8-KEarnings & ResultsFinancial EventsExhibits & Filings

Autodesk, Inc. 8-K Report, Financial Results (Nov 28, 2017)

Filed November 28, 2017For Securities:ADSK

Summary

Autodesk, Inc. (ADSK) filed an 8-K on November 28, 2017, to report on its third-quarter fiscal 2018 financial results and announce a significant restructuring plan. The company is undergoing a major workforce reduction, eliminating approximately 13% of its employees (around 1,150 individuals), and consolidating facilities as part of a strategic initiative to streamline operations and realign resources. This restructuring is designed to support key strategic priorities, including completing the subscription transition, digitizing the company, and reimagining its core industries. The company also provided details on the expected pre-tax restructuring charges, estimated to be between $135 million and $149 million, substantially all of which are expected to be cash expenditures. These charges will be recognized over several fiscal quarters, with the majority impacting fiscal year 2018 and early 2019. Autodesk emphasized its use of non-GAAP financial measures to provide supplemental insights into its performance, excluding items such as stock-based compensation, amortization, CEO transition costs, and restructuring charges, to better reflect core business operations and aid in period-over-period comparisons.

Key Highlights

  • 1Autodesk announced a global restructuring plan involving a workforce reduction of approximately 13% (about 1,150 employees) and facility consolidation.
  • 2The company expects to incur pre-tax restructuring charges ranging from $135 million to $149 million, primarily related to employee termination benefits and facility costs.
  • 3These restructuring charges will be expensed over several fiscal quarters, with significant impacts expected in Q4 FY18 and Q1 FY19.
  • 4The restructuring aims to support strategic priorities including subscription transition, digitization, and reimagining key industry sectors.
  • 5The company is leveraging non-GAAP financial measures to provide supplemental insights into its core business performance, excluding items like stock-based compensation, amortization, and restructuring charges.
  • 6The restructuring is intended to streamline the organization and re-balance resources to better align with Autodesk's strategic priorities and long-term goals, including keeping non-GAAP spend flat in fiscal 2019.

Frequently Asked Questions

The primary reason for the restructuring is to streamline the organization, re-balance resources, and better align them with Autodesk's strategic priorities. These priorities include completing the subscription transition, digitizing the company, and reimagining manufacturing, construction, and production.

Autodesk anticipates incurring pre-tax restructuring charges between $135 million and $149 million. The majority of these charges are expected to be cash expenditures, with approximately $124 million to $137 million allocated for employee termination benefits and $11 million to $12 million for facility-related costs.

The pre-tax restructuring charges will be expensed over several fiscal quarters. The largest portions are expected in Q4 FY18 ($91 - $100 million) and Q1 FY19 ($21 - $24 million), with smaller amounts scheduled for subsequent quarters through Q4 FY19.

Autodesk uses non-GAAP financial measures to supplement its GAAP reporting and provide investors with a clearer view of its core business operations. These measures exclude items such as stock-based compensation, amortization of intangibles, CEO transition costs, and restructuring charges, which management believes are not indicative of ongoing operating results and can vary significantly, allowing for better period-over-period comparability and analysis by investors and analysts.