Autodesk 2004 Annual Report Download - page 76

184 employees in the United States and 210 employees outside the United States. Office closure costs
included losses on operating leases and the write-off of leasehold improvements and equipment. During
fiscal year 2003 we also reversed $2.1 million of accruals related to restructuring reserves established in fiscal
2002. The facility-related accruals were settled for less than originally estimated.
During fiscal 2002 Autodesk recognized $33.6 million of restructuring and other charges. These charges
resulted from restructuring activities ($24.5 million), in-process research and development expenses related
to the acquisition of the software division of Media 100 ($3.2 million — see Note 10, “Business
Combinations”), the wind-down costs associated with the dissolution of RedSpark ($3.6 million — see Note
5, “Gain on Disposal of Affiliate”), and a goodwill write-off of $2.3 million. The write-off of goodwill primarily
related to an acquired Infrastructure Solutions Division business and resulted from a strategic decision to
abandon the underlying product line.
Of the $3.6 million of RedSpark wind-down costs, $1.3 million related to losses on asset disposals and
$2.3 million related to employee termination costs.
Of the $24.5 million associated with restructuring activities during fiscal 2002, $19.2 million related to
the closure of several domestic and international offices and $5.3 million related to employee termination
costs. Office closure costs of $19.2 million included losses on operating leases and the write-off of leasehold
improvements and equipment. These asset write-offs totaled $1.8 million. Employee termination costs
associated with staff reductions mostly in the U.S. consisted of wage continuation, advance notice pay and
medical benefits. These restructuring activities were part of a formal exit plan that was approved by the
Board of Directors and were part of an effort to reduce operating expense levels. The plan included the
termination of 164 employees and the closure of several domestic and international offices.
The following table sets forth the restructuring activities for the fiscal years ended January 31, 2002, 2003
and 2004 (in thousands). The fiscal 2003 office closure cost balances in the table below have been adjusted
by $2.7 million to reflect actual charges utilized and reversals related to Board approved restructuring
reserves. While the actual charges utilized and reversals were properly reflected in Autodesk’s financial
statements as of and for the fiscal year ended January 31, 2003, they had not been properly reflected in the
restructuring reserves table in the Notes to Consolidated Financial Statements in Autodesk’s Form 10-K for
the fiscal year ended January 31, 2003. This adjustment did not impact Autodesk’s financial position, results
of operations, cash flows, or earnings per share. The balance at January 31, 2004 is included in other accrued
liabilities on our Consolidated Balance Sheet.
AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 11. Restructuring and Other (Continued)
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