SPECIAL CHARGES

Special charges include costs that relate to certain restructuring initiatives that we have undertaken from time to time under our various restructuring plans, as well as acquisition related costs and other similar charges.



	Three Months Ended September 30,
	2013			2012
Fiscal 2014 Restructuring Plan	$	4,792		$	—
Fiscal 2013 Restructuring Plan	265			7,578
Fiscal 2012 Restructuring Plan	(261		)	584
Restructuring Plans prior to Fiscal 2012	—			(17		)
Acquisition-related costs	1,304			804
Other charges	(2,369		)	605
Total	$	3,731		$	9,554

Reconciliations of the liability relating to each of our materially outstanding restructuring plans are provided below:

Fiscal 2014 Restructuring Plan

In the first quarter of Fiscal 2014, we began to implement restructuring activities to streamline our operations (Fiscal 2014 Restructuring Plan). These charges relate to workforce reductions and facility consolidations. We expect to incur more charges under the Fiscal 2014 Restructuring Plan as we execute the remaining restructuring actions. As of September 30, 2013, we expect total costs to be incurred in conjunction with the Fiscal 2014 Restructuring Plan to be approximately $10.0 million, of which $4.8 million has already been recorded within Special charges to date.

The recognition of these charges requires management to make certain judgments and estimates regarding the amount and timing of restructuring charges or recoveries. Our estimated liability could change subsequent to its recognition, requiring adjustments to the expense and the liability recorded. On a quarterly basis, we conduct an evaluation of the related liabilities and expenses and revise our assumptions and estimates as appropriate.

A reconciliation of the beginning and ending liability for the three months ended September 30, 2013 is shown below.



Fiscal 2014 Restructuring Plan	Workforce reduction			Facility costs			Total
Balance as of June 30, 2013	$	—		$	—		$	—
Accruals and adjustments	4,618			174			4,792
Cash payments	(1,372		)	(33		)	(1,405		)
Foreign exchange	64			(5		)	59
Balance as of September 30, 2013	$	3,310		$	136		$	3,446

Fiscal 2013 Restructuring Plan

In the first quarter of Fiscal 2013, we began to implement restructuring activities to streamline our operations (Fiscal 2013 Restructuring Plan). These charges relate to workforce reductions and facility consolidations.

Since the inception of the Fiscal 2013 Restructuring Plan, $16.1 million of costs have been recorded within Special charges. We do not expect to incur any further significant charges related to the Fiscal 2013 Restructuring Plan.

A reconciliation of the beginning and ending liability for the three months ended September 30, 2013 is shown below.



Fiscal 2013 Restructuring Plan	Workforce reduction			Facility costs			Total
Balance as of June 30, 2013	$	3,205		$	4,396		$	7,601
Accruals and adjustments	933			(668		)	265
Cash payments	(2,572		)	(552		)	(3,124		)
Foreign exchange	(53		)	86			33
Balance as of September 30, 2013	$	1,513		$	3,262		$	4,775

Fiscal 2012 Restructuring Plan

In the first quarter of Fiscal 2012, we began to implement restructuring activities to streamline our operations (Fiscal 2012 Restructuring Plan). These charges relate to workforce reductions and facility consolidations.

Since the inception of the Fiscal 2012 restructuring plan, $17.6 million of costs have been recorded within Special charges. We do not expect to incur any further significant charges related to the Fiscal 2012 Restructuring Plan.

The recognition of these charges requires management to make certain judgments and estimates regarding the amount and timing of restructuring charges or recoveries. On a quarterly basis, we conduct an evaluation of the related liabilities and expenses and revise our assumptions and estimates as appropriate.

A reconciliation of the beginning and ending liability for the three months ended September 30, 2013 is shown below.



Fiscal 2012 Restructuring Plan	Workforce reduction			Facility costs			Total
Balance as of June 30, 2013	$	309		$	1,986		$	2,295
Accruals and adjustments	(266		)	5			(261		)
Cash payments	—			(240		)	(240		)
Foreign exchange	1			20			21
Balance as of September 30, 2013	$	44		$	1,771		$	1,815

Acquisition-related costs

Included within Special charges for the three months ended September 30, 2013 are costs incurred directly in relation to acquisitions in the amount of $0.9 million (three months ended September 30, 2012—$0.7 million). Additionally, we incurred costs relating to financial advisory, legal, valuation and audit services and other miscellaneous costs necessary to integrate acquired companies into our organization for the three months ended September 30, 2013 in the amount of $0.4 million (three months ended September 30, 2012—$0.1 million).

Other charges

Included within Special charges for the three months ended September 30, 2013 are "other charges" including a charge of $1.4 million relating to a settlement agreement reached in connection with the acquisition of IXOS Software AG in February 2004, a charge of $0.4 million relating to interest accrued on certain EasyLink pre-acquisition sales tax liabilities and a recovery of $4.2 million relating to a reduction of certain EasyLink pre-acquisition sales tax liabilities.

Included within Special charges for the three months ended September 30, 2012 is a charge of approximately $0.6 million relating to a revised sublease assumption on a restructured facility acquired in a prior period.