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.


	Year Ended June 30,
	2026		2025		2024
Business Optimization Plan	$	96,010	$	127,924	$	—
Micro Focus Acquisition Restructuring Plan	(122)		1,549		74,267
Other historical restructuring plans	(473)		(790)		(253)
Divestiture-related costs	21,809		4,780		46,640
Acquisition-related costs	867		2,311		2,036
Other charges (recoveries)	14,929		10,116		12,615
Total	$	133,020	$	145,890	$	135,305

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 AMC Divestiture 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 June 30, 2026, we expect total costs to be incurred in connection with the Business Optimization Plan to be approximately $260.0 million, of which $223.9 million has been recorded to date. For the year ended June 30, 2026, $96.0 million, was recorded within Special charges (recoveries) within the 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 Consolidated Balance Sheets, for the year ended June 30, 2026 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	75,868		9,639		85,507
Cash payments	(78,770)		(1,725)		(80,495)
Foreign exchange and other non-cash adjustments	(750)		(4,123)		(4,873)
Balance payable as of June 30, 2026	$	44,631	$	6,637	$	51,268

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, $148.0 million has been recorded within Special charges (recoveries) within the 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 Accounts payable and accrued liabilities, for the year ended June 30, 2026 is shown below.


Micro Focus Acquisition Restructuring Plan	Workforce reduction		Facility charges		Total
Balance payable as of June 30, 2025	$	1,170	$	7,425	$	8,595
Accruals and adjustments	523		80		603
Cash payments	(1,624)		(3,719)		(5,343)
Foreign exchange and other non-cash adjustments	525		574		1,099
Balance payable as of June 30, 2026	$	594	$	4,360	$	4,954

Divestiture-related costs, recorded within Special charges (recoveries), include the direct costs of potential and completed divestitures. For the year ended June 30, 2026, divestiture-related costs were $21.8 million (year ended June 30, 2025 and 2024—$4.8 million and $46.6 million, respectively).

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, 2026 were $0.9 million (year ended June 30, 2025 and 2024—$2.3 million and $2.0 million, respectively).

For the year ended June 30, 2024, Other charges (recoveries) includes $5.5 million of compensation related charges and $5.8 million of other miscellaneous charges, both associated with the Micro Focus Acquisition and $1.3 million related to pre-acquisition equity incentives of Zix Corporation, which upon acquisition were replaced by equivalent value cash settlements.