1		$	7.0		$	5.8
Cost of other revenue	1.4			0.9			2.7			1.7
Marketing and sales	36.0			25.9			68.5			49.9
Research and development	30.8			18.7			57.5			36.5
General and administrative	16.6			8.3			27.7			17.4
Stock-based compensation expense related to stock awards and ESPP purchases	88.2			56.9			163.4			111.3
Tax benefit	(0.1		)	(0.2		)	(0.3		)	(0.6		)
Stock-based compensation expense related to stock awards and ESPP purchases, net of tax	$	88.1		$	56.7		$	163.1		$	110.7

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:

 

	Six Months Ended July 31, 2019		Six Months Ended July 31, 2018
	Performance Stock Units (1)	ESPP (1)	Performance Stock Units (1)	ESPP (1)
Range of expected volatilities	36.3%	36.6 - 39.7%	35.7%	33.5 - 37.5%
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	2.5%	2.4 - 2.5%	2.0%	1.9 - 2.3%

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(1)

There were no performance stock units or ESPP awards granted for the three months ended July 31, 2019 and 2018 where the fair value was estimated by a Monte Carlo simulation model or a BSM option pricing model, respectively.