XML 53 R44.htm IDEA: XBRL DOCUMENT v2.4.0.8

Income Taxes (Tables)

12 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

The following is a geographical breakdown of income before the provision for income taxes:

	Year Ended June 30,
	2013				2012				2011
Domestic income	$	(20,525	)		$	(13,064	)		$	9,039
Foreign income	198,735				150,409				127,095
Income before income taxes	$	178,210			$	137,345			$	136,134

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes consisted of the following:

	Year Ended June 30,
	2013				2012				2011
Current income taxes:
Domestic	$	747			$	6,147			$	5,693
Foreign	34,739				84,816				25,017
	35,486				90,963				30,710
Deferred income taxes (recoveries):
Domestic	3,126				6,470				1,351
Foreign	(8,922		)		(85,262		)		(19,130		)
	(5,796		)		(78,792		)		(17,779		)
Provision for income taxes	$	29,690			$	12,171			$	12,931

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the combined Canadian federal and provincial income tax rate with our effective income tax rate is as follows:

	Year Ended June 30,
	2013				2012				2011
Expected statutory rate	26.5		%		27.25		%		29.25		%
Expected provision for income taxes	$	47,226			$	37,427			$	39,819
Effect of foreign tax rate differences	(27,026		)		(21,496		)		(10,258		)
Change in valuation allowance	2,082				15,536				(4,840		)
Amortization of deferred charges	10,922				11,112				8,535
Effect of permanent differences	6,008				6,902				1,577
Effect of Canadian to US dollar functional currency election	—				(5,887		)		—
Withholding taxes and other items	(2,093		)		1,473				(5,177		)
Impact of internal reorganization of subsidiaries and integration of acquisitions	(7,429		)		(32,896		)		(16,725		)
	$	29,690			$	12,171			$	12,931

Schedule of Deferred Tax Assets and Liabilities

The primary components of the deferred tax assets and liabilities are as follows, for the periods indicated below:

	June 30,
	2013				2012
Deferred tax assets
Non-capital loss carryforwards	$	55,946			$	47,516
Capital loss carryforwards	3,010				3,002
Undeducted scientific research and development expenses	72,555				60,415
Depreciation and amortization	16,331				12,049
Restructuring costs and other reserves	20,325				11,274
Deferred revenue	58,471				55,267
Other	11,066				3,544
Total deferred tax asset	$	237,704			$	193,067
Valuation allowance	$	(80,778	)		$	(63,431	)
Deferred tax liabilities
Scientific research and development tax credits	$	(7,484	)		$	(8,695	)
Deferred credits	—				(906		)
Acquired intangibles	(55,128		)		(11,040		)
Other	(18,336		)		(18,181		)
Deferred tax liabilities	$	(80,948	)		$	(38,822	)
Net deferred tax asset (liability)	$	75,978			$	90,814
Comprised of:
Current assets	$	11,082			$	4,003
Long-term assets	135,695				115,128
Current liabilities	(1,127		)		(1,612		)
Long-term liabilities	(69,672		)		(26,705		)
	$	75,978			$	90,814

Summary of Income Tax Contingencies

The aggregate changes in the balance of our gross unrecognized tax benefits (including interest and penalties) were as follows:

Unrecognized tax benefits as of July 1, 2011	$	132,892
Increases on account of current year positions	5,279
Increases on account of prior year positions*	65,994
Decreases due to settlements with tax authorities	(4,935		)
Decreases due to lapses of statutes of limitations	(42,949		)
Unrecognized tax benefits as of July 1, 2012	$	156,281
Increases on account of current year positions	5,736
Increases on account of prior year positions**	22,017
Decreases due to settlements with tax authorities	(5,138		)
Decreases due to lapses of statutes of limitations	(29,993		)
Unrecognized tax benefits as of June 30, 2013	$	148,903

* Included in these balances as of June 30, 2012 are acquired balances of $0.4 million relating to the acquisition of Global 360.

** Included in these balances as of June 30, 2013 are acquired balances of $8.8 million relating to the acquisition of EasyLink.

Interest And Penalties Related To Liabilities For Income Tax Expense

For the year ended June 30, 2013, we recognized the following amounts as income tax-related interest expense and penalties:

		Year Ended June 30,
		2013				2012				2011
Interest expense		$	(736	)		$	9,383			$	3,387
Penalties expense (recovery)		65				(10,764		)		75
Total		$	(671	)		$	(1,381	)		$	3,462

Interest Accrued And Penalties Accrued Related To Income Tax Expense

As of June 30, 2013 and June 30, 2012, the following amounts have been accrued on account of income tax-related interest expense and penalties:

	As of June 30, 2013				As of June 30, 2012
Interest expense accrued *	$	18,210			$	19,316
Penalties accrued *	$	6,045			$	4,040

* These balances have been included within "Long-term income taxes payable" within the Consolidated Balance Sheets.

X

- Definition

Schedule of interest accrued and penalties accrued related to income tax expense [Table Text Block]

+ References

No definition available.

+ Details

Name:	otex_ScheduleOfInterestAccruedAndPenaltiesAccruedRelatedToIncomeTaxExpenseTableTextBlock
Namespace Prefix:	otex_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Schedule of interest and penalties related to liabilities for income tax expense [Table Text Block]

+ References

No definition available.

+ Details

Name:	otex_ScheduleOfInterestAndPenaltiesRelatedToLiabilitiesForIncomeTaxExpenseTableTextBlock
Namespace Prefix:	otex_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 9

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 12

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

+ References

No definition available.

+ Details

Name:	us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 15

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319



Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Interpretation (FIN)

-Number 48

-Paragraph 21

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Name:	us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration