SPECIAL CHARGES (RECOVERIES)

12 Months Ended

Jun. 30, 2020

Restructuring, Settlement and Impairment Provisions [Abstract]

Special charges (recoveries) include costs and recoveries 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 charges.



	Year Ended June 30,
	2020			2019		2018
COVID-19 Restructuring Plan	$	53,616		$	—	$	—
Fiscal 2020 Restructuring Plan	26,680			—		—
Fiscal 2019 Restructuring Plan	1,516			28,318		—
Fiscal 2018 Restructuring Plan	87			515		10,154
Restructuring Plans prior to Fiscal 2018 Restructuring Plan	(232		)	278		7,486
Acquisition-related costs	13,750			5,625		4,805
Other charges (recoveries)	5,011			983		6,766
Total	$	100,428		$	35,719	$	29,211

COVID-19 Restructuring Plan

During the fourth quarter of Fiscal 2020, in response to the COVID-19 pandemic, we made a strategic decision to move towards a significant work from home model. We began to implement restructuring activities to streamline our operations and significantly reduce our real estate footprint around the world (COVID-19 Restructuring Plan). The COVID-19 Restructuring Plan charges relate to workforce reductions and facility costs, including the accelerated amortization associated with the abandonment of ROU assets, the write-off of fixed assets and other related variable lease and exit costs. Currently, our assumptions with respect to the COVID-19 Restructuring Plan, do not include any potential sublease income from vacated facilities. 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 June 30, 2020, we expect total costs to be incurred in connection with the COVID-19 Restructuring Plan to be approximately $62 million to $75 million, of which $53.6 million has been recorded within "Special charges (recoveries)" to date.

A reconciliation of the beginning and ending restructuring liability, which is included within "Accounts payable and accrued liabilities" in our Consolidated Balance Sheets, for the year ended June 30, 2020 is shown below.



COVID-19 Restructuring Plan	Workforce reduction			Facility costs			Total
Balance payable as at June 30, 2019	$	—		$	—		$	—
Accruals and adjustments	8,702			12,319			21,021
Cash payments	(3,609		)	(321		)	(3,930		)
Foreign exchange and other non-cash adjustments	79			278			357
Balance payable as at June 30, 2020	$	5,172		$	12,276		$	17,448

During the year ended June 30, 2020, we incurred $27.2 million in charges associated with the accelerated amortization charges associated with the abandonment of facility related ROU assets and $5.4 million in charges associated with the write off of fixed assets as part of the COVID-19 Restructuring Plan.

Fiscal 2020 Restructuring Plan

During Fiscal 2020, we began to implement restructuring activities to streamline our operations (Fiscal 2020 Restructuring Plan), including in connection with our acquisitions of Carbonite and XMedius, to take further steps to improve our operational efficiency. The Fiscal 2020 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. During the fourth quarter of Fiscal 2020, we revised our assumption relating to potential sublease. Our current estimate does not include any potential sublease income from vacated facilities.

As of June 30, 2020, we expect total costs to be incurred in connection with the Fiscal 2020 Restructuring Plan to be approximately $36 million to $44 million, of which $26.7 million has been recorded within "Special charges (recoveries)" to date.



Fiscal 2020 Restructuring Plan	Workforce reduction			Facility costs			Total
Balance payable as at June 30, 2019	$	—		$	—		$	—
Accruals and adjustments	5,993			6,734			12,727
Cash payments	(4,412		)	(261		)	(4,673		)
Foreign exchange and other non-cash adjustments	(5		)	(31		)	(36		)
Balance payable as at June 30, 2020	$	1,576		$	6,442		$	8,018

During the year ended June 30, 2020, we incurred $9.7 million in charges associated with the accelerated amortization associated with the abandonment of ROU assets and $4.3 million in charges associated with write off of fixed assets as part of the Fiscal 2020 Restructuring Plan.

Fiscal 2019 Restructuring Plan

During Fiscal 2019, we began to implement restructuring activities to streamline our operations (Fiscal 2019 Restructuring Plan), including in connection with our acquisitions of Catalyst Repository Systems Inc. (Catalyst) and Liaison Technologies, Inc. (Liaison), to take further steps to improve our operational efficiency. The Fiscal 2019 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.

Since the inception of the plan, $29.8 million has been recorded within "Special charges (recoveries)" to date. We do not expect to incur any further significant charges relating to this plan.

A reconciliation of the beginning and ending liability for the year ended June 30, 2020 is shown below.



Fiscal 2019 Restructuring Plan	Workforce reduction			Facility costs			Total
Balance payable as at June 30, 2019	$	1,819		$	5,288		$	7,107
Adjustment for Topic 842 (note 1 and note 6)	—			(5,288		)	(5,288		)
Accruals and adjustments	523			993			1,516
Cash payments	(1,718		)	(1,090		)	(2,808		)
Foreign exchange and other non-cash adjustments	(223		)	97			(126		)
Balance payable as at June 30, 2020	$	401		$	—		$	401

Fiscal 2018 Restructuring Plan

During Fiscal 2018 and in the context of our acquisitions of Covisint Corporation, Guidance Software Inc. and Hightail, Inc., we implemented restructuring activities to streamline our operations (collectively referred to as the Fiscal 2018 Restructuring Plan). The Fiscal 2018 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.

Since the inception of the plan, $10.8 million has been recorded within "Special charges (recoveries)" to date. We do not expect to incur any further significant charges relating to this plan.

A reconciliation of the beginning and ending liability for the year ended June 30, 2020 is shown below.



Fiscal 2018 Restructuring Plan	Workforce reduction			Facility costs			Total
Balance payable as at June 30, 2019	$	150		$	486		$	636
Adjustment for Topic 842 (note 1 and note 6)	—			(486		)	(486		)
Accruals and adjustments	(62		)	149			87
Cash payments	(39		)	(148		)	(187		)
Foreign exchange and other non-cash adjustments	(9		)	(1		)	(10		)
Balance payable as at June 30, 2020	$	40		$	—		$	40

Acquisition-related costs

Included within "Special charges (recoveries)" for the year ended June 30, 2020 are costs incurred directly in relation to acquisitions in the amount of $13.8 million (year ended June 30, 2019 and 2018—$5.6 million and $4.8 million, respectively).

Other charges (recoveries)

For the year ended June 30, 2020, "Other charges" includes $0.7 million relating to the accelerated amortization associated with the abandonment of ROU assets and $4.3 million relating to other miscellaneous charges.

For the year ended June 30, 2019, "Other charges" include (i) $1.1 million relating to one-time system implementation costs and (ii) $1.4 million relating to other miscellaneous charges. These charges were partially offset by a recovery of $1.5 million relating to certain pre-acquisition sales and use tax liabilities becoming statute barred.

For the year ended June 30, 2018, "Other charges" primarily include (i) $6.4 million relating to the setup of a broad ERP system and other system implementation costs and (ii) $4.9 million relating to miscellaneous other charges. These charges were partially offset by (i) $2.3 million relating to certain pre-acquisition sales and use tax liabilities that were recovered outside of the acquisition's one year measurement period and (ii) $2.2 million relating to certain-pre acquisition sales and use tax liabilities becoming statute barred.