Autodesk 2007 Annual Report Download - page 170

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AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 5. Deferred Compensation
At January 31, 2007, Autodesk had marketable securities totaling $112.0 million, of which $27.2 million
related to investments in debt and equity securities that are held in a rabbi trust under non-qualified
deferred compensation plans. The value of debt and equity securities held in the rabbi trust at January 31,
2006 was $22.4 million. The total related deferred compensation liability was $27.2 million at January 31,
2007, of which $12.5 million was classified as current and $14.7 million was classified as non-current
liabilities. The total related deferred compensation liability at January 31, 2006 was $22.4 million of which
$14.3 million was classified as current and $8.1 million was classified as non-current liabilities. The current
and non-current portions of the liability are recorded in the Consolidated Balance Sheets under “Accrued
compensation” and “Other liabilities,” respectively.
Note 6. Restructuring Reserves
During the fourth quarter of fiscal 2006, management approved a restructuring plan directly resulting
from the Alias acquisition that involved the elimination of employee positions, facilities and fixed assets of
Alias (“Alias Restructuring Plan”). Total estimated cost of the Alias Restructuring Plan was $11.1 million. The
total restructuring reserve established for this plan was reflected as an adjustment to the total purchase
price consideration of the Alias acquisition. The Alias Restructuring Plan was established in accordance
with EITF 95-3. Therefore, the utilization from this reserve will not be reflected as a restructuring expense
but instead reflected as a reduction of this reserve. Substantially all actions required of this plan were
completed by the fourth quarter of fiscal 2007. During the third quarter of fiscal 2007, Autodesk recorded
an adjustment to decrease the restructuring reserve related to the Alias Restructuring Plan by $1.7 million
because actual costs incurred related to lease and employee terminations were less than what was
originally estimated. Autodesk recorded the adjustment as a reduction to the Alias Restructuring Plan
reserve and as a corresponding decrease to goodwill.
During the fourth quarter of fiscal 2004, the Board of Directors approved a restructuring plan that
resulted in a reduction of the workforce and the closure of a number of offices worldwide with a total cost
of $27.5 million (“Fiscal 2004 Plan”). The remaining outstanding lease termination costs under this plan
relate to operating lease agreements which expire between fiscal 2007 and fiscal 2012.
During the second quarter of fiscal 2002, the Board of Directors approved a formal restructuring plan
that included employee terminations and the closure of certain facilities worldwide (“Fiscal 2002 Plan”). This
plan was designed to reduce the Company’s overall operating expense levels. The remaining outstanding
liabilities relate to ongoing lease termination costs for outstanding operating lease agreements expiring
between fiscal 2008 and fiscal 2015.