SPECIAL CHARGES (RECOVERIES)

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 miscellaneous charges.



	Three Months Ended December 31,						Six Months Ended December 31,
	2015			2014			2015			2014
Fiscal 2015 Restructuring Plan	$	5,555		$	—		$	21,029		$	—
OpenText/GXS Restructuring Plan	(1,882		)	1,386			(2,034		)	4,192
Restructuring Plans prior to OpenText/GXS Restructuring Plan	4			(412		)	4			(325		)
Acquisition-related costs	983			2,342			1,160			2,778
Other charges (recoveries)	4,428			(9,075		)	6,266			(8,235		)
Total	$	9,088		$	(5,759	)	$	26,425		$	(1,590	)

Fiscal 2015 Restructuring Plan

In the third quarter of Fiscal 2015 and in the context of the acquisition of Actuate Corporation (Actuate), we began to implement restructuring activities to streamline our operations (OpenText/Actuate Restructuring Plan). We subsequently announced, on May 20, 2015 that we were initiating a restructuring program in conjunction with organizational changes to support our cloud strategy and drive further operational efficiencies. These charges are combined with the OpenText/Actuate Restructuring Plan (collectively referred to as the Fiscal 2015 Restructuring Plan) and are presented below. The Fiscal 2015 Restructuring Plan charges relate to workforce reductions and facility consolidations. These charges require 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.

As of December 31, 2015, we expect total costs to be incurred in conjunction with the Fiscal 2015 Restructuring Plan to be approximately $32.0 to $35.0 million, of which $29.3 million has already been recorded within Special charges to date. We expect the Fiscal 2015 Restructuring Plan to be substantially completed by the end of Fiscal 2016.

A reconciliation of the beginning and ending liability for the six months ended December 31, 2015 is shown below.



Fiscal 2015 Restructuring Plan	Workforce reduction			Facility costs			Total
Balance as of June 30, 2015	$	3,842		$	2,126		$	5,968
Accruals and adjustments	16,758			4,271			21,029
Cash payments	(12,645		)	(976		)	(13,621		)
Foreign exchange	(697		)	659			(38		)
Balance as of December 31, 2015	$	7,258		$	6,080		$	13,338

OpenText/GXS Restructuring Plan

In the third quarter of Fiscal 2014 and in the context of the acquisition of GXS, we began to implement restructuring activities to streamline our operations (OpenText/GXS Restructuring Plan). These charges relate to workforce reductions, facility consolidations and other miscellaneous direct costs. These charges require 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.

Since the inception of the plan $25.3 million has been recorded within Special charges. We do not expect to incur any further significant charges related to this plan.

A reconciliation of the beginning and ending liability for the six months ended December 31, 2015 are shown below.



OpenText/GXS Restructuring Plan	Workforce reduction			Facility costs			Total
Balance as of June 30, 2015	$	2,846		$	4,436		$	7,282
Accruals and adjustments	(528		)	(1,505		)	(2,033		)
Cash payments	(393		)	(1,358		)	(1,751		)
Foreign exchange	(76		)	(486		)	(562		)
Balance as of December 31, 2015	$	1,849		$	1,087		$	2,936

Acquisition-related costs

Included within "Special charges" for the three and six months ended December 31, 2015 are costs incurred directly in relation to acquisitions in the amount of $1.0 million and $1.2 million, respectively (three and six months ended December 31, 2014—$2.2 million and $2.5 million, respectively). We incurred no costs relating to financial advisory, legal, valuation and audit services and other miscellaneous costs necessary to integrate acquired companies into our organization during the three and six months ended December 31, 2015 (three and six months ended December 31, 2014—$0.1 million and $0.3 million, respectively).

Other charges (recoveries)

ERP Implementation Costs

We are currently involved in a one-time project to implement a broad enterprise resource planning (ERP) system. The project is expected to be completed within our fiscal year ended June 30, 2017.

For the three and six months ended December 31, 2015, we incurred costs of $2.9 million and $4.8 million, respectively, relating to this project.

Other costs

For the three months ended December 31, 2015, "Other costs" primarily includes (i) a charge of $0.9 million relating to assets disposed in connection with a restructured facility, (ii) $0.7 million relating to post-acquisition integration costs necessary to streamline an acquired company into our operations and to reorganize certain legal entities, and (iii) a charge of $0.1 million relating to interest released on certain pre-acquisition liabilities. These charges were offset by a recovery of $0.3 million relating to certain pre-acquisition tax liabilities becoming statute barred.

For the six months ended December 31, 2015, "Other costs" primarily includes (i) a charge of $0.9 million relating to the assets disposed in connection with a restructured facility and (ii) $0.8 million relating to post-acquisition integration costs necessary to streamline an acquired company into our operations and to reorganize certain legal entities. These charges were offset by (i) a recovery of $0.5 million relating to certain pre-acquisition tax liabilities becoming statute barred, and (ii) a recovery of $0.1 million relating to interest released on certain pre-acquisition liabilities.

Included within "Other costs" for the three and six months ended December 31, 2014 is a net recovery of $9.1 million and $8.2 million, respectively. During the three months ended December 31, 2014 we reversed $9.8 million relating to certain pre-acquisition tax liabilities, including related interest, based on our revised estimate of the liability and, in certain cases, due to tax years becoming statute barred.