Restructuring charges and other facility exit costs, net

12 Months Ended

Jan. 31, 2018

Restructuring and Related Activities [Abstract]

Restructuring charges and other facility exit costs, net

Restructuring charges and other facility exit costs, net

During the fourth quarter of fiscal 2018, the Board of Directors approved a world-wide restructuring plan (“Fiscal 2018 Plan”) to support the Company's strategic priorities of completing the subscription transition, digitizing the Company, and re-imagining manufacturing, construction, and production. Through the restructuring, Autodesk seeks to reduce its investments in areas not aligned with its strategic priorities, including in areas related to research and development and go-to-market activities. At the same time, Autodesk plans to further invest in strategic priority areas related to digital infrastructure, customer success, and construction. By re-balancing resources to better align with the Company’s strategic priorities, Autodesk is positioning itself to meet its long-term goals. This world-wide restructuring plan includes a reduction in force that will result in the termination of approximately 13% of the Company’s workforce, or approximately 1,150 employees, and the consolidation of certain leased facilities.

The Company expects to substantially complete the reduction in force and the facilities consolidation by the end of fiscal 2019. The Company anticipates incurring pre-tax restructuring charges of $135 million to $149 million, of which $94 million was incurred during the fourth quarter of fiscal 2018. Substantially all of the charges will result in cash expenditures, $124 million to $137 million of which will be for one-time employee termination benefits, and $11 million to $12 million of which will be for facilities-related and other costs.

Other costs primarily consist of legal, consulting, and other costs related to employee terminations and are expensed when incurred. During fiscal 2018, we incurred $0.4 million in lease termination costs not related to the Fiscal 2018 Plan.

The following tables set forth the restructuring charges and other facility exit costs, net during the fiscal years ended January 31, 2018 and 2017:

	Balances, January 31, 2017		Additions		Payments			Adjustments (1)			Balances, January 31, 2018
Fiscal 2018 Plan
Employee terminations costs	$	—	$	87.3	$	(35.1	)	$	0.8		$	53.0
Facility terminations and other exit costs	—		6.3		(1.3		)	(2.5		)	2.5
Fiscal 2017 Plan
Employee terminations costs	1.1		0.1		(1.5		)	0.3			—
Facility terminations and other exit costs	1.9		0.1		(1.5		)	(0.3		)	0.2
Other Facility Termination Costs
Facility termination costs	4.5		0.3		(3.0		)	(0.3		)	1.5
Total	$	7.5	$	94.1	$	(42.4	)	$	(2.0	)	$	57.2
Current portion (2)	$	5.9									$	57.2
Non-current portion (2)	1.6										—
Total	$	7.5									$	57.2

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(1) Adjustments primarily relate to the accelerated depreciation of fixed assets and the impact of foreign exchanges rate changes.

(2) The current and non-current portions of the reserve are recorded in the Consolidated Balance Sheets under “Other accrued liabilities” and “Other liabilities,” respectively.

	Balances, January 31, 2016		Additions		Payments			Adjustments (1)			Balances, January 31, 2017
Fiscal 2017 Plan
Employee terminations costs	—		63.3		(62.2		)	—			1.1
Facility terminations and other exit costs	—		7.1		(3.2		)	(2.0		)	1.9
Other Facility Termination Costs
Facility termination costs	—		7.4		(1.8		)	(1.1		)	4.5
Total	$	—	$	77.8	$	(67.2	)	$	(3.1	)	$	7.5
Current portion (2)	$	—									$	5.9
Non-current portion (2)	—										1.6
Total	$	—									$	7.5

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(1) Adjustments include the impact of foreign currency translation.

(2)

The current and non-current portions of the reserve are recorded in the Consolidated Balance Sheets under “Other accrued liabilities” and “Other liabilities,” respectively.