Autodesk 2000 Annual Report Download - page 47

46 FY 00 Autodesk, Inc.
During fiscal 1999, Autodesk recorded nonrecurring
charges totaling $19.7 million,which resulted from the
acquisition of Genius ($13.1 million—See Note 9) and
certain other charges ($8.9 million). These nonrecur-
ring charges were offset by $2.3 million of excess
lease-related reserves, which were associated with a
fiscal 1996 restructuring, that Discreet reversed.
Of the $8.9 million of other charges, $1.5 million
related to the consolidation of certain development
centers, $2.2 million related to the write-off of pur-
chased technologies associated with these opera-
tions, $1.7 million related to staff reductions in Asia
Pacific, $2.5 million related to costs involving a certain
litigation matter, and $1.0 million related to the write-
down to fair market value of older computer equip-
ment. At January 31, 2000, there were no remaining
liabilities associated with these nonrecurring charges.
During fiscal 1998, Autodesk recorded nonrecurring
charges of $26.8 million,which primarily resulted from
the acquisitions of Softdesk ($19.2 million), 3D/Eye
($3.0 million), Denim ($2.2 million), D-Vision ($5.3 mil-
lion) and Lightscape ($1.7 million)—See Note 9.These
nonrecurring charges were offset by a gain on the
sale of Autodesk’s interest in a network technology
company ($2.5 million) and the reversal of $2.3 mil-
lion of reserves related to a prior restructuring. The
$2.3 reserve reversal was also included in the fiscal
1999 results as a result of consolidating Discreet,
which previously had a different fiscal year-end than
Autodesk (see Note 1).
Note 11. Litigation Accrual Reversal
In fiscal 1995, Autodesk recorded a significant reserve
as a result of a judgment against Autodesk on a claim
involving a trade-secret misappropriation. Autodesk
appealed the judgment and as a result of the appeal
decision,which was finalized in May 1998,the amount
levied against Autodesk was significantly reduced.
During fiscal 1999, Autodesk reversed the remain-
ing unutilized litigation and interest accruals, which
totaled $18.2 million and $2.7 million, respectively.
Note 12. Segments
During the second quarter of fiscal 2000, Autodesk
reorganized its operations into four business divisions
with industry-specific charters: the Design Solutions
Division (consisting primarily of the MCAD and AECAD
market groups and most of the Personal Solutions
Group), the GIS Solutions Division (“GIS”), the Discreet
Division (consisting of the Kinetix and Discreet busi-
nesses), and Autodesk Ventures.
Autodesk’s operating results have been aggregated
into two reportable segments: the Discreet Segment
and the Design Solutions Segment. Segment informa-
tion involving GIS and Autodesk Ventures was aggre-
gated with the Design Solutions Division (collectively,
referred to in these financial statements as the “Design
Solutions Segment”). The Design Solutions and GIS
divisions have similar production processes, customer
types and distribution methods. Autodesk Ventures
segment information is not material.
The Design Solutions Segment develops and sells
design software products for professionals, occasional
users, or consumers who design, draft and diagram.
The end users of the design software products include
architects, engineers, construction firms, designers
and drafters. The Discreet Segment derives revenues
from the sale of its products to creative professionals
for a variety of applications,including feature films,tel-
evision programs, commercials, music and corporate
videos,interactive game production,live broadcasting
and Web design. Both segments primarily distribute
their respective products through authorized dealers
and distributors,and, in some cases, they also sell their
products directly to end-users.
The accounting policies of the reportable segments
are the same as those described in Note 1 to Notes
of Consolidated Financial Statements. Autodesk
evaluates each segment’s performance on the basis
of income from operations before income taxes.
Autodesk currently does not separately accumulate
and report asset information by segment. Prior year
amounts have been restated to conform to the current
year presentation.