SPECIAL CHARGES (RECOVERIES)

3 Months Ended

Sep. 30, 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 September 30,
	2025		2024
Business Optimization Plan	$	12,269	$	42,503
Other historical restructuring plans	(590)		(1,920)
Divestiture-related costs	941		4,160
Acquisition-related costs	12		736
Other charges (recoveries)	7,507		1,657
Total	$	20,139	$	47,136

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 (the Business Optimization Plan). The Business Optimization Plan charges relate to facility costs and workforce reductions. During the fourth quarter of Fiscal 2025, the Board approved an expansion of the Business Optimization Plan to complete strategic initiatives, integration and simplification following the Micro Focus Acquisition, the divestiture of our Application Modernization and Connectivity (AMC) business (the AMC Divestiture) to Rocket Software Inc. (Rocket Software) and other growth and innovation plans including the deployment of AI and automation. This expansion includes costs associated with workforce reduction due to automation, centralization and simplification, and corresponding facility costs related to a reduction of our real estate footprint globally. 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.

As of September 30, 2025, we expect total costs to be incurred in connection with the Business Optimization Plan to be approximately $260.0 million, of which $140.2 million has been recorded to date. For the three months ended September 30, 2025, $12.3 million has been recorded within Special charges (recoveries) within the Condensed Consolidated Statements of Income. The entire Business Optimization Plan is expected to be substantially completed by the second quarter of Fiscal 2027.

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 three months ended September 30, 2025 is shown below.


Business Optimization Plan	Workforce reduction		Facility charges		Total
Balance payable as of June 30, 2025	$	48,283	$	2,846	$	51,129
Accruals and adjustments	4,893		3,019		7,912
Cash payments	(35,616)		(280)		(35,896)
Foreign exchange and other non-cash adjustments	736		(1,280)		(544)
Balance payable as of September 30, 2025	$	18,296	$	4,305	$	22,601

Divestiture-related costs

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

Acquisition-related costs

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

Other charges (recoveries)

For the three months ended September 30, 2025, Other charges (recoveries) includes $7.5 million of expenses related to severance and other miscellaneous charges.

For the three months ended September 30, 2024, Other charges (recoveries) includes $1.6 million of other miscellaneous charges and $0.1 million related to pre-acquisition equity incentives of Zix Corporation, which upon acquisition were replaced by equivalent value cash settlements.