Autodesk 2005 Annual Report Download - page 81

As such, Autodesk is unable to either buy-out the remaining lease obligations at favorable amounts or sub-lease
the space at amounts previously estimated.
During fiscal 2004, Autodesk recognized net restructuring charges of $3.2 million, of which $3.8 million
related to the fiscal 2004 restructuring plan, $1.1 million related to additional office closure costs under the fiscal
2002 restructuring plan and reversals of the accrual for changes in estimates of $1.7 million related to underlying
liabilities originally established under the fiscal 2002 and fiscal 2003 restructuring plans. Of the $3.8 million
related to the fiscal 2004 plan, $3.6 million related to employee termination costs for 86 employees worldwide
(71 in the United States and 15 outside the United States) and $0.2 million related to office closure costs. Office
closure costs included losses on operating leases and the write-off of leasehold improvements and equipment.
Employee termination costs consisted of one-time termination benefits including severance benefits, medical
benefits and outplacement costs. With respect to the $1.7 million of reversals, the underlying liabilities, primarily
related to employee termination costs outside the United States, were ultimately settled for less than originally
estimated.
During the third quarter of fiscal 2003 the Board of Directors approved the fiscal 2003 restructuring plan
which resulted in the termination of 394 employees worldwide (184 in the United States and 210 outside the
United States) and the closure of several additional international and domestic offices. This plan was designed
to help further reduce operating expense levels as well as redirect resources to product development and other
critical areas.
During fiscal 2003, Autodesk recognized net restructuring charges of $25.9 million, of which $18.3 million
related to the fiscal 2003 restructuring plan, $10.7 million related to additional costs associated with the fiscal
2002 restructuring plan, offset by a credit of $2.1 millionresulting from accrual reversals and a credit of $1.0 million
related to the reversal of the remaining restructuring charges related to the fiscal 2000 restructuring program.
Of the $18.3 million related to the fiscal 2003 restructuring plan, $16.5 million related to employee termination
costs and $1.8 million related to office closures. Of the $10.7 million associated with the fiscal 2002 restructuring
plan, $1.2 million related to the further consolidation of certain European offices and the remaining $9.5 million
resulted from changes to estimated accrued liabilities related to vacated facilities. 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.
An analysis of the fiscal 2004 restructuring plan activities during fiscal 2005, by reportable segment, is
included in Note 11, “Segments.”
Note 10. Interest and Other Income
Interest and other income, net consists of the following:
2005 2004 2003
(In thousands)
Interest and investment income, net ................ $ 7,232 $10,377 $9,466
Foreign-based stamp taxes .......................... (2,832) — —
Gains on foreign currency transactions .............. 773 3,255 1,727
Write-downs of cost method investments ........... — (596) (3,436)
Legal proceeding settlement ........................ 2,380 — —
Net realized gains on sales of marketable securities 528 1,644 2,069
Other income ....................................... 3,374 2,279 3,678
$ 11,455 $16,959 $13,504
AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 9. Restructuring Reserves (Continued)
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