Stock-based Compensation Expense (Tables)

6 Months Ended

Jul. 31, 2020

Share-based Payment Arrangement [Abstract]

Schedule of summary of restricted stock activity

A summary of restricted stock activity for the six months ended July 31, 2020, is as follows:

	Unvested restricted stock units		Weighted average grant date fair value per share
	(in thousands)
Unvested restricted stock units at January 31, 2020	4,732.3		$	147.24
Granted	867.8		176.50
Vested	(818.5	)	147.68
Canceled/Forfeited	(123.1	)	148.02
Performance Adjustment (1)	15.4		166.97
Unvested restricted stock units at July 31, 2020	4,673.9		$	152.44

 _______________

(1) Based on Autodesk's financial results and relative total stockholder return for the fiscal 2020 performance period. The performance stock units were attained at rates ranging from 96.6% to 101.1% of the target award.

Schedule of summary of the ESPP activity

A summary of the ESPP activity for the six months ended July 31, 2020 and 2019, is as follows:

	Six Months Ended July 31,
	2020		2019
Issued shares (in millions)	0.5		0.5
Average price of issued shares	$	122.54	$	99.46
Weighted average grant date fair value of awards granted under the ESPP (1)	$	45.70	$	52.41

 _______________

(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 six months ended July 31, 2020 and 2019, respectively, as follows:

	Three Months Ended July 31,						Six Months Ended July 31,
(in millions)	2020			2019			2020			2019
Cost of subscription and maintenance revenue	$	4.2		$	3.4		$	7.9		$	7.0
Cost of other revenue	1.5			1.4			3.0			2.7
Marketing and sales	43.4			36.0			84.1			68.5
Research and development	35.3			30.8			68.2			57.5
General and administrative	11.5			16.6			30.9			27.7
Stock-based compensation expense related to stock awards and ESPP purchases	95.9			88.2			194.1			163.4
Tax benefit	(0.2		)	(0.1		)	(0.3		)	(0.3		)
Stock-based compensation expense related to stock awards and ESPP purchases, net of tax	$	95.7		$	88.1		$	193.8		$	163.1

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, 2020		Six Months Ended July 31, 2019
	Performance Stock Units (1)	ESPP (1)	Performance Stock Units (1)	ESPP (1)
Range of expected volatilities	50.7%	39.4 - 45.8%	36.3%	36.6 - 39.7%
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	0.3%	0.3 - 0.5%	2.5%	2.4 - 2.5%

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(1)

There were no performance stock units or ESPP awards granted during the three months ended July 31, 2020 and 2019, where the fair value was estimated by a Monte Carlo simulation model or a BSM option pricing model, respectively.