SPECIAL CHARGES (RECOVERIES)

12 Months Ended

Jun. 30, 2021

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,
	2021		2020		2019
COVID-19 Restructuring Plan	$	(8,929)	$	53,616	$	—
Fiscal 2020 Restructuring Plan	3,669		26,680		—
Restructuring Plans prior to Fiscal 2020 Restructuring Plan	(53)		1,371		29,111
Acquisition-related costs	5,906		13,750		5,625
Other charges (recoveries)	1,155		5,011		983
Total	$	1,748	$	100,428	$	35,719

During Fiscal 2020, we entered into the COVID-19 and Fiscal 2020 Restructuring Plans (as defined below), which included the abandonment of certain leased facilities. As a result of the COVID-19 pandemic, at the time of the initial abandonment of leased facilities during the fourth quarter of Fiscal 2020, we anticipated that we would not be able to early terminate any of our lease obligations. During the year ended June 30, 2021, we recorded net recoveries of $29.5 million within "Special charges (recoveries)" relating to early lease terminations and assignments of previously abandoned office space. These recoveries were recorded under the COVID-19 and Fiscal 2020 Restructuring Plans, consistent with the initial abandonment.

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. 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. With respect to the COVID-19 Restructuring Plan, at the time of initial abandonment we assumed there would be no additional sublease income, lease assignments or early terminations from vacated facilities.

Since the inception of the plan, $44.7 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 restructuring liability, which is included within "Accounts payable and accrued liabilities" in our Consolidated Balance Sheets, for the year ended June 30, 2021 and 2020 is shown below.


COVID-19 Restructuring Plan	Workforce reduction		Facility charges		Total
Balance payable as of 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 of June 30, 2020	5,172		12,276		17,448
Accruals and adjustments	1,983		(2,224)		(241)
Cash payments	(7,172)		(6,142)		(13,314)
Foreign exchange and other non-cash adjustments	272		100		372
Balance payable as of June 30, 2021	$	255	$	4,010	$	4,265

During the year ended June 30, 2021, we recognized net recoveries of $16.0 million relating to previously abandoned office space that has since been early terminated or assigned to a third party, as discussed above. Included in these recoveries is $12.5 million relating to the reversal of lease liabilities (see note 6 "Leases"), with the remainder relating to other facility charges and recoveries. Additionally, during the year ended June 30, 2021, we incurred $7.1 million in charges related to abandoned facilities, workforce reductions and the write-off of fixed assets.

During the year ended June 30, 2020, we incurred $27.2 million in charges related to accelerated amortization associated with the abandonment of ROU assets and $5.4 million in charges associated with the write-off of fixed assets. Additionally, during the year ended June 30, 2020, we incurred $21.0 million in charges related to abandoned facilities and workforce reductions.

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 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. 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. With respect to the Fiscal 2020 Restructuring Plan, at the time of the initial abandonment we assumed there would be no additional sublease income, lease assignments or early terminations from vacated facilities.

Since the inception of the plan, $30.3 million has been recorded within "Special charges (recoveries)" to date. We do not expect to incur any further significant charges relating to this plan.


Fiscal 2020 Restructuring Plan	Workforce reduction		Facility charges		Total
Balance payable as of 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 of June 30, 2020	1,576		6,442		8,018
Accruals and adjustments	11,444		(869)		10,575
Cash payments	(10,828)		(3,369)		(14,197)
Foreign exchange and other non-cash adjustments	25		(338)		(313)
Balance payable as of June 30, 2021	$	2,217	$	1,866	$	4,083

During the year ended June 30, 2021, we recognized net recoveries of $13.5 million relating to previously abandoned office space that has since been early terminated or assigned to a third party, as discussed above. Included in these recoveries is $10.1 million relating to the reversal of lease liabilities (see note 6 "Leases"), with the remainder relating to other facility charges and recoveries. Additionally, during the year ended June 30, 2021, we incurred $17.2 million in charges related to abandoned facilities, workforce reductions and the write-off of fixed assets.

During the year ended June 30, 2020, we incurred $9.7 million in charges related to accelerated amortization associated with the abandonment of ROU assets and $4.3 million in charges associated with the write-off of fixed assets. Additionally, during the year ended June 30, 2020, we incurred $12.7 million in charges related to abandoned facilities and workforce reductions.

Acquisition-related costs

Acquisition-related costs, recorded within "Special charges (recoveries)" include direct costs of potential and completed acquisitions. Acquisition-related costs for the year ended June 30, 2021 were $5.9 million (year ended June 30, 2020 and 2019—$13.8 million and $5.6 million, respectively).

Other charges (recoveries)

For the year ended June 30, 2021, "Other charges" includes $1.2 million relating to other miscellaneous charges.

For the year ended June 30, 2020, "Other charges" includes $0.7 million relating to 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" includes (i) $1.2 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.