Autodesk 2006 Annual Report Download - page 85

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2004 Plan”). This plan was designed to improve efficiencies across the organization, reduce operating expense
levels to help achieve our targeted operating margins and redirect resources to product development, sales
development and other critical areas. The actions approved under the Fiscal 2004 Plan were completed during
the fourth quarter of fiscal 2005.
During fiscal 2005, we recorded net restructuring charges of $26.7 million, of which $23.7 million related to
the Fiscal 2004 Plan. Of this amount, $19.8 million related to employee termination costs for 316 employees
worldwide (186 in the United States and 130 outside the United States) and $3.9 million related to the closure
of facilities. Also, we recorded net restructuring charges of approximately $3.0 million related to the fiscal 2002
restructuring plan for additional office closure costs originally established under the fiscal 2002 restructuring
plan. Since the office closures in fiscal 2002, there has been a significant downturn in the commercial real estate
market, particularly in areas of the United Kingdom where some of the offices are located. 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 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.
For additional information regarding restructuring reserves, see Note 11, “Restructuring Reserves”, in the
Notes to Consolidated Financial Statements.
Interest and Other Income, Net
The following table sets forth the components of interest and other income, net:
2006 2005 2004
(in millions)
Interest and investment income, net ...................... $13.2 $ 7.2 $10.4
Foreign-based stamp taxes ................................ — (2.8) —
Gains (losses) on foreign currency transactions ........... (0.7) 0.8 3.3
Write-downs of cost method investments ................. — — (0.6)
Legal proceeding settlement .............................. — 2.4 —
Net realized gains on sales of marketable securities ...... — 0.5 1.6
Other income ............................................. 0.7 3.3 2.3
$13.2 $11.4 $ 17.0
Investment income fluctuates based on average cashand marketable securities balances, average maturities
and interest rates. The increase in interest and investment income, net, during fiscal 2006, as compared to fiscal
2005, reflects proportionately higher interest rate yields during the current fiscal year.
During the second quarter of fiscal 2005, we determined that certain money market fund investments
were subject to $2.8 million of Swiss Transfer Stamp Taxes from the third quarter of fiscal 2001 through the
second quarter of fiscal 2005. We determined that the impact of this adjustment was not material to previously
reported periods.
Legal proceeding settlement of $2.4 million was received during the second quarter of fiscal 2005 as part
of a court settlement related to legal proceedings with Spatial Corp. During October 2003, Spatial was ordered
to reimburse Autodesk for attorneys’ fees and trial costs.
2006 Annual Report
39