SPECIAL CHARGES (RECOVERIES)

9 Months Ended

Mar. 31, 2025

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 and divestiture-related costs and other similar charges.


	Three Months Ended March 31,				Nine Months Ended March 31,
	2025		2024		2025		2024
Business Optimization Plan	$	2,256	$	—	$	57,106	$	—
Micro Focus Acquisition Restructuring Plan	(33)		9,597		(1,049)		61,221
Other historical restructuring plans	15		(152)		(818)		(535)
Divestiture-related costs	436		7,331		4,645		14,313
Acquisition-related costs	(143)		676		549		1,796
Other charges	1,323		2,109		5,795		10,726
Total	$	3,854	$	19,561	$	66,228	$	87,521

Business Optimization Plan

During the first quarter of Fiscal 2025, we made a strategic decision to align the Company’s workforce to support its growth and innovation plans (Business Optimization Plan). The Business Optimization Plan charges relate to workforce reductions. 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, 2025, $57.1 million has been recorded to date within Special charges (recoveries) within the Condensed Consolidated Statements of Income.

On April 29, 2025, the Board approved an expansion of the Business Optimization Plan. Please see Note 23 “Subsequent Events” for additional details.

A reconciliation of the beginning and ending restructuring liability for the Business Optimization Plan, which is included within Accounts payable and accrued liabilities in our Condensed Consolidated Balance Sheets, for the nine months ended March 31, 2025 is shown below.


Business Optimization Plan	Workforce reduction		Facility charges		Total
Balance payable as of June 30, 2024	$	—	$	—	$	—
Accruals and adjustments	54,605		1,104		55,709
Cash payments	(44,439)		(26)		(44,465)
Foreign exchange and other non-cash adjustments	30		(487)		(457)
Balance payable as of March 31, 2025	$	10,196	$	591	$	10,787

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 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.

Since the inception of the Micro Focus Acquisition Restructuring Plan, $145.5 million has been recorded within Special charges (recoveries) within the Condensed Consolidated Statements of Income to date. We do not expect to incur any further significant charges relating to the Micro Focus Acquisition Restructuring Plan.

A reconciliation of the beginning and ending restructuring liability for the Micro Focus Acquisition Restructuring Plan, which is included within Accounts payable and accrued liabilities in our Condensed Consolidated Balance Sheets, for the nine months ended March 31, 2025 is shown below.


Micro Focus Acquisition Restructuring Plan	Workforce reduction		Facility charges		Total
Balance payable as of June 30, 2024	$	11,765	$	16,326	$	28,091
Accruals and adjustments	(406)		719		313
Cash payments	(9,263)		(7,221)		(16,484)
Foreign exchange and other non-cash adjustments	79		(889)		(810)
Balance payable as of March 31, 2025	$	2,175	$	8,935	$	11,110

Divestiture-related costs

Divestiture-related costs, recorded within Special charges (recoveries), include the direct costs related to the AMC Divestiture.

Acquisition-related costs

Acquisition-related costs, recorded within Special charges (recoveries), include direct costs of potential and completed acquisitions.

Other charges

For the three and nine months ended March 31, 2025, Other charges include $1.3 million and $5.7 million, respectively, of other miscellaneous charges primarily associated with the Micro Focus Acquisition.

For the three and nine months ended March 31, 2024, Other charges include $0.1 million and $5.5 million, respectively, of compensation related charges, $1.7 million and $4.1 million, respectively, of other miscellaneous charges, both associated with the Micro Focus Acquisition, and $0.3 million and $1.2 million, respectively, related to pre-acquisition equity incentives of Zix Corporation, which upon acquisition were replaced by equivalent value cash settlements.