Stock-based Compensation Expense (Tables)

9 Months Ended

Oct. 31, 2020

Share-based Payment Arrangement [Abstract]

Schedule of summary of restricted stock activity

A summary of restricted stock activity for the nine months ended October 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	2,215.0	217.27
Vested	(1,976.4)	142.82
Canceled/Forfeited	(166.1)	150.58
Performance Adjustment (1)	13.5	159.86
Unvested restricted stock units at October 31, 2020	4,818.3	$	181.85

 _______________

(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 three and nine months ended October 31, 2020 and 2019, is as follows:

	Three Months Ended October 31,				Nine Months Ended October 31,
	2020		2019		2020		2019
Issued shares (in millions)	0.4		0.4		0.9		0.9
Average price of issued shares	$	122.93	$	105.42	$	122.73	$	102.20
Weighted average grant date fair value of shares granted under the ESPP (1)	$	78.26	$	44.77	$	55.98	$	47.78

 _______________

(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, 2020 and 2019, respectively, as follows:

	Three Months Ended October 31,				Nine Months Ended October 31,
(in millions)	2020		2019		2020		2019
Cost of subscription and maintenance revenue	$	4.5	$	3.1	$	12.3	$	10.1
Cost of other revenue	1.6		1.6		4.7		4.3
Marketing and sales	45.4		38.7		129.5		107.2
Research and development	35.4		30.8		103.6		88.3
General and administrative	10.5		19.8		41.4		47.5
Stock-based compensation expense related to stock awards and ESPP purchases	97.4		94.0		291.5		257.4
Tax benefit	(2.0)		(0.5)		(2.3)		(0.8)
Stock-based compensation expense related to stock awards and ESPP purchases, net of tax	$	95.4	$	93.5	$	289.2	$	256.6

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, 2020		Three Months Ended October 31, 2019
	Performance Stock Units	ESPP	Performance Stock Units	ESPP
Range of expected volatilities	N/A	41.5 - 45.0%	N/A	32.7 - 35.9%
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	0.1%	N/A	1.7 - 1.9%
	Nine Months Ended October 31, 2020		Nine Months Ended October 31, 2019
	Performance Stock Units	ESPP	Performance Stock Units	ESPP
Range of expected volatilities	50.7%	39.4 - 45.8%	36.3%	32.7 - 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%	0.1 - 0.5%	2.5%	1.7 - 2.5%