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Basis of Presentation | 9 Months Ended
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Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Basis of Presentation | BASIS OF PRESENTATION The accompanying Condensed Consolidated Financial Statements include the accounts of Open Text Corporation and our subsidiaries, collectively referred to as "OpenText" or the "Company". We wholly own all of our subsidiaries with the exception of Open Text South Africa Proprietary Ltd. (OT South Africa), GXS, Inc. (GXS Korea) and EC1 Pte. Ltd. (GXS Singapore), which as of March 31, 2016, were 90%, 85% and 81% owned, respectively, by OpenText. Throughout this Quarterly Report on Form 10-Q: (i) the term “Fiscal 2016” means our fiscal year beginning on July 1, 2015 and ending June 30, 2016; (ii) the term “Fiscal 2015” means our fiscal year beginning on July 1, 2014 and ended June 30, 2015; (iii) the term “Fiscal 2014” means our fiscal year beginning on July 1, 2013 and ended June 30, 2014; and (iv) the term “Fiscal 2013” means our fiscal year beginning on July 1, 2012 and ended June 30, 2013. These Condensed Consolidated Financial Statements are expressed in U.S. dollars and are prepared in accordance with United States generally accepted accounting principles (U.S. GAAP). The information furnished reflects all adjustments necessary for a fair presentation of the results for the periods presented. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates, judgments and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements. These estimates, judgments and assumptions are evaluated on an ongoing basis. We base our estimates on historical experience and on various other assumptions that we believe are reasonable at that time, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from those estimates. In particular, significant estimates, judgments and assumptions include those related to: (i) revenue recognition, (ii) allowance for doubtful accounts, (iii) testing of goodwill for impairment, (iv) the valuation of acquired intangible assets, (v) the valuation of long-lived assets, (vi) the recognition of contingencies, (vii) restructuring accruals, (viii) acquisition accruals and pre-acquisition contingencies, (ix) asset retirement obligations, (x) the realization of investment tax credits, (xi) the valuation of stock options granted and obligations related to share-based payments, including the valuation of our long-term incentive plan, (xii) the valuation of financial instruments, (xiii) the valuation of pension assets and obligations, and (xiv) accounting for income taxes. Reclassifications Certain prior period balances have been reclassified to conform to the current period presentation including the reclassification related to a change in the method of allocating operating expenses within the Company. As a result of such reclassifications, the following expenses have been reclassified for the three and nine months ended March 31, 2015 as follows:
| Three Months Ended March 31, |  | Nine Months Ended March 31,
| 2015 |  | 2015
Reclassifications within cost of revenue |  |  |
Decrease to cost of revenue - Cloud services and subscriptions | $ | (1,174 | ) |  | $ | (1,878 | )
Decrease to cost of revenue - Customer support | (8 | ) |  | (374 | )
Decrease to cost of revenue - Professional services and other | (7 | ) |  | (654 | )
Reclassifications within operating expenses |  |  |
Decrease to operating expense - General and administrative | $ | (170 | ) |  | $ | (365 | )
Increase to operating expense - Sales and marketing | 1,359 |  |  | 3,271 |
Starting in the fourth quarter of Fiscal 2015, we combined revenues from Cloud services and revenues from subscriptions into one line item named "Cloud services and subscriptions" revenue. In addition, we reclassified certain license revenue, Customer support revenue and Professional services revenue to “Cloud services and subscriptions” revenue to better align the nature of revenues that are now depicted under “Cloud services and subscriptions” revenue. As a result, revenue and cost of revenues previously reflected in "License", "Customer support" and "Professional services and other" were reclassified to “Cloud services and subscriptions”. These revenues and expenses have been reclassified in the Condensed Consolidated Statements of Income for the three and nine months ended March 31, 2015 to conform with the current period presentation as follows:
| Three Months Ended March 31, |  | Nine Months Ended March 31,
| 2015 |  | 2015
Reclassifications within revenue |  |  |
Decrease to License | $ | (397 | ) |  | $ | (1,260 | )
Decrease to Customer support | (131 | ) |  | (131 | )
Decrease to Professional services and other | (3,163 | ) |  | (9,854 | )
Increase to Cloud services and subscriptions | 3,691 |  |  | 11,245 |
Reclassifications within cost of revenue |  |  |
Decrease to cost of revenue - License | $ | (34 | ) |  | $ | (126 | )
Decrease to cost of revenue - Professional services and other | (1,927 | ) |  | (5,679 | )
Increase to cost of revenue - Cloud services and subscriptions | 1,961 |  |  | 5,805 |
There was no change to income from operations, net income or net income per share in any of the periods presented as a result of these reclassifications.

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