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SPECIAL CHARGES (RECOVERIES) | 6 Months Ended
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Dec. 31, 2023
Restructuring, Settlement and Impairment Provisions [Abstract] |
SPECIAL CHARGES (RECOVERIES) | SPECIAL CHARGES (RECOVERIES) 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 December 31, |  | Six Months Ended December 31,
| 2023 |  | 2022 |  | 2023 |  | 2022
Micro Focus Acquisition Restructuring Plan | $ | 44,760 |  |  | $ | — |  |  | $ | 51,624 |  |  | $ | — |
Fiscal 2022 Restructuring Plan | (99) |  |  | 1,991 |  |  | 74 |  |  | 8,101 |
Other historical restructuring plans | (167) |  |  | (622) |  |  | (457) |  |  | (1,090) |
Divestiture-related costs | 5,385 |  |  | — |  |  | 6,982 |  |  | — |
Acquisition-related costs | 50 |  |  | 6,003 |  |  | 1,120 |  |  | 10,588 |
Other charges (recoveries) | 4,237 |  |  | 2,934 |  |  | 8,617 |  |  | 6,988 |
Total | $ | 54,166 |  |  | $ | 10,306 |  |  | $ | 67,960 |  |  | $ | 24,587 |
Micro Focus Acquisition Restructuring Plan During the third quarter of Fiscal 2023, as part of the Micro Focus Acquisition, we made a strategic decision to implement restructuring activities to reduce our overall workforce and further reduce our real estate footprint around the world (Micro Focus Acquisition Restructuring Plan). The Micro Focus Acquisition Restructuring Plan charges relate to facility costs and workforce reductions. Facility costs will include the accelerated amortization associated with the abandonment of right of use assets, the write-off of property and equipment 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 three and six months ended December 31, 2023, we recognized costs of $12.3 million and $17.7 million, respectively, related to abandoned office spaces that have been early terminated or assigned to a third party, of which $6.1 million and $10.2 million, respectively, were related to the write-off of right of use assets, and $1.0 million and $1.5 million, respectively, in charges associated with the write-off of property and equipment as part of the Micro Focus Acquisition Restructuring Plan. As of December 31, 2023, we expect total costs to be incurred in connection with the Micro Focus Acquisition Restructuring Plan to be approximately $160.0 million to $175.0 million, of which $123.9 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 six months ended December 31, 2023 is shown below.
Micro Focus Acquisition Restructuring Plan | Workforce reduction |  | Facility charges |  | Total
Balance payable as of June 30, 2023 | $ | 25,816 |  |  | $ | 7,276 |  |  | $ | 33,092 |
Accruals and adjustments | 33,905 |  |  | 7,527 |  |  | 41,432 |
Cash payments | (35,396) |  |  | (2,055) |  |  | (37,451) |
Foreign exchange and other non-cash adjustments | 529 |  |  | (1,703) |  |  | (1,174) |
Balance payable as of December 31, 2023 | $ | 24,854 |  |  | $ | 11,045 |  |  | $ | 35,899 |
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 relate to facility costs and workforce reductions. Facility costs include the accelerated amortization associated with the abandonment of right of use assets, the write-off of property and equipment 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 three and six months ended December 31, 2023, we recognized costs of $0.1 million and $0.2 million, respectively, related to abandoned office space that have been early terminated or assigned to a third party, of which nil related to the write-off of right of use assets. Since the inception of the Fiscal 2022 Restructuring Plan, $32.6 million has been recorded within “Special charges (recoveries)” to date. We do not expect to incur any further significant charges relating to the Fiscal 2022 Restructuring 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 six months ended December 31, 2023 is shown below.
Fiscal 2022 Restructuring Plan | Workforce reduction |  | Facility charges |  | Total
Balance payable as of June 30, 2023 | $ | 497 |  |  | $ | 3,308 |  |  | $ | 3,805 |
Accruals and adjustments | (159) |  |  | 185 |  |  | 26 |
Cash payments | (156) |  |  | (548) |  |  | (704) |
Foreign exchange and other non-cash adjustments | (6) |  |  | (112) |  |  | (118) |
Balance payable as of December 31, 2023 | $ | 176 |  |  | $ | 2,833 |  |  | $ | 3,009 |
Divestiture-related costs Divestiture-related costs recorded within “Special charges (recoveries)” include the direct costs related to the proposed divestiture of our AMC business. For the three and six months ended December 31, 2023, divestiture-related costs were $5.4 million and $7.0 million, respectively (three and six months ended December 31, 2022—nil). 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 and six months ended December 31, 2023 were $0.1 million and $1.1 million, respectively (three and six months ended December 31, 2022—$6.0 million and $10.6 million, respectively). Other charges (recoveries) For the three months ended December 31, 2023, “Other charges (recoveries)” includes $2.5 million of compensation related charges and $1.3 million of other miscellaneous charges, both associated with the Micro Focus Acquisition, and $0.5 million related to pre-acquisition equity incentives of Zix Corporation (Zix), which upon acquisition were replaced by equivalent value cash settlements (see Note 19 “Acquisitions and Divestitures”). For the six months ended December 31, 2023, “Other charges (recoveries)” includes $5.4 million of compensation related charges and $2.4 million of other miscellaneous charges, both associated with the Micro Focus Acquisition, and $0.9 million related to pre-acquisition equity incentives of Zix, which upon acquisition were replaced by equivalent value cash settlements. For the three and six months ended December 31, 2022, “Other charges” includes $3.6 million and $7.2 million, respectively, related to Zix pre-acquisition equity incentives, which upon acquisition were replaced by equivalent value cash settlements, and $(0.7) million and $(0.2) million, respectively, related to other miscellaneous charges (recoveries).

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- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
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