8-KFinancial EventsOther EventsExhibits & Filings

Autodesk, Inc. 8-K Report, Exit or Disposal Costs (Jan 16, 2009)

Filed January 16, 2009For Securities:ADSK

Summary

Autodesk, Inc. (ADSK) filed an 8-K on January 15, 2009, announcing a significant global restructuring plan. This plan involves a reduction in force affecting approximately 10% of its workforce and the potential closure of up to 27 leased facilities. The company aims to reduce costs and improve its operational efficiency in the prevailing economic environment. The restructuring is expected to be substantially completed by the end of the first quarter of fiscal year 2010 (April 30, 2009).

Key Highlights

  • 1Autodesk approved a worldwide restructuring plan on January 14, 2009.
  • 2Approximately 10% of the company's global workforce will be terminated.
  • 3The company plans to close all or portions of up to 27 leased facilities.
  • 4Total restructuring and impairment charges are estimated between $65 million and $75 million.
  • 5A significant portion of these charges, $48 million to $57 million, is for employee termination benefits.
  • 6The restructuring is expected to be substantially completed by April 30, 2009 (end of Q1 FY2010).
  • 7The company also issued an updated business outlook for the three months ending January 31, 2009, via a press release.

Frequently Asked Questions

Autodesk is undertaking this global restructuring plan primarily to reduce costs, streamline operations, and improve its cost structure in response to the current economic environment.

The company anticipates incurring restructuring and impairment charges ranging from $65 million to $75 million. This includes $48 million to $57 million for employee termination benefits and $17 million to $18 million for facility-related costs. These charges will be expensed in Q4 FY2009 and Q1 FY2010.

Autodesk expects to substantially complete the workforce reduction and facility closures by the end of its first quarter of fiscal year 2010, which concludes on April 30, 2009.

Yes, Autodesk provides non-GAAP financial measures in its press release to offer investors supplemental information. These measures exclude stock-based compensation, amortization of purchased intangibles, in-process R&D, and certain restructuring charges, as management uses them for internal budgeting and to facilitate comparisons with competitors.