Special Charges (Recoveries)

9 Months Ended

Mar. 31, 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.



	Three Months Ended March 31,						Nine Months Ended March 31,
	2020			2019			2020			2019
Fiscal 2020 Restructuring Plan	$	5,899		$	—		$	5,899		$	—
Fiscal 2019 Restructuring Plan	(29		)	667			1,650			26,906
Fiscal 2018 Restructuring Plan	—			7			86			517
Restructuring Plans prior to Fiscal 2018 Restructuring Plan	50			(65		)	(232		)	410
Acquisition-related costs	2,453			1,430			12,898			5,134
Other charges (recoveries)	1,033			(1,243		)	4,278			520
Total	$	9,406		$	796		$	24,579		$	33,487

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.

As of March 31, 2020, we expect total costs to be incurred in connection with the Fiscal 2020 Restructuring Plan to be approximately $26 million to $34 million, of which approximately $5.9 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 Condensed Consolidated Balance Sheets, for the nine months ended March 31, 2020 is shown below.



Fiscal 2020 Restructuring Plan	Workforce reduction			Facility costs			Total
Balance payable as at June 30, 2019	$	—		$	—		$	—
Accruals and adjustments	5,505			394			5,899
Cash payments	(2,295		)	(36		)	(2,331		)
Foreign exchange and other non-cash adjustments	(166		)	(94		)	(260		)
Balance payable as at March 31, 2020	$	3,044		$	264		$	3,308

We incurred no charges associated with the re-measurement of facility related ROU assets during the three and nine months ended March 31, 2020, respectively, 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, approximately $30.0 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 nine months ended March 31, 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	560			1,090			1,650
Cash payments	(1,637		)	(1,090		)	(2,727		)
Foreign exchange and other non-cash adjustments	(249		)	—			(249		)
Balance payable as at March 31, 2020	$	493		$	—		$	493

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, approximately $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 nine months ended March 31, 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		)	148			86
Cash payments	(39		)	(148		)	(187		)
Foreign exchange and other non-cash adjustments	(10		)	—			(10		)
Balance payable as at March 31, 2020	$	39		$	—		$	39

Other charges (recoveries)

For the three months ended March 31, 2020, "Other charges" includes $1.0 million relating to other miscellaneous charges.

For the nine months ended March 31, 2020, "Other charges" includes $0.7 million relating to the write-off of ROU assets and approximately $3.6 million relating to other miscellaneous charges.

For the three months ended March 31, 2019, "Other recoveries" include $1.5 million relating to certain pre-acquisition sales and use tax liabilities becoming statute barred, partially offset by $0.2 million relating to other miscellaneous charges.

For the nine months ended March 31, 2019, "Other charges" include (i) $1.1 million relating to one-time system implementation costs and (ii) $0.9 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.