SPECIAL CHARGES (RECOVERIES)

12 Months Ended

Jun. 30, 2022

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,
	2022		2021		2020
Fiscal 2022 Restructuring Plan	$	25,778	$	—	$	—
COVID-19 Restructuring Plan	(3,625)		(8,929)		53,616
Fiscal 2020 Restructuring Plan	(128)		3,669		26,680
Restructuring Plans prior to Fiscal 2020 Restructuring Plan	(139)		(53)		1,371
Acquisition-related costs	6,872		5,906		13,750
Other charges (recoveries)	18,115		1,155		5,011
Total	$	46,873	$	1,748	$	100,428

Fiscal 2022 Restructuring Plan

During the third quarter of Fiscal 2022, as part of our return to office planning, we made a strategic decision to implement restructuring activities to streamline our operations and further reduce our real estate footprint around the world (Fiscal 2022 Restructuring Plan). The Fiscal 2022 Restructuring Plan charges will relate to facility costs and workforce reductions. Facility costs will include 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.

During the year ended June 30, 2022, we recognized cost of $23.5 million related to abandoned office space that have been early terminated or assigned to a third party, of which $17.8 million was related to the write-off of right of use assets.

As of June 30, 2022, we expect total costs to be incurred in connection with the Fiscal 2022 Restructuring Plan to be approximately $32.0 million to $37.0 million, of which $25.8 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, 2022 is shown below.


Fiscal 2022 Restructuring Plan	Workforce reduction		Facility charges		Total
Balance payable as of June 30, 2021	$	—	$	—	$	—
Accruals and adjustments	2,138		5,690		7,828
Cash payments	(1,117)		(219)		(1,336)
Foreign exchange and other non-cash adjustments	(32)		(61)		(93)
Balance payable as of June 30, 2022	$	989	$	5,410	$	6,399

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 year ended June 30, 2022, we recorded net recoveries of $3.6 million, related primarily to abandoned facilities.

During the year ended June 30, 2021, we recorded net recoveries of $16.0 million, related to office space that was abandoned during the fourth quarter of Fiscal 2020 and has since been early terminated or assigned to a third party. Included in these recoveries are $12.5 million, related to the reversal of lease liabilities (see Note 6 “Leases”), with the remainder related to other facility charges and recoveries. Additionally, during the year ended June 30, 2021, we incurred $7.1 million of charges related to abandoned facilities, workforce reductions and the write-off of fixed assets.

Since the inception of the COVID-19 Restructuring Plan, $41.1 million has been recorded within “Special charges (recoveries)” to date. We do not expect to incur any further significant charges relating to the COVID-19 Restructuring Plan.

A reconciliation of the beginning and ending restructuring liability, which is included within “Accounts payable and accrued liabilities” and “Long-term accrued liabilities” in our Consolidated Balance Sheets, for the year ended June 30, 2022 is shown below.


COVID-19 Restructuring Plan	Workforce reduction		Facility charges		Total
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
Accruals and adjustments	(101)		(2,254)		(2,355)
Cash payments	(144)		(877)		(1,021)
Foreign exchange and other non-cash adjustments	(10)		130		120
Balance payable as of June 30, 2022	$	—	$	1,009	$	1,009

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 year ended June 30, 2022, we recorded immaterial charges and net recoveries of $0.1 million related to abandoned facilities and workforce reductions.

During the year ended June 30, 2021, we recorded net recoveries of $13.5 million related to office space that was abandoned during the fourth quarter of Fiscal 2020 and has since been early terminated or assigned to a third party. Included in these recoveries are $10.1 million related to the reversal of lease liabilities (see note 6 “Leases”), with the remainder related to other facility charges and recoveries. Additionally, during the year ended June 30, 2021, we recognized a net recovery of $17.2 million related to abandoned facilities, workforce reductions and the write-off of fixed assets.

Since the inception of the Fiscal 2020 Restructuring Plan, $30.2 million has been recorded within “Special charges (recoveries)” to date. We do not expect to incur any further significant charges relating to the Fiscal 2020 Restructuring Plan.


Fiscal 2020 Restructuring Plan	Workforce reduction		Facility charges		Total
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
Accruals and adjustments	(226)		44		(182)
Cash payments	(1,864)		(318)		(2,182)
Foreign exchange and other non-cash adjustments	(127)		9		(118)
Balance payable as of June 30, 2022	$	—	$	1,601	$	1,601

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, 2022 were $6.9 million (year ended June 30, 2021 and 2020—$5.9 million and $13.8 million, respectively).

Other charges (recoveries)

For the year ended June 30, 2022, “Other charges” includes $15.4 million related to pre-acquisition equity incentives, which upon acquisition were replaced by equivalent value cash settlements (see Note 19 “Acquisitions”) and $2.7 million, respectively, related to other miscellaneous charges.

For the year ended June 30, 2021, “Other charges” includes $1.2 million related 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.