Stock-based Compensation Expense (Tables)

9 Months Ended

Oct. 31, 2017

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

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity

A summary of restricted stock activity for the nine months ended October 31, 2017 is as follows:

	Unvested Restricted Stock Units		Weighted average grant date fair value per share
	(in thousands)
Unvested restricted stock units at January 31, 2017	7,622.4		$	60.13
Granted	2,036.6		106.45
Vested	(3,156.6	)	57.21
Canceled/Forfeited	(534.3	)	67.05
Performance Adjustment (1)	24.7		61.79
Unvested restricted stock units at October 31, 2017	5,992.8		$	78.94

 _______________

(1) Based on Autodesk's financial results and relative total stockholder return for the fiscal 2017 performance period. The performance stock units were attained at rates ranging from 99.7% to 114.7% of the target award.

Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity

A summary of the ESPP activity for three and nine months ended October 31, 2017 and 2016 is as follows:

	Three Months Ended October 31,				Nine Months Ended October 31,
	2017		2016		2017		2016
Issued shares	0.9		1.1		2.0		2.3
Average price of issued shares	$	39.92	$	37.36	$	39.03	$	36.99
Weighted average grant date fair value of awards granted under the ESPP (1)	$	33.04	$	20.75	$	32.41	$	19.20

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(1)

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

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

The following table summarizes stock-based compensation expense for the three and nine months ended October 31, 2017 and 2016, respectively, as follows:

	Three Months Ended October 31,					Nine Months Ended October 31,
	2017			2016		2017			2016
Cost of maintenance and subscription revenue (1)	$	2.8		$	2.2	$	8.5		$	6.2
Cost of license and other revenue (1)	1.0			1.3		3.1			4.1
Marketing and sales	27.7			24.2		80.1			69.0
Research and development	20.1			20.9		61.7			60.0
General and administrative	13.5			8.0		46.1			23.2
Stock-based compensation expense related to stock awards and ESPP purchases	65.1			56.6		199.5			162.5
Tax benefit	(1.3		)	—		(1.6		)	—
Stock-based compensation expense related to stock awards and ESPP purchases, net of tax	$	63.8		$	56.6	$	197.9		$	162.5

 _______________

(1) Prior periods have been adjusted to conform with the current period's presentation. See Note 1, "Basis of Presentation," for additional information.

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award

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

 

	Three Months Ended October 31, 2017		Three Months Ended October 31, 2016
	Performance Stock Unit (1)	ESPP	Performance Stock Unit (1)	ESPP
Range of expected volatilities	N/A	31.7 - 33.4%	N/A	31.0 - 33.9%
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	1.2 - 1.4%	N/A	0.5 - 0.8%
	Nine Months Ended October 31, 2017		Nine Months Ended October 31, 2016
	Performance Stock Unit	ESPP	Performance Stock Unit	ESPP
Range of expected volatilities	31.8%	31.4 - 33.7%	38.4 - 38.6%	30.0 - 40.2%
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	1.0 - 1.2%	0.9 - 1.4%	0.6 - 0.7%	0.5 - 0.9%

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(1) Autodesk did not grant PSUs that were subject to market conditions in the three months ended October 31, 2017 or 2016.