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,
	2017			2016			2017		2016
Fiscal 2018 Restructuring Plan	$	1,965		$	—		$	8,354	$	—
Fiscal 2017 Restructuring Plan	(942		)	761			3,422		1,856
Restructuring Plans prior to Fiscal 2017 Restructuring Plan	339			(2,627		)	256		(1,804		)
Acquisition-related costs	1,197			3,892			3,453		10,666
Other charges (recoveries)	(1,844		)	9,091			3,261		12,853
Total	$	715		$	11,117		$	18,746	$	23,571

Fiscal 2018 Restructuring Plan

During the first quarter of Fiscal 2018 and in the context of our acquisitions of Covisint and Guidance (each defined below), we began to implement restructuring activities to streamline our operations (collectively referred to as the Fiscal 2018 Restructuring Plan). The Fiscal 2018 Restructuring Plan charges relate to workforce reductions and facility consolidations. 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 December 31, 2017, we expect total costs to be incurred in conjunction with the Fiscal 2018 Restructuring Plan to be approximately $12.0 million, of which $8.4 million has already been recorded within "Special charges (recoveries)" to date.

A reconciliation of the beginning and ending liability for the six months ended December 31, 2017 is shown below.



Fiscal 2018 Restructuring Plan	Workforce reduction			Facility costs			Total
Balance payable as at June 30, 2017	$	—		$	—		$	—
Accruals and adjustments	7,535			819			8,354
Cash payments	(7,859		)	(73		)	(7,932		)
Foreign exchange and other non-cash adjustments	930			6			936
Balance payable as at December 31, 2017	$	606		$	752		$	1,358

Fiscal 2017 Restructuring Plan

During Fiscal 2017 and in the context of our acquisitions of Recommind, CCM Business and ECD Business (each as defined below), we began to implement restructuring activities to streamline our operations (collectively referred to as the Fiscal 2017 Restructuring Plan). The Fiscal 2017 Restructuring Plan charges relate to workforce reductions and facility consolidations. 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 December 31, 2017, we expect total costs to be incurred in conjunction with the Fiscal 2017 Restructuring Plan to be approximately $45.0 million, of which $37.0 million has already been recorded within "Special charges (recoveries)" to date.

A reconciliation of the beginning and ending liability for the six months ended December 31, 2017 is shown below.



Fiscal 2017 Restructuring Plan	Workforce reduction			Facility costs			Total
Balance payable as at June 30, 2017	$	10,045		$	1,369		$	11,414
Accruals and adjustments	2,880			542			3,422
Cash payments	(10,539		)	(914		)	(11,453		)
Foreign exchange and other non-cash adjustments	600			4			604
Balance payable as at December 31, 2017	$	2,986		$	1,001		$	3,987

Acquisition-related costs

Included within "Special charges (recoveries)" for the three and six months ended December 31, 2017 are costs incurred directly in relation to acquisitions in the amount of $1.2 million and $3.5 million, respectively (three and six months ended December 31, 2016—$3.9 million and $10.7 million, respectively).

Other charges (recoveries)

ERP Implementation Costs

During Fiscal 2018, we implemented a broad enterprise resource planning (ERP) system.

For the three and six months ended December 31, 2017, we recorded a recovery of $0.2 million and a charge of $3.5 million, respectively, relating to the implementation of this project (three and six months ended December 31, 2016—$2.3 million and $4.7 million, respectively).

Other charges (recoveries)

For the three months ended December 31, 2017, "Other recoveries" is primarily due to a recovery of $2.3 million relating to certain pre-acquisition sales and use tax liabilities that were recovered outside of the acquisition's one year measurement period. This recovery was partially offset by $0.7 million of miscellaneous other charges.

For the six months ended December 31, 2017, "Other charges" includes a recovery of $2.3 million relating to certain pre-acquisition sales and use tax liabilities that were recovered outside of the acquisition's one year measurement period, partially offset by $2.1 million relating to miscellaneous other charges.

For the three months ended December 31, 2016, "Other charges" primarily include (i) $8.2 million relating to commitment fees and (ii) $0.1 million relating to certain interest on pre-acquisition liabilities. These charges were partially offset by (i) a recovery of $1.4 million relating to certain pre-acquisition sales and use tax liabilities being released upon becoming statute barred and (ii) a recovery of $0.2 million relating to post-acquisition integration costs necessary to streamline an acquired company into our operations. The remaining amounts relate to miscellaneous other charges.

For the six months ended December 31, 2016, "Other charges" primarily include (i) $9.2 million relating to commitment fees and (ii) $1.1 million relating to post-acquisition integration costs necessary to streamline an acquired company into our operations. These charges were partially offset by a recovery of $2.6 million relating to certain pre-acquisition sales and use tax liabilities being released upon becoming statute barred. The remaining amounts relate to miscellaneous other charges.