Autodesk 2011 Annual Report Download - page 110

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Restructuring
Fiscal year
Ended
January 31,
2011
Decrease
compared to
prior fiscal year
Fiscal year
Ended
January 31,
2010
Increase
compared to
prior fiscal year
Fiscal year
Ended
January 31,
2009$ % $ %
(in millions)
Restructuring ..................... $10.8 $(37.4) -78% $48.2 $8.0 20% $40.2
As a percentage of net revenue ....... 1% 3% 2%
In the first quarter of fiscal 2011, we initiated a restructuring plan in order to reduce operating costs. The
restructuring plan resulted in targeted staff reductions of approximately 200 positions. No leased facilities were
consolidated as part of this restructuring. In the second quarter of fiscal 2010, we initiated a restructuring
program, which resulted in headcount reduction of approximately 430 positions globally and resulted in the
consolidation of approximately 32 leased facilities around the world in order to reduce our operating expenses. In
the fourth quarter of fiscal 2009, we initiated a restructuring program in order to reduce our operating costs. This
program reduced the number of employees by a total of approximately 700 positions globally and resulted in the
consolidation of approximately 27 leased facilities. In connection with these restructuring programs, we recorded
restructuring related charges of $10.8 million, $48.2 million and $40.2 million during fiscal 2011, 2010 and
2009, respectively. Of these amounts, $10.8 million, $24.3 million and $36.7 million were recorded for one-time
termination benefits and other costs during fiscal 2011, 2010 and 2009, respectively, and $23.9 million and $3.5
million were recorded for facilities-related costs during fiscal 2010 and 2009, respectively. The one-time
termination benefits for these three restructuring programs have been substantially paid as of January 31, 2011.
We expect to pay the facility-related liabilities through fiscal 2018. See Note 16, “Restructuring Reserve,” in
Notes to Consolidated Financial Statements for further discussion.
Impairment of Goodwill and Intangibles
Fiscal year
Ended
January 31,
2011
Decrease
compared to
prior fiscal year
Fiscal year
Ended
January 31,
2010
Decrease
compared to
prior fiscal year
Fiscal year
Ended
January 31,
2009$ % $ %
(in millions)
Impairment of goodwill and
intangibles ................... $ — $(21.0) -100% $21.0 $(107.9) -84% $128.9
As a percentage of net revenue ..... 0% 1% 6%
We did not record an impairment charge during fiscal 2011. During fiscal 2010, we recorded an impairment
charge of $21.0 million representing the entire goodwill balance of our M&E segment as of April 30, 2009. This
goodwill balance related to our M&E segment’s fourth quarter fiscal 2009 acquisition of substantially all of the
assets of Softimage. During fiscal 2009 we recorded a $128.9 million impairment charge affecting the fourth
quarter of fiscal 2009, primarily related to impairment of goodwill associated with our M&E segment.
Should our revenue and cash flow projections decline significantly in the future, additional impairment
charges may be recorded to goodwill. As of January 31, 2011, a hypothetical 10% decrease in the fair value of
our reporting units would not have an impact on the carrying value of goodwill, nor result in impairment of
goodwill. See Note 1, “Business and Summary of Significant Accounting Policies,” in Notes to Consolidated
Financial Statements for further discussion.
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