SPECIAL CHARGES (RECOVERIES)

3 Months Ended

Sep. 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.


	Three Months Ended September 30,
	2021		2020
COVID-19 Restructuring Plan	$	(446)	$	3,551
Fiscal 2020 Restructuring Plan	(72)		8,725
Restructuring Plans prior to Fiscal 2020 Restructuring Plan	(84)		89
Acquisition-related costs	728		789
Other charges (recoveries)	218		90
Total	$	344	$	13,244

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.

During the three months ended September 30, 2021, we recorded net recoveries of $0.4 million related to abandoned facilities and workforce reductions.

During the three months ended September 30, 2020, we recorded net charges of $3.0 million related to abandoned facilities and workforce reductions and $0.6 million associated with the write-off of fixed assets.

Since the inception of the plan, $44.2 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 Condensed Consolidated Balance Sheets, for the three months ended September 30, 2021 is shown below.


COVID-19 Restructuring Plan	Workforce reduction		Facility charges		Total
Balance payable as of June 30, 2021	$	255	$	4,010	$	4,265
Accruals and adjustments	(6)		(581)		(587)
Cash payments	(82)		(385)		(467)
Foreign exchange and other non-cash adjustments	(5)		70		65
Balance payable as of September 30, 2021	$	162	$	3,114	$	3,276

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.

During the three months ended September 30, 2021, we recorded net recoveries of $0.1 million related to abandoned facilities and workforce reductions.

During the three months ended September 30, 2020, we recorded net charges of $8.7 million related to abandoned facilities and workforce reductions.

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, 2021	$	2,217	$	1,866	$	4,083
Accruals and adjustments	(131)		40		(91)
Cash payments	(1,749)		(170)		(1,919)
Foreign exchange and other non-cash adjustments	(127)		13		(114)
Balance payable as of September 30, 2021	$	210	$	1,749	$	1,959

Acquisition-related costs

Acquisition-related costs, recorded within "Special charges (recoveries)" include direct costs of potential and completed acquisitions. Acquisition-related costs for the three months ended September 30, 2021 were $0.7 million (three months ended September 30, 2020—$0.8 million).

Other charges (recoveries)

For the three months ended September 30, 2021, "Other charges" includes $0.2 million relating to other miscellaneous charges (three months ended September 30, 2020—$0.1 million relating to other miscellaneous charges).