ý
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Canada
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98-0154400
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(State or other jurisdiction
of incorporation or organization)
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(IRS Employer
Identification No.)
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275 Frank Tompa Drive,
Waterloo, Ontario, Canada
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N2L 0A1
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(Address of principal executive offices)
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(Zip code)
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Title of each class
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Name of each exchange on which registered
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Common stock without par value
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NASDAQ Global Select Market
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Page No
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Part I
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Item 1
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Business
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Item 1A
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Risk Factors
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Item 1B
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Unresolved Staff Comments
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Item 2
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Properties
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Item 3
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Legal Proceedings
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Item 4
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Mine Safety Disclosures
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Part II
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Item 5
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Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
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Item 6
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Selected Financial Data
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Item 7
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Management's Discussion and Analysis of Financial Condition and Results of Operation
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Item 7A
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Quantitative and Qualitative Disclosures about Market Risk
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Item 8
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Financial Statements and Supplementary Data
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Item 9
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Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
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Item 9A
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Controls and Procedures
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Item 9B
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Other Information
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Part III
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Item 10
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Directors, Executive Officers and Corporate Governance
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Item 11
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Executive Compensation
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Item 12
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
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Item 13
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Certain Relationships and Related Transactions, and Director Independence
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Item 14
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Principal Accountant Fees and Services
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Part IV
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Item 15
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Exhibits and Financial Statement Schedules
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Signatures
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i)
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Increased compliance with information governance resulting in reduced exposure to risk of regulatory sanctions related to how information is handled and protected;
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ii)
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Lower cost of storage and management of information through improved classification and archiving strategies;
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iii)
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Reduced infrastructure costs due to, among other factors, legacy decommissioning capabilities of EIM and cloud and hosted services deployment models;
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iv)
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Improved innovation, productivity and time-to-market as a result of letting employees, partners and customers work with information and collaborate in ways which are intuitive, automated, and flexible; and
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v)
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Increased revenue streams with the enablement of easy expansion across new channels and, ultimately, new markets.
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•
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Content Management
provides a repository for business documents (such as those created with Microsoft Office, AutoCAD and Adobe Acrobat/PDF) and allows for the organizing, displaying, classifying, access control, version control, event auditing, rendition, and search of documents and other content types.
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•
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Collaboration
offers a range of software “tools” designed to facilitate people, teams, and partners working with each other in the context of content and business processes. These tools include project and community workspaces, real-time instant messaging, instant online meetings, screen sharing, “wikis”, polls, cloud-based file sharing, blogs, and discussion forums.
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•
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Records Management
enables control of the complete lifecycle of content management by associating retention and disposition rules to control if and when content can or must be deleted or archived on storage media.
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•
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Email Management
services are designed to enable the archiving, control, and monitoring of email, regardless of platform, to reduce the size of the email database, improve email server performance, control the lifecycle of email content, and monitor email content to improve compliance.
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•
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Archiving
helps reduce storage expenses through optimization of storage use. It manages content storage policies according to business context, optimizes storage use, and provides high-end storage services to reduce future storage demands.
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•
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Business Process Management
provides the software capabilities for analyzing, automating, monitoring and optimizing routine business processes. Customers turn to our BPM offering as an alternative to custom software development tools. BPM often involves interaction with other enterprise applications, such as those from SAP and Oracle.
|
•
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Dynamic Case Management (DCM)
solutions combine workflow, content management, business rules, portal, and collaboration tools to collectively allow for the completion of an entire 'case' or unit of work. Instead of following
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•
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Smart Process Applications
are a new generation of tailored, prepackaged BPM solutions to manage both structured and unstructured processes. Each application takes advantage of process and case management, content management, capture, collaboration, analytics, customer communications, and information awareness capabilities which increase departmental (such as finance, human resources, marketing) or industry-specific (such as claims management for insurance) efficiencies.
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•
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High Volume Imaging
provides the software capabilities for digesting, classifying and managing high volumes of business documents in both paper and electronic format. These solutions are typically used in conjunction with highly structured process automation and content retrieval mechanisms.
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•
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Strategic Business Planning and Modeling
solutions
deliver a complete platform for enterprise business planning, modeling, and architecture that enable customers to implement best-practice solutions to their most pressing process and information management challenges and execute on operational planning and transformation initiatives.
|
•
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Reporting and Analytic
solutions deliver dashboard reporting capabilities designed to increase operational visibility, improve performance measurement, determine bottlenecks and identify process issues, and, ultimately, enhance overall business decision-making.
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•
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Web Content Management
provides software for authoring, maintaining, and administering websites designed to offer a “visitor experience” that integrates content from internal and external sources.
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•
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Digital Asset Management
provides a set of content management services for browsing, searching, viewing, assembling, and delivering rich media content such as images, audio and video.
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•
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Social Media
applications help companies “socialize” their web presence by adding blogs, wikis, ratings and reviews, and build communities for public websites and employee intranets.
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•
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Customer Communications Management
software uses advanced analytics capabilities that make it possible for organizations to process and deliver highly personalized documents in paper or electronic format rather than a “one message fits all” approach.
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•
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Portal
enables organizations to aggregate, integrate and personalize corporate information and applications and provide a central, contextualized, and personalized view of information for executives, departments, partners, and customers.
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•
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Mobility Solutions
provide enterprises with packaged applications for enterprise information management systems as well as a mobile application platform for customers, partners, and enterprises to create their own mobile applications and offer information search and access from smartphones, tablets, and other mobile devices.
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•
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Capture
systems convert documents from analog sources, such as paper or facsimile (fax), to electronic documents and apply value-added functions, such as optical / intelligent character recognition (OCR/ICR) and barcode scanning, and then release these documents into OpenText or third party repositories where they can be stored, managed, and searched.
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•
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EDI Services
help o
ptimize the efficiency, reliability, and reach of an enterprise's electronic supply chain while reducing costs, infrastructure and overhead.
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•
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Fax Management
systems automate business fax and electronic document distribution to improve the business impact of company information, increase employee productivity and decrease paper-based operational costs.
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•
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Managed File Transfer
tools move large files inside and outside the enterprise to address the information governance and information security challenges of exchanging digital content and sensitive intellectual property with employees, partners and customers.
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•
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Cloud-based File Sharing
helps to share and synchronize files across an organization, across teams and with business partners, while leveraging the latest smartphones and tablets to provide information on the go without sacrificing information governance or security.
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•
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Data Integration
tools
consolidate and transform data and content throughout the entire information ecosystem to increase the business impact of information and unify information channels across application boundaries.
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•
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Content Analytics
helps information-rich organizations to extract meaning, nuance and content from vast amounts of unstructured content.
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•
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Auto Classification
improves the quality of information governance through intelligent metadata extraction and accurate classification of information.
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•
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Search
addresses information security and productivity requirements by securely indexing all information for fast retrieval and real-time monitoring.
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•
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Semantic Navigation
improves the end-user experience of websites by enabling intuitive visual exploration of site content through contextual navigation.
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•
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eDiscovery
enables the in-sourcing of legal discovery processes through the ability to classify, analyze and extract relevant information in an automated fashion.
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•
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Information Access Platform
makes it possible for organizations to deal with the issue of so-called “information silos” resulting from, for instance, numerous legacy systems, multiple business applications for the same solution, in-house built systems and acquired company infrastructure. An information access platform allows organizations to consolidate, decommission, archive, migrate, or otherwise consolidate content from virtually any system or information repository.
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•
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On May 23, 2013, we acquired ICCM Professional Services Limited (ICCM), a company based in Malmesbury, United Kingdom, for
$18.9 million
. ICCM is a provider of IT service management software solutions.
|
•
|
On March 5, 2013, we acquired Resonate KT Limited (RKT), a company based in Cardiff, United Kingdom, for $20.0 million. RKT is a leading provider of software that enables organizations to visualize unstructured data, create new user experiences for ECM and xECM for SAP, as well as build industry-based applications that maximize unstructured data residing within Content Server, a key component of the OpenText ECM suite.
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•
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On July 2, 2012, we acquired EasyLink Services International Corporation (EasyLink), a company based in Georgia, USA and a global provider of cloud-based electronic messaging and business integration services for $342.3 million.
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•
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On October 31, 2011, we acquired System Solutions Australia Pty Limited (MessageManager), a software company based in Sydney, Australia for $3.3 million. MessageManager specializes in Fax over Internet Protocol (FoIP).
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•
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On September 1, 2011, we acquired Operitel Corporation (Operitel), a software company based out of Peterborough, Ontario, Canada, for $7.0 million. Operitel specializes in building enterprise “Learning Portal” solutions.
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•
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On July 13, 2011, we acquired Global 360 Holding Corp. (Global 360), a software company based in Dallas, Texas, for $256.6 million. Global 360 offers case management and document-centric business process management (BPM) solutions. The acquisition continued our expansion into the BPM market and added to our technology, talent, services, partner and geographical strengths.
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•
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On March 15, 2011, we acquired weComm Limited (weComm), based in London, United Kingdom, for $20.5 million. weComm's software platform offers deployment of media rich applications for mobile devices, including smart phones and tablets.
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•
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On February 18, 2011, we acquired Metastorm Inc. (Metastorm) for $182.0 million. Based in Baltimore, Maryland, Metastorm provides Business Process Management (BPM), Business Process Analysis (BPA), and Enterprise Architecture (EA) software that helps enterprises align their strategies with execution.
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•
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On October 27, 2010, we acquired StreamServe Inc. (StreamServe), a software company based in Burlington, Massachusetts, for $70.5 million. StreamServe offers enterprise business communication solutions that help organizations process and deliver highly personalized documents in paper or electronic format.
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•
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On May 27, 2010, we completed our acquisition of Burntsand Inc. (Burntsand) for $10.8 million. Burntsand, based in Toronto, Ontario, Canada, is a provider of technology consulting services for customers with complex information processing and information management requirements, focusing in particular in areas such as Enterprise Content Management, Collaboration and Service Management.
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•
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On April 16, 2010, we acquired for $4.0 million the key assets of New Generation Consulting, Inc., a Chicago, Illinois based professional services company that delivers content enabled solutions to various U.S. based customers. This acquisition enhanced our professional services capabilities for content enabled solutions on Oracle business applications.
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•
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On April 1, 2010, we acquired Nstein Technologies Inc. (Nstein), a software company based in Montreal, Quebec, Canada, for $33.9 million, inclusive of cash acquired, and consideration paid in OpenText shares. Nstein provides content management solutions which help enterprises centralize, understand and manage large amounts of content. Nstein's solutions include its patented “Text Mining Engine” which allows users to more easily search through different content and data.
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•
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On July 21, 2009, we acquired, by way of merger, all of the issued and outstanding shares of Vignette Corporation (Vignette), an Austin, Texas based company that provides and develops software used for managing and delivering business content for $321.4 million, inclusive of cash acquired, equity consideration provided and the fair value of shares already owned prior to acquisition date. Pursuant to the terms of the merger agreement, each share of common stock of Vignette (not already owned by OpenText) issued and outstanding immediately prior to the effective date of the merger (July 21, 2009) was converted into the right to receive $8.00 in cash and 0.1447 of one OpenText common share (equivalent to a value of $5.33 as of July 21, 2009).
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•
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In April 2009, we completed the acquisition of Toronto-based Vizible Corporation (Vizible), a privately held maker of digital media interface solutions for $0.9 million. The addition of Vizible expands our Digital Media solutions.
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•
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In July 2008, we completed the acquisition of eMotion LLC from Corbis Corporation, for $4.4 million. This acquisition enhances our capabilities in the “digital asset management” market, providing us a broader portfolio of
|
•
|
In July 2008, we completed the acquisition of substantially all of the assets of a division of Spicer Corporation, a privately held company that specializes in file format viewer solutions for desktop applications, integrated business process management (BPM) systems, and reprographics. We purchased the assets for $11.7 million.
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•
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Changes in the demand for our software products and services and for the products and services of our competitors;
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•
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The introduction or enhancement of software products and services by us and by our competitors;
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•
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Market acceptance of our software products, enhancements and/or services;
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•
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Delays in the introduction of software products, enhancements and/or services by us or by our competitors;
|
•
|
Customer order deferrals in anticipation of upgrades and new software products;
|
•
|
Changes in the lengths of sales cycles;
|
•
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Changes in our pricing policies or those of our competitors;
|
•
|
Delays in software product implementation with customers;
|
•
|
Change in the mix of distribution channels through which our software products are licensed;
|
•
|
Change in the mix of software products and services sold;
|
•
|
Change in the mix of international and North American revenues;
|
•
|
Changes in foreign currency exchange rates and LIBOR rates;
|
•
|
Acquisitions and the integration of acquired businesses;
|
•
|
Restructuring charges taken in connection with any completed acquisition or otherwise;
|
•
|
Changes in general economic and business conditions; and
|
•
|
Changes in general political developments, such as international trade policies and policies taken to stimulate or to preserve national economies.
|
•
|
Grasbrunn facility, located in Germany, totaling approximately 123,000 square feet of office and storage;
|
•
|
Richmond Hill facility, located in Ontario, Canada, totaling approximately 101,000 square feet;
|
•
|
Hyderabad facility, located in India, totaling approximately 99,000 square feet;
|
•
|
Tinton Falls facility, located in New Jersey, United States, totaling approximately 90,000 square feet;
|
•
|
Bellevue facility, located in Washington, United States, totaling approximately 55,000 square feet;
|
•
|
Ottawa facility, located in Ontario, Canada, totaling approximately 33,000 square feet;
|
•
|
Austin facility, located in Texas, United States, totaling approximately 32,000 square feet;
|
•
|
Reading facility, located in Berkshire, United Kingdom, totaling approximately 30,000 square feet;
|
•
|
Konstanz facility, located in Germany, totaling approximately 29,000 square feet;
|
•
|
Norcross facility, located in Georgia, United States, totaling approximately 22,000 square feet; and
|
•
|
Tokyo facility, located in Chiyoda-ku, Tokyo, Japan, totaling approximately 22,000 square feet
|
Item 5.
|
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
|
NASDAQ
(in USD)
|
TSX
(in CAD)
|
||
|
High
|
Low
|
High
|
Low
|
Fiscal Year Ended June 30, 2013:
|
|
|
|
|
Fourth Quarter
|
$73.77
|
$53.62
|
$75.19
|
$55.01
|
Third Quarter
|
$60.25
|
$53.53
|
$60.51
|
$55.10
|
Second Quarter
|
$58.71
|
$50.51
|
$58.31
|
$50.12
|
First Quarter
|
$57.47
|
$44.67
|
$56.30
|
$44.76
|
|
|
|
|
|
Fiscal Year Ended June 30, 2012:
|
|
|
|
|
Fourth Quarter
|
$62.70
|
$45.27
|
$62.08
|
$46.63
|
Third Quarter
|
$62.70
|
$47.99
|
$62.66
|
$48.67
|
Second Quarter
|
$61.94
|
$47.52
|
$62.83
|
$50.55
|
First Quarter
|
$72.32
|
$46.34
|
$69.15
|
$46.10
|
•
|
an index of companies in the software application industry which is maintained by Zacks Investment Research, which is the exclusive provider of Morningstar Industry data (herein referred to as the “Morningstar Index”);
|
•
|
the NASDAQ Composite Index; and
|
•
|
the S&P/TSX Composite Index.
|
|
June 30,
2008 |
June 30,
2009 |
June 30,
2010 |
June 30,
2011 |
June 30,
2012 |
June 30,
2013 |
Open Text Corporation
|
$100.00
|
$113.46
|
$116.95
|
$199.44
|
$155.45
|
$214.24
|
Morningstar Index
|
$100.00
|
$78.87
|
$96.55
|
$138.38
|
$136.32
|
$159.13
|
NASDAQ Composite
|
$100.00
|
$80.85
|
$93.76
|
$124.45
|
$133.15
|
$156.59
|
S&P/TSX Composite
|
$100.00
|
$65.15
|
$79.76
|
$106.18
|
$90.20
|
$94.17
|
Item 6.
|
Selected Financial Data
|
|
Fiscal Year Ended June 30,
|
||||||||||||||
|
2013
|
2012
|
2011
|
2010
|
2009
|
||||||||||
(In thousands, except per share data)
|
|
||||||||||||||
Statement of Income Data:
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
1,363,336
|
|
$
|
1,207,473
|
|
$
|
1,033,303
|
|
$
|
912,023
|
|
$
|
785,665
|
|
Net income
|
$
|
148,520
|
|
$
|
125,174
|
|
$
|
123,203
|
|
$
|
89,212
|
|
$
|
56,938
|
|
Net income per share, basic
|
$
|
2.53
|
|
$
|
2.16
|
|
$
|
2.16
|
|
$
|
1.59
|
|
$
|
1.09
|
|
Net income per share, diluted
|
$
|
2.51
|
|
$
|
2.13
|
|
$
|
2.11
|
|
$
|
1.55
|
|
$
|
1.07
|
|
Weighted average number of Common Shares outstanding, basic
|
58,604
|
|
57,890
|
|
57,077
|
|
56,280
|
|
52,030
|
|
|||||
Weighted average number of Common Shares outstanding, diluted
|
59,062
|
|
58,734
|
|
58,260
|
|
57,385
|
|
53,271
|
|
|
As of June 30,
|
||||||||||||||
|
2013
|
2012
|
2011
|
2010
|
2009
|
||||||||||
Balance Sheet Data:
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
2,654,817
|
|
$
|
2,444,293
|
|
$
|
1,932,363
|
|
$
|
1,715,682
|
|
$
|
1,507,236
|
|
Long-term liabilities *
|
$
|
789,726
|
|
$
|
788,107
|
|
$
|
477,545
|
|
$
|
404,912
|
|
$
|
500,070
|
|
Cash dividends per Common Share
|
$
|
0.30
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
•
|
Total revenue was
$1,363.3 million
, up
12.9%
from Fiscal 2012.
|
•
|
License revenue was
$279.6 million
, down
4.8%
from Fiscal 2012.
|
•
|
GAAP-based EPS, diluted, was
$2.51
compared to
$2.13
in Fiscal 2012.
|
•
|
Non-GAAP-based EPS, diluted, was
$5.57
compared to
$4.60
in Fiscal 2012.
|
•
|
GAAP-based operating margin was
14.5%
compared to
12.4%
in Fiscal 2012.
|
•
|
Non-GAAP-based operating margin was
29.3%
compared to
27.3%
in Fiscal 2012.
|
•
|
Operating cash flow was
$318.5 million
, up
19.5%
from Fiscal 2012.
|
•
|
Cash and cash equivalents was
$470.4 million
as of
June 30, 2013
, compared to
$559.7 million
as of
June 30, 2012
.
|
•
|
During Fiscal 2013 we declared our first ever quarterly dividend at the rate of $0.30 per Common Share, equivalent to a cash payout of approximately $17 million.
|
•
|
On May 23, 2013, we acquired ICCM Professional Services Limited (ICCM), a provider of IT service management software solutions, based in Malmesbury, United Kingdom, for
$18.9 million
.
|
•
|
On March 5, 2013, we acquired Resonate KT Limited (RKT), a company based in Cardiff, United Kingdom, for $20.0 million. RKT is a leading provider of software that enables organizations to visualize unstructured data, create new user experiences for ECM and xECM for SAP, as well as build industry based applications that maximize unstructured data residing within Content Server, a key component of the OpenText ECM suite.
|
•
|
On July 2, 2012, we acquired EasyLink Services International Corporation (EasyLink), a company based in Georgia, USA and a global provider of cloud-based electronic messaging and business integration services for $342.3 million.
|
(i)
|
Revenue recognition,
|
(ii)
|
Goodwill,
|
(iii)
|
Acquired intangibles,
|
(iv)
|
Restructuring charges,
|
(v)
|
Business combinations,
|
(vi)
|
Foreign currency, and
|
(vii)
|
Income taxes.
|
|
|
Year Ended June 30,
|
||||||||||||||||||
(In thousands)
|
|
2013
|
|
Change increase (decrease)
|
|
2012
|
|
Change increase (decrease)
|
|
2011
|
||||||||||
Total Revenues by Product Type:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
License
|
|
$
|
279,598
|
|
|
$
|
(14,121
|
)
|
|
$
|
293,719
|
|
|
$
|
24,517
|
|
|
$
|
269,202
|
|
Cloud services
|
|
173,799
|
|
|
173,799
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Customer support
|
|
658,216
|
|
|
1,648
|
|
|
656,568
|
|
|
96,027
|
|
|
560,541
|
|
|||||
Professional service and other
|
|
251,723
|
|
|
(5,463
|
)
|
|
257,186
|
|
|
53,626
|
|
|
203,560
|
|
|||||
Total revenues
|
|
1,363,336
|
|
|
155,863
|
|
|
1,207,473
|
|
|
174,170
|
|
|
1,033,303
|
|
|||||
Total Cost of Revenues
|
|
485,904
|
|
|
67,886
|
|
|
418,018
|
|
|
76,998
|
|
|
341,020
|
|
|||||
Total GAAP-based Gross Profit
|
|
877,432
|
|
|
87,977
|
|
|
789,455
|
|
|
97,172
|
|
|
692,283
|
|
|||||
Total GAAP-based Gross Margin %
|
|
64.4
|
%
|
|
|
|
65.4
|
%
|
|
|
|
67.0
|
%
|
|||||||
Total GAAP-based Operating Expenses
|
|
679,767
|
|
|
39,672
|
|
|
640,095
|
|
|
98,417
|
|
|
541,678
|
|
|||||
Total GAAP-based Income from Operations
|
|
$
|
197,665
|
|
|
$
|
48,305
|
|
|
$
|
149,360
|
|
|
$
|
(1,245
|
)
|
|
$
|
150,605
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
% Revenues by Product Type:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
License
|
|
20.5
|
%
|
|
|
|
24.3
|
%
|
|
|
|
26.1
|
%
|
|||||||
Cloud services
|
|
12.7
|
%
|
|
|
|
—
|
%
|
|
|
|
—
|
%
|
|||||||
Customer support
|
|
48.3
|
%
|
|
|
|
54.4
|
%
|
|
|
|
54.2
|
%
|
|||||||
Professional service and other
|
|
18.5
|
%
|
|
|
|
21.3
|
%
|
|
|
|
19.7
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Cost of Revenues by Product Type:
|
|
|
|
|
|
|
|
|
||||||||||||
License
|
|
$
|
16,107
|
|
|
$
|
(1,926
|
)
|
|
$
|
18,033
|
|
|
$
|
(251
|
)
|
|
$
|
18,284
|
|
Cloud services
|
|
72,365
|
|
|
72,365
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Customer support
|
|
106,948
|
|
|
(3,556
|
)
|
|
110,504
|
|
|
23,670
|
|
|
86,834
|
|
|||||
Professional service and other
|
|
196,874
|
|
|
(8,035
|
)
|
|
204,909
|
|
|
37,055
|
|
|
167,854
|
|
|||||
Amortization of acquired technology-based intangible assets
|
|
93,610
|
|
|
9,038
|
|
|
84,572
|
|
|
16,524
|
|
|
68,048
|
|
|||||
Total cost of revenues
|
|
$
|
485,904
|
|
|
$
|
67,886
|
|
|
$
|
418,018
|
|
|
$
|
76,998
|
|
|
$
|
341,020
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
% GAAP-based Gross Margin by Product Type:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
License
|
|
94.2
|
%
|
|
|
|
93.9
|
%
|
|
|
|
93.2
|
%
|
|||||||
Cloud services
|
|
58.4
|
%
|
|
|
|
N/A
|
|
|
|
|
N/A
|
|
|||||||
Customer support
|
|
83.8
|
%
|
|
|
|
83.2
|
%
|
|
|
|
84.5
|
%
|
|||||||
Professional service and other
|
|
21.8
|
%
|
|
|
|
20.3
|
%
|
|
|
|
17.5
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Revenues by Geography:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Americas (1)
|
|
$
|
734,586
|
|
|
$
|
99,126
|
|
|
$
|
635,460
|
|
|
$
|
90,739
|
|
|
$
|
544,721
|
|
EMEA (2)
|
|
492,906
|
|
|
18,488
|
|
|
474,418
|
|
|
55,069
|
|
|
419,349
|
|
|||||
Asia Pacific(3)
|
|
135,844
|
|
|
38,249
|
|
|
97,595
|
|
|
28,362
|
|
|
69,233
|
|
|||||
Total revenues
|
|
$
|
1,363,336
|
|
|
$
|
155,863
|
|
|
$
|
1,207,473
|
|
|
$
|
174,170
|
|
|
$
|
1,033,303
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
% Revenues by Geography:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Americas (1)
|
|
53.9
|
%
|
|
|
|
52.6
|
%
|
|
|
|
52.7
|
%
|
|||||||
EMEA (2)
|
|
36.1
|
%
|
|
|
|
39.3
|
%
|
|
|
|
40.6
|
%
|
|||||||
Asia Pacific (3)
|
|
10.0
|
%
|
|
|
|
8.1
|
%
|
|
|
|
6.7
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 30,
|
||||||||||||||
(In thousands)
|
|
2013
|
|
|
|
2012
|
|
|
|
2011
|
||||||
GAAP-based gross margin
|
|
64.4
|
%
|
|
|
|
65.4
|
%
|
|
|
|
67.0
|
%
|
|||
GAAP-based operating margin
|
|
14.5
|
%
|
|
|
|
12.4
|
%
|
|
|
|
14.6
|
%
|
|||
GAAP-based EPS, diluted
|
|
$
|
2.51
|
|
|
|
|
$
|
2.13
|
|
|
|
|
$
|
2.11
|
|
Non-GAAP-based gross margin (4)
|
|
71.3
|
%
|
|
|
|
72.5
|
%
|
|
|
|
73.6
|
%
|
|||
Non-GAAP-based operating margin (4)
|
|
29.3
|
%
|
|
|
|
27.3
|
%
|
|
|
|
27.5
|
%
|
|||
Non-GAAP-based EPS, diluted (4)
|
|
$
|
5.57
|
|
|
|
|
$
|
4.60
|
|
|
|
|
$
|
4.07
|
|
(1)
|
Americas primarily consists of countries in North, Central and South America.
|
(2)
|
EMEA primarily consists of countries in Europe, Africa and the United Arab Emirates.
|
(3)
|
Asia Pacific primarily consists of the countries Japan, Australia, Hong Kong, Singapore and New Zealand
|
(4)
|
See "Use of Non-GAAP Financial Measures" (discussed later in the MD&A) for a reconciliation of Non-GAAP-based measures to GAAP-based measures
|
|
|
Year Ended June 30,
|
||||||||||||||||||
(In thousands)
|
|
2013
|
|
Change increase (decrease)
|
|
2012
|
|
Change increase (decrease)
|
|
2011
|
||||||||||
License Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Americas
|
|
$
|
133,936
|
|
|
$
|
(11,757
|
)
|
|
$
|
145,693
|
|
|
$
|
5,738
|
|
|
$
|
139,955
|
|
EMEA
|
|
116,208
|
|
|
(4,645
|
)
|
|
120,853
|
|
|
10,114
|
|
|
110,739
|
|
|||||
Asia Pacific
|
|
29,454
|
|
|
2,281
|
|
|
27,173
|
|
|
8,665
|
|
|
18,508
|
|
|||||
Total License Revenues
|
|
279,598
|
|
|
(14,121
|
)
|
|
293,719
|
|
|
24,517
|
|
|
269,202
|
|
|||||
Cost of License Revenues
|
|
16,107
|
|
|
(1,926
|
)
|
|
18,033
|
|
|
(251
|
)
|
|
18,284
|
|
|||||
GAAP-based License Gross Profit
|
|
$
|
263,491
|
|
|
$
|
(12,195
|
)
|
|
$
|
275,686
|
|
|
$
|
24,768
|
|
|
$
|
250,918
|
|
GAAP-based License Gross Margin %
|
|
94.2
|
%
|
|
|
|
93.9
|
%
|
|
|
|
93.2
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
% License Revenues by Geography:
|
|
|
|
|
|
|
|
|
||||||||||||
Americas
|
|
47.9
|
%
|
|
|
|
49.6
|
%
|
|
|
|
52.0
|
%
|
|||||||
EMEA
|
|
41.6
|
%
|
|
|
|
41.1
|
%
|
|
|
|
41.1
|
%
|
|||||||
Asia Pacific
|
|
10.5
|
%
|
|
|
|
9.3
|
%
|
|
|
|
6.9
|
%
|
|
|
Year Ended June 30,
|
|||||||||||||||||
(In thousands)
|
|
2013
|
|
Change increase (decrease)
|
|
2012
|
|
Change increase (decrease)
|
|
2011
|
|||||||||
Cloud Services:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Americas
|
|
$
|
112,725
|
|
|
N/A
|
|
|
N/A
|
|
|
—
|
|
|
N/A
|
|
|||
EMEA
|
|
26,248
|
|
|
N/A
|
|
|
N/A
|
|
|
—
|
|
|
N/A
|
|
||||
Asia Pacific
|
|
34,826
|
|
|
N/A
|
|
|
N/A
|
|
|
—
|
|
|
N/A
|
|
||||
Total Cloud Services Revenues
|
|
173,799
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Cost of Cloud Services Revenues
|
|
72,365
|
|
|
N/A
|
|
|
N/A
|
|
|
—
|
|
|
N/A
|
|
||||
GAAP-based Cloud Services Gross Profit
|
|
$
|
101,434
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
GAAP-based Cloud Services Gross Margin %
|
|
58.4
|
%
|
|
|
|
N/A
|
|
|
|
|
N/A
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
% Cloud Services Revenues by Geography:
|
|
|
|
|
|
|
|||||||||||||
Americas
|
|
64.9
|
%
|
|
|
|
N/A
|
|
|
|
|
N/A
|
|
||||||
EMEA
|
|
15.1
|
%
|
|
|
|
N/A
|
|
|
|
|
N/A
|
|
||||||
Asia Pacific
|
|
20.0
|
%
|
|
|
|
N/A
|
|
|
|
|
N/A
|
|
|
|
Year Ended June 30,
|
||||||||||||||||||
(In thousands)
|
|
2013
|
|
Change increase (decrease)
|
|
2012
|
|
Change increase (decrease)
|
|
2011
|
||||||||||
Customer Support Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Americas
|
|
$
|
354,859
|
|
|
$
|
1,888
|
|
|
$
|
352,971
|
|
|
$
|
53,285
|
|
|
$
|
299,686
|
|
EMEA
|
|
251,543
|
|
|
(2,996
|
)
|
|
254,539
|
|
|
31,617
|
|
|
222,922
|
|
|||||
Asia Pacific
|
|
51,814
|
|
|
2,756
|
|
|
49,058
|
|
|
11,125
|
|
|
37,933
|
|
|||||
Total Customer Support Revenues
|
|
658,216
|
|
|
1,648
|
|
|
656,568
|
|
|
96,027
|
|
|
560,541
|
|
|||||
Cost of Customer Support Revenues
|
|
106,948
|
|
|
(3,556
|
)
|
|
110,504
|
|
|
23,670
|
|
|
86,834
|
|
|||||
GAAP-based Customer Support Gross Profit
|
|
$
|
551,268
|
|
|
$
|
5,204
|
|
|
$
|
546,064
|
|
|
$
|
72,357
|
|
|
$
|
473,707
|
|
GAAP-based Customer Support Gross Margin %
|
|
83.8
|
%
|
|
|
|
83.2
|
%
|
|
|
|
84.5
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
% Customer Support Revenues by Geography:
|
|
|
|
|
|
|
||||||||||||||
Americas
|
|
53.9
|
%
|
|
|
|
53.8
|
%
|
|
|
|
53.5
|
%
|
|||||||
EMEA
|
|
38.2
|
%
|
|
|
|
38.8
|
%
|
|
|
|
39.8
|
%
|
|||||||
Asia Pacific
|
|
7.9
|
%
|
|
|
|
7.4
|
%
|
|
|
|
6.7
|
%
|
|
|
Year Ended June 30,
|
||||||||||||||||||
(In thousands)
|
|
2013
|
|
Change increase (decrease)
|
|
2012
|
|
Change increase (decrease)
|
|
2011
|
||||||||||
Professional Service and Other Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Americas
|
|
$
|
133,074
|
|
|
$
|
(3,722
|
)
|
|
$
|
136,796
|
|
|
$
|
31,716
|
|
|
$
|
105,080
|
|
EMEA
|
|
98,899
|
|
|
(127
|
)
|
|
99,026
|
|
|
13,338
|
|
|
85,688
|
|
|||||
Asia Pacific
|
|
19,750
|
|
|
(1,614
|
)
|
|
21,364
|
|
|
8,572
|
|
|
12,792
|
|
|||||
Total Professional Service and Other Revenues
|
|
251,723
|
|
|
(5,463
|
)
|
|
257,186
|
|
|
53,626
|
|
|
203,560
|
|
|||||
Cost of Professional Service and Other Revenues
|
|
196,874
|
|
|
(8,035
|
)
|
|
204,909
|
|
|
37,055
|
|
|
167,854
|
|
|||||
GAAP-based Professional Service and Other Gross Profit
|
|
$
|
54,849
|
|
|
$
|
2,572
|
|
|
$
|
52,277
|
|
|
$
|
16,571
|
|
|
$
|
35,706
|
|
GAAP-based Professional Service and Other Gross Margin %
|
|
21.8
|
%
|
|
|
|
20.3
|
%
|
|
|
|
17.5
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
% Professional Service and Other Revenues by Geography:
|
|
|
|
|
|
|
||||||||||||||
Americas
|
|
52.9
|
%
|
|
|
|
53.2
|
%
|
|
|
|
51.6
|
%
|
|||||||
EMEA
|
|
39.3
|
%
|
|
|
|
38.5
|
%
|
|
|
|
42.1
|
%
|
|||||||
Asia Pacific
|
|
7.8
|
%
|
|
|
|
8.3
|
%
|
|
|
|
6.3
|
%
|
|
|
Year Ended June 30,
|
||||||||||||||||||
(In thousands)
|
|
2013
|
|
Change increase (decrease)
|
|
2012
|
|
Change increase (decrease)
|
|
2011
|
||||||||||
Amortization of acquired technology-based intangible assets
|
|
$
|
93,610
|
|
|
$
|
9,038
|
|
|
$
|
84,572
|
|
|
$
|
16,524
|
|
|
$
|
68,048
|
|
|
|
Year Ended June 30,
|
||||||||||||||||||
(In thousands)
|
|
2013
|
|
Change increase (decrease)
|
|
2012
|
|
Change increase (decrease)
|
|
2011
|
||||||||||
Research and development
|
|
$
|
164,010
|
|
|
$
|
(5,033
|
)
|
|
$
|
169,043
|
|
|
$
|
23,051
|
|
|
$
|
145,992
|
|
Sales and marketing
|
|
289,157
|
|
|
14,613
|
|
|
274,544
|
|
|
42,212
|
|
|
232,332
|
|
|||||
General and administrative
|
|
109,325
|
|
|
12,253
|
|
|
97,072
|
|
|
10,376
|
|
|
86,696
|
|
|||||
Depreciation
|
|
24,496
|
|
|
2,909
|
|
|
21,587
|
|
|
(529
|
)
|
|
22,116
|
|
|||||
Amortization of acquired customer-based intangible assets
|
|
68,745
|
|
|
15,419
|
|
|
53,326
|
|
|
14,360
|
|
|
38,966
|
|
|||||
Special charges
|
|
24,034
|
|
|
(489
|
)
|
|
24,523
|
|
|
8,947
|
|
|
15,576
|
|
|||||
Total operating expenses
|
|
$
|
679,767
|
|
|
$
|
39,672
|
|
|
$
|
640,095
|
|
|
$
|
98,417
|
|
|
$
|
541,678
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
% of Total Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Research and development
|
|
12.0
|
%
|
|
|
|
14.0
|
%
|
|
|
|
14.1
|
%
|
|||||||
Sales and marketing
|
|
21.2
|
%
|
|
|
|
22.7
|
%
|
|
|
|
22.5
|
%
|
|||||||
General and administrative
|
|
8.0
|
%
|
|
|
|
8.0
|
%
|
|
|
|
8.4
|
%
|
|||||||
Depreciation
|
|
1.8
|
%
|
|
|
|
1.8
|
%
|
|
|
|
2.1
|
%
|
|||||||
Amortization of acquired customer-based intangible assets
|
|
5.0
|
%
|
|
|
|
4.4
|
%
|
|
|
|
3.8
|
%
|
|||||||
Special charges
|
|
1.8
|
%
|
|
|
|
2.0
|
%
|
|
|
|
1.5
|
%
|
|
|
Year-over-Year Change between Fiscal
|
||||||
(In thousands)
|
|
2013 and 2012
|
|
2012 and 2011
|
||||
Payroll and payroll-related benefits
|
|
$
|
(594
|
)
|
|
$
|
17,875
|
|
Contract labour and consulting
|
|
(4,715
|
)
|
|
(295
|
)
|
||
Share based compensation
|
|
(2,106
|
)
|
|
1,325
|
|
||
Travel and communication
|
|
(1,453
|
)
|
|
(27
|
)
|
||
Facilities
|
|
(2,874
|
)
|
|
3,716
|
|
||
Other miscellaneous
|
|
6,709
|
|
|
457
|
|
||
Total year-over-year change in research and development expenses
|
|
$
|
(5,033
|
)
|
|
$
|
23,051
|
|
|
|
Year-over-Year Change between Fiscal
|
||||||
(In thousands)
|
|
2013 and 2012
|
|
2012 and 2011
|
||||
Payroll and payroll-related benefits
|
|
$
|
16,632
|
|
|
$
|
24,721
|
|
Commissions
|
|
(16,385
|
)
|
|
8,836
|
|
||
Contract labour and consulting
|
|
(2,258
|
)
|
|
(837
|
)
|
||
Share based compensation
|
|
(361
|
)
|
|
3,244
|
|
||
Travel and communication
|
|
2,459
|
|
|
3,391
|
|
||
Marketing expenses
|
|
13,148
|
|
|
1,388
|
|
||
Facilities
|
|
2,739
|
|
|
2,274
|
|
||
Other miscellaneous
|
|
(1,361
|
)
|
|
(805
|
)
|
||
Total year-over-year change in sales and marketing expenses
|
|
$
|
14,613
|
|
|
$
|
42,212
|
|
|
|
Year-over-Year Change between Fiscal
|
||||||
(In thousands)
|
|
2013 and 2012
|
|
2012 and 2011
|
||||
Payroll and payroll-related benefits
|
|
$
|
8,040
|
|
|
$
|
6,881
|
|
Contract labour and consulting
|
|
(1,359
|
)
|
|
(350
|
)
|
||
Share based compensation
|
|
(593
|
)
|
|
1,882
|
|
||
Travel and communication
|
|
3,052
|
|
|
167
|
|
||
Facilities
|
|
(1,569
|
)
|
|
331
|
|
||
Other miscellaneous
|
|
4,682
|
|
|
1,465
|
|
||
Total year-over-year change in general and administrative expenses
|
|
$
|
12,253
|
|
|
$
|
10,376
|
|
|
|
Year Ended June 30,
|
||||||||||||||||||
(In thousands)
|
|
2013
|
|
Change increase (decrease)
|
|
2012
|
|
Change increase (decrease)
|
|
2011
|
||||||||||
Depreciation
|
|
$
|
24,496
|
|
|
$
|
2,909
|
|
|
$
|
21,587
|
|
|
$
|
(529
|
)
|
|
$
|
22,116
|
|
|
|
Year Ended June 30,
|
||||||||||||||||||
(In thousands)
|
|
2013
|
|
Change increase (decrease)
|
|
2012
|
|
Change increase (decrease)
|
|
2011
|
||||||||||
Amortization of acquired customer-based intangible assets
|
|
$
|
68,745
|
|
|
$
|
15,419
|
|
|
$
|
53,326
|
|
|
$
|
14,360
|
|
|
$
|
38,966
|
|
|
|
Year Ended June 30,
|
||||||||||||||||||
(In thousands)
|
|
2013
|
|
Change increase (decrease)
|
|
2012
|
|
Change increase (decrease)
|
|
2011
|
||||||||||
Special charges
|
|
$
|
24,034
|
|
|
$
|
(489
|
)
|
|
$
|
24,523
|
|
|
$
|
8,947
|
|
|
$
|
15,576
|
|
|
|
Year Ended June 30,
|
||||||||||||||||||
(In thousands)
|
|
2013
|
|
Change increase (decrease)
|
|
2012
|
|
Change increase (decrease)
|
|
2011
|
||||||||||
Other income (expense), net
|
|
$
|
(2,473
|
)
|
|
$
|
(6,022
|
)
|
|
$
|
3,549
|
|
|
$
|
9,568
|
|
|
$
|
(6,019
|
)
|
|
|
Year Ended June 30,
|
||||||||||||||||||
(In thousands)
|
|
2013
|
|
Change increase (decrease)
|
|
2012
|
|
Change increase (decrease)
|
|
2011
|
||||||||||
Interest expense, net
|
|
$
|
16,982
|
|
|
$
|
1,418
|
|
|
$
|
15,564
|
|
|
$
|
7,112
|
|
|
$
|
8,452
|
|
|
|
Year Ended June 30,
|
||||||||||||||||||
(In thousands)
|
|
2013
|
|
Change increase (decrease)
|
|
2012
|
|
Change increase (decrease)
|
|
2011
|
||||||||||
Provision for income taxes
|
|
$
|
29,690
|
|
|
$
|
17,519
|
|
|
$
|
12,171
|
|
|
$
|
(760
|
)
|
|
$
|
12,931
|
|
|
Year ended June 30, 2013
|
|||||||||||
|
GAAP-based Measures
|
GAAP-based Measures % of Revenue
|
Adjustments
|
Note
|
Non-GAAP-based Measures
|
Non-GAAP-based Measures % of Revenue
|
||||||
Cost of revenues
|
|
|
|
|
|
|
||||||
Cloud services
|
$
|
72,365
|
|
|
$
|
(128
|
)
|
(1)
|
$
|
72,237
|
|
|
Customer support
|
106,948
|
|
|
(434
|
)
|
(1)
|
106,514
|
|
|
|||
Professional service and other
|
196,874
|
|
|
(915
|
)
|
(1)
|
195,959
|
|
|
|||
Amortization of acquired technology-based intangible assets
|
93,610
|
|
|
(93,610
|
)
|
(2)
|
—
|
|
|
|||
GAAP-based gross profit and gross margin (%) /
Non-GAAP-based gross profit and gross margin (%)
|
877,432
|
|
64.4%
|
95,087
|
|
(3)
|
972,519
|
|
71.3%
|
|||
Operating Expenses
|
|
|
|
|
|
|
||||||
Research and development
|
164,010
|
|
|
(1,693
|
)
|
(1)
|
162,317
|
|
|
|||
Sales and marketing
|
289,157
|
|
|
(8,429
|
)
|
(1)
|
280,728
|
|
|
|||
General and administrative
|
109,325
|
|
|
(3,976
|
)
|
(1)
|
105,349
|
|
|
|||
Amortization of acquired customer-based intangible assets
|
68,745
|
|
|
(68,745
|
)
|
(2)
|
—
|
|
|
|||
Special charges
|
24,034
|
|
|
(24,034
|
)
|
(4)
|
—
|
|
|
|||
GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%)
|
197,665
|
|
14.5%
|
201,964
|
|
(5)
|
399,629
|
|
29.3%
|
|||
Other income (expense), net
|
(2,473
|
)
|
|
2,473
|
|
(6)
|
—
|
|
|
|||
Provision for (recovery of) income taxes
|
29,690
|
|
|
23,881
|
|
(7)
|
53,571
|
|
|
|||
GAAP-based net income / Non-GAAP-based net income
|
148,520
|
|
|
180,556
|
|
(8)
|
329,076
|
|
|
|||
GAAP-based earnings per share /
Non GAAP-based earnings per share-diluted
|
$
|
2.51
|
|
|
$
|
3.06
|
|
(8)
|
$
|
5.57
|
|
|
(1)
|
Adjustment relates to the exclusion of share based compensation expense from our non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.
|
(2)
|
Adjustment relates to the exclusion of amortization expense from our non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.
|
(3)
|
GAAP-based and Non GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of revenue.
|
(4)
|
Adjustment relates to the exclusion of Special charges from our non-GAAP-based operating expenses as Special charges are generally incurred in the periods following the acquisitions and are not indicative or related to continuing operations and are therefore excluded from our internal analysis of operating results.
|
(5)
|
GAAP-based and Non GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of revenue.
|
(6)
|
Adjustment relates to the exclusion of Other income (expense) from our non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results.
|
(7)
|
Adjustment relates to differences between the GAAP-based tax provision (recovery) and a non-GAAP-based tax rate; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating non-GAAP-based adjusted net income.
|
(8)
|
Reconciliation of non-GAAP-based adjusted net income to GAAP-based net income:
|
|
Year ended June 30, 2013
|
|||||
|
|
Per share diluted
|
||||
Non-GAAP-based net income
|
$
|
329,076
|
|
$
|
5.57
|
|
Less:
|
|
|
||||
Amortization
|
162,355
|
|
2.75
|
|
||
Share-based compensation
|
15,575
|
|
0.26
|
|
||
Special charges
|
24,034
|
|
0.41
|
|
||
Other (income) expense, net
|
2,473
|
|
0.04
|
|
||
GAAP-based provision for (recovery of) income taxes
|
29,690
|
|
0.50
|
|
||
Non-GAAP based provision for income taxes
|
(53,571
|
)
|
(0.90
|
)
|
||
GAAP-based net income
|
$
|
148,520
|
|
$
|
2.51
|
|
|
Year ended June 30, 2012
|
|||||||||||
|
GAAP-based Measures
|
GAAP-based Measures % of Revenue
|
Adjustments
|
Note
|
Non-GAAP-based Measures
|
Non-GAAP-based Measures % of Revenue
|
||||||
Cost of revenues
|
|
|
|
|
|
|
||||||
Customer support
|
$
|
110,504
|
|
|
$
|
(169
|
)
|
(1)
|
$
|
110,335
|
|
|
Professional service and other
|
204,909
|
|
|
(647
|
)
|
(1)
|
204,262
|
|
|
|||
Amortization of acquired technology-based intangible assets
|
84,572
|
|
|
(84,572
|
)
|
(2)
|
—
|
|
|
|||
GAAP-based gross profit and gross margin (%) /
Non-GAAP-based gross profit and gross margin (%)
|
789,455
|
|
65.4%
|
85,388
|
|
(3)
|
874,843
|
|
72.5%
|
|||
Operating Expenses
|
|
|
|
|
|
|
||||||
Research and development
|
169,043
|
|
|
(3,939
|
)
|
(1)
|
165,104
|
|
|
|||
Sales and marketing
|
274,544
|
|
|
(8,811
|
)
|
(1)
|
265,733
|
|
|
|||
General and administrative
|
97,072
|
|
|
(4,531
|
)
|
(1)
|
92,541
|
|
|
|||
Amortization of acquired customer-based intangible assets
|
53,326
|
|
|
(53,326
|
)
|
(2)
|
—
|
|
|
|||
Special charges
|
24,523
|
|
|
(24,523
|
)
|
(4)
|
—
|
|
|
|||
GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%)
|
149,360
|
|
12.4%
|
180,518
|
|
(5)
|
329,878
|
|
27.3%
|
|||
Other income (expense), net
|
3,549
|
|
|
(3,549
|
)
|
(6)
|
—
|
|
|
|||
Provision for (recovery of) income taxes
|
12,171
|
|
|
31,833
|
|
(7)
|
44,004
|
|
|
|||
GAAP-based net income / Non-GAAP-based net income
|
125,174
|
|
|
145,136
|
|
(8)
|
270,310
|
|
|
|||
GAAP-based earnings per share /
Non GAAP-based earnings per share-diluted
|
$
|
2.13
|
|
|
$
|
2.47
|
|
(8)
|
$
|
4.60
|
|
|
(1)
|
Adjustment relates to the exclusion of share based compensation expense from our non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.
|
(2)
|
Adjustment relates to the exclusion of amortization expense from our non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.
|
(3)
|
GAAP-based and Non GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of revenue.
|
(4)
|
Adjustment relates to the exclusion of Special charges from our non-GAAP-based operating expenses as Special charges are generally incurred in the periods following the acquisitions and are not indicative or related to continuing operations and are therefore excluded from our internal analysis of operating results.
|
(5)
|
GAAP-based and Non GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of revenue.
|
(6)
|
Adjustment relates to the exclusion of Other income (expense) from our non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results.
|
(7)
|
Adjustment relates to differences between the GAAP-based tax provision (recovery) and a non-GAAP-based tax rate; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating non-GAAP-based adjusted net income.
|
(8)
|
Reconciliation of non-GAAP-based adjusted net income to GAAP-based net income:
|
|
Year ended June 30, 2012
|
|||||
|
|
Per share diluted
|
||||
Non-GAAP-based net income
|
$
|
270,310
|
|
$
|
4.60
|
|
Less:
|
|
|
||||
Amortization
|
137,898
|
|
2.35
|
|
||
Share-based compensation
|
18,097
|
|
0.31
|
|
||
Special charges
|
24,523
|
|
0.42
|
|
||
Other (income) expense, net
|
(3,549
|
)
|
(0.06
|
)
|
||
GAAP-based provision for (recovery of) income taxes
|
12,171
|
|
0.21
|
|
||
Non-GAAP based provision for income taxes
|
(44,004
|
)
|
(0.76
|
)
|
||
GAAP-based net income
|
$
|
125,174
|
|
$
|
2.13
|
|
|
Year ended June 30, 2011
|
|||||||||||
|
GAAP-based Measures
|
GAAP-based Measures % of Revenue
|
Adjustments
|
Note
|
Non-GAAP-based Measures
|
Non-GAAP-based Measures % of Revenue
|
||||||
Cost of revenues
|
|
|
|
|
|
|
||||||
Customer support
|
$
|
86,834
|
|
|
$
|
(47
|
)
|
(1)
|
$
|
86,787
|
|
|
Professional service and other
|
167,854
|
|
|
(432
|
)
|
(1)
|
167,422
|
|
|
|||
Amortization of acquired technology-based intangible assets
|
68,048
|
|
|
(68,048
|
)
|
(2)
|
—
|
|
|
|||
GAAP-based gross profit and gross margin (%) /
Non-GAAP-based gross profit and gross margin (%) |
692,283
|
|
67.0%
|
68,527
|
|
(3)
|
760,810
|
|
73.6%
|
|||
Operating Expenses
|
|
|
|
|
|
|
||||||
Research and development
|
145,992
|
|
|
(2,614
|
)
|
(1)
|
143,378
|
|
|
|||
Sales and marketing
|
232,332
|
|
|
(5,568
|
)
|
(1)
|
226,764
|
|
|
|||
General and administrative
|
86,696
|
|
|
(2,648
|
)
|
(1)
|
84,048
|
|
|
|||
Amortization of acquired customer-based intangible assets
|
38,966
|
|
|
(38,966
|
)
|
(2)
|
—
|
|
|
|||
Special charges
|
15,576
|
|
|
(15,576
|
)
|
(4)
|
—
|
|
|
|||
GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%)
|
150,605
|
|
14.6%
|
133,899
|
|
(5)
|
284,504
|
|
27.5%
|
|||
Other income (expense), net
|
(6,019
|
)
|
|
6,019
|
|
(6)
|
—
|
|
|
|||
Provision for (recovery of) income taxes
|
12,931
|
|
|
25,716
|
|
(7)
|
38,647
|
|
|
|||
GAAP-based net income / Non-GAAP-based net income
|
123,203
|
|
|
114,202
|
|
(8)
|
237,405
|
|
|
|||
GAAP-based earnings per share /
Non GAAP-based earnings per share-diluted |
$
|
2.11
|
|
|
$
|
1.96
|
|
(8)
|
$
|
4.07
|
|
|
(1)
|
Adjustment relates to the exclusion of share based compensation expense from our non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.
|
(2)
|
Adjustment relates to the exclusion of amortization expense from our non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.
|
(3)
|
GAAP-based and Non GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of revenue.
|
(4)
|
Adjustment relates to the exclusion of Special charges from our non-GAAP-based operating expenses as Special charges are generally incurred in the periods following the acquisitions and are not indicative or related to continuing operations and are therefore excluded from our internal analysis of operating results.
|
(5)
|
GAAP-based and Non GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of revenue.
|
(6)
|
Adjustment relates to the exclusion of Other income (expense) from our non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results.
|
(7)
|
Adjustment relates to differences between the GAAP-based tax provision (recovery) and a non-GAAP-based tax rate; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating non-GAAP-based adjusted net income.
|
(8)
|
Reconciliation of non-GAAP-based adjusted net income to GAAP-based net income:
|
|
Year ended June 30, 2011
|
|||||
|
|
Per share diluted
|
||||
Non-GAAP-based net income
|
$
|
237,405
|
|
$
|
4.07
|
|
Less:
|
|
|
||||
Amortization
|
107,014
|
|
1.84
|
|
||
Share-based compensation
|
11,309
|
|
0.19
|
|
||
Special charges
|
15,576
|
|
0.27
|
|
||
Other (income) expense, net
|
6,019
|
|
0.10
|
|
||
GAAP-based provision for (recovery of) income taxes
|
12,931
|
|
0.22
|
|
||
Non-GAAP based provision for income taxes
|
(38,647
|
)
|
(0.66
|
)
|
||
GAAP-based net income
|
$
|
123,203
|
|
$
|
2.11
|
|
|
|
As of June 30,
|
||||||||||||||
(In thousands)
|
|
2013
|
Change increase (decrease)
|
2012
|
Change increase (decrease)
|
2011
|
||||||||||
Cash and cash equivalents
|
|
$
|
470,445
|
|
$
|
(89,302
|
)
|
$
|
559,747
|
|
$
|
275,607
|
|
$
|
284,140
|
|
|
|
Year Ended June 30,
|
||||||||||||||
(In thousands)
|
|
2013
|
Change
|
2012
|
Change
|
2011
|
||||||||||
Cash provided by operating activities
|
|
$
|
318,502
|
|
$
|
52,012
|
|
$
|
266,490
|
|
$
|
43,269
|
|
$
|
223,221
|
|
Cash used in investing activities
|
|
$
|
(374,394
|
)
|
$
|
(92,855
|
)
|
$
|
(281,539
|
)
|
$
|
5,729
|
|
$
|
(287,268
|
)
|
Cash provided by (used in) financing activities
|
|
$
|
(31,118
|
)
|
$
|
(333,702
|
)
|
$
|
302,584
|
|
$
|
305,287
|
|
$
|
(2,703
|
)
|
|
Fiscal years ending
June 30,
|
|
|
2014
|
$
|
535
|
|
2015
|
591
|
|
|
2016
|
654
|
|
|
2017
|
728
|
|
|
2018
|
780
|
|
|
2019 to 2023
|
5,137
|
|
|
Total
|
$
|
8,425
|
|
|
Payments due between
|
||||||||||||||||||
(In thousands)
|
Total
|
|
Period ending
June 30, 2014 |
|
July 1, 2014—
June 30, 2016 |
|
July 1, 2016—
June 30, 2018 |
|
July 1,
2018 and beyond |
||||||||||
Long-term debt obligations
|
$
|
604,886
|
|
|
$
|
65,092
|
|
|
$
|
124,367
|
|
|
$
|
415,427
|
|
|
$
|
—
|
|
Operating lease obligations*
|
157,876
|
|
|
35,894
|
|
|
56,032
|
|
|
33,496
|
|
|
32,454
|
|
|||||
Purchase obligations
|
7,778
|
|
|
4,605
|
|
|
2,864
|
|
|
309
|
|
|
—
|
|
|||||
|
$
|
770,540
|
|
|
$
|
105,591
|
|
|
$
|
183,263
|
|
|
$
|
449,232
|
|
|
$
|
32,454
|
|
(In thousands)
|
|
U.S. Dollar
Equivalent at
June 30,
|
||||||
|
|
2013
|
|
2012
|
||||
Canadian Dollar
|
|
$
|
7,942
|
|
|
$
|
16,050
|
|
Swiss Franc
|
|
6,303
|
|
|
9,560
|
|
||
Euro
|
|
102,104
|
|
|
71,560
|
|
||
British Pound
|
|
24,925
|
|
|
11,350
|
|
||
Other foreign currencies
|
|
59,959
|
|
|
27,597
|
|
||
Total cash and cash equivalents denominated in foreign currencies
|
|
201,233
|
|
|
136,117
|
|
||
U.S. dollar
|
|
269,212
|
|
|
423,630
|
|
||
Total cash and cash equivalents
|
|
$
|
470,445
|
|
|
$
|
559,747
|
|
Name
|
Age
|
Office and Position Currently Held With Company
|
P. Thomas Jenkins*
|
53
|
Chairman of the Board
|
Mark J. Barrenechea
|
48
|
President and Chief Executive Officer, Director
|
Paul McFeeters
|
58
|
Chief Financial Officer and Chief Administrative Officer
|
Randy Fowlie (2)(3)
|
53
|
Director
|
Brian J. Jackman (1)
|
72
|
Director
|
Stephen J. Sadler
|
62
|
Director
|
Michael Slaunwhite (1)(3)
|
52
|
Director
|
Gail E. Hamilton (2)
|
63
|
Director
|
Katharine B. Stevenson (2)
|
51
|
Director
|
Deborah Weinstein (1)(3)
|
53
|
Director
|
Gordon A. Davies
|
51
|
Chief Legal Officer and Corporate Secretary
|
Sujeet Kini
|
51
|
Chief Accounting Officer
|
Kevin Cochrane
|
40
|
Chief Marketing Officer
|
James McGourlay
|
44
|
Senior Vice President, Worldwide Customer Service
|
Gary Weiss
|
46
|
Senior Vice President, Portfolio Group
|
James Mackey
|
42
|
Senior Vice President, Corporate Development
|
Walter Kohler
|
49
|
Senior Vice President, Worldwide Professional Services
|
Muhi Majzoub
|
53
|
SVP, Engineering
|
Manuel Sousa
|
54
|
SVP, Global Human Resources
|
*
|
Effective August 1, 2013, Mr. Jenkins' title is Chairman of the Board. For more details, see Item 9B of this Annual Report on Form 10-K.
|
(1)
|
Member of the Compensation Committee.
|
(2)
|
Member of the Audit Committee.
|
(3)
|
Member of the Corporate Governance and Nominating Committee.
|
•
|
Mark Barrenechea - President and Chief Executive Officer (CEO)
|
•
|
Paul McFeeters - Chief Financial Officer and Chief Administrative Officer (CFO)
|
•
|
P. Thomas Jenkins - Executive Chairman and Chief Strategy Officer (Executive Chairman)*
|
•
|
James Mackey - Senior Vice President, Corporate Development
|
•
|
Gordon A. Davies - Chief Legal Officer and Corporate Secretary
|
•
|
Executive Compensation Review
- In April 2012, Mercer benchmarked our compensation practices and policies with respect to our eleven most senior positions against similar-sized Canadian and U.S. technology companies in order to allow us to place our compensation practices for these eleven positions in a market context. This benchmarking included a review of base salary, short-term incentives, total cash compensation levels, long-term incentives and total direct compensation. See below for a more detailed discussion of the peer group used for this benchmarking. This information was used to inform compensation decisions in Fiscal 2013.
|
•
|
Long-Term Incentive Plan
- Mercer provided assistance in reviewing our existing Long-Term Incentive Plan (LTIP) and assisted in the development of the sixth phase of our LTIP, including confirmation of the constituent companies to be included in the performance peer group. Similar to the previous fiscal year, Mercer was asked to review our granting practices under the LTIP and compare these granting practices to the grants made under other long-term incentive plans implemented by comparable companies throughout North America.
|
•
|
Share Ownership Guidelines
- Mercer provided market research assistance in reviewing the reasonableness of our executive share ownership guidelines with respect to levels and the time to achieve them. Mercer was asked to review our share ownership guidelines relative to those of comparable companies throughout North America.
|
(in thousands)
|
Fiscal 2013
|
|
Fiscal 2012
|
|
||
Executive Compensation
|
$
|
137
|
|
$
|
114
|
|
Other Services
|
$
|
315
|
|
$
|
228
|
|
•
|
Strong link to business strategy
- Our short and long-term goals should be reflected in our overall compensation program;
|
•
|
Performance sensitive
- Compensation should be linked to the operating and market performance of our organization and should fluctuate with such performance; and
|
•
|
Market relevant
- Our compensation program should provide market competitive pay in terms of value and structure in order to retain current employees who are performing according to their objectives and to attract new recruits of the highest caliber.
|
•
|
Attract and retain highly qualified executive officers who have a history of proven success;
|
•
|
Align the interests of executive officers with our shareholders' interests and with the execution of our business strategy;
|
•
|
Evaluate executive performance on the basis of key financial measurements which we believe closely correlate to long-term shareholder value; and
|
•
|
Tie compensation awards directly to key financial measurements with evaluations based on achieving and overachieving predetermined objectives.
|
•
|
Competitive compensation; and
|
•
|
An appropriate mix and level of short-term and long-term financial incentives.
|
(1)
|
Indicates that company is a constituent of the S&P Mid Cap 400 - Software & Services Index, as of December 31, 2011
|
(2)
|
Revenues as provided in the 2012 Executive Compensation Review
|
(3)
|
Market Capitalization at February 28, 2012
|
(4)
|
TSR denotes
annualized
Total Shareholder Return, or change in share price adjusted for dividends
|
(5)
|
Financial information as of June 30, 2011
|
All values in $US millions
|
|
||
Company Name
|
Revenues
(1)
|
||
Kansas City Southern
|
$
|
1,815
|
|
Martinrea Intl Inc.
|
$
|
1,689
|
|
Iac/Interactivecorp
|
$
|
1,637
|
|
Alberto-Culver Co
|
$
|
1,598
|
|
Toll Brothers Inc
|
$
|
1,530
|
|
Linear Technology Corp.
|
$
|
1,484
|
|
Old Dominion Freight
|
$
|
1,481
|
|
Ci Financial Corp.
|
$
|
1,378
|
|
American Eqty Invt Life Hldg
|
$
|
1,286
|
|
CCL Industries -Cl B
|
$
|
1,192
|
|
Resmed Inc
|
$
|
1,092
|
|
Kimco Realty Corp.
|
$
|
1,019
|
|
Cec Entertainment Inc.
|
$
|
817
|
|
Corus Entertainment Inc.
|
$
|
836
|
|
Quest Software Inc.
|
$
|
767
|
|
Lululemon Athletica Inc.
|
$
|
712
|
|
Sunstone Hotel Investors Inc.
|
$
|
644
|
|
Alliance Grain Traders Inc.
|
$
|
642
|
|
Capitalsource Inc.
|
$
|
640
|
|
Qlogic Corp.
|
$
|
597
|
|
RLJ Lodging Trust
|
$
|
549
|
|
New Gold Inc.
|
$
|
530
|
|
75th %ile
|
$
|
1,483
|
|
50th %ile
|
$
|
1,056
|
|
25th %ile
|
$
|
661
|
|
Average
|
$
|
1,088
|
|
Open Text Corporation (2)
|
$
|
1,033
|
|
(1)
|
Companies' revenues as provided in the 2012 Executive Compensation Review
|
(2)
|
Financial information as of June 30, 2011
|
•
|
Understand the competitiveness of the Company's current pay levels for each executive position relative to companies with similar revenues and business characteristics;
|
•
|
Identify and understand any gaps that may exist between the Company's actual compensation levels and market compensation levels; and
|
•
|
Serve as a basis for developing salary adjustments and short-term and long-term incentive award programs for the Compensation Committee's approval.
|
•
|
Base salary;
|
•
|
Total cash compensation (base salary + target annual incentives); and
|
•
|
Total direct compensation (base salary + target annual incentives + target long-term compensation).
|
•
|
Fixed salary and benefits;
|
•
|
Variable short-term incentives; and
|
•
|
The LTIP.
|
Named Executive Officer
|
Fixed Salary Percentage
(“Not At Risk”)
|
Short-Term Incentive
Percentage (at 100% target)
(“At Risk”)
|
||
Mark Barrenechea
|
44
|
%
|
56
|
%
|
Paul McFeeters
|
55
|
%
|
45
|
%
|
P. Thomas Jenkins
|
44
|
%
|
56
|
%
|
James Mackey
|
55
|
%
|
45
|
%
|
Gordon A. Davies
|
73
|
%
|
27
|
%
|
•
|
Base salary;
|
•
|
Perquisites; and
|
•
|
Other benefits.
|
•
|
Participating in an annual executive medical physical examination;
|
•
|
Maintaining membership in a health club;
|
•
|
Car allowances; and
|
•
|
Purchasing financial advice and related services.
|
•
|
Medical health insurance;
|
•
|
Dental insurance;
|
•
|
Life insurance;
|
•
|
Tuition reimbursement programs; and
|
•
|
Tax based retirement savings plans matching contributions.
|
Named Executive Officer
|
Total Target
Award as %
of Base
Salary
|
Worldwide Revenues
|
Worldwide Adjusted Operating Income
|
Board Objectives
|
||||
Mark Barrenechea
|
125.00
|
%
|
45
|
%
|
45
|
%
|
10
|
%
|
Paul McFeeters
|
82.35
|
%
|
45
|
%
|
45
|
%
|
10
|
%
|
P. Thomas Jenkins
|
125.00
|
%
|
45
|
%
|
45
|
%
|
10
|
%
|
James Mackey
|
82.86
|
%
|
45
|
%
|
45
|
%
|
10
|
%
|
Gordon A. Davies
|
37.50
|
%
|
45
|
%
|
45
|
%
|
10
|
%
|
Objectives (in millions)
|
Threshold Target
(90% target)
|
Target
|
Fiscal 2013
Actual
|
% of Target Actually
Achieved
|
% of Payment per
Fiscal 2013
Payout Table
|
||||||||
Worldwide Revenues
|
$
|
1,287
|
|
$
|
1,430
|
|
$
|
1,363
|
|
95
|
%
|
55
|
%
|
Worldwide Adjusted Operating Income
|
$
|
354
|
|
$
|
393
|
|
$
|
400
|
|
102
|
%
|
120
|
%
|
Performance Measure:
|
Payable at
Target
|
Payable at
Threshold
|
Actual
Payable
($)
|
Actual
Payable
(% of Target)
|
|||||||
Worldwide Revenues
|
$
|
348,750
|
|
$
|
52,313
|
|
$
|
191,813
|
|
55
|
%
|
Worldwide Adjusted Operating Income
|
$
|
348,750
|
|
$
|
52,313
|
|
$
|
418,500
|
|
120
|
%
|
Board Objectives
|
$
|
77,500
|
|
$
|
11,625
|
|
$
|
77,500
|
|
100
|
%
|
Total
|
$
|
775,000
|
|
$
|
116,251
|
|
$
|
687,813
|
|
89
|
%
|
Performance Measure:
|
Payable at
Target
|
Payable at
Threshold
|
Actual
Payable
($)
|
Actual
Payable
(% of Target)
|
|||||||
Worldwide Revenues
|
$
|
156,328
|
|
$
|
23,449
|
|
$
|
85,981
|
|
55
|
%
|
Worldwide Adjusted Operating Income
|
$
|
156,328
|
|
$
|
23,449
|
|
$
|
187,594
|
|
120
|
%
|
Board Objectives
|
$
|
34,740
|
|
$
|
5,211
|
|
$
|
34,740
|
|
100
|
%
|
Total
|
$
|
347,396
|
|
$
|
52,109
|
|
$
|
308,315
|
|
89
|
%
|
Performance Measure:
|
Payable at
Target
|
Payable at
Threshold
|
Actual
Payable
($)
|
Actual
Payable
(% of Target)
|
|||||||
Worldwide Revenues
|
$
|
279,158
|
|
$
|
41,874
|
|
$
|
153,536
|
|
55
|
%
|
Worldwide Adjusted Operating Income
|
$
|
279,158
|
|
$
|
41,874
|
|
$
|
334,989
|
|
120
|
%
|
Board Objectives
|
$
|
62,035
|
|
$
|
9,305
|
|
$
|
62,035
|
|
100
|
%
|
Total
|
$
|
620,351
|
|
$
|
93,053
|
|
$
|
550,560
|
|
89
|
%
|
Performance Measure:
|
Payable at
Target
|
Payable at
Threshold
|
Actual
Payable
($)
|
Actual
Payable
(% of Target)
|
|||||||
Worldwide Revenues
|
$
|
66,998
|
|
$
|
10,050
|
|
$
|
36,849
|
|
55
|
%
|
Worldwide Adjusted Operating Income
|
$
|
66,998
|
|
$
|
10,050
|
|
$
|
80,397
|
|
120
|
%
|
Board Objectives
|
$
|
14,888
|
|
$
|
2,233
|
|
$
|
14,888
|
|
100
|
%
|
Total
|
$
|
148,884
|
|
$
|
22,333
|
|
$
|
132,134
|
|
89
|
%
|
Performance Measure:
|
Payable at
Target
|
Payable at
Threshold
|
Actual
Payable
($)
|
Actual
Payable
(% of Target)
|
|||||||
Worldwide Revenues
|
$
|
97,875
|
|
$
|
14,681
|
|
$
|
53,831
|
|
55
|
%
|
Worldwide Adjusted Operating Income
|
$
|
97,875
|
|
$
|
14,681
|
|
$
|
83,194
|
|
85
|
%
|
Board Objectives
|
$
|
21,750
|
|
$
|
3,263
|
|
$
|
21,750
|
|
100
|
%
|
Total
|
$
|
217,500
|
|
$
|
32,625
|
|
$
|
158,775
|
|
73
|
%
|
•
|
The Named Executive Officers and others who are entitled to participate in the stock option plan;
|
•
|
The number of options to be granted under the plan in general and to each recipient in particular;
|
•
|
The date on which each option is granted; and
|
•
|
The other material terms and conditions of each stock option grant.
|
•
|
On the second trading day for the NASDAQ market following the date on which our quarterly or annual financial results, as applicable, are released; and
|
•
|
At a price that is not less than the closing price of our Common Shares on the trading day for the NASDAQ market immediately preceding the applicable grant date.
|
Fiscal 2015 LTIP PSUs
|
|||||||||
Named Executive Officer
|
Threshold at June 30, 2015
|
100% Achievement
at June 30, 2015
|
150% Achievement
at June 30, 2015
|
||||||
Mark Barrenechea
|
$
|
20,360
|
|
$
|
1,357,349
|
|
$
|
2,036,024
|
|
Paul McFeeters
|
$
|
7,053
|
|
$
|
470,183
|
|
$
|
705,275
|
|
P. Thomas Jenkins
|
$
|
16,410
|
|
$
|
1,094,014
|
|
$
|
1,641,020
|
|
James Mackey
|
$
|
2,821
|
|
$
|
188,087
|
|
$
|
282,131
|
|
Gordon A. Davies
|
$
|
4,864
|
|
$
|
324,274
|
|
$
|
486,411
|
|
Fiscal 2014 LTIP
|
|||||||||
Named Executive Officer
|
Threshold at June 30, 2014
|
100% Achievement
at June 30, 2014
|
150% Achievement
at June 30, 2014
|
||||||
Mark Barrenechea
|
$
|
32,121
|
|
$
|
2,141,399
|
|
$
|
3,212,099
|
|
Paul McFeeters
|
$
|
12,399
|
|
$
|
826,570
|
|
$
|
1,239,855
|
|
P. Thomas Jenkins
|
$
|
32,188
|
|
$
|
2,145,850
|
|
$
|
3,218,775
|
|
James Mackey*
|
N/A
|
|
N/A
|
|
N/A
|
|
|||
Gordon A. Davies
|
$
|
9,537
|
|
$
|
635,812
|
|
$
|
953,719
|
|
Fiscal 2013 LTIP
|
|||||||||
Named Executive Officer
|
Threshold at June 30, 2013
|
100% Achievement
at June 30, 2013
|
150% Achievement
at June 30, 2013
|
||||||
Mark Barrenechea*
|
N/A
|
|
N/A
|
|
N/A
|
|
|||
Paul McFeeters
|
$
|
458,064
|
|
$
|
916,129
|
|
$
|
1,374,193
|
|
P. Thomas Jenkins
|
$
|
1,288,332
|
|
$
|
2,576,663
|
|
$
|
3,864,995
|
|
James Mackey*
|
N/A
|
|
N/A
|
|
N/A
|
|
|||
Gordon A. Davies
|
$
|
305,376
|
|
$
|
610,752
|
|
$
|
916,129
|
|
Executive Chairman
|
4x base salary
|
CEO/President
|
4x base salary
|
Other senior management
|
1x base salary
|
•
|
voting power which includes the power to vote, or to direct the voting of, such security; and/or
|
•
|
investment power which includes the power to dispose, or to direct the disposition of, such security.
|
|
Fiscal
Year
|
Salary
($)
|
Bonus
($)
|
Stock
Awards
($) (1)
|
Option
Awards
($) (2)
|
Non-Equity
Incentive Plan
Compensation
($) (3)
|
Change in
Pension Value
and
Non-qualified
Deferred
Compensation
Earnings ($)
|
All Other
Compensation
($) (4)
|
Total ($)
|
|||||||||||||||
Mark Barrenechea
|
2013
|
$
|
620,000
|
|
—
|
|
$
|
1,404,035
|
|
$
|
492,317
|
|
$
|
687,813
|
|
N/A
|
$
|
24,536
|
|
(5)
|
$
|
3,228,701
|
|
|
President and Chief Executive Officer
|
2012
|
$
|
310,000
|
|
—
|
|
$
|
3,423,031
|
|
$
|
10,753,950
|
|
$
|
240,235
|
|
N/A
|
$
|
107,021
|
|
(6) (9)
|
$
|
14,834,237
|
|
|
|
2011
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
N/A
|
|
|
N/A
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Paul McFeeters
|
2013
|
$
|
421,838
|
|
—
|
|
$
|
486,329
|
|
$
|
170,535
|
|
$
|
308,315
|
|
N/A
|
$
|
—
|
|
(7)
|
$
|
1,387,017
|
|
|
Chief Financial Officer and Chief Administrative Officer
|
2012
|
$
|
425,499
|
|
—
|
|
$
|
627,242
|
|
$
|
1,329,653
|
|
$
|
144,365
|
|
N/A
|
$
|
—
|
|
(7)
|
$
|
2,526,759
|
|
|
|
2011
|
$
|
396,809
|
|
—
|
|
$
|
520,295
|
|
$
|
—
|
|
$
|
707,114
|
|
N/A
|
$
|
—
|
|
(7)
|
$
|
1,624,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
P. Thomas Jenkins
|
2013
|
$
|
496,280
|
|
—
|
|
$
|
1,131,642
|
|
$
|
396,819
|
|
$
|
550,560
|
|
N/A
|
$
|
28,424
|
|
(8)
|
$
|
2,603,725
|
|
|
Executive Chairman and Chief Strategy Officer
|
2012
|
$
|
500,587
|
|
—
|
|
$
|
1,628,417
|
|
$
|
—
|
|
$
|
402,827
|
|
N/A
|
$
|
32,212
|
|
(6)
|
$
|
2,564,043
|
|
|
|
2011
|
$
|
496,011
|
|
—
|
|
$
|
1,463,358
|
|
$
|
—
|
|
$
|
2,142,768
|
|
N/A
|
$
|
22,709
|
|
(6)
|
$
|
4,124,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
James Mackey (11)
|
2013
|
$
|
262,500
|
|
—
|
|
$
|
194,530
|
|
$
|
556,530
|
|
$
|
158,775
|
|
N/A
|
$
|
—
|
|
(7)
|
$
|
1,172,335
|
|
|
SVP, Corporate Development
|
2012
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
N/A
|
|
|
N/A
|
|
|||||||
|
2011
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
N/A
|
|
|
N/A
|
|
|||||||
Gordon A. Davies
|
2013
|
$
|
397,024
|
|
—
|
|
$
|
335,427
|
|
$
|
117,602
|
|
$
|
132,134
|
|
N/A
|
$
|
—
|
|
(7)
|
$
|
982,187
|
|
|
Chief Legal Officer and Corporate Secretary
|
2012
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
N/A
|
|
(10
|
)
|
N/A
|
|
||||||
|
2011
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
N/A
|
|
(10
|
)
|
N/A
|
|
(1)
|
Performance Share Units (PSUs) and Restricted Share Units (RSUs) were granted pursuant to the Fiscal 2015 LTIP. The amounts set forth in this column represent the aggregate grant date fair value, as computed in accordance with ASC Topic 718 “Compensation-Stock Compensation” (ASC Topic 718). For a discussion of the assumptions used in these valuations, see note 12 “Share Capital, Option Plans and Share-based Payments” to our Notes to Consolidated Financial Statements under Item 8 of this Annual Report on Form 10-K. For the maximum value that may be received under the PSU awards, see the “Maximum” column under “Estimated Future Payouts under Equity Incentive Plan Awards” under the “Grants of Plan-Based Awards in Fiscal 2013” table below.
|
(2)
|
Amounts set forth in this column represent the amount recognized as the aggregate grant date fair value of equity-based compensation awards, as calculated in accordance with ASC Topic 718 for the fiscal year in which the awards were granted. In all cases, these amounts do not reflect whether the recipient has actually realized a financial benefit from the exercise of the awards. For a discussion of the assumptions used in this valuation, see note 12 “Share Capital, Option Plans and Share-based Payments” to our Notes to Consolidated Financial Statements under Item 8 of this Annual Report on Form 10-K.
|
(3)
|
The amounts set forth in this column for Fiscal 2013 represent payments under the variable short-term incentive plan.
|
(4)
|
The amounts in “All Other Compensation” primarily include (i) medical examinations; (ii) car allowances, (iii) club memberships reimbursed, and (iv) tax preparation and financial advisory fees paid. “All Other Compensation” does not include benefits received by the Named Executive Officers which are generally available to all our salaried employees.
|
(5)
|
Represents amounts we paid or reimbursed for:
|
(6)
|
For details of the amounts of fees or expenses we paid or reimbursed please refer to Summary Compensation Table in Item 11 of our Annual Report on Form 10-K for the corresponding fiscal years ended June 30, 2012 and June 30, 2011.
|
(7)
|
The total value of all perquisites and personal benefits for this Named Executive Officer was less than $10,000, and, therefore, excluded.
|
(8)
|
Represents amounts we paid or reimbursed for:
|
(9)
|
The amounts set forth for Mr. Barrenechea's salary and non-equity incentive awards represent a prorated amount based on Mr. Barrenechea's date of hire in January 2012 with the Company.
|
(10)
|
The executive officer was not a Named Executive Officer during the prior two fiscal years, and, therefore compensation details have been excluded.
|
(11)
|
The amounts set forth for Mr. Mackey's compensation represents a prorated amount based on Mr. Mackey's date of hire in October 2012 with the Company.
|
|
|
Estimated Future Payouts
Under Non-Equity
Incentive Plan Awards (1)
|
All Other Option
Awards: Number
of Securities
Underlying (2)
|
Exercise or
Base Price
of Option
Awards
|
Grant
Date Fair
Value of
Options (3)
|
|||||||||||||
Name
|
Grant Date
|
Threshold
($)
|
Target ($)
|
Maximum ($)
|
Options (#)
|
($/Share)
|
Awards ($)
|
|||||||||||
Mark Barrenechea
|
November 2, 2012
|
$
|
116,251
|
|
$
|
775,000
|
|
$
|
2,325,000
|
|
30,246
|
|
$
|
52.74
|
|
$
|
492,317
|
|
Paul McFeeters
|
November 2, 2012
|
$
|
52,109
|
|
$
|
347,396
|
|
$
|
1,042,188
|
|
10,477
|
|
$
|
52.74
|
|
$
|
170,535
|
|
P. Thomas Jenkins
|
November 2, 2012
|
$
|
93,053
|
|
$
|
620,351
|
|
$
|
1,861,050
|
|
24,379
|
|
$
|
52.74
|
|
$
|
396,819
|
|
James Mackey
|
November 2, 2012
|
$
|
43,500
|
|
$
|
290,000
|
|
$
|
870,000
|
|
4,191
|
|
$
|
52.74
|
|
$
|
68,217
|
|
|
November 2, 2012
|
|
|
|
30,000
|
|
$
|
52.74
|
|
$
|
488,313
|
|
||||||
Gordon A. Davies
|
November 2, 2012
|
$
|
22,333
|
|
$
|
148,884
|
|
$
|
446,652
|
|
7,225
|
|
$
|
52.74
|
|
$
|
117,602
|
|
|
|
Estimated Future Payouts
Under Equity
Incentive Plan Awards (4)
|
All Other Stock
Awards: Number
of Securities
Underlying
|
Grant
Date Fair
Value of
Stock
|
||||||||
Name
|
Grant Date
|
Threshold (#)
|
Target (#)
|
Maximum (#)
|
Stock (#)
|
Awards ($)
|
||||||
Mark Barrenechea
|
November 2, 2012
|
297
|
|
19,824
|
|
29,736
|
|
9,912
|
|
$
|
1,404,035
|
|
Paul McFeeters
|
November 2, 2012
|
103
|
|
6,867
|
|
10,301
|
|
3,433
|
|
$
|
486,329
|
|
P. Thomas Jenkins
|
November 2, 2012
|
240
|
|
15,978
|
|
23.967
|
|
7,989
|
|
$
|
1,131,642
|
|
James Mackey
|
November 2, 2012
|
41
|
|
2,747
|
|
4,121
|
|
1,373
|
|
$
|
194,530
|
|
Gordon A. Davies
|
November 2, 2012
|
71
|
|
4,736
|
|
7,104
|
|
2,368
|
|
$
|
335,427
|
|
(1)
|
Represents the threshold, target and maximum estimated payouts under our short-term incentive plan for Fiscal 2013. For further information, please see “Compensation Discussion and Analysis - Aligning Officers' Interests with Shareholders' Interests - Variable Short-Term Incentives” above.
|
(2)
|
For further information regarding our options granting procedures, please see “Compensation Discussion and Analysis-Aligning Officers' Interests with Shareholders' Interests - Variable Long-Term Incentives - Stock Options” above.
|
(3)
|
Amounts set forth in this column represent the amount recognized as the aggregate grant date fair value of equity-based compensation awards, as calculated in accordance with ASC Topic 718 for the fiscal year in which the awards were granted. In all cases, these amounts do not reflect whether the recipient has actually realized a financial benefit from the exercise of the awards. For a discussion of the assumptions used in this valuation, see note 12 “Share Capital, Option Plan and Share-based Payments” to our Notes to Consolidated Financial Statements under Item 8 of this Annual Report on Form 10-K.
|
(4)
|
Represents the threshold, target and maximum estimated payouts under our Fiscal 2015 LTIP PSUs. For further information, please see “Compensation Discussion and Analysis - Aligning Officers' Interests with Shareholders' Interests - Variable Long-Term Incentives - LTIP” above.
|
|
|
Option Awards
|
|
|
|
Stock Awards (1)
|
|||||||||||||
Name
|
Grant Date
|
Number of
Securities
Underlying
Unexercised
Options (#)
Exercisable
|
Number of
Securities
Underlying
Unexercised
Options (#)
Non-
exercisable
|
Option
Exercise
Price ($)
|
Option Expiration
Date
|
|
Number of Shares or Units of Stock That Have Not Vested (#)
|
Market Value of Shares or Units of Stock That Have Not Vested ($)
|
Equity Incentive
Plan Awards:
Number of
unearned
shares,
units or other
rights that have
not vested (#)
|
Equity Incentive
Plan Awards:
Market or
payout value of unearned
shares,
units or other
rights that have not vested ($)
|
|||||||||
Mark Barrenechea
|
November 2, 2012
|
|
30,246
|
|
52.74
|
|
November 2, 2019
|
|
|
|
|
|
|
|
|||||
|
February 3, 2012
|
80,000
|
|
320,000
|
|
60.35
|
|
February 3, 2019
|
|
|
|
|
|
||||||
|
May 3, 2012
|
25,000
|
|
75,000
|
|
52.44
|
|
May 3, 2019
|
|
|
|
|
|
||||||
|
February 3, 2012
|
|
|
|
|
|
22,222
|
|
$
|
1,521,540
|
|
|
|
||||||
|
February 3, 2012
|
|
|
|
|
|
|
|
31,275
|
|
$
|
2,141,399
|
|
||||||
|
November 2, 2012
|
|
|
|
|
|
9,912
|
|
$
|
678,675
|
|
|
|
||||||
|
December 3, 2012
|
|
|
|
|
|
|
|
19,824
|
|
$
|
1,357,349
|
|
||||||
Paul McFeeters
|
August 21, 2008
|
50,000
|
|
|
34.50
|
|
August 21, 2015
|
|
|
|
|
|
|||||||
|
May 3, 2012
|
18,750
|
|
56,250
|
|
52.44
|
|
May 3, 2019
|
|
|
|
|
|
||||||
|
November 2, 2012
|
|
10,477
|
|
52.74
|
|
November 2, 2019
|
|
|
|
|
|
|
||||||
|
October 29, 2010
|
|
|
|
|
|
|
|
13,380
|
|
$
|
916,129
|
|
||||||
|
February 3, 2012
|
|
|
|
|
|
|
|
12,072
|
|
$
|
826,570
|
|
||||||
|
November 2, 2012
|
|
|
|
|
|
3,433
|
|
$
|
235,058
|
|
|
|
||||||
|
December 3, 2012
|
|
|
|
|
|
|
|
6,867
|
|
$
|
470,183
|
|
||||||
P. Thomas Jenkins
|
August 21, 2008
|
100,000
|
|
|
34.50
|
|
August 21, 2015
|
|
|
|
|
|
|||||||
|
November 2, 2012
|
|
24,379
|
|
52.74
|
|
November 2, 2019
|
|
|
|
|
|
|||||||
|
October 29, 2010
|
|
|
|
|
|
|
|
37,632
|
|
$
|
2,576,663
|
|
||||||
|
February 3, 2012
|
|
|
|
|
|
|
|
31,340
|
|
$
|
2,145,850
|
|
||||||
|
November 2, 2012
|
|
|
|
|
|
7,989
|
|
$
|
547,007
|
|
|
|
||||||
|
December 3, 2012
|
|
|
|
|
|
|
|
15,978
|
|
$
|
1,094,014
|
|
||||||
James Mackey
|
November 2, 2012
|
|
30,000
|
|
52.74
|
|
November 2, 2019
|
|
|
|
|
|
|||||||
|
November 2, 2012
|
|
4,191
|
|
52.74
|
|
November 2, 2019
|
|
|
|
|
|
|||||||
|
November 2, 2012
|
|
|
|
|
|
1,373
|
|
$
|
94,009
|
|
|
|
||||||
|
December 3, 2012
|
|
|
|
|
|
|
|
|
2,747
|
|
$
|
188,087
|
|
|||||
Gordon A. Davies
|
October 29, 2009
|
|
18,750
|
|
37.33
|
|
October 29, 2016
|
|
|
|
|
|
|||||||
|
October 29, 2010
|
|
|
|
|
|
|
|
8,920
|
|
$
|
610,752
|
|
||||||
|
November 2, 2012
|
|
7,225
|
|
52.74
|
|
November 2, 2019
|
|
|
|
|
|
|||||||
|
February 3, 2012
|
|
|
|
|
|
|
|
9,286
|
|
$
|
635,812
|
|
||||||
|
November 2, 2012
|
|
|
|
|
|
2,368
|
|
$
|
162,137
|
|
|
|
||||||
|
December 3, 2012
|
|
|
|
|
|
|
|
4,736
|
|
$
|
324,274
|
|
(1)
|
Represents each Named Executive Officer's target number of PSUs granted pursuant to the Fiscal 2013, Fiscal 2014, and Fiscal 2015 LTIPs and the market value as of June 30, 2013 based upon the closing price for the Company's Common Shares as traded on the NASDAQ on such date of $68.47.
|
(2)
|
Options in the table above generally vest annually over a period of 4 years starting from the date of grant.
|
|
Option Awards
|
Stock Awards (3)
|
|||||||
Name
|
Number of Shares
Acquired on Exercise
(#)
|
Value Realized on
Exercise
(1) ($)
|
Number of Shares
Acquired on Vesting
(#)
|
Value Realized on Vesting
(2) ($)
|
|||||
Mark Barrenechea
|
—
|
|
—
|
|
—
|
|
$
|
—
|
|
Paul McFeeters
|
240,000
|
|
11,827,058
|
|
8,584
|
|
$
|
428,352
|
|
P. Thomas Jenkins
|
50,000
|
|
2,043,500
|
|
32,191
|
|
$
|
1,606,341
|
|
James Mackey
|
—
|
|
—
|
|
—
|
|
$
|
—
|
|
Gordon A. Davies
|
18,750
|
|
336,075
|
|
7,154
|
|
$
|
356,985
|
|
(1)
|
“Value realized on exercise” is the excess of the market price, at date of exercise, of the shares underlying the options over the exercise price of the options.
|
(2)
|
“Value realized on vesting” is the market price of the underlying shares on the vesting date
|
(3)
|
Relates to the vesting of PSUs under our Fiscal 2012 LTIP
|
•
|
If the Named Executive Officer is terminated without cause; and
|
•
|
If there is a change in control in the ownership of OpenText and subsequent to the change in control, there is a change in the relationship between OpenText and the Named Executive Officer.
|
•
|
The failure by the Named Executive Officer to attempt in good faith to perform his duties, other than as a result of a physical or mental illness or injury;
|
•
|
The Named Executive Officer's willful misconduct or gross negligence of a material nature in connection with the performance of his duties which is or could reasonably be expected to be injurious to the Company;
|
•
|
The breach by the Named Executive Officer of his fiduciary duty or duty of loyalty to the Company;
|
•
|
The Named Executive Officer's intentional and unauthorized removal, use or disclosure of information relating to the Company, including customer information, which is injurious to the Company or its customers;
|
•
|
The willful performance by the Named Executive Officer of any act of dishonesty or willful misappropriation of funds or property of the Company or its affiliates;
|
•
|
The indictment of the Named Executive Officer or a plea of guilty or nolo contender to a felony or other serious crime involving moral turpitude;
|
•
|
The material breach by the Named Executive Officer of any obligation material to his employment relationship with the Company; or
|
•
|
The material breach by the Named Executive Officer of the Company's policies and procedures which breach causes or could reasonably be expected to cause harm to the Company;
|
•
|
The failure by the Named Executive Officer to perform his duties according to the terms of his employment agreement or to perform in a manner satisfactory to the Board after OpenText has given the Named Executive Officer reasonable notice of this failure as well as a reasonable opportunity to correct this failure; however, any such failure:
|
•
|
that follows a diminution in his position or duties or responsibilities, or
|
•
|
that results from a disability of the Named Executive Officer,
|
•
|
The engagement by the Named Executive Officer in any act that is materially harmful to us;
|
•
|
The engagement by the Named Executive Officer in any illegal conduct or any act of dishonesty which benefits the Named Executive Officer at our expense including but not limited to the failure by the Named Executive Officer to:
|
•
|
honour his fiduciary duties to us; and
|
•
|
fulfill his duty to act in our best interests;
|
•
|
The failure of the Named Executive Officer to abide by the terms of any resolution passed by the Board; or
|
•
|
The failure of the Named Executive Officer to abide by our policies, procedures and codes of conduct.
|
•
|
The sale, lease, exchange or other transfer, in one transaction or a series of related transactions, of all or substantially all of the assets of OpenText;
|
•
|
The approval by the holders of common shares of any plan or proposal for the liquidation or dissolution of the Company;
|
•
|
Any transaction in which any person or group acquires ownership of more than 50% of the shares of OpenText's common stock; or
|
•
|
Any transaction in which a majority of the Board is replaced over a twelve-month period and such replacement of the Board was not approved by a majority of the Board still in office at the beginning of such period.
|
•
|
A material diminution in the duties and responsibilities of the Named Executive Officer, other than (a) a change arising solely out of the Company becoming part of a larger organization following the change in control event or any related change in the reporting hierarchy or (b) a reorganization of the Company resulting in similar changes to the duties and responsibilities of similarly situated executive officers;
|
•
|
A material reduction to the Named Executive Officer's compensation, other than a similar reduction to the compensation of similarly situated executive officers;
|
•
|
A relocation of the Named Executive Officer's primary work location more than fifty miles;
|
•
|
A reduction in the title or position of the Named Executive Officer, other than (a) a change arising solely out of the Company becoming part of a larger organization following the change in control event or any related change in the reporting hierarchy or (b) a reorganization of the Company resulting in similar changes to the titles or positions of similarly situated executive officers;
|
•
|
The sale of all or substantially all of the assets of OpenText;
|
•
|
Any transaction in which any person or group acquires ownership of more than 50% of the shares of OpenText's common stock on a fully diluted basis; or
|
•
|
Any transaction which results in more than 50% of the shares of OpenText's common stock, on a fully diluted basis, being held by any person or group who were not shareholders of OpenText as of the date of the applicable contract between OpenText and the Named Executive Officer.
|
•
|
A change in control described above which results in a material change of the Named Executive Officer's position, duties, responsibilities, title or office which were in effect immediately prior to such a change in control (except for a change in any position or duties as an OpenText director or for any other material change that is the result of a promotion), which includes any removal of the Named Executive Officer from, or any failure to re-elect or re-appoint the Named Executive Officer to, any positions or offices he held immediately prior to such a change in control;
|
•
|
A material reduction by either OpenText or by any of OpenText's subsidiaries of the Named Executive Officer's salary, benefits or any other form of remuneration payable by either OpenText or by OpenText's subsidiaries;
|
•
|
Any material failure by either OpenText or by any of OpenText's subsidiaries to provide any of the following benefits listed below, in which the Named Executive Officer is participating or entitled to participate immediately prior to any change in control described in the previous section, or if OpenText or any of OpenText's subsidiaries take any action or fail to take any action, and as a result, the Named Executive Officer's participation in any such plan would be materially and adversely affected or the Named Executive Officer's rights or benefits under or pursuant to any such plan would be materially and adversely affected:
|
•
|
benefit, bonus, profit sharing, incentive, remuneration or compensation plan;
|
•
|
stock ownership or purchase plan; or
|
•
|
pension plan or retirement plan;
|
•
|
Any other material breach of the employment agreement between OpenText and the Named Executive Officer which is committed by OpenText.
|
•
|
Payment of 24 months of salary;
|
•
|
Payment of 24 months of variable short-term incentive, assuming 100% achievement of the expected targets for the fiscal year in which the triggering event occurred;
|
•
|
All accrued payments up to the date of termination, including all earned but unpaid short-term incentive amounts and earned but unpaid LTIP;
|
•
|
If the triggering event occurs within twelve months of a change in control, 100% of the LTIP;
|
•
|
All employee and medical benefits provided to Mr. Barrenechea immediately prior to the occurrence of the trigger event for a period of 24 months; and
|
•
|
For a period of 90 days, the right to exercise all options which have vested as of the date of termination; provided, however, all options and RSUs granted to Mr. Barrenechea during Fiscal 2012 (Fiscal 2012 Awards) shall continue to vest during the 24 month period following the date of termination and Mr. Barrenechea shall have another 90 days following this period to exercise the Fiscal 2012 Awards. Following these deadlines, all unvested options and RSUs shall terminate. However, if the triggering event occurs within twelve months of a change in control event, then 100% of all outstanding options and the Fiscal 2012 Awards vest and Mr. Barrenechea shall have 90 days to exercise these options and awards.
|
•
|
Payment of 24 months of salary;
|
•
|
Payment of 24 months of variable short-term incentive, assuming 100% achievement of the expected targets for the fiscal year in which the triggering event occurred;
|
•
|
All accrued payments up to the date of termination, including all earned but unpaid short-term incentive amounts and earned but unpaid LTIP;
|
•
|
If the triggering event occurs within twelve months of a change in control, 100% of the LTIP;
|
•
|
All employee and medical benefits provided to Mr. McFeeters immediately prior to the occurrence of the trigger event for a period of 24 months; and
|
•
|
For a period of 90 days, the right to exercise all options which have vested as of the date of termination. However, if the triggering event occurs within twelve months of a change in control event, then 100% of all outstanding options vest and Mr. McFeeters shall have 90 days to exercise these options.
|
•
|
Payment of 24 months of salary;
|
•
|
Payment of 24 months of variable short-term incentive, assuming 100% achievement of the expected targets for the fiscal year in which the triggering event occurred;
|
•
|
All accrued payments up to the date of termination, including all earned but unpaid short-term incentive amounts and earned but unpaid LTIP;
|
•
|
If the triggering event occurs within twelve months of a change in control, 100% of the LTIP;
|
•
|
All employee and medical benefits provided to Mr. Jenkins immediately prior to the occurrence of the trigger event for a period of 24 months; and
|
•
|
For a period of 90 days, the right to exercise all options which have vested as of the date of termination. However, if the triggering event occurs within twelve months of a change in control event, then 100% of all outstanding options vest and Mr. Jenkins shall have 90 days to exercise these options.
|
•
|
Payment of 12 months of salary;
|
•
|
Payment of 12 months of variable short-term incentive, assuming 100% achievement of the expected targets for the fiscal year in which the triggering event occurred ;
|
•
|
All accrued payments up to the date of termination, including all earned but unpaid short-term incentive amounts and earned but unpaid LTIP;
|
•
|
All employee and medical benefits provided to Mr. Davies immediately prior to the occurrence of the trigger event for a period of 12 months; and
|
•
|
For a period of 90 days, the right to exercise all options which have vested as of the date of termination.
|
•
|
Payment of 24 months of salary;
|
•
|
Payment of 24 months of variable short-term incentive, assuming 100% achievement of the expected targets for the fiscal year in which the triggering event occurred;
|
•
|
All accrued payments up to the date of termination, including all earned but unpaid short-term incentive amounts and earned but unpaid LTIP;
|
•
|
Payment of 100% of the LTIP;
|
•
|
All employee and medical benefits provided to Mr. Davies immediately prior to the occurrence of the trigger event for a period of 24 months; and
|
•
|
100% of all outstanding options vest and Mr. Davies shall have 90 days to exercise these options.
|
Mr. Mackey
|
||||
|
No change in control
|
Change in control
|
||
|
|
And within 6 months
|
||
|
Termination without cause
|
Change in relationship
|
Termination without cause
|
Change in relationship
|
Base
|
12 months plus 1 additional month for every year of service over 10 years up to maximum of 24 months
|
n/a
|
12 months plus 1 additional month for every year of service over 10 years up to maximum of 24 months
|
12 months plus 1 additional month for every year of service over 10 years up to maximum of 24 months
|
Variable
|
12 months plus 1 additional month for every year of service over 10 years up to maximum of 24 months and based on actual earned amount from the previous year
|
n/a
|
12 months plus 1 additional month for every year of service over 10 years up to maximum of 24 months and based on actual earned amount from the previous year
|
12 months plus 1 additional month for every year of service over 10 years up to maximum of 24 months and based on actual earned amount from the previous year
|
LTIP
|
Prorated for number of months participation at termination date in the applicable 36 month performance period. If termination date is before the commencement of the 19th month a prorated LTIP will not be paid
|
n/a
|
Months 0 to 6 - 0% vests Months 7 to 18 - 50% vests Months 19 to 36 - 100% vests
|
Months 0 to 6 - 0% vests Months 7 to 18 - 50% vests Months 19 to 36 - 100% vests
|
Options
|
Vested as of termination date plus those that vest within 90 days after the termination date
|
n/a
|
100% vesting
|
100% vesting
|
•
|
Payment of 12 months of salary;
|
•
|
Payment of 12 months of variable short-term incentive earned for the fiscal year prior to the date of the triggering event;
|
•
|
All accrued payments up to the date of termination, including all earned but unpaid short-term incentive amounts and earned but unpaid LTIP;
|
•
|
If the triggering event occurs within six months of a change in control, (a) 0% of his LTIP if the triggering event occurs within the first six months of the LTIP performance period, (b) 50% of his LTIP if the triggering event occurs between the seventh and eighteenth month of the LTIP performance period and (c) 100% of his LTIP if the triggering event occurs between the nineteenth and thirty-sixth month of the LTIP performance period;
|
•
|
All employee and medical benefits provided to Mr. Mackey immediately prior to the occurrence of the trigger event for a period of 12 months; and
|
•
|
For a period of 90 days, the right to exercise all options which have vested as of the date of termination plus, for another period of 90 days not to exceed 180 days following termination, the right to exercise any unvested options which would have otherwise vested during the first 90 days following termination. Following these periods, all unvested options shall terminate. However, if the triggering event occurs within six months of a change in control event, then 100% of all outstanding options vest and Mr. Mackey shall have 90 days to exercise these options.
|
•
|
Payments in Canadian dollars included herein are converted to U.S. dollars using an exchange rate, as of June 30, 2013, of 0.9552.
|
•
|
The salary and incentive payments are calculated based on the amounts of salary and incentive payments which were payable to each Named Executive Officer as of June 30, 2013;
|
•
|
Payment under the LTIP for Mr. Mackey is calculated as though 50% of the Fiscal 2013 LTIP target bonus has vested and 100% of the Fiscal 2012 LTIP target bonus has vested;
|
•
|
Payment under the LTIP for the other Named Executive Officers is calculated as though 100% of Fiscal 2013 and 100% of Fiscal 2012 has vested; and
|
•
|
The number of options available for vesting is equal to:
|
•
|
with respect to Mr. Barrenechea and Mr. Mackey, the number of options which were scheduled to be outstanding and exercisable by September 30, 2013, plus
|
•
|
with respect only to a change in control in the ownership of OpenText, the number of options which are subject to the acceleration of their vesting dates as a result of such change in control.
|
Named Executive Officer
|
|
Salary
($)
|
Short-term
Incentive
Payment
($)
|
Gain on Vesting of LTIP
($)
|
Gain on
Vesting of
Stock Options
($)
|
Employee
Benefits
($)
|
Total
($)
|
||||||
Mark Barrenechea
|
Termination Without Cause
|
1,240,000
|
|
1,550,000
|
|
—
|
|
3,622,240
|
|
49,072
|
|
6,461,312
|
|
|
Change in Control/ Relationship
|
1,240,000
|
|
1,550,000
|
|
4,177,423
|
|
5,797,960
|
|
49,072
|
|
12,814,455
|
|
Paul McFeeters
|
Termination Without Cause
|
811,921
|
|
668,641
|
|
—
|
|
—
|
|
12,526
|
|
1,493,088
|
|
|
Change in Control/ Relationship
|
811,921
|
|
668,641
|
|
1,531,811
|
|
1,066,491
|
|
12,526
|
|
4,091,390
|
|
P. Thomas Jenkins
|
Termination Without Cause
|
955,201
|
|
1,194,001
|
|
—
|
|
—
|
|
56,848
|
|
2,206,050
|
|
|
Change in Control/ Relationship
|
955,201
|
|
1,194,001
|
|
3,786,870
|
|
383,482
|
|
56,848
|
|
6,376,402
|
|
James Mackey
|
Termination Without Cause
|
350,000
|
|
—
|
|
—
|
|
—
|
|
135
|
|
350,135
|
|
|
Change in Control/ Relationship
|
350,000
|
|
—
|
|
141,048
|
|
537,824
|
|
135
|
|
1,029,007
|
|
Gordon A. Davies
|
Termination Without Cause
|
382,080
|
|
143,280
|
|
—
|
|
—
|
|
7,043
|
|
532,403
|
|
|
Change in Control/ Relationship
|
764,161
|
|
286,560
|
|
1,122,223
|
|
697,524
|
|
14,086
|
|
2,884,554
|
|
|
Fees Earned or
Paid in Cash
($) (1)
|
Stock
Awards
($) (2)
|
Option
Awards
($)
|
Non-Equity
Incentive Plan
Compensation
($)
|
Change in Pension Value and Non-qualified
Deferred Compensation
Earnings
($)
|
All Other
Compensation
($)
|
Total
($)
|
|||||||||||||
Randy Fowlie (3)
|
$
|
54,175
|
|
$
|
178,093
|
|
$
|
—
|
|
—
|
|
N/A
|
|
|
$
|
232,268
|
|
|||
Brian Jackman (4)
|
$
|
60,000
|
|
$
|
125,007
|
|
$
|
—
|
|
—
|
|
N/A
|
|
|
$
|
185,007
|
|
|||
Stephen Sadler (5)
|
$
|
45,000
|
|
$
|
125,007
|
|
$
|
—
|
|
—
|
|
N/A
|
$
|
619,746
|
|
(10
|
)
|
$
|
789,753
|
|
Michael Slaunwhite (6)
|
$
|
8,750
|
|
$
|
197,651
|
|
$
|
—
|
|
—
|
|
N/A
|
|
|
$
|
206,401
|
|
|||
Gail E. Hamilton (7)
|
$
|
74,000
|
|
$
|
125,007
|
|
$
|
—
|
|
—
|
|
N/A
|
|
|
$
|
199,007
|
|
|||
Katharine B. Stevenson (8)
|
$
|
70,000
|
|
$
|
125,007
|
|
$
|
—
|
|
—
|
|
N/A
|
|
|
$
|
195,007
|
|
|||
Deborah Weinstein (9)
|
$
|
2,313
|
|
$
|
198,296
|
|
$
|
—
|
|
—
|
|
N/A
|
|
|
$
|
200,609
|
|
(1)
|
Non-management directors may elect to defer all or a portion of their retainer and/or fees in the form of common stock equivalent units under our Directors' Deferred Share Unit Plan (DSU Plan) based on the value of the Company's shares as of the date fees would otherwise be paid. The DSU Plan became effective February 2, 2010, is available to any non-employee director of the Company and is designed to promote greater alignment of long-term interests between directors of the Company and its shareholders. An eligible director's DSUs will vest at the date of the Company's next annual general meeting. However, such DSUs are not payable by the Company until the non-employee director ceases to be a member of the Board.
|
(2)
|
In Fiscal 2013, Messrs. Fowlie, Jackman, Sadler, and Slaunwhite and Mses. Hamilton, Stevenson and Weinstein received 3,269, 2,368, 2,368, 3,638, 2,368, 2,368, and 3,646 DSUs, respectively. The amounts set forth in this column represents the amount recognized as the aggregate grant date fair value of equity-based compensation awards, as calculated in accordance with ASC Topic 718. These amounts do not reflect whether the recipient has actually realized a financial benefit from the awards. For a discussion of the assumptions used in this valuation, see note 12 “Share Capital, Option Plan and Share-based Payments” to our consolidated financial statements.
|
(3)
|
As of June 30, 2013, Mr. Fowlie holds 47,100 options and 6,517 DSUs.
|
(4)
|
As of June 30, 2013, Mr. Jackman holds 52,600 options and 2,832 DSUs.
|
(5)
|
As of June 30, 2013, Mr. Sadler holds no options and 6,492 DSUs.
|
(6)
|
As of June 30, 2013, Mr. Slaunwhite holds 69,900 options and 8,164 DSUs.
|
(7)
|
As of June 30, 2013, Ms. Hamilton holds 13,100 options and 5,272 DSUs.
|
(8)
|
As of June 30, 2013, Ms. Stevenson holds 22,500 options and 4,052 DSUs.
|
(9)
|
As of June 30, 2013, Ms. Weinstein holds 18,300 options and 6,900 DSUs.
|
(10)
|
During Fiscal 2013, Mr. Sadler received $619,746 in consulting fees for assistance with acquisition-related business activities. Mr. Sadler abstained from voting on all transactions from which he would potentially derive consulting fees.
|
Description
|
Amount and Frequency of Payment
|
|
Annual retainer fee payable to each non-employee director
|
$45,000 per director payable at the beginning of the calendar year
|
|
|
|
|
Annual Independent Lead Director fee payable to the Independent Lead Director
|
$20,000 payable at the beginning of the calendar year
|
|
|
|
|
Annual Audit Committee retainer fee payable to each member of the Audit Committee
|
$25,000 per year payable at $6,250 at the beginning of each quarterly period.
|
|
|
|
|
Annual Audit Committee Chair retainer fee payable to the Chair of the Audit Committee
|
$10,000 per year payable at $2,500 at the beginning of each quarterly period.
|
|
|
|
|
Annual Compensation Committee retainer fee payable to each member of the Compensation Committee
|
$15,000 per year payable at $3,750 at the beginning of each quarterly period.
|
|
|
|
|
Annual Compensation Committee Chair retainer fee payable to the Chair of the Compensation Committee
|
$10,000 per year payable at $2,500 at the beginning of each quarterly period.
|
|
|
|
|
Annual Corporate Governance Committee retainer fee payable to each member of the Corporate Governance Committee
|
$8,000 per year payable at $2,000 at the beginning of each quarterly period.
|
|
|
|
|
Annual Corporate Governance Committee Chair retainer fee payable to the Chair of the Corporate Governance Committee
|
$6,000 per year payable at $1,500 at the beginning of each quarterly period.
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
Name and Address of Beneficial Owner
|
Amount and Nature of
Beneficial Ownership
|
Percent of Common
Shares Outstanding
|
|
FMR LLC (1)
82 Devonshire Street
Boston, Massachusetts, 02109
|
9,850,957
|
|
16.81%
|
Artisan Partners Holding LP (1)
875 East Wisconsin Ave. STE
800, Milwaukee, WI, WI53202
|
3,257,469
|
|
5.56%
|
P. Thomas Jenkins (2)
|
868,087
|
|
1.46%
|
Mark Barrenechea (3)
|
105,000
|
|
*
|
Stephen J. Sadler (4)
|
99,124
|
|
*
|
Michael Slaunwhite (5)
|
131,096
|
|
*
|
Randy Fowlie (6)
|
97,749
|
|
*
|
Brian J. Jackman (7)
|
65,064
|
|
*
|
Gail E. Hamilton (8)
|
19,504
|
|
*
|
Katharine B. Stevenson (9)
|
27,284
|
|
*
|
Deborah Weinstein (10)
|
22,832
|
|
*
|
Paul McFeeters (11)
|
145,297
|
|
*
|
James Mackey
|
—
|
|
—
|
Gordon A. Davies (12)
|
6,811
|
|
*
|
All executive officers and directors as a group (13)
|
1,619,526
|
|
2.72%
|
*
|
Less than 1%
|
(1)
|
Information regarding the shares outstanding is based on information filed in Schedule 13G, 13F, or Schedule 13G/A with the SEC. The percentage of Common Shares outstanding is calculated using the total shares outstanding as of June 30, 2013.
|
(2)
|
Includes 768,087 Common Shares owned, and100,000 options which are exercisable.
|
(3)
|
Includes 105,000 options which are exercisable.
|
(4)
|
Includes 95,000 Common Shares owned, and 4,124 deferred stock units (DSUs) which are exercisable.
|
(5)
|
Includes 55,400 Common Shares owned, 69,900 options which are exercisable and 5,796 DSUs which are exercisable.
|
(6)
|
Includes 46,500 Common Shares owned, 47,100 options which are exercisable and 4,149 DSUs which are exercisable.
|
(7)
|
Includes 12,000 Common Shares owned, 52,600 options which are exercisable and 464 DSUs which are exercisable.
|
(8)
|
Includes 3,500 Common Shares owned, 13,100 options which are exercisable and 2,904 DSUs which are exercisable.
|
(9)
|
Includes 3,100 Common Shares owned, 22,500 options which are exercisable and 1,684 DSUs which are exercisable.
|
(10)
|
Includes 18,300 options which are exercisable and 4,532 DSUs which are exercisable.
|
(11)
|
Includes 76,547 Common Shares owned and 68,750 options which are exercisable.
|
(12)
|
Includes 6,811 Common Shares owned.
|
(13)
|
Includes 1,067,373 Common Shares owned, 522,250 options which are exercisable, 6,250 options which will become exercisable within 60 days of June 30, 2013 and 23,653 DSUs which are exercisable.
|
Plan Category
|
Number of securities
to be issued upon exercise
of outstanding options,
warrants, and rights
|
Weighted average
exercise price
of outstanding options,
warrants, and rights
|
Number of securities
remaining available
for future issuance
under equity
compensation plans
(excluding securities
reflected in column a)
|
|
(a)
|
(b)
|
(c)
|
Equity compensation plans approved by security holders:
|
1,805,391
|
$49.44
|
2,652,250
|
Equity compensation plans not approved by security holders :
|
|
|
|
Under deferred stock awards
|
40,229
|
n/a
|
—
|
Under performance stock awards
|
395,887
|
n/a
|
—
|
Under restricted stock awards
|
128,275
|
n/a
|
—
|
Total
|
2,369,782
|
n/a
|
2,652,250
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
Item 14.
|
Principal Accountant Fees and Services
|
Index to Consolidated Financial Statements and Supplementary Data (Item 8)
|
Page Number
|
Report of Independent Registered Public Accounting Firm
|
|
Report of Independent Registered Public Accounting Firm
|
|
Consolidated Balance Sheets at June 30, 2013 and 2012
|
|
Consolidated Statements of Income for the years ended June 30, 2013, 2012, and 2011
|
|
Consolidated Statements of Comprehensive Income for the years ended June 30, 2013, 2012, and 2011
|
|
Consolidated Statements of Shareholders' Equity for the years ended June 30, 2013, 2012, and 2011
|
|
Consolidated Statements of Cash Flows for the years ended June 30, 2013, 2012, and 2011
|
|
Notes to Consolidated Financial Statements
|
Exhibit
Number
|
|
Description of Exhibit
|
2.1
|
|
Agreement and Plan of Merger between Open Text Corporation, Open Text Inc., Oasis Merger Corporation and Captaris Inc., dated September 3, 2008. (12)
|
2.2
|
|
Agreement and Plan of Merger dated as of May 5, 2009 by and among Open Text Corporation, Scenic Merger Corporation and Vignette Corporation. (13)
|
2.3
|
|
Agreement and Plan of Merger between Open Text Corporation, EPIC Acquisition Sub Inc., a Delaware corporation and an indirect wholly-owned subsidiary of OpenText and EasyLink Services International Corporation dated May 1, 2012. (19)
|
3.1
|
|
Articles of Amalgamation of the Company. (1)
|
3.2
|
|
Articles of Amendment of the Company. (1)
|
3.3
|
|
Articles of Amendment of the Company. (1)
|
3.4
|
|
Articles of Amalgamation of the Company. (1)
|
3.5
|
|
Articles of Amalgamation of the Company, dated July 1, 2001. (2)
|
3.6
|
|
Articles of Amalgamation of the Company, dated July 1, 2002. (3)
|
3.7
|
|
Articles of Amalgamation of the Company, dated July 1, 2003. (4)
|
3.8
|
|
Articles of Amalgamation of the Company, dated July 1, 2004. (5)
|
3.9
|
|
Articles of Amalgamation of the Company, dated July 1, 2005. (6)
|
3.10
|
|
Open Text Corporation By-law, dated December 2, 2010. (15)
|
3.11
|
|
Articles of Continuance of the Company, dated December 29, 2005. (7)
|
4.1
|
|
Form of Common Share Certificate. (1)
|
4.2
|
|
Amended and Restated Shareholders Rights Plan Agreement between Open Text Corporation and Computershare Investor Services, Inc. dated December 2, 2010 (amending and restating the Shareholder Rights Plan Agreement dated as of December 6, 2007 filed as an exhibit to OpenText's Registration Statement on Form S-4, as filed with the SEC on May 28, 2009). (15)
|
10.1
|
|
1998 Stock Option Plan. (8)
|
10.2*
|
|
Indemnity Agreement with Walter Koehler dated August 8, 2005. (6)
|
10.3
|
|
2004 Employee Stock Option Plan. (6)
|
10.4
|
|
Artesia Stock Option Plan. (6)
|
10.5
|
|
Vista Stock Option Plan. (6)
|
10.6*
|
|
Form of Indemnity Agreement between the Company and certain of its officers dated September 7, 2006. (9)
|
10.7*
|
|
Open Text Corporation Long-Term Incentive Plan dated September 10, 2007. (10)
|
10.8*
|
|
Consulting Agreement between Steven Sadler and SJS Advisors Inc. and the Company, dated May 3, 2005. (11)
|
10.9
|
|
Open Text Corporation Directors' Deferred Share Unit Plan effective February 2, 2010. (14)
|
10.10
|
|
Amended and Restated Credit Agreement among Open Text Corporation and certain of its subsidiaries, the Lenders, Barclays Bank PLC, Royal Bank of Canada, Barclays Capital and RBC Capital Markets, dated as of November 9, 2011. (16)
|
10.11*
|
|
Restricted Share Unit Grant Agreement, dated February 3, 2012, between Mark Barrenechea and the Company. (17)
|
10.12
|
|
2004 Stock Option Plan, as amended September 27, 2012 (20)
|
10.13*
|
|
OpenText Corporation Long-Term Incentive Plan 2015 for eligible employees, effective October 3, 2012 (21)
|
10.14*
|
|
Employment Agreement, dated October 30, 2012 between Mark Barrenechea and the Company (21)
|
10.15*
|
|
Amending Agreement to the Restricted Share Unit Grant Agreement, between Mark Barrenechea and the Company (21)
|
10.16*
|
|
Employment Agreement, dated January 22, 2013, between Greg Corgan and the Company (22)
|
10.17*
|
|
Amendment No. 1 to the Employment Agreement between Mark J. Barrenechea and the Company dated January 24, 2013 (amending the Employment Agreement between Mark J. Barrenechea and the Company dated October 30, 2012) (22)
|
10.18*
|
|
Employment Agreement, dated April 23, 2013, between P. Thomas Jenkins and the Company (23)
|
10.19*
|
|
Employment Agreement, as of October 1, 2012, between James S. Mackey and the Company
|
10.20*
|
|
Employment Agreement, as of December 19, 2012, between Gordon A. Davies and the Company
|
10.21*
|
|
Employment Agreement, as of July 30, 2013, between Paul McFeeters and the Company
|
10.22*
|
|
Letter Agreement, as of July 30, 2013, between P. Thomas Jenkins and the Company
|
18.1
|
|
Preferability letter dated February 2, 2012 from the Company's auditors, KPMG LLP, regarding a change in the Company's accounting policy relating to the income statement classification of tax related interest and penalties. (18)
|
21.1
|
|
List of the Company's Subsidiaries.
|
23.1
|
|
Consent of Independent Registered Public Accounting Firm.
|
31.1
|
|
Certification of the Chief Executive Officer, pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2
|
|
Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1
|
|
Certification of the Chief Executive Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.2
|
|
Certification of the Chief Financial Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101.INS
|
|
XBRL instance document
|
101.SCH
|
|
XBRL taxonomy extension schema
|
101.CAL
|
|
XBRL taxonomy extension calculation linkbase
|
101.DEF
|
|
XBRL taxonomy extension definition linkbase
|
101.LAB
|
|
XBRL taxonomy extension label linkbase
|
101.PRE
|
|
XBRL taxonomy extension presentation
|
(1)
|
Filed as an Exhibit to the Company's Registration Statement on Form F-1 (Registration Number 33-98858) as filed with the Securities and Exchange Commission (the “SEC”) on November 1, 1995 or Amendments 1, 2 or 3 thereto (filed on December 28, 1995, January 22, 1996 and January 23, 1996 respectively), and incorporated herein by reference.
|
(2)
|
Filed as an Exhibit to the Company's Annual Report on Form 10-K, as filed with the SEC on September 28, 2001 and incorporated herein by reference.
|
(3)
|
Filed as an Exhibit to the Company's Annual Report on Form 10-K, as filed with the SEC on September 28, 2002 and incorporated herein by reference.
|
(4)
|
Filed as an Exhibit to the Company's Annual Report on Form 10-K, as filed with the SEC on September 29, 2003 and incorporated herein by reference.
|
(5)
|
Filed as an Exhibit to the Company's Annual Report on Form 10-K, as filed with the SEC on September 13, 2004 and incorporated herein by reference.
|
(6)
|
Filed as an Exhibit to the Company's Annual Report on Form 10-K, as filed with the SEC on September 27, 2005 and incorporated herein by reference.
|
(7)
|
Filed as an Exhibit to the Company's Quarterly Report on Form 10-Q, as filed with the SEC on February 3, 2006 and incorporated herein by reference.
|
(8)
|
Filed as an Exhibit to the Company's Annual Report on Form 10-K, as filed with the SEC on August 20, 1999 and incorporated herein by reference.
|
(9)
|
Filed as an Exhibit to the Company's Annual Report on Form 10-K, as filed with the SEC on September 12, 2006 and incorporated herein by reference.
|
(10)
|
Filed as an Exhibit to the Company's Report on Form 8-K, as filed with the SEC on September 13, 2007 and incorporated herein by reference.
|
(11)
|
Filed as an Exhibit to the Company's Annual Report on Form 10-K, as filed with the SEC on August 26, 2008 and incorporated herein by reference.
|
(12)
|
Filed as an Exhibit to the Company's Report on Form 8-K, as filed with the SEC on September 4, 2008 and incorporated herein by reference.
|
(13)
|
Filed as an Exhibit to the Company's Report on Form 8-K, as filed with the SEC on May 6, 2009 and incorporated herein by reference.
|
(14)
|
Filed as an Exhibit to the Company's Quarterly Report on Form 10-Q, as filed with the SEC on April 30, 2010 and incorporated herein by reference.
|
(15)
|
Filed as an Exhibit to the Company's Report on Form 8-K, as filed with the SEC on December 2, 2010 and incorporated herein by reference.
|
(16)
|
Filed as an Exhibit to the Company's Report on Form 8-K, as filed with the SEC on November 9, 2011 and incorporated herein by reference.
|
(17)
|
Filed as an Exhibit to the Company’s Report on Form 8-K, as filed with the SEC on February 8, 2012 and incorporated herein by reference.
|
(18)
|
Filed as an Exhibit to the Company's Quarterly Report on Form 10-Q, as filed with the SEC on February 2, 2012 and incorporated herein by reference.
|
(19)
|
Filed as an Exhibit to the Company’s Report on Form 8-K, as filed with the SEC on July 3, 2012 and incorporated herein by reference.
|
(20)
|
Filed as an Exhibit to the Company’s Report on Form 8-K, as filed with the SEC on October 2, 2012 and incorporated herein by reference
|
(21)
|
Filed as an Exhibit to the Company’s Quarterly Report on Form 10-Q, as filed with the SEC on November 1, 2012 and incorporated herein by reference
|
(22)
|
Filed as an Exhibit to the Company’s Quarterly Report on Form 10-Q, as filed with the SEC on January 25, 2013 and incorporated herein by reference
|
(23)
|
Filed as an Exhibit to the Company’s Quarterly Report on Form 10-Q, as filed with the SEC on April 25, 2013 and incorporated herein by reference
|
|
June 30, 2013
|
|
June 30, 2012
|
||||
|
|
|
|
||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
470,445
|
|
|
$
|
559,747
|
|
Accounts receivable trade, net of allowance for doubtful accounts of $4,871 as of June 30, 2013 and $5,655 as of June 30, 2012 (note 3)
|
174,927
|
|
|
163,664
|
|
||
Income taxes recoverable (note 14)
|
17,173
|
|
|
17,849
|
|
||
Prepaid expenses and other current assets
|
43,464
|
|
|
45,613
|
|
||
Deferred tax assets (note 14)
|
11,082
|
|
|
4,003
|
|
||
Total current assets
|
717,091
|
|
|
790,876
|
|
||
Property and equipment (note 4)
|
88,364
|
|
|
81,157
|
|
||
Goodwill (note 5)
|
1,246,872
|
|
|
1,040,234
|
|
||
Acquired intangible assets (note 6)
|
363,615
|
|
|
312,563
|
|
||
Deferred tax assets (note 14)
|
135,695
|
|
|
115,128
|
|
||
Other assets (note 7)
|
25,082
|
|
|
22,137
|
|
||
Deferred charges (note 8)
|
67,633
|
|
|
68,653
|
|
||
Long-term income taxes recoverable (note 14)
|
10,465
|
|
|
13,545
|
|
||
Total assets
|
$
|
2,654,817
|
|
|
$
|
2,444,293
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable and accrued liabilities (note 9)
|
$
|
188,443
|
|
|
$
|
132,015
|
|
Current portion of long-term debt (note 10)
|
51,742
|
|
|
41,374
|
|
||
Deferred revenues
|
282,387
|
|
|
273,987
|
|
||
Income taxes payable (note 14)
|
4,184
|
|
|
27,806
|
|
||
Deferred tax liabilities (note 14)
|
1,127
|
|
|
1,612
|
|
||
Total current liabilities
|
527,883
|
|
|
476,794
|
|
||
Long-term liabilities:
|
|
|
|
||||
Accrued liabilities (note 9)
|
17,849
|
|
|
13,966
|
|
||
Deferred credits (note 8)
|
11,608
|
|
|
10,086
|
|
||
Pension liability (note 11)
|
24,509
|
|
|
22,074
|
|
||
Long-term debt (note 10)
|
513,750
|
|
|
555,000
|
|
||
Deferred revenues
|
11,830
|
|
|
12,653
|
|
||
Long-term income taxes payable (note 14)
|
140,508
|
|
|
147,623
|
|
||
Deferred tax liabilities (note 14)
|
69,672
|
|
|
26,705
|
|
||
Total long-term liabilities
|
789,726
|
|
|
788,107
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Share capital (note 12)
|
|
|
|
||||
59,028,886 and 58,358,990 Common Shares issued and outstanding at June 30, 2013 and June 30, 2012, respectively; Authorized Common Shares: unlimited
|
651,642
|
|
|
635,321
|
|
||
Additional paid-in capital
|
101,865
|
|
|
95,026
|
|
||
Accumulated other comprehensive income
|
39,890
|
|
|
44,364
|
|
||
Retained earnings
|
572,885
|
|
|
442,068
|
|
||
Treasury stock, at cost (610,878 and 793,494 shares at June 30, 2013 and at June 30, 2012, respectively)
|
(29,074
|
)
|
|
(37,387
|
)
|
||
Total shareholders’ equity
|
1,337,208
|
|
|
1,179,392
|
|
||
Total liabilities and shareholders’ equity
|
$
|
2,654,817
|
|
|
$
|
2,444,293
|
|
|
|
Year Ended June 30,
|
||||||||||
|
|
2013
|
|
2012
|
|
2011
|
||||||
Revenues:
|
|
|
|
|
|
|
||||||
License
|
|
$
|
279,598
|
|
|
$
|
293,719
|
|
|
$
|
269,202
|
|
Cloud services
|
|
173,799
|
|
|
—
|
|
|
—
|
|
|||
Customer support
|
|
658,216
|
|
|
656,568
|
|
|
560,541
|
|
|||
Professional service and other
|
|
251,723
|
|
|
257,186
|
|
|
203,560
|
|
|||
Total revenues
|
|
1,363,336
|
|
|
1,207,473
|
|
|
1,033,303
|
|
|||
Cost of revenues:
|
|
|
|
|
|
|
||||||
License
|
|
16,107
|
|
|
18,033
|
|
|
18,284
|
|
|||
Cloud services
|
|
72,365
|
|
|
—
|
|
|
—
|
|
|||
Customer support
|
|
106,948
|
|
|
110,504
|
|
|
86,834
|
|
|||
Professional service and other
|
|
196,874
|
|
|
204,909
|
|
|
167,854
|
|
|||
Amortization of acquired technology-based intangible assets (note 6)
|
|
93,610
|
|
|
84,572
|
|
|
68,048
|
|
|||
Total cost of revenues
|
|
485,904
|
|
|
418,018
|
|
|
341,020
|
|
|||
Gross profit
|
|
877,432
|
|
|
789,455
|
|
|
692,283
|
|
|||
Operating expenses:
|
|
|
|
|
|
|
||||||
Research and development
|
|
164,010
|
|
|
169,043
|
|
|
145,992
|
|
|||
Sales and marketing
|
|
289,157
|
|
|
274,544
|
|
|
232,332
|
|
|||
General and administrative
|
|
109,325
|
|
|
97,072
|
|
|
86,696
|
|
|||
Depreciation
|
|
24,496
|
|
|
21,587
|
|
|
22,116
|
|
|||
Amortization of acquired customer-based intangible assets (note 6)
|
|
68,745
|
|
|
53,326
|
|
|
38,966
|
|
|||
Special charges (note 17)
|
|
24,034
|
|
|
24,523
|
|
|
15,576
|
|
|||
Total operating expenses
|
|
679,767
|
|
|
640,095
|
|
|
541,678
|
|
|||
Income from operations
|
|
197,665
|
|
|
149,360
|
|
|
150,605
|
|
|||
Other income (expense), net (note 21)
|
|
(2,473
|
)
|
|
3,549
|
|
|
(6,019
|
)
|
|||
Interest expense, net
|
|
(16,982
|
)
|
|
(15,564
|
)
|
|
(8,452
|
)
|
|||
Income before income taxes
|
|
178,210
|
|
|
137,345
|
|
|
136,134
|
|
|||
Provision for (recovery of) income taxes (note 14)
|
|
29,690
|
|
|
12,171
|
|
|
12,931
|
|
|||
Net income for the period
|
|
$
|
148,520
|
|
|
$
|
125,174
|
|
|
$
|
123,203
|
|
Earnings per share—basic (note 22)
|
|
$
|
2.53
|
|
|
$
|
2.16
|
|
|
$
|
2.16
|
|
Earnings per share—diluted (note 22)
|
|
$
|
2.51
|
|
|
$
|
2.13
|
|
|
$
|
2.11
|
|
Weighted average number of Common Shares outstanding—basic
|
|
58,604
|
|
|
57,890
|
|
|
57,077
|
|
|||
Weighted average number of Common Shares outstanding—diluted
|
|
59,062
|
|
|
58,734
|
|
|
58,260
|
|
|||
Dividends declared per Common Share
|
|
$
|
0.30
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Year Ended June 30,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Net income for the period
|
$
|
148,520
|
|
|
$
|
125,174
|
|
|
$
|
123,203
|
|
Other comprehensive income—net of tax:
|
|
|
|
|
|
||||||
Net foreign currency translation adjustments
|
(1,879
|
)
|
|
(9,197
|
)
|
|
15,388
|
|
|||
Net unrealized gain (loss) on cash flow hedges
|
(2,536
|
)
|
|
(1,069
|
)
|
|
1,275
|
|
|||
Net actuarial gain (loss) relating to defined benefit pension plans
|
(59
|
)
|
|
(5,840
|
)
|
|
(214
|
)
|
|||
Total other comprehensive income (loss), net, for the period
|
(4,474
|
)
|
|
(16,106
|
)
|
|
16,449
|
|
|||
Total comprehensive income
|
$
|
144,046
|
|
|
$
|
109,068
|
|
|
$
|
139,652
|
|
OPEN TEXT CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(In thousands of U.S. dollars and shares)
|
||||||||||||||||||||||||||||||
|
|
Common Shares
|
|
Treasury Stock
|
|
Additional
Paid in
Capital
|
|
Accumulated
Retained
Earnings
|
|
Accumulated Other
Comprehensive
Income
|
|
Total
|
||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
||||||||||||||||||||||
Balance as of June 30, 2010
|
|
56,826
|
|
|
$
|
602,868
|
|
|
(308
|
)
|
|
$
|
(14,000
|
)
|
|
$
|
61,298
|
|
|
$
|
193,691
|
|
|
$
|
44,021
|
|
|
$
|
887,878
|
|
Issuance of Common Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Under employee stock option plans
|
|
439
|
|
|
10,090
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,090
|
|
||||||
Under employee stock purchase plans
|
|
31
|
|
|
1,202
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,202
|
|
||||||
In connection with acquisitions
|
|
6
|
|
|
119
|
|
|
—
|
|
|
—
|
|
|
(119
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Stock compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,234
|
|
|
—
|
|
|
—
|
|
|
11,234
|
|
||||||
Income tax effect related to stock options exercised
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,888
|
|
|
—
|
|
|
—
|
|
|
1,888
|
|
||||||
Purchase of treasury stock
|
|
—
|
|
|
—
|
|
|
(264
|
)
|
|
(12,499
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,499
|
)
|
||||||
Other comprehensive income (loss) - net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,449
|
|
|
16,449
|
|
||||||
Net income for the year
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
123,203
|
|
|
—
|
|
|
123,203
|
|
||||||
Balance as of June 30, 2011
|
|
57,302
|
|
|
$
|
614,279
|
|
|
(572
|
)
|
|
$
|
(26,499
|
)
|
|
$
|
74,301
|
|
|
$
|
316,894
|
|
|
$
|
60,470
|
|
|
$
|
1,039,445
|
|
Issuance of Common Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Under employee stock option plans
|
|
1,023
|
|
|
19,217
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,217
|
|
||||||
Under employee stock purchase plans
|
|
33
|
|
|
1,792
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,792
|
|
||||||
In connection with acquisitions
|
|
1
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Stock compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,062
|
|
|
—
|
|
|
—
|
|
|
18,062
|
|
||||||
Income tax effect related to stock options exercised
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,696
|
|
|
—
|
|
|
—
|
|
|
2,696
|
|
||||||
Purchase of treasury stock
|
|
—
|
|
|
—
|
|
|
(221
|
)
|
|
(10,888
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,888
|
)
|
||||||
Other comprehensive income (loss) - net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,106
|
)
|
|
(16,106
|
)
|
||||||
Net income for the year
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
125,174
|
|
|
—
|
|
|
125,174
|
|
||||||
Balance as of June 30, 2012
|
|
58,359
|
|
|
$
|
635,321
|
|
|
(793
|
)
|
|
$
|
(37,387
|
)
|
|
$
|
95,026
|
|
|
$
|
442,068
|
|
|
$
|
44,364
|
|
|
$
|
1,179,392
|
|
Issuance of Common Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Under employee stock option plans
|
|
627
|
|
|
14,205
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,205
|
|
||||||
Under employee stock purchase plans
|
|
42
|
|
|
2,095
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,095
|
|
||||||
In connection with acquisitions
|
|
1
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
(21
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Stock compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,575
|
|
|
—
|
|
|
—
|
|
|
15,575
|
|
||||||
Income tax effect related to stock options exercised
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(402
|
)
|
|
—
|
|
|
—
|
|
|
(402
|
)
|
||||||
Issuance of treasury stock
|
|
—
|
|
|
—
|
|
|
182
|
|
|
8,313
|
|
|
(8,313
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Dividend
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17,703
|
)
|
|
—
|
|
|
(17,703
|
)
|
||||||
Other comprehensive income (loss) - net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,474
|
)
|
|
(4,474
|
)
|
||||||
Net income for the year
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
148,520
|
|
|
|
|
148,520
|
|
|||||||
Balance as of June 30, 2013
|
|
59,029
|
|
|
$
|
651,642
|
|
|
(611
|
)
|
|
$
|
(29,074
|
)
|
|
$
|
101,865
|
|
|
$
|
572,885
|
|
|
$
|
39,890
|
|
|
$
|
1,337,208
|
|
|
Year Ended June 30,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income for the period
|
$
|
148,520
|
|
|
$
|
125,174
|
|
|
$
|
123,203
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization of intangible assets
|
186,851
|
|
|
159,485
|
|
|
129,130
|
|
|||
Share-based compensation expense
|
15,575
|
|
|
18,097
|
|
|
11,308
|
|
|||
Excess tax benefits on share-based compensation expense
|
(915
|
)
|
|
(2,723
|
)
|
|
(1,888
|
)
|
|||
Pension expense
|
910
|
|
|
543
|
|
|
552
|
|
|||
Amortization of debt issuance costs
|
2,123
|
|
|
1,703
|
|
|
1,359
|
|
|||
Amortization of deferred charges and credits
|
11,815
|
|
|
11,579
|
|
|
8,519
|
|
|||
Loss on sale and write down of property and equipment
|
24
|
|
|
203
|
|
|
12
|
|
|||
Deferred taxes
|
(5,796
|
)
|
|
(78,792
|
)
|
|
(17,779
|
)
|
|||
Impairment and other non cash charges
|
—
|
|
|
1,389
|
|
|
(482
|
)
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable
|
17,965
|
|
|
5,319
|
|
|
200
|
|
|||
Prepaid expenses and other current assets
|
4,242
|
|
|
(2,079
|
)
|
|
1,833
|
|
|||
Income taxes
|
(17,053
|
)
|
|
68,601
|
|
|
9,444
|
|
|||
Deferred charges and credits
|
(9,274
|
)
|
|
(22,035
|
)
|
|
(29,071
|
)
|
|||
Accounts payable and accrued liabilities
|
(41,409
|
)
|
|
(17,812
|
)
|
|
(21,197
|
)
|
|||
Deferred revenue
|
5,418
|
|
|
(4,581
|
)
|
|
10,738
|
|
|||
Other assets
|
(494
|
)
|
|
2,419
|
|
|
(2,660
|
)
|
|||
Net cash provided by operating activities
|
318,502
|
|
|
266,490
|
|
|
223,221
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Additions of property and equipment
|
(23,107
|
)
|
|
(25,828
|
)
|
|
(36,662
|
)
|
|||
Purchase of patents
|
(192
|
)
|
|
(193
|
)
|
|
—
|
|
|||
Purchase of System Solutions Australia Pty Limited, net of cash acquired
|
(516
|
)
|
|
(1,738
|
)
|
|
—
|
|
|||
Purchase of EasyLink Services International Corporation, net of cash acquired
|
(315,331
|
)
|
|
—
|
|
|
—
|
|
|||
Purchase of Resonate KT Limited, net of cash acquired
|
(19,366
|
)
|
|
—
|
|
|
—
|
|
|||
Purchase of ICCM Professional Services Limited, net of cash acquired
|
(11,257
|
)
|
|
—
|
|
|
—
|
|
|||
Purchase of Operitel Corporation, net of cash acquired
|
—
|
|
|
(7,014
|
)
|
|
—
|
|
|||
Purchase of Global 360 Holding Corp., net of cash acquired
|
—
|
|
|
(245,653
|
)
|
|
—
|
|
|||
Purchase of StreamServe Inc., net of cash acquired
|
—
|
|
|
—
|
|
|
(57,221
|
)
|
|||
Purchase of weComm Limited, net of cash acquired
|
—
|
|
|
—
|
|
|
(20,198
|
)
|
|||
Purchase of Metastorm Inc., net of cash acquired
|
—
|
|
|
—
|
|
|
(168,657
|
)
|
|||
Purchase of New Generation Consulting Inc
|
—
|
|
|
—
|
|
|
(471
|
)
|
|||
Purchase consideration for prior period acquisitions
|
(875
|
)
|
|
(1,113
|
)
|
|
(4,577
|
)
|
|||
Other investing activities
|
(3,750
|
)
|
|
—
|
|
|
518
|
|
|||
Net cash used in investing activities
|
(374,394
|
)
|
|
(281,539
|
)
|
|
(287,268
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Excess tax benefits on share-based compensation expense
|
915
|
|
|
2,723
|
|
|
1,888
|
|
|||
Proceeds from issuance of Common Shares
|
16,347
|
|
|
21,270
|
|
|
11,512
|
|
|||
Purchase of Treasury Stock
|
—
|
|
|
(10,888
|
)
|
|
(12,499
|
)
|
|||
Proceeds from long-term debt and revolver
|
—
|
|
|
648,500
|
|
|
—
|
|
|||
Repayment of long-term debt and revolver
|
(30,677
|
)
|
|
(349,187
|
)
|
|
(3,575
|
)
|
|||
Debt issuance costs
|
—
|
|
|
(9,834
|
)
|
|
(29
|
)
|
|||
Payments of dividends to shareholders
|
(17,703
|
)
|
|
—
|
|
|
—
|
|
|||
Net cash provided by (used in) financing activities
|
(31,118
|
)
|
|
302,584
|
|
|
(2,703
|
)
|
|||
Foreign exchange gain (loss) on cash held in foreign currencies
|
(2,292
|
)
|
|
(11,928
|
)
|
|
24,698
|
|
|||
Increase (decrease) in cash and cash equivalents during the period
|
(89,302
|
)
|
|
275,607
|
|
|
(42,052
|
)
|
|||
Cash and cash equivalents at beginning of the period
|
559,747
|
|
|
284,140
|
|
|
326,192
|
|
|||
Cash and cash equivalents at end of the period
|
$
|
470,445
|
|
|
$
|
559,747
|
|
|
$
|
284,140
|
|
Balance as of June 30, 2010
|
$
|
4,868
|
|
Bad debt expense
|
2,602
|
|
|
Write-off /adjustments
|
(2,046
|
)
|
|
Balance as of June 30, 2011
|
5,424
|
|
|
Bad debt expense
|
3,443
|
|
|
Write-off /adjustments
|
(3,212
|
)
|
|
Balance as of June 30, 2012
|
5,655
|
|
|
Bad debt expense
|
2,431
|
|
|
Write-off /adjustments
|
(3,215
|
)
|
|
Balance as of June 30, 2013
|
$
|
4,871
|
|
|
As of June 30, 2013
|
||||||||||
|
Cost
|
|
Accumulated
Depreciation
|
|
Net
|
||||||
Furniture and fixtures
|
$
|
11,524
|
|
|
$
|
(5,645
|
)
|
|
$
|
5,879
|
|
Office equipment
|
1,128
|
|
|
(692
|
)
|
|
436
|
|
|||
Computer hardware
|
60,666
|
|
|
(40,826
|
)
|
|
19,840
|
|
|||
Computer software
|
18,169
|
|
|
(10,583
|
)
|
|
7,586
|
|
|||
Leasehold improvements
|
31,951
|
|
|
(17,656
|
)
|
|
14,295
|
|
|||
Buildings
|
44,993
|
|
|
(4,665
|
)
|
|
40,328
|
|
|||
Total
|
$
|
168,431
|
|
|
$
|
(80,067
|
)
|
|
$
|
88,364
|
|
|
As of June 30, 2012
|
||||||||||
|
Cost
|
|
Accumulated
Depreciation
|
|
Net
|
||||||
Furniture and fixtures
|
$
|
10,828
|
|
|
$
|
(4,577
|
)
|
|
$
|
6,251
|
|
Office equipment
|
975
|
|
|
(596
|
)
|
|
379
|
|
|||
Computer hardware
|
48,834
|
|
|
(34,799
|
)
|
|
14,035
|
|
|||
Computer software
|
13,558
|
|
|
(7,404
|
)
|
|
6,154
|
|
|||
Leasehold improvements
|
27,643
|
|
|
(13,777
|
)
|
|
13,866
|
|
|||
Buildings
|
44,034
|
|
|
(3,562
|
)
|
|
40,472
|
|
|||
Total
|
$
|
145,872
|
|
|
$
|
(64,715
|
)
|
|
$
|
81,157
|
|
Balance as of June 30, 2011
|
$
|
832,481
|
|
Acquisition of System Solutions Australia Pty Limited (note 18)
|
2,076
|
|
|
Acquisition of Operitel Corporation (note 18)
|
4,395
|
|
|
Acquisition of Global 360 Holding Corp. (note 18)
|
201,934
|
|
|
Adjustments on account of foreign exchange
|
(652
|
)
|
|
Balance as of June 30, 2012
|
$
|
1,040,234
|
|
Acquisition of EasyLink Services International Corporation (note 18)
|
183,616
|
|
|
Acquisition of Resonate KT Limited (note 18)
|
12,976
|
|
|
Acquisition of ICCM Professional Services Limited (note 18)
|
9,865
|
|
|
Adjustments on account of foreign exchange
|
181
|
|
|
Balance as of June 30, 2013
|
$
|
1,246,872
|
|
|
As of June 30, 2013
|
||||||||||
|
Cost
|
|
Accumulated Amortization
|
|
Net
|
||||||
Technology Assets
|
$
|
557,039
|
|
|
$
|
(403,126
|
)
|
|
$
|
153,913
|
|
Customer Assets
|
503,781
|
|
|
(294,079
|
)
|
|
209,702
|
|
|||
Total
|
$
|
1,060,820
|
|
|
$
|
(697,205
|
)
|
|
$
|
363,615
|
|
|
|
|
|
|
|
||||||
|
As of June 30, 2012
|
||||||||||
|
Cost
|
|
Accumulated Amortization
|
|
Net
|
||||||
Technology Assets
|
$
|
473,008
|
|
|
$
|
(309,517
|
)
|
|
$
|
163,491
|
|
Customer Assets
|
374,396
|
|
|
(225,324
|
)
|
|
149,072
|
|
|||
Total
|
$
|
847,404
|
|
|
$
|
(534,841
|
)
|
|
$
|
312,563
|
|
|
Fiscal years ending
June 30,
|
||
2014
|
$
|
106,717
|
|
2015
|
83,017
|
|
|
2016
|
58,067
|
|
|
2017
|
40,920
|
|
|
2018 and beyond
|
74,894
|
|
|
|
|
||
Total
|
$
|
363,615
|
|
|
As of June 30, 2013
|
|
As of June 30, 2012
|
||||
Debt issuance costs
|
$
|
6,340
|
|
|
$
|
8,463
|
|
Deposits and restricted cash
|
10,205
|
|
|
7,515
|
|
||
Long-term prepaid expenses and other long-term assets
|
8,537
|
|
|
6,159
|
|
||
Total
|
$
|
25,082
|
|
|
$
|
22,137
|
|
|
As of June 30, 2013
|
|
As of June 30, 2012
|
||||
Accounts payable—trade
|
$
|
8,776
|
|
|
$
|
7,574
|
|
Accrued salaries and commissions
|
50,568
|
|
|
50,821
|
|
||
Accrued liabilities
|
120,981
|
|
|
65,838
|
|
||
Amounts payable in respect of restructuring and other Special charges (note 17)
|
7,130
|
|
|
7,068
|
|
||
Asset retirement obligations
|
988
|
|
|
714
|
|
||
Total
|
$
|
188,443
|
|
|
$
|
132,015
|
|
|
As of June 30, 2013
|
|
As of June 30, 2012
|
||||
Amounts payable in respect of restructuring and other Special charges (note 17)
|
$
|
2,919
|
|
|
$
|
1,803
|
|
Other accrued liabilities*
|
10,172
|
|
|
8,538
|
|
||
Asset retirement obligations
|
4,758
|
|
|
3,625
|
|
||
Total
|
$
|
17,849
|
|
|
$
|
13,966
|
|
|
As of June 30, 2013
|
|
As of June 30, 2012
|
||||
Long-term debt
|
|
|
|
||||
Term Loan
|
$
|
555,000
|
|
|
$
|
585,000
|
|
Mortgage
|
10,492
|
|
|
11,374
|
|
||
|
565,492
|
|
|
596,374
|
|
||
Less:
|
|
|
|
||||
Current portion of long-term debt
|
|
|
|
||||
Term Loan
|
41,250
|
|
|
30,000
|
|
||
Mortgage
|
10,492
|
|
|
11,374
|
|
||
|
51,742
|
|
|
41,374
|
|
||
Non current portion of long-term debt
|
$
|
513,750
|
|
|
$
|
555,000
|
|
|
As of June 30, 2013
|
||||||||||
|
Total benefit
obligation
|
|
Current portion of
benefit obligation*
|
|
Non-current portion of
benefit obligation
|
||||||
CDT defined benefit plan
|
$
|
23,871
|
|
|
$
|
535
|
|
|
$
|
23,336
|
|
CDT anniversary plan
|
425
|
|
|
49
|
|
|
376
|
|
|||
CDT early retirement plan
|
—
|
|
|
—
|
|
|
—
|
|
|||
IXOS defined benefit plans
|
797
|
|
|
—
|
|
|
797
|
|
|||
Total
|
$
|
25,093
|
|
|
$
|
584
|
|
|
$
|
24,509
|
|
|
As of June 30, 2012
|
||||||||||
|
Total benefit
obligation
|
|
Current portion of
benefit obligation*
|
|
Non-current portion of
benefit obligation
|
||||||
CDT defined benefit plan
|
$
|
21,461
|
|
|
$
|
475
|
|
|
$
|
20,986
|
|
CDT anniversary plan
|
457
|
|
|
67
|
|
|
390
|
|
|||
CDT early retirement plan
|
69
|
|
|
69
|
|
|
—
|
|
|||
IXOS defined benefit plans
|
698
|
|
|
—
|
|
|
698
|
|
|||
Total
|
$
|
22,685
|
|
|
$
|
611
|
|
|
$
|
22,074
|
|
*
|
The current portion of the benefit obligation has been included within "Accounts payable and accrued liabilities" in the Consolidated Balance Sheets.
|
|
As of June 30, 2013
|
|
As of June 30, 2012
|
||||
Benefit obligation—as of June 30, 2012
|
$
|
21,461
|
|
|
$
|
18,231
|
|
Service cost
|
457
|
|
|
326
|
|
||
Interest cost
|
888
|
|
|
873
|
|
||
Benefits paid
|
(466
|
)
|
|
(441
|
)
|
||
Actuarial loss
|
278
|
|
|
5,179
|
|
||
Foreign exchange (gain) loss
|
1,253
|
|
|
(2,707
|
)
|
||
Benefit obligation—as of June 30, 2013
|
23,871
|
|
|
21,461
|
|
||
Less: Current portion
|
(535
|
)
|
|
(475
|
)
|
||
Non current portion of benefit obligation
|
$
|
23,336
|
|
|
$
|
20,986
|
|
|
|
Year Ended June 30,
|
||||||||||
|
|
2013
|
|
2012
|
|
2011
|
||||||
Pension expense:
|
|
|
|
|
|
|
||||||
Service cost
|
|
$
|
457
|
|
|
$
|
326
|
|
|
$
|
350
|
|
Interest cost
|
|
888
|
|
|
873
|
|
|
868
|
|
|||
Amortization of actuarial gains and losses
|
|
277
|
|
|
—
|
|
|
—
|
|
|||
Net pension expense
|
|
$
|
1,622
|
|
|
$
|
1,199
|
|
|
$
|
1,218
|
|
|
As of June 30, 2013
|
|
As of June 30, 2012
|
||
Assumptions:
|
|
|
|
||
Salary increases
|
2.50
|
%
|
|
2.50
|
%
|
Pension increases
|
2.00
|
%
|
|
2.00
|
%
|
Discount rate
|
3.50
|
%
|
|
4.00
|
%
|
Employee fluctuation rate:
|
|
|
|
||
to age 30
|
1.00
|
%
|
|
1.00
|
%
|
to age 35
|
0.50
|
%
|
|
0.50
|
%
|
to age 40
|
—
|
%
|
|
—
|
%
|
to age 45
|
0.50
|
%
|
|
0.50
|
%
|
to age 50
|
0.50
|
%
|
|
0.50
|
%
|
from age 51
|
1.00
|
%
|
|
1.00
|
%
|
|
Fiscal years ending
June 30,
|
|
|
2014
|
$
|
535
|
|
2015
|
591
|
|
|
2016
|
654
|
|
|
2017
|
728
|
|
|
2018
|
780
|
|
|
2019 to 2023
|
5,137
|
|
|
Total
|
$
|
8,425
|
|
|
1998
Stock Option Plan |
2004
Stock Option Plan |
Centrinity
Stock Option Plan |
Gauss
Stock Option Plan |
Hummingbird
Stock Option Plan |
IXOS
Stock Option Plan |
Vista
Stock Option Plan |
Date of inception
|
Jun-98
|
Oct-04
|
Jan-03
|
Jan-04
|
Oct-06
|
Mar-04
|
Sep-04
|
Eligibility
|
Eligible
employees and directors, as determined by the Board of Directors |
Eligible
employees, as determined by the Board of Directors |
Eligible
employees, consultants and directors, as determined by the Board of Directors |
Eligible
employees as determined by the Board of Directors |
Eligible
employees, and consultants of Hummingbird Inc. |
Eligible
employees as determined by the Board of Directors |
Former
employees, and consultants of Vista Inc. |
Options granted to date
|
7,914,290
|
4,575,445
|
414,968
|
51,000
|
355,675
|
210,000
|
43,500
|
Options exercised to date
|
(5,254,180)
|
(2,204,850)
|
(401,468)
|
(38,000)
|
(25,309)
|
(59,250)
|
(24,625)
|
Options cancelled to date
|
(2,555,110)
|
(686,875)
|
(13,500)
|
(13,000)
|
(319,695)
|
(144,750)
|
(18,875)
|
Options outstanding
|
105,000
|
1,683,720
|
—
|
—
|
10,671
|
6,000
|
—
|
Termination grace periods
|
Immediately
“for cause”; 90 days for any other reason; 180 days due to death |
Immediately
“for cause”; 90 days for any other reason; 180 days due to death |
Immediately
“for cause”; 90 days for any other reason; 180 days due to death |
Immediately
“for cause”; 90 days for any other reason; 180 days due to death |
Immediately
“for cause”; 90 days for any other reason; 180 days due to death |
Immediately
“for cause”; 90 days for any other reason; 180 days due to death |
Immediately
“for cause”; 90 days for any other reason; 180 days due to death |
Vesting schedule
|
25% per year,
unless other- wise specified |
25% per year,
unless other- wise specified |
25% per year,
unless other- wise specified |
25% per year,
unless other- wise specified |
25% per year,
unless other- wise specified |
25% per year,
unless other- wise specified |
25% per year,
unless other- wise specified |
Exercise price range
|
$17.41 - $31.35
|
$27.70 - $63.51
|
n/a
|
n/a
|
$18.36 - $27.75
|
$26.24 - $26.24
|
n/a
|
Expiration dates
|
12/11/2013 to
2/3/2016 |
5/1/2015 to
4/26/2020 |
n/a
|
n/a
|
10/2/2013 to
10/2/2013 |
1/27/2014 to
1/27/2014 |
n/a
|
|
|
|
|
Options Outstanding
|
|
Options Exercisable
|
|||||||||||
Range of Exercise
Prices
|
|
Number of Options
Outstanding as of
June 30, 2013
|
Weighted
Average
Remaining
Contractual
Life (years)
|
Weighted
Average
Exercise
Price
|
|
Number of Options
Exercisable as of
June 30, 2013
|
Weighted
Average
Exercise
Price
|
||||||||||
17.41
|
|
-
|
34.50
|
|
|
347,921
|
|
1.98
|
$
|
29.67
|
|
|
347,921
|
|
$
|
29.67
|
|
37.22
|
|
-
|
46.70
|
|
|
296,800
|
|
5.03
|
44.63
|
|
|
120,550
|
|
43.90
|
|
||
48.39
|
|
-
|
52.44
|
|
|
323,125
|
|
5.46
|
51.99
|
|
|
116,875
|
|
51.31
|
|
||
52.74
|
|
-
|
58.20
|
|
|
277,545
|
|
6.26
|
53.85
|
|
|
—
|
|
—
|
|
||
59.27
|
|
-
|
59.27
|
|
|
67,500
|
|
6.58
|
59.27
|
|
|
—
|
|
—
|
|
||
60.35
|
|
-
|
60.35
|
|
|
420,000
|
|
5.60
|
60.35
|
|
|
85,000
|
|
60.35
|
|
||
61.63
|
|
-
|
63.51
|
|
|
72,500
|
|
6.59
|
63.45
|
|
|
2,500
|
|
61.63
|
|
||
17.41
|
|
-
|
63.51
|
|
|
1,805,391
|
|
4.96
|
$
|
49.44
|
|
|
672,846
|
|
$
|
39.97
|
|
|
|
Year Ended June 30,
|
||||||||||
|
|
2013
|
|
2012
|
|
2011
|
||||||
Stock options
|
|
$
|
5,751
|
|
|
$
|
4,567
|
|
|
$
|
3,546
|
|
Performance Share Units (issued under LTIP)
|
|
6,998
|
|
|
12,842
|
|
|
7,343
|
|
|||
Restricted Share Units (issued under LTIP)
|
|
1,283
|
|
|
—
|
|
|
—
|
|
|||
Restricted Share Units (other)
|
|
549
|
|
|
243
|
|
|
—
|
|
|||
Deferred Share Units (directors)
|
|
985
|
|
|
415
|
|
|
295
|
|
|||
Restricted Stock Awards (legacy Vignette employees)
|
|
9
|
|
|
30
|
|
|
124
|
|
|||
Total share-based compensation expense
|
|
$
|
15,575
|
|
|
$
|
18,097
|
|
|
$
|
11,308
|
|
|
Options
|
|
Weighted-
Average Exercise
Price
|
|
Weighted-
Average
Remaining
Contractual Term
(years)
|
|
Aggregate Intrinsic Value
($’000s)
|
|||||
Outstanding at June 30, 2012
|
2,147,151
|
|
|
$
|
40.07
|
|
|
|
|
|
||
Granted
|
430,045
|
|
|
56.29
|
|
|
|
|
|
|||
Exercised
|
(627,305
|
)
|
|
22.64
|
|
|
|
|
|
|||
Forfeited or expired
|
(144,500
|
)
|
|
46.94
|
|
|
|
|
|
|||
Outstanding at June 30, 2013
|
1,805,391
|
|
|
$
|
49.44
|
|
|
4.96
|
|
$
|
34,355
|
|
Exercisable at June 30, 2013
|
672,846
|
|
|
$
|
39.97
|
|
|
3.44
|
|
$
|
19,174
|
|
|
Options
|
|
Weighted-
Average Exercise
Price
|
|
Weighted-
Average
Remaining
Contractual Term
(years)
|
|
Aggregate Intrinsic Value
($’000s)
|
|||||
Outstanding at June 30, 2011
|
2,277,733
|
|
|
$
|
24.51
|
|
|
|
|
|
||
Granted
|
944,500
|
|
|
54.84
|
|
|
|
|
|
|||
Exercised
|
(1,022,556
|
)
|
|
18.79
|
|
|
|
|
|
|||
Forfeited or expired
|
(52,526
|
)
|
|
45.05
|
|
|
|
|
|
|||
Outstanding at June 30, 2012
|
2,147,151
|
|
|
$
|
40.07
|
|
|
4.34
|
|
$
|
26,541
|
|
Exercisable at June 30, 2012
|
960,151
|
|
|
$
|
25.92
|
|
|
2.33
|
|
$
|
23,093
|
|
|
|
Year Ended June 30,
|
||||||||||
|
|
2013
|
|
2012
|
|
2011
|
||||||
Weighted–average fair value of options granted
|
|
$
|
16.78
|
|
|
$
|
19.39
|
|
|
$
|
17.89
|
|
Weighted-average assumptions used:
|
|
|
|
|
|
|
||||||
Expected volatility
|
|
37
|
%
|
|
41
|
%
|
|
40
|
%
|
|||
Risk–free interest rate
|
|
0.66
|
%
|
|
0.69
|
%
|
|
1.70
|
%
|
|||
Expected dividend yield
|
|
0.3
|
%
|
|
—
|
%
|
|
—
|
%
|
|||
Expected life (in years)
|
|
4.35
|
|
|
4.62
|
|
|
4.30
|
|
|||
Forfeiture rate (based on historical rates)
|
|
5
|
%
|
|
5
|
%
|
|
5
|
%
|
|||
Average exercised share price
|
|
$
|
56.29
|
|
|
$
|
49.79
|
|
|
$
|
51.24
|
|
|
|
|
|
|
|
|
Year Ended June 30,
|
||||||||
Grants Made Under LTIP
|
Equity Instrument
|
Grant Date
|
End Date
|
|
Expected Total LTIP Expense
|
|
2013
|
|
2012
|
|
2011
|
||||
Fiscal 2012 LTIP
|
PSU
|
3/31/2010
|
9/15/2012
|
|
17,314
|
|
|
579
|
|
|
9,284
|
|
|
5,964
|
|
Fiscal 2013 LTIP
|
PSU
|
10/29/2010
|
9/15/2013
|
|
6,489
|
|
|
2,999
|
|
|
1,896
|
|
|
1,379
|
|
Fiscal 2014 LTIP
|
PSU
|
2/3/2012
|
9/15/2014
|
|
8,046
|
|
|
2,832
|
|
|
1,662
|
|
|
—
|
|
Fiscal 2015 LTIP
|
PSU
|
12/3/2012
|
9/15/2015
|
|
2,858
|
|
|
588
|
|
|
—
|
|
|
—
|
|
Fiscal 2015 LTIP
|
RSU
|
11/2/2012
|
9/15/2015
|
|
5,599
|
|
|
1,283
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
40,306
|
|
|
8,281
|
|
|
12,842
|
|
|
7,343
|
|
|
Payments due between
|
||||||||||||||||||
|
Total
|
|
Period ending
June 30, 2014 |
|
July 1, 2014—
June 30, 2016 |
|
July 1, 2016—
June 30, 2018 |
|
July 1,
2018 and beyond |
||||||||||
Long-term debt obligations
|
$
|
604,886
|
|
|
$
|
65,092
|
|
|
$
|
124,367
|
|
|
$
|
415,427
|
|
|
$
|
—
|
|
Operating lease obligations*
|
157,876
|
|
|
35,894
|
|
|
56,032
|
|
|
33,496
|
|
|
32,454
|
|
|||||
Purchase obligations
|
7,778
|
|
|
4,605
|
|
|
2,864
|
|
|
309
|
|
|
—
|
|
|||||
|
$
|
770,540
|
|
|
$
|
105,591
|
|
|
$
|
183,263
|
|
|
$
|
449,232
|
|
|
$
|
32,454
|
|
|
Year Ended June 30,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Domestic income
|
$
|
(20,525
|
)
|
|
$
|
(13,064
|
)
|
|
$
|
9,039
|
|
Foreign income
|
198,735
|
|
|
150,409
|
|
|
127,095
|
|
|||
Income before income taxes
|
$
|
178,210
|
|
|
$
|
137,345
|
|
|
$
|
136,134
|
|
|
Year Ended June 30,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Current income taxes:
|
|
|
|
|
|
||||||
Domestic
|
$
|
747
|
|
|
$
|
6,147
|
|
|
$
|
5,693
|
|
Foreign
|
34,739
|
|
|
84,816
|
|
|
25,017
|
|
|||
|
35,486
|
|
|
90,963
|
|
|
30,710
|
|
|||
Deferred income taxes (recoveries):
|
|
|
|
|
|
|
|
|
|||
Domestic
|
3,126
|
|
|
6,470
|
|
|
1,351
|
|
|||
Foreign
|
(8,922
|
)
|
|
(85,262
|
)
|
|
(19,130
|
)
|
|||
|
(5,796
|
)
|
|
(78,792
|
)
|
|
(17,779
|
)
|
|||
Provision for income taxes
|
$
|
29,690
|
|
|
$
|
12,171
|
|
|
$
|
12,931
|
|
|
Year Ended June 30,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Expected statutory rate
|
26.5
|
%
|
|
27.25
|
%
|
|
29.25
|
%
|
|||
Expected provision for income taxes
|
$
|
47,226
|
|
|
$
|
37,427
|
|
|
$
|
39,819
|
|
Effect of foreign tax rate differences
|
(27,026
|
)
|
|
(21,496
|
)
|
|
(10,258
|
)
|
|||
Change in valuation allowance
|
2,082
|
|
|
15,536
|
|
|
(4,840
|
)
|
|||
Amortization of deferred charges
|
10,922
|
|
|
11,112
|
|
|
8,535
|
|
|||
Effect of permanent differences
|
6,008
|
|
|
6,902
|
|
|
1,577
|
|
|||
Effect of Canadian to US dollar functional currency election
|
—
|
|
|
(5,887
|
)
|
|
—
|
|
|||
Withholding taxes and other items
|
(2,093
|
)
|
|
1,473
|
|
|
(5,177
|
)
|
|||
Impact of internal reorganization of subsidiaries and integration of acquisitions
|
(7,429
|
)
|
|
(32,896
|
)
|
|
(16,725
|
)
|
|||
|
$
|
29,690
|
|
|
$
|
12,171
|
|
|
$
|
12,931
|
|
|
June 30,
|
||||||
|
2013
|
|
2012
|
||||
Deferred tax assets
|
|
|
|
||||
Non-capital loss carryforwards
|
$
|
55,946
|
|
|
$
|
47,516
|
|
Capital loss carryforwards
|
3,010
|
|
|
3,002
|
|
||
Undeducted scientific research and development expenses
|
72,555
|
|
|
60,415
|
|
||
Depreciation and amortization
|
16,331
|
|
|
12,049
|
|
||
Restructuring costs and other reserves
|
20,325
|
|
|
11,274
|
|
||
Deferred revenue
|
58,471
|
|
|
55,267
|
|
||
Other
|
11,066
|
|
|
3,544
|
|
||
Total deferred tax asset
|
$
|
237,704
|
|
|
$
|
193,067
|
|
Valuation allowance
|
$
|
(80,778
|
)
|
|
$
|
(63,431
|
)
|
Deferred tax liabilities
|
|
|
|
||||
Scientific research and development tax credits
|
$
|
(7,484
|
)
|
|
$
|
(8,695
|
)
|
Deferred credits
|
—
|
|
|
(906
|
)
|
||
Acquired intangibles
|
(55,128
|
)
|
|
(11,040
|
)
|
||
Other
|
(18,336
|
)
|
|
(18,181
|
)
|
||
Deferred tax liabilities
|
$
|
(80,948
|
)
|
|
$
|
(38,822
|
)
|
Net deferred tax asset (liability)
|
$
|
75,978
|
|
|
$
|
90,814
|
|
Comprised of:
|
|
|
|
||||
Current assets
|
$
|
11,082
|
|
|
$
|
4,003
|
|
Long-term assets
|
135,695
|
|
|
115,128
|
|
||
Current liabilities
|
(1,127
|
)
|
|
(1,612
|
)
|
||
Long-term liabilities
|
(69,672
|
)
|
|
(26,705
|
)
|
||
|
$
|
75,978
|
|
|
$
|
90,814
|
|
Unrecognized tax benefits as of July 1, 2011
|
$
|
132,892
|
|
Increases on account of current year positions
|
5,279
|
|
|
Increases on account of prior year positions*
|
65,994
|
|
|
Decreases due to settlements with tax authorities
|
(4,935
|
)
|
|
Decreases due to lapses of statutes of limitations
|
(42,949
|
)
|
|
Unrecognized tax benefits as of July 1, 2012
|
$
|
156,281
|
|
Increases on account of current year positions
|
5,736
|
|
|
Increases on account of prior year positions**
|
22,017
|
|
|
Decreases due to settlements with tax authorities
|
(5,138
|
)
|
|
Decreases due to lapses of statutes of limitations
|
(29,993
|
)
|
|
Unrecognized tax benefits as of June 30, 2013
|
$
|
148,903
|
|
*
|
Included in these balances as of June 30, 2012 are acquired balances of
$0.4 million
relating to the acquisition of Global 360.
|
**
|
Included in these balances as of June 30, 2013 are acquired balances of
$8.8 million
relating to the acquisition of EasyLink.
|
|
|
Year Ended June 30,
|
||||||||||
|
|
2013
|
|
2012
|
|
2011
|
||||||
Interest expense
|
|
$
|
(736
|
)
|
|
$
|
9,383
|
|
|
$
|
3,387
|
|
Penalties expense (recovery)
|
|
65
|
|
|
(10,764
|
)
|
|
75
|
|
|||
Total
|
|
$
|
(671
|
)
|
|
$
|
(1,381
|
)
|
|
$
|
3,462
|
|
|
As of June 30, 2013
|
|
As of June 30, 2012
|
||||
Interest expense accrued *
|
$
|
18,210
|
|
|
$
|
19,316
|
|
Penalties accrued *
|
$
|
6,045
|
|
|
$
|
4,040
|
|
*
|
These balances have been included within "Long-term income taxes payable" within the Consolidated Balance Sheets.
|
•
|
Level 1—inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.
|
•
|
Level 2—inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
|
•
|
Level 3—inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.
|
|
June 30, 2013
|
|
June 30, 2012
|
||||||||||||||||||||
|
|
|
Fair Market Measurements using:
|
|
|
|
Fair Market Measurements using:
|
||||||||||||||||
|
June 30, 2013
|
|
Quoted prices
in active
markets for
identical
assets/
(liabilities)
|
|
Significant
other
observable
inputs
|
|
Significant
unobservable
inputs
|
|
June 30, 2012
|
|
Quoted prices
in active
markets for
identical
assets/
(liabilities)
|
|
Significant
other
observable
inputs
|
|
Significant
unobservable
inputs
|
||||||||
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|||||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative financial instrument asset (liability) (note 16)
|
$
|
(3,170
|
)
|
|
n/a
|
|
$
|
(3,170
|
)
|
|
n/a
|
|
$
|
283
|
|
|
n/a
|
|
$
|
283
|
|
|
n/a
|
|
$
|
(3,170
|
)
|
|
n/a
|
|
$
|
(3,170
|
)
|
|
n/a
|
|
$
|
283
|
|
|
n/a
|
|
$
|
283
|
|
|
n/a
|
|
|
As of June 30, 2013
|
|
As of June 30, 2012
|
||||
Derivatives
|
Balance Sheet Location
|
Fair Value
Asset (Liability) |
|
Fair Value
Asset (Liability) |
||||
Foreign currency forward contracts designated as cash flow hedges
|
Prepaid expenses and other current assets (Accounts payable and accrued liabilities)
|
$
|
(3,170
|
)
|
|
$
|
283
|
|
Year Ended June 30, 2013
|
||||||||||||||||||||
Derivatives in Cash Flow
Hedging Relationship
|
Amount of Gain or (Loss)
Recognized in OCI on
Derivatives (Effective
Portion)
|
|
Location of
Gain or (Loss)
Reclassified
from
Accumulated
OCI into
Income
(Effective
Portion)
|
|
Amount of Gain or
(Loss) Reclassified from
Accumulated OCI into
Income (Effective
Portion)
|
|
Location of
Gain or
(Loss)
Recognized
in Income on
Derivatives
(Ineffective
Portion and
Amount
Excluded
from
Effectiveness
Testing)
|
|
Amount of Gain or
(Loss) Recognized in
Income on Derivatives
(Ineffective Portion
and Amount Excluded
from Effectiveness
Testing)
|
|||||||||||
Foreign currency forward contracts
|
|
|
$
|
(1,436
|
)
|
|
Operating
expenses |
|
|
|
$
|
2,017
|
|
|
N/A
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Year Ended June 30, 2012
|
||||||||||||||||||||
Derivatives in Cash Flow
Hedging Relationship
|
Amount of Gain or (Loss)
Recognized in OCI on
Derivatives (Effective
Portion)
|
|
Location of
Gain or (Loss)
Reclassified
from
Accumulated
OCI into
Income
(Effective
Portion)
|
|
Amount of Gain or
(Loss) Reclassified from
Accumulated OCI into
Income (Effective
Portion)
|
|
Location of
Gain or
(Loss)
Recognized
in Income on
Derivatives
(Ineffective
Portion and
Amount
Excluded
from
Effectiveness
Testing)
|
|
Amount of Gain or
(Loss) Recognized in
Income on Derivatives
(Ineffective Portion
and Amount Excluded
from Effectiveness
Testing)
|
|||||||||||
Foreign currency forward contracts
|
|
|
$
|
(1,909
|
)
|
|
Operating
expenses |
|
|
|
$
|
(390
|
)
|
|
N/A
|
|
|
|
—
|
|
|
|
Year Ended June 30,
|
||||||||||
|
|
2013
|
|
2012
|
|
2011
|
||||||
Fiscal 2013 Restructuring Plan
|
|
$
|
15,754
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Fiscal 2012 Restructuring Plan
|
|
971
|
|
|
16,897
|
|
|
—
|
|
|||
Fiscal 2011 Restructuring Plan
|
|
(384
|
)
|
|
1,160
|
|
|
8,524
|
|
|||
Fiscal 2010 Restructuring Plan
|
|
(2
|
)
|
|
(38
|
)
|
|
4,620
|
|
|||
Acquisition-related costs
|
|
4,925
|
|
|
5,115
|
|
|
2,914
|
|
|||
Other charges
|
|
2,770
|
|
|
1,389
|
|
|
(482
|
)
|
|||
Total
|
|
$
|
24,034
|
|
|
$
|
24,523
|
|
|
$
|
15,576
|
|
Fiscal 2013 Restructuring Plan
|
Workforce
reduction
|
|
Facility costs
|
|
Total
|
||||||
Balance as of June 30, 2012
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Accruals and adjustments
|
9,970
|
|
|
5,784
|
|
|
15,754
|
|
|||
Cash payments
|
(6,713
|
)
|
|
(1,389
|
)
|
|
(8,102
|
)
|
|||
Foreign exchange
|
(52
|
)
|
|
1
|
|
|
(51
|
)
|
|||
Balance as of June 30, 2013
|
$
|
3,205
|
|
|
$
|
4,396
|
|
|
$
|
7,601
|
|
Fiscal 2012 Restructuring Plan
|
Workforce
reduction
|
|
Facility costs
|
|
Total
|
||||||
Balance as of June 30, 2012
|
$
|
4,422
|
|
|
$
|
3,355
|
|
|
$
|
7,777
|
|
Accruals and adjustments
|
1,155
|
|
|
(184
|
)
|
|
971
|
|
|||
Cash payments
|
(5,201
|
)
|
|
(1,259
|
)
|
|
(6,460
|
)
|
|||
Foreign exchange
|
(67
|
)
|
|
74
|
|
|
7
|
|
|||
Balance as of June 30, 2013
|
$
|
309
|
|
|
$
|
1,986
|
|
|
$
|
2,295
|
|
Fiscal 2012 Restructuring Plan
|
Workforce
reduction
|
|
Facility costs
|
|
Total
|
||||||
Balance as of June 30, 2011
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Accruals and adjustments
|
13,006
|
|
|
3,891
|
|
|
16,897
|
|
|||
Cash payments
|
(8,202
|
)
|
|
(486
|
)
|
|
(8,688
|
)
|
|||
Foreign exchange
|
(382
|
)
|
|
(50
|
)
|
|
(432
|
)
|
|||
Balance as of June 30, 2012
|
$
|
4,422
|
|
|
$
|
3,355
|
|
|
$
|
7,777
|
|
Cash consideration paid
|
$
|
342,272
|
|
|
|
||
Acquisition related costs (included in Special charges in the Consolidated Statements of Income) for the year ended June 30, 2013
|
$
|
1,850
|
|
Current assets (inclusive of cash acquired of $26,941)
|
$
|
74,560
|
|
Non-current assets
|
35,024
|
|
|
Intangible customer assets
|
126,600
|
|
|
Intangible technology assets
|
70,500
|
|
|
Total liabilities assumed
|
(148,028
|
)
|
|
Total identifiable net assets
|
158,656
|
|
|
Goodwill
|
183,616
|
|
|
|
$
|
342,272
|
|
|
|
July 2, 2012—
June 30, 2013
|
||
Revenues
|
|
$
|
171,569
|
|
Net Income
|
|
$
|
10,288
|
|
|
|
Year Ended June 30,
|
||
|
|
2012
|
||
Supplemental Unaudited Pro forma Information
|
|
|
||
Total revenues
|
|
$
|
1,389,132
|
|
Net income*
|
|
$
|
151,369
|
|
Cash consideration paid
|
$
|
256,597
|
|
|
|
||
Acquisition related costs (included in Special charges in the Consolidated Statements of Income) for the year ended June 30, 2012
|
$
|
924
|
|
|
|
|
|
July 13, 2011—
June 30, 2012
|
||
Revenues
|
|
$
|
74,900
|
|
Net Income*
|
|
N/A
|
|
|
|
Year ended June 30,
|
||||||
|
|
2012
|
|
2011
|
||||
Supplemental Unaudited Pro forma Information
|
|
|
|
|
||||
Total revenues
|
|
$
|
1,209,809
|
|
|
$
|
1,125,366
|
|
Net income**
|
|
$
|
128,924
|
|
|
$
|
107,636
|
|
Cash consideration paid
|
$
|
20,461
|
|
|
|
|
|
Acquisition related costs (included in Special charges in the Consolidated Statements of Income) for the year ended June 30, 2011
|
$
|
318
|
|
|
|
March 15, 2011—
June 30, 2011
|
||
Revenues
|
|
$
|
311
|
|
Net Loss*
|
|
$
|
(1,172
|
)
|
|
Year ended June 30,
|
|||||
|
2011
|
2010
|
||||
Supplemental Unaudited Pro forma Information
|
|
|
||||
Total revenues
|
$
|
1,035,175
|
|
$
|
915,870
|
|
Net income
|
$
|
120,913
|
|
$
|
88,425
|
|
Cash consideration paid
|
$
|
182,000
|
|
|
|
|
|
Acquisition related costs (included in Special charges in the Consolidated Statements of Income) for the year ended June 30, 2011
|
$
|
1,038
|
|
|
|
February 18, 2011—
June 30, 2011
|
||
Revenues
|
|
$
|
28,731
|
|
Net Loss*
|
|
$
|
(5,870
|
)
|
|
Year ended June 30,
|
|||||
|
2011
|
2010
|
||||
Supplemental Unaudited Pro forma Information
|
|
|
||||
Total revenues
|
$
|
1,086,461
|
|
$
|
980,228
|
|
Net income**
|
$
|
114,054
|
|
$
|
78,186
|
|
Cash consideration paid
|
$
|
70,514
|
|
|
|
|
|
Acquisition related costs (included in Special charges in the Consolidated Statements of Income) for year ended June 30, 2011
|
$
|
1,146
|
|
|
|
October 27, 2010—
June 30, 2011
|
||
Revenues
|
|
$
|
43,151
|
|
Net Loss*
|
|
$
|
(1,978
|
)
|
|
Year ended June 30,
|
|||||
|
2011
|
2010
|
||||
Supplemental Unaudited Pro forma Information
|
|
|
||||
Total revenues
|
$
|
1,053,884
|
|
$
|
974,410
|
|
Net income**
|
$
|
118,649
|
|
$
|
88,174
|
|
|
Year Ended June 30,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Revenues:
|
|
|
|
|
|
||||||
Canada
|
$
|
103,076
|
|
|
$
|
103,915
|
|
|
$
|
85,135
|
|
United States
|
611,902
|
|
|
513,530
|
|
|
445,511
|
|
|||
United Kingdom
|
131,745
|
|
|
124,601
|
|
|
103,255
|
|
|||
Germany
|
138,073
|
|
|
130,494
|
|
|
124,248
|
|
|||
Rest of Europe
|
223,444
|
|
|
212,587
|
|
|
186,473
|
|
|||
All other countries
|
155,096
|
|
|
122,346
|
|
|
88,681
|
|
|||
Total revenues
|
$
|
1,363,336
|
|
|
$
|
1,207,473
|
|
|
$
|
1,033,303
|
|
|
As of June 30,
2013 |
|
As of June 30,
2012 |
||||
Long-lived assets:
|
|
|
|
||||
Canada
|
$
|
70,305
|
|
|
$
|
67,971
|
|
United States
|
185,240
|
|
|
8,924
|
|
||
United Kingdom
|
18,694
|
|
|
42,211
|
|
||
Germany
|
5,466
|
|
|
6,195
|
|
||
Rest of Europe
|
167,045
|
|
|
265,318
|
|
||
All other countries
|
5,229
|
|
|
3,101
|
|
||
Total
|
$
|
451,979
|
|
|
$
|
393,720
|
|
|
|
Year Ended June 30,
|
||||||||||
|
|
2013
|
|
2012
|
|
2011
|
||||||
Cash paid during the period for interest
|
|
$
|
16,299
|
|
|
$
|
15,305
|
|
|
$
|
8,542
|
|
Cash received during the period for interest
|
|
$
|
1,439
|
|
|
$
|
1,396
|
|
|
$
|
1,203
|
|
Cash paid during the period for income taxes
|
|
$
|
52,827
|
|
|
$
|
15,864
|
|
|
$
|
29,551
|
|
|
Year Ended June 30,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Transactional foreign exchange gain (loss)
|
$
|
(2,635
|
)
|
|
$
|
3,642
|
|
|
$
|
(6,574
|
)
|
Gain (loss) on sale of marketable securities
|
—
|
|
|
—
|
|
|
443
|
|
|||
Other
|
162
|
|
|
(93
|
)
|
|
112
|
|
|||
|
$
|
(2,473
|
)
|
|
$
|
3,549
|
|
|
$
|
(6,019
|
)
|
|
|
Year Ended June 30,
|
||||||||||
|
|
2013
|
|
2012
|
|
2011
|
||||||
Basic earnings per share
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
148,520
|
|
|
$
|
125,174
|
|
|
$
|
123,203
|
|
Basic earnings per share
|
|
$
|
2.53
|
|
|
$
|
2.16
|
|
|
$
|
2.16
|
|
Diluted earnings per share
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
148,520
|
|
|
$
|
125,174
|
|
|
$
|
123,203
|
|
Diluted earnings per share
|
|
$
|
2.51
|
|
|
$
|
2.13
|
|
|
$
|
2.11
|
|
Weighted-average number of shares outstanding
|
|
|
|
|
|
|
||||||
Basic
|
|
58,604
|
|
|
57,890
|
|
|
57,077
|
|
|||
Effect of dilutive securities
|
|
458
|
|
|
844
|
|
|
1,183
|
|
|||
Diluted
|
|
59,062
|
|
|
58,734
|
|
|
58,260
|
|
|||
Excluded as anti-dilutive*
|
|
1,131
|
|
|
368
|
|
|
48
|
|
By:
|
/s/ M
ARK
B
ARRENECHEA
|
|
Mark Barrenechea
President and Chief Executive Officer
(Principal Executive Officer)
|
By:
|
/s/ M
ARK
B
ARRENECHEA
|
|
Mark Barrenechea
President and Chief Executive Officer
(Principal Executive Officer)
|
|
/s/ P
AUL
M
C
F
EETERS
|
|
Paul McFeeters
Chief Financial Officer and Chief Administrative Officer
(Principal Financial Officer)
|
|
/s/ S
UJEET
K
INI
|
|
Sujeet Kini
Chief Accounting Officer
(Principal Accounting Officer)
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ MARK BARRENECHEA
|
|
Director, President and Chief Executive Officer (Principal Executive Officer)
|
|
August 1, 2013
|
Mark Barrenechea
|
|
|
|
|
/S/ P. THOMAS JENKINS
|
|
Chairman of the Board
|
|
August 1, 2013
|
P. Thomas Jenkins
|
|
|
|
|
/S/ RANDY FOWLIE
|
|
Director
|
|
August 1, 2013
|
Randy Fowlie
|
|
|
|
|
/S/ GAIL E. HAMILTON
|
|
Director
|
|
August 1, 2013
|
Gail E. Hamilton
|
|
|
|
|
/S/ BRIAN J. JACKMAN
|
|
Director
|
|
August 1, 2013
|
Brian J. Jackman
|
|
|
|
|
/S/ DEBORAH WEINSTEIN
|
|
Director
|
|
August 1, 2013
|
Deborah Weinstein
|
|
|
|
|
/S/ STEPHEN J. SADLER
|
|
Director
|
|
August 1, 2013
|
Stephen J. Sadler
|
|
|
|
|
/S/ MICHAEL SLAUNWHITE
|
|
Director
|
|
August 1, 2013
|
Michael Slaunwhite
|
|
|
|
|
/S/ KATHARINE B. STEVENSON
|
|
Director
|
|
August 1, 2013
|
Katharine B. Stevenson
|
|
|
|
|
1.
|
DEFINITIONS
|
(a)
|
“
Affiliate
” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the Person specified. For the purposes of this definition and Agreement, the term “
Control”
means the possession, direct or indirect, of the power to direct or
|
(b)
|
"Agreement"
means this Employment Agreement as may be amended or supplemented from time to time, including any and all schedules annexed hereto;
|
(c)
|
"Annual Base Salary"
has the meaning ascribed to that term in Section 6(a) hereof;
|
(d)
|
"Board of Directors"
means the board of directors of Open Text Corporation as may be constituted from time to time, and
"Directors"
means the directors of Open Text Corporation;
|
(e)
|
"Change of Control"
means either of the following events:
|
(i)
|
the sale of all or substantially all of the assets of Open Text Corporation; or
|
(ii)
|
any transaction whereby any person, together with Affiliates and Associates of such person, or any group of persons acting in concert (collectively, "Acquiror" or "Acquirors"), acquires beneficial ownership of more than 50% of the issued common shares of Open Text Corporation on a fully diluted basis, or any transaction as a result of which beneficial ownership of common shares constituting more than 50% in the aggregate of the issued common shares of Open Text Corporation on a fully diluted basis cease to be held by persons who are shareholders of Open Text Corporation as at the date hereof or by Affiliates or Associates of such present shareholders;
|
(f)
|
"Compensation Committee"
means the compensation committee of the Board of Directors of Open Text Corporation as may be constituted from time to time;
|
(g)
|
"Date of Termination"
shall mean the date of termination of the Executive's employment, whether by death of the Executive, by the Executive or by the Corporation pursuant to the terms of this Agreement;
|
(h)
|
"Disability"
has the meaning ascribed to that term in Section 12(b) hereof;
|
(i)
|
"Exchange Act"
means the
Securities Exchange Act
of 1934, as amended from time to time;
|
(j)
|
"Incumbent Director"
shall mean any member of the Board of Directors who was a member of the Board of Directors immediately prior to a Change of Control and any successor to an Incumbent Director who was recommended or appointed to succeed any Incumbent Director by the affirmative vote of the Directors when that affirmative vote includes the affirmative vote of a majority of the Incumbent Directors then on the Board of Directors;
|
(k)
|
"Just Cause"
shall mean:
|
(i)
|
the failure by the Executive to perform his duties according to the terms of his employment (other than those (A) that follow a demotion in his position or duties or (B) resulting from the Executive's Disability) after the Corporation has given the Executive reasonable notice of such failure and a reasonable opportunity to correct it;
|
(ii)
|
the engaging by the Executive in any act that is materially injurious to the Corporation, monetarily or otherwise, but not including, following a Change of Control, the expression of opinions contrary to those directors of the Corporation who are not Incumbent Directors or those of the Acquirors;
|
(iii)
|
the engaging by the Executive in any act of dishonesty resulting or intended to result directly or indirectly in personal gain of the Executive at the Corporation's expense, including the failure by the Executive to honor his fiduciary duties to the Corporation and his duty to act in the best interests of the Corporation;
|
(iv)
|
the failure by the Executive to comply with the provisions of Section 12(d) where the Executive elects to terminate his employment with the Corporation unless such termination of employment is properly given in accordance with the terms of Section 15(b) hereof;
|
(v)
|
the failure of the Executive to abide by the terms of any resolution passed by the Board of Directors; or
|
(vi)
|
the failure by the Executive to abide by the policies, procedures and codes of conduct of Open Text Inc. and the Corporation.
|
(l)
|
"Person"
or
"persons"
includes an individual, sole proprietorship, partnership, unincorporated association, unincorporated syndicate, unincorporated organization, trust, body corporate, and a natural person in his capacity as trustee, executor, administrator or other legal representative;
|
(m)
|
"Parachute Event"
means the occurrence of the following without the Executive's written consent (except in connection with the termination of the employment of the Executive for Just Cause or Disability or termination of the Executive's employment because of the death of the Executive):
|
(i)
|
a material change (other than those that are consistent with a promotion) in the Executive's position or duties, responsibilities, title or office in effect immediately prior to the Change of Control (except for a change in any position or duties as a director of the Corporation), which includes any removal of the Executive from or any failure to re-elect or re-appoint the Executive to any such positions or offices;
|
(ii)
|
A material reduction by the Corporation or any of its subsidiaries of the Executive's salary, benefits or any other form of remuneration payable by the Corporation or
|
(iii)
|
Any material failure by the Corporation or its subsidiaries to provide any benefit, bonus, profit sharing, incentive, remuneration or compensation plan, stock ownership or purchase plan, pension plan or retirement plan in which the Executive is participating or entitled to participate immediately prior to a Change of Control, or the Corporation or its subsidiaries taking any action or failing to take any action that would materially and adversely affect the Executive's participation in or materially reduce his rights or benefits under or pursuant to any such plan; or
|
(iv)
|
Any other material breach by the Corporation of this Agreement.
|
(n)
|
"Voluntary Termination"
means the termination of the Executive's employment with the Corporation by the Executive at his discretion in accordance with the provisions of Section 12(d) of this Agreement.
|
2.
|
INTENTIONALLY DELETED
|
3.
|
TERM
|
4.
|
DUTIES
|
(a)
|
devote his full time, attention, and best efforts to the business, affairs, and goodwill of
|
(b)
|
perform those duties that may be assigned to the Executive diligently and faithfully to the best of the Executive's abilities and in the best interests of the Corporation; and
|
(c)
|
use his best efforts to promote the interest and goodwill of the Corporation.
|
5.
|
REPORTING PROCEDURES
|
6.
|
REMUNERATION AND BENEFITS
|
(a)
|
The Corporation shall pay to the Executive as compensation for his services provided hereunder an annual base salary (
"Annual Base Salary"
) for each year of the term of this Agreement, which shall be determined by the Reporting Manager and the CEO and set out in a separate document, subject to the provisions of Section 8, and which shall be exclusive of bonuses, benefits and other compensation as provided for herein. The Annual Base Salary shall be payable in accordance with the Corporation's regular payroll practices for senior executives or in such other manner as may be mutually agreed upon, less, in any case, all applicable deductions or withholdings as required by law. As of the date of this Agreement, the Annual Base Salary is
$350,000 USD.
|
(b)
|
The Corporation shall provide the Executive with employee benefits comparable to those provided by the Corporation from time to time to other senior executives of the Corporation. Benefits to be enjoyed by the Executive during the term of this Agreement shall include, but not be limited to, those benefits set forth in Schedule “A”, as amended from time to time, and shall include reimbursement of any properly incurred expenses as provided for in Section 11 hereof.
|
(c)
|
You are eligible for inclusion in the Company LTIP plan as it is offered, from time to time. However, participation is not an entitlement, but rather reviewed and approved by senior management and the board of directors at the beginning of each LTIP plan period. Providing the Board of Directors approve subsequent LTIP plans, your plan value will be
$290,000 USD.
Further details regarding these long-term incentive plans will be distributed to you in the near future.
|
7.
|
ANNUAL PERFORMANCE BONUS
|
8.
|
SALARY AND/OR BONUS ADJUSTMENTS
|
9.
|
OPTIONS
|
10.
|
VACATION
|
11.
|
EXPENSES
|
12.
|
TERMINATION
|
(a)
|
For Just Cause
|
(b)
|
For Disability
|
(i)
|
This Agreement and the Executive's employment hereunder may be immediately terminated by the Corporation by notice to the Executive if the Executive is determined to suffer from disability (hereinafter referred to as “Disability”). The Executive shall be deemed to suffer from Disability if in any year during the employment period, because of ill health, physical or mental disability, or for other causes beyond the control of the Executive, the Executive has been continuously unable or unwilling or has failed to perform the Executive's duties for 120 consecutive days, or if, during any year of the employment period, the Executive has been unable or unwilling or has failed to perform his duties for a total of 180 days, consecutive or not. The CEO, acting reasonably (subject to Section 33 below), shall finally determine if the Executive is suffering from ill health, physical or mental disability or other causes beyond his control during the time periods as hereinbefore set forth in the event of any dispute between the Executive and the Corporation concerning the occurrence of Disability for purposes of this Section.
|
(ii)
|
Notwithstanding any short term or long term corporate benefits or insurance policies relating to disability maintained by the Corporation at the relevant time, if during any period of ill health, physical or mental disability or for other causes beyond the control of the Executive, the Executive has been continuously unable or unwilling or has failed to perform the Executive's duties less than 120 consecutive days (the “Short-Term Illness”), the Executive shall continue to receive all amounts of remuneration and benefits otherwise payable to and enjoyed by the Executive under this Agreement less any and all amounts received by and/or payable to the Executive in connection with benefits paid and/or payable as a result of such Short-Term Illness.
|
(iii)
|
Upon termination of this Agreement and the Executive's employment hereunder as a result of Disability, the Corporation shall pay to the Executive the severance payment provided for in Subsection 13(b) hereof less any and all amounts received by and/or payable to the Executive in connection with benefits paid and/or payable as a result of the Disability.
|
(iv)
|
The term "any year of the employment period" means any period of 12 consecutive months during the employment period.
|
(c)
|
For Death
|
(d)
|
Voluntary Termination by Executive
|
(e)
|
Termination by Corporation Other than For Just Cause, Disability or Death
|
13.
|
SEVERANCE PAYMENTS
|
(a)
|
Upon termination of the Executive's employment for Just Cause, the Executive shall not be entitled to any severance or other payment other than Annual Base Salary earned by the Executive before the Date of Termination calculated pro rata up to and including the Date of Termination and all outstanding and accrued vacation pay to the Date of Termination. Upon termination of the Executive's employment: (i) for death; or (ii) by the voluntary termination of employment by the Executive pursuant to Section 12(d) hereof, the Executive shall not be entitled to any severance or other payment other than Annual Base Salary and any Performance Bonus earned by the Executive before the Date of Termination calculated pro rata up to and including the Date of Termination (which under Section 12(d) shall be as defined therein) and all outstanding and accrued vacation pay to the Date of Termination.
|
(b)
|
If the Executive's employment is terminated by the Corporation for any other reason other than the reasons set forth in Section 12(a) the Executive shall be entitled to an amount equal to the total of:
|
(i)
|
All outstanding base salary earned before the Date of Termination, less any amounts that the Executive received in connection with benefits paid or payable as a result of Disability if applicable;
|
(ii)
|
Any Performance Bonus which has been earned by the Executive before the
|
(iii)
|
Additional payments based on the Executive's length of service with the Corporation, calculated as the Executive's monthly base salary for the number of months set forth in the chart on Exhibit 1, less any amounts received by and/or payable to the Executive in connection with benefits paid or payable as a result of the Disability if applicable (for purposes of this section 12.b.(iii), the Executive's service start date is
October 1, 2012
)
;
|
(iv)
|
An amount equal to 1/12 of the Performance Bonus payments earned by the Executive during the bonus year preceding the current bonus year times the number of months referred to in the chart on Exhibit 1, based on the Executive's length of service with the Company.
|
(v)
|
All outstanding and accrued vacation pay;
|
(vi)
|
All properly incurred and reasonable business expenses owing to the Executive as of the Date of Termination; and
|
(vii)
|
The Executive's benefits provided for in Section 6(b) shall continue only through the Date of Termination. If the Executive elects to continue his health and dental insurance coverage pursuant to COBRA, reimbursement for the COBRA premiums for Executive and his dependents for the number of months corresponding to the months of the Executive's severance payments as set forth in the chart on Exhibit 1.
|
(c)
|
Except as expressly stipulated in Sections 12(d) or 15 hereof or in this Section 13(c), any options which have not vested as of the Date of Termination (being in the case where the Corporation gives notice, the date specified by the Corporation as the date on which the Executive's employment will terminate) shall terminate and be of no further force and effect as of the Date of Termination and neither any period of notice nor any payment in lieu thereof upon termination of employment hereunder shall be considered as extending the period of employment for the purposes of vesting of options notwithstanding anything to the contrary in any other agreement between the Corporation and the Executive. Notwithstanding anything contained in this Section 13, in the event of termination by the Corporation other than for Just Cause, the Executive shall have the right to exercise any options which are vested as at the Date of Termination for the 90 Day Period as defined in Section 12(d). Any unvested options which would have otherwise vested during such 90 Day Period shall continue to vest during that period and to the extent any unvested options have vested during such 90 Day Period, the Executive shall also be entitled to exercise those options within a rolling 90 day period after the date of vesting of such options, which period will not exceed 180 days following the Date of Termination. In addition, notwithstanding anything contained in this Section 13 or elsewhere in this Agreement, in the event of termination due to death of the Executive, the estate of the Executive shall be entitled, at any time during the period which is 12 months following the date of death of the Executive (the “12 Month Period”), to exercise any options which have vested as at the date of death of the Executive. In addition, any unvested options which would have otherwise vested during such 12 Month Period shall continue to vest during that period and to the extent of any unvested options have vested during such period, the Executive's estate shall be entitled to exercise those options within a period which starts on the day of vesting and ends 12 months from the date of death of the Executive.
|
14.
|
NO FURTHER ENTITLEMENTS
|
15.
|
OPTION ACCELERATION AND SEVERANCE PAYMENTS ON CHANGE OF CONTROL
|
(a)
|
Termination by the Corporation
|
i.
|
such payments on account of severance as provided for under Section 13(b) of this Agreement; and
|
ii.
|
notwithstanding anything to the contrary in Section 13 hereof or in this Agreement, all options granted by the Corporation to the Executive shall, following the giving of any notice by the Corporation under this Section 15(a), be deemed to vest immediately and shall be exercisable by the Executive for a period of 90 days following the giving of such notice by the Corporation hereunder.
|
(b)
|
Termination by Executive
|
i.
|
such payments on account of severance as provided for under Section 13(b) of this Agreement;
|
ii.
|
notwithstanding anything to the contrary in Section 13 hereof or in this Agreement, all options granted by the Corporation to the Executive shall, following the giving of proper notice by the Executive, under this Section 15(b), be deemed to vest immediately and shall be exercisable by the Executive for a period of 90 days following the giving of such notice.
|
16.
|
DISCLOSURE
|
17.
|
NON-COMPETITION/NON-SOLICITATION/PROPRIETARY RIGHTS AGREEMENT
|
18.
|
RETURN OF MATERIALS
|
19.
|
GOVERNING LAW
|
20.
|
SEVERABILITY
|
21.
|
ENFORCEABILITY
|
22.
|
ASSIGNMENT OF AGREEMENT
|
23.
|
SUCCESSORS
|
24.
|
NOTICES
|
(i)
|
If to the Corporation:
|
(ii)
|
If to the Executive:
|
25.
|
LEGAL ADVICE
|
26.
|
RESIGNATION OF DIRECTORSHIPS, ETC.
|
27.
|
NO DEROGATION
|
28.
|
CURRENCY
|
29.
|
Withholding
|
30.
|
NON-DISPARAGEMENT
|
(a)
|
The Executive acknowledges and agrees that the Corporation may collect, use and disclose his personal information for purposes relating to his employment with the Corporation. The purposes of such collection, use and disclosure include, but are not limited to:
|
(i)
|
ensuring that the Executive is paid for his services to the Corporation which includes disclosure to third party payroll providers;
|
(ii)
|
administering and/or facilitating the provision of any benefits to which the Executive is or may become entitled to, including bonuses, medical, dental, disability and life insurance benefits, pension, group Savings and/or stock options. This shall include the disclosure of the Executive's personal information to the Corporation's third party service providers and administrators;
|
(iii)
|
compliance by the Corporation with any regulatory reporting and withholding requirements relating to the Executive's employment;
|
(iv)
|
in the event of a sale or transfer of all or part of the shares or assets of the Corporation or its subsidiaries or Affiliates, disclosing to any potential acquiring organization the Executive's personal information solely for the purposes of determining the value of the Corporation and its assets and liabilities and to evaluate the Executive's position in the Corporation. If the Executive's personal information is disclosed to any potential acquiring organization, the Corporation will require the potential acquiring organization to agree to protect the privacy of the Executive's personal information in a manner that is consistent with any policy of the Corporation dealing with privacy that may be in effect from time to time and/or any applicable law that may be in effect from time to time;
|
(v)
|
compliance by the Corporation of its obligations to report improper or illegal conduct by any of its directors, officers, employees or agents under any applicable securities, criminal or other law; and
|
(vi)
|
monitoring the Executive's access to the Corporation's electronic media services in order to ensure that the use of such services is in compliance with the Corporation's policies and procedures and is not in violation of any applicable laws.
|
(b)
|
If the Executive's specific consent to the collection, use or disclosure of his personal information is required in the future, the Executive hereby agrees to provide such consent, and if the Executive refuses to provide or withdraws his consent, the Executive acknowledges that his employment and/or his entitlement to certain employment benefits may be negatively affected.
|
41.
|
Counterparts
|
)
|
|
(i)
|
reimbursement of reasonable cell phone expenses consistent with corporate policy;
|
(ii)
|
|
(iii)
|
a $5,000 perquisite allowance per fiscal year, which may be used for reimbursement of the following types of services or fees:
|
•
|
Financial planning
|
•
|
Tax planning
|
•
|
Estate planning
|
•
|
Athletic/Health Club
|
•
|
Additional Life Insurance
|
(iv)
|
the services of Medisys Health Group Inc., for the purposes of obtaining mandatory and regular Health Examinations.
|
A.
|
I understand and agree that I have a responsibility to protect and avoid the unauthorized use or disclosure of confidential information of the Company; and
|
B.
|
I have a responsibility not to solicit or entice away from the Company any customer of the Company or any employee of the Company.
|
I.
|
Confidential Information.
For purposes of this Agreement, the term “confidential information” means all information that is not generally known and which I obtained from the Company, or learn, discover, develop, conceive or create during the term of my employment with the Company, and which relates directly to the business or to assets of the Company. Confidential information includes, but is not limited to: inventions, discoveries, know-how ideas, computer programs, designs, algorithms, processes and structures, product information, research and development information, lists of clients and other information related thereto, financial data and information, business plans and processes, and any other information of the Company that the Company informs me, or which I should know by virtue of my position or the circumstances in which I learned it, is to be kept confidential. Confidential information also includes information obtained by the Company in confidence from its vendors or its clients. Confidential information may or may not be labeled as “confidential”. If I am unsure as to whether information is “confidential”, I will as my manager for assistance.
|
A.
|
To keep confidential and hold in secrecy and not disclose, divulge, publish, reveal or otherwise make known, directly or indirectly, or suffer or permit to be disclosed, divulged, published, revealed or otherwise made known to any person whatsoever, or used (except for the benefit and proper purposes of the Company), and shall faithfully do all in my power to assist the Company in holding in secrecy all of the Company’s confidential information as defined above.
|
B.
|
To keep confidential and hold in secrecy and not disclose, divulge, publish, reveal or otherwise make known, directly or indirectly, or suffer or permit to be disclosed, divulged, revealed or otherwise made known to any person whatsoever, or used (except for the benefit and proper purposes of the Company) any and all secrets or confidential information related to the Company’s
|
II.
|
Agreement Not to Solicit.
I agree that while I am an employee of the Company and for six (6) months thereafter that I will:
|
A.
|
not solicit or entice or attempt to solicit or entice away from the Company any of the employees of the Company to enter into employment or service with any person, business, firm or corporation other than the Company.
|
B.
|
not solicit or entice or attempt to solicit or entice away from the Company any customer or any other person, firm or corporation dealing with the Company.
|
III.
|
Return of Documents.
Upon the cessation of my employment with the Company for any reason, I agree to return to the Company all records, documents, memoranda, or other papers, copies or recordings, tapes, disks containing software, computer source code listings, routines, file layouts, record layouts, system design information, models manuals, documentation and notes as are in my possession or control. I acknowledge and agree that all such items are strictly confidential and are the sole and exclusive property of the Company.
|
IV.
|
General.
|
A.
|
I further represent and warrant that I have not entered into any Agreement with any previous or present employer which would prevent me from accepting employment with the Company or which would prevent me from lawfully executing this Agreement.
|
B.
|
I understand that the obligations outlined in this Agreement are the concern and responsibility of all employees of the Company. I agree to report in writing any violations of these policies to my manager or to the SVP, Global Human Resources.
|
C.
|
All the provisions of this Agreement will be deemed severable, and if any part of any provision is held illegal, void or invalid under applicable law, such provision may be changed to the extent reasonably necessary to make the provision, as so changed, legal, valid and binding. If any provision of this Agreement is held illegal, void of invalid in its entirety, the remaining provisions of this Agreement will not in any way be affected or impaired, but will remain binding in accordance with its terms.
|
D.
|
This Agreement and all the rights and obligations arising herefrom shall be interpreted and applied in accordance with the laws of the Province of Ontario and in the courts of the Province of Ontario there shall be exclusive jurisdiction to determine all disputes relating to this Agreement and all the rights and obligations created hereby. I hereby irrevocably attorn to the jurisdiction of the courts of the Province of Ontario.
|
E.
|
I acknowledge that my employment with the Company is contingent on my acceptance and my observance of this Agreement, and that such employment is adequate and sufficient consideration to bind me to all of the covenants and agreements made by me under this Agreement.
|
Length of Service (years)
|
Severance Payments in Months
|
Less than 10 years of employment
|
12 months
|
|
|
More than 10 years of employment
|
12 months, plus one (1) additional month for each year of employment in excess of 10 years, up to a maximum of 24 months
|
(i)
|
reimbursement of reasonable cell-phone or Blackberry expenses consistent with corporate policy;
|
(ii)
|
each fiscal year you will be entitled to a USD
$5,000
perquisite allowance which may be used for reimbursement of the following types of services or fees:
|
•
|
Financial planning
|
•
|
Tax planning
|
•
|
Estate planning
|
•
|
Athletic/Health Club
|
(iii)
|
the services of Medisys Health Group Inc, or a provider of your choice (Medcam), shall be retained to provide annual mandatory and regular Health Examinations to our senior executive team.
|
___________________________
[Name of Witness]
|
|
(i)
|
reimbursement of reasonable cell-phone or Blackberry expenses consistent with corporate policy;
|
(ii)
|
each fiscal year you will be entitled to a
USD$5,000
perquisite allowance which may be used for reimbursement of the following types of services or fees:
|
•
|
Financial planning
|
•
|
Tax planning
|
•
|
Estate planning
|
•
|
Athletic/Health Club
|
(iii)
|
the services of Medisys Health Group Inc, or a provider of your choice (Medcam) shall be retained to provide annual mandatory and regular Health Examinations to our senior executive team.
|
1.
|
Employment
|
2.
|
Chairman Role
|
3.
|
Employment Compensation
|
4.
|
Chairman Compensation
|
5.
|
Insurance and Indemnification
|
6.
|
Acknowledgement
|
7.
|
General
|
Corporation Name
|
Jurisdiction
|
Easylink Services Australia Pty Limited
|
Australia
|
Global 360 (Australia) Pty Limited
|
Australia
|
Metastorm Pty Limited
|
Australia
|
Open Text Pty Limited
|
Australia
|
Xpedite Systems Pty Limited
|
Australia
|
Open Text Software Austria GmbH
|
Austria
|
Easylink Do Brasil Comunicacoes Ltda
|
Brazil
|
Open Text Brasil Comercio De Software LTDA
|
Brazil
|
8493642 Canada Inc.
|
Canada
|
Open Text Canada Ltd.
|
Canada
|
Open Text Conseil Inc.
|
Canada
|
Open Text Software Technology (Shanghai) Co., Limited
|
China
|
GN Comtext (Cyprus) Ltd
|
Cyprus
|
Open Text s.r.o.
|
Czech Republic
|
Easylink Services International Corporation
|
Delaware, USA
|
Easylink Services Latin America, Inc.
|
Delaware, USA
|
Easylink Services USA, Inc.
|
Delaware, USA
|
Open Text Holdings Inc.
|
Delaware, USA
|
Open Text Inc.
|
Delaware, USA
|
Open Text USA Inc.
|
Delaware, USA
|
Vignette Partnership LP
|
Delaware, USA
|
Xpedite Systems Holdings, Inc.
|
Delaware, USA
|
Xpedite Systems Worldwide, Inc.
|
Delaware, USA
|
Xpedite Systems, LLC
|
Delaware, USA
|
Open Text A/S
|
Denmark
|
Easylink Services International Limited
|
England & Wales
|
Global 360 UK Limited
|
England & Wales
|
Hummingbird UK Limited
|
England & Wales
|
ICCM Professional Services Ltd.
|
England & Wales
|
Metastorm Limited
|
England & Wales
|
Metastorm UK Limited
|
England & Wales
|
Open Text UK Limited
|
England & Wales
|
Resonate KT Ltd.
|
England & Wales
|
StreamServe Limited
|
England & Wales
|
Sysgenics Limited
|
England & Wales
|
Xpedite Systems (UK) Limited
|
England & Wales
|
Open Text OY
|
Finland
|
Easylink Services (France) S.A.R.L.
|
France
|
Nstein Technologies France S.A.S.U.
|
France
|
Open Text SARL
|
France
|
Xpedite Systems Participations E.U.R.L.
|
France
|
Xpedite Systems SA
|
France
|
Easylink Services (Deutschland) GMBH
|
Germany
|
Global 360 Germany GmbH
|
Germany
|
Open Text Document Technologies GmbH
|
Germany
|
Open Text Software GmbH
|
Germany
|
Xpedite Systems GmbH
|
Germany
|
Easylink Services (Hong Kong) Limited
|
Hong Kong
|
Global 360 China Limited
|
Hong Kong
|
Open Text (Hong Kong) Limited
|
Hong Kong
|
Xpedite Systems Limited
|
Hong Kong
|
Easylink Services Corporation India Private Limited
|
India
|
Open Text Corporation India Private Limited
|
India
|
Open Text Technologies India Private Limited
|
India
|
Vignette India Private Limited
|
India
|
Open Text Ireland Limited
|
Ireland
|
Open Text S.r.l.
|
Italy
|
Xpedite Systems S.r.l.
|
Italy
|
Easylink Services K.K.
|
Japan
|
Open Text K.K.
|
Japan
|
Xpedite Inc.
|
Japan
|
Open Text Finance S.a.r.l.
|
Luxembourg
|
Open Text SA
|
Luxembourg
|
The Easylink Services Corporation SDN. BHD.
|
Malaysia
|
Xpedite Systems Incorporated (Malaysia) SDN. BHD.
|
Malaysia
|
Metastorm Government Solutions, LLC
|
Maryland
|
Open Text European Holdings Coöperatief U.A.
|
Netherlands
|
Open Text International B.V.
|
Netherlands
|
StreamServe S.a.r.l. B.V.
|
Netherlands - Luxembourg
|
Open Text New Zealand Limited
|
New Zealand
|
Xpedite Systems Limited
|
New Zealand
|
Open Text ULC
|
Nova Scotia, Canada
|
Operitel Corporation
|
Ontario, Canada
|
Open Text Venture Capital Investment Limited Partnership
|
Ontario, Canada
|
2016090 Ontario Inc.
|
Ontario, Canada
|
2016091 Ontario Inc.
|
Ontario, Canada
|
Open Text Sp.z.o.o.
|
Poland
|
Nstein Technologies Inc.
|
Quebec, Ontario
|
Easylink Services Korea Corporation
|
Republic of Korea
|
Xpedite, Ltd
|
Republic of Korea
|
Easylink Services Corp. Pte Ltd
|
Singapore
|
Open Text (Asia) Pte Limited
|
Singapore
|
Xpedite Systems Pte Ltd
|
Singapore
|
Open Text South Africa Pty Limited
|
South Africa
|
Global 360 Spain S.L.U.
|
Spain
|
Open Text Software S.L.U.
|
Spain
|
Xpedite Systems Spain, SA
|
Spain
|
Open Text AB
|
Sweden
|
1.
|
I have reviewed this Annual Report on Form 10-K of Open Text Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Securities Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Securities Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
|
By:
|
/s/ M
ARK
B
ARRENECHEA
|
|
|
Mark Barrenechea
President and Chief Executive Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K of Open Text Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Securities Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Securities Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
|
By:
|
/s/ P
AUL
M
C
F
EETERS
|
|
|
Paul McFeeters
Chief Financial Officer and Chief Administrative Officer
|
|
/s/ M
ARK
B
ARRENECHEA
|
Mark Barrenechea
President and Chief Executive Officer
|
|
/s/ P
AUL
M
C
F
EETERS
|
Paul McFeeters
Chief Financial Officer and Chief Administrative Officer
|