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Basis of Presentation (Tables)

12 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

As a result, certain prior period comparative figures in the Consolidated Statements of Income have been adjusted to conform to current period presentation as follows:

	Year Ended June 30, 2018												Year Ended June 30, 2017
	As Previously Reported				Adjustments				As Adjusted				As Previously Reported				Adjustments				As Adjusted
Cost of revenues - Cloud services	$	364,091			$	69			$	364,160			$	300,255			$	(405	)		$	299,850
Cost of revenues - Customer Support	$	134,089			$	(200	)		$	133,889			$	122,753			$	(188	)		$	122,565
Cost of revenues - Professional service and other	$	253,670			$	(281	)		$	253,389			$	195,195			$	(241	)		$	194,954
Total cost of revenues	$	951,411			$	(412	)		$	950,999			$	762,391			$	(834	)		$	761,557
Gross profit	$	1,863,830			$	412			$	1,864,242			$	1,528,666			$	834			$	1,529,500
Research and Development	$	323,461			$	(552	)		$	322,909			$	281,680			$	(465	)		$	281,215
Sales and Marketing	$	529,381			$	(240	)		$	529,141			$	444,838			$	(384	)		$	444,454
General and administrative	$	205,313			$	(86	)		$	205,227			$	170,438			$	(85	)		$	170,353
Total operating expense	$	1,358,427			$	(878	)		$	1,357,549			$	1,175,734			$	(934	)		$	1,174,800
Income from operations	$	505,403			$	1,290			$	506,693			$	352,932			$	1,768			$	354,700
Interest and other related expense, net	$	(137,250	)		$	(1,290	)		$	(138,540	)		$	(119,124	)		$	(1,768	)		$	(120,892	)

As a result, certain prior period comparative figures in the Consolidated Statements of Cash Flows have been adjusted to conform to current period presentation as follows:

	Year Ended June 30, 2018												Year Ended June 30, 2017
	As Previously Reported				Adjustments				As Adjusted				As Previously Reported				Adjustments				As Adjusted
Net cash provided by operating activities	$	709,885			$	(1,804	)		$	708,081			$	439,253			$	1,100			$	440,353
Cash, cash equivalents and restricted cash at beginning of period	443,357				2,853				446,210				1,283,757				1,753				1,285,510
Increase (decrease) in cash, cash equivalents and restricted cash during the period	239,585				(1,804		)		237,781				(840,400		)		1,100				(839,300		)
Cash, cash equivalents and restricted cash at end of period	$	682,942			$	1,049			$	683,991			$	443,357			$	2,853			$	446,210

The following tables summarize the impacts of adopting Topic 606 on our consolidated balance sheets, statements of income and cash flows, all as compared to proforma balances illustrating if ASC Topic 605 "Revenue Recognition" (Topic 605) had still been in effect. Financial statement line items that were not impacted by the adoption of Topic 606 have been excluded from the tables below.

Consolidated Balance Sheet

	As of June 30, 2019
	As reported under Topic 606				Adjustments				Proforma as if Topic 605 was in effect
ASSETS
Contract assets	$	20,956			$	(20,956	)		$	—
Prepaid expenses and other current assets	97,238				4,428				101,666
Total current assets	1,561,328				(16,528		)		1,544,800
Long-term contract assets	15,386				(15,386		)		—
Deferred tax assets	1,004,450				16,631				1,021,081
Other assets	148,977				(5,614		)		143,363
Total assets	$	7,933,975			$	(20,897	)		$	7,913,078
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	329,903			$	(55	)		$	329,848
Deferred revenues	641,656				24,635				666,291
Total current liabilities	1,014,717				24,580				1,039,297
Long-term liabilities:
Deferred revenues	46,974				32,170				79,144
Deferred tax liabilities	55,872				(8,178		)		47,694
Total long-term liabilities	3,034,588				23,992				3,058,580
Shareholders’ equity:
Accumulated other comprehensive income	24,124				1,260				25,384
Retained earnings	2,113,883				(70,729		)		2,043,154
Total OpenText shareholders' equity	3,883,455				(69,469		)		3,813,986
Non-controlling interests	1,215				—				1,215
Total shareholders’ equity	3,884,670				(69,469		)		3,815,201
Total liabilities and shareholders’ equity	$	7,933,975			$	(20,897	)		$	7,913,078

Consolidated Statements of Income

	Year Ended June 30, 2019
	As reported under Topic 606				Adjustments				Proforma as if Topic 605 was in effect
Revenues:
License	$	428,092			$	(37,709	)		$	390,383
Cloud services and subscriptions	907,812				(6,361		)		901,451
Customer support	1,247,915				(1,605		)		1,246,310
Professional service and other	284,936				24				284,960
Total revenues	2,868,755				(45,651		)		2,823,104
Cost of revenues:
Cloud services and subscriptions	383,993				(338		)		383,655
Professional service and other	224,635				5				224,640
Total cost of revenues	930,703				(333		)		930,370
Gross profit	1,938,052				(45,318		)		1,892,734
Operating expenses:
Sales and marketing	518,035				8,945				526,980
Total operating expenses	1,371,042				8,945				1,379,987
Income from operations	567,010				(54,263		)		512,747
Interest and other related expense, net	(136,592		)		(801		)		(137,393		)
Income before income taxes	440,574				(55,064		)		385,510
Provision for (recovery of) income taxes	154,937				(14,121		)		140,816
Net income for the period	$	285,637			$	(40,943	)		$	244,694

The adjustment on license revenue for the year ended June 30, 2019 of $37.7 million is primarily due to new contracts entered into during Fiscal 2019 for which a timing difference of revenue recognition exists between Topic 606 and Topic 605. See above for an explanation of how license revenues are recognized under Topic 606. The Fiscal 2019 contracts pertaining to the respective adjustments are recognized up front under Topic 606, whereas such revenues would have been recognized over time under Topic 605.

Consolidated Statement of Cash Flows

	Year Ended June 30, 2019
	As reported under Topic 606				Adjustments				Proforma as if Topic 605 was in effect
Cash flows from operating activities:
Net income for the period	$	285,637			$	(40,943	)		$	244,694
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred taxes	47,425				(14,165		)		33,260
Changes in operating assets and liabilities:
Accounts receivable	75,508				(18,883		)		56,625
Contract assets	(37,623		)		37,623				—
Prepaid expenses and other current assets	(819		)		3,319				2,500
Income taxes and deferred charges and credits	27,291				101				27,392
Accounts payable and accrued liabilities	(21,732		)		173				(21,559		)
Deferred revenue	(1,827		)		26,841				25,014
Other assets	(4		)		5,934				5,930
Net cash provided by operating activities	$	876,278			$	—			$	876,278

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Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

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