Autodesk 2015 Annual Report Download - page 141

2015 Form 10-K 49
Restructuring Charges, Net
Fiscal Year
Ended
January 31,
2015
Decrease compared to
prior fiscal year
Fiscal Year
Ended
January 31,
2014
Decrease compared to
prior fiscal year
Fiscal Year
Ended
January 31,
2013 $ % $ %
(in millions)
Restructuring charges, net $ 3.1 $ (9.7) (76)% $ 12.8 $ (31.1) (71)% $ 43.9
As a percentage of net revenue —% 1% 2%
During fiscal 2014, our Board of Directors approved a world-wide restructuring plan in order to re-balance staffing levels
to better align them with the evolving needs of the business. During fiscal 2015, Autodesk recorded a restructuring charge of
$3.1 million. Of this amount, $2.5 million was recorded for one-time termination benefits and other costs and $0.6 million was
recorded for facilities-related costs.
During fiscal 2013, the our Board of Directors approved a world-wide restructuring plan in line with the Company's
strategy, including its continuing shift to cloud and mobile computing. The approved plan included a reduction in force and the
consolidation of certain leased facilities.
See Note 15, “Restructuring Reserves,” in Notes to Consolidated Financial Statements for further discussion.
Interest and Other (Expense) Income, Net
The following table sets forth the components of interest and other income, net:
Fiscal Year Ended January 31,
2015 2014 2013
(in millions)
Interest and investment (expense) income, net $ (13.2) $ (9.8) $ 4.9
(Loss) gain on foreign currency (3.9) 4.0 1.2
Loss on strategic investments (23.3) (1.8) (4.0)
Other income 2.7 2.7 2.0
Interest and other (expense) income, net $ (37.7) $ (4.9) $ 4.1
Interest and other (expense) income, net, increased $32.8 million during fiscal 2015, as compared to fiscal 2014, primarily
due to an increase in losses on our privately held strategic investments. The increase in the loss on strategic investments during
fiscal 2015 as compared to fiscal 2014 is primarily due to other-than-temporary impairments on two of our privately held
strategic investments and losses on the derivative portion of our strategic investments that are marked-to-market each period.
Interest and other (expense) income, net, decreased $9.0 million during fiscal 2014, as compared to fiscal 2013, primarily
due to interest expense resulting from the December 2012 issuance of $400.0 million aggregate principal amount
of 1.95% senior notes due December 15, 2017 and $350.0 million aggregate principal amount of 3.6% senior notes
due December 15, 2022. Interest and investment income fluctuates based on average cash, marketable securities and debt
balances, average maturities, and interest rates.
Provision for Income Taxes
We account for income taxes and the related accounts under the liability method. Deferred tax liabilities and assets are
determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted rates
expected to be in effect during the year in which the basis differences reverse.
Our effective tax rate was 1% and 18% during fiscal 2015 and fiscal 2014, respectively. Our effective tax rate decreased
17 percentage points from fiscal 2014 to fiscal 2015 due to an increase in tax benefits from foreign earnings taxed at different
rates in fiscal 2015 compared to fiscal 2014 and increased benefit from research credits, offset in part by lower tax benefits
from stock-based compensation.
2015 Annual Report