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Pension Plans And Other Post Retirement Benefits
 12 Months Ended
Jun. 30, 2011
Pension Plans And Other Post Retirement Benefits  
Pension Plans And Other Post Retirement Benefits

NOTE 10—PENSION PLANS AND OTHER POST RETIREMENT BENEFITS

CDT Defined Benefit Plan and CDT Long-term Employee Benefit Obligations:

On November 1, 2008, the following unfunded defined benefit pension plan and long-term employee benefit obligations were acquired, relating to legacy Captaris employees of a wholly owned subsidiary of Captaris called Captaris Document Technologies GmbH (CDT). As of June 30, 2011 and June 30, 2010, the balances relating to these obligations were as follows:

 

     Total benefit
obligation		      Current portion of
benefit obligation*		      Noncurrent portion of
benefit obligation		  

CDT defined benefit plan

    $ 18,231       $ 489       $ 17,742   

CDT Anniversary plan

      550         57         493   

CDT early retirement plan

      234         —           234   
  

 

 

     

 

 

     

 

 

  

Total as of June 30, 2011

    $ 19,015       $ 546       $ 18,469   
  

 

 

     

 

 

     

 

 

  
     Total benefit
obligation		      Current portion of
benefit obligation*		      Noncurrent portion of
benefit obligation		  

CDT defined benefit plan

    $ 15,507       $ 405       $ 15,102   

CDT Anniversary plan

      524         89         435   

CDT early retirement plan

      351         —           351   
  

 

 

     

 

 

     

 

 

  

Total as of June 30, 2010

    $ 16,382       $ 494       $ 15,888   
  

 

 

     

 

 

     

 

 

  

* The current portion of the benefit obligation has been included within Accounts payable and accrued liabilities within the Consolidated Balance Sheets.

 

CDT Defined Benefit Plan

CDT sponsors an unfunded defined benefit pension plan covering substantially all CDT employees (CDT pension plan) which provides for old age, disability and survivors' benefits. Benefits under the CDT pension plan are generally based on age at retirement, years of service and the employee's annual earnings. The net periodic cost of this pension plan is determined using the projected unit credit method and several actuarial assumptions, the most significant of which are the discount rate and estimated service costs.

The following are the components of net periodic benefit costs for the CDT pension plan and the details of the change in the benefit obligation for the periods indicated:

 

     As of June 30,
2011		     As of June 30,
2010		  

Benefit obligation—beginning

    $ 15,507      $ 14,828   

Service cost

      350        403   

Interest cost

      868        862   

Benefits paid

      (423 )      (340 ) 

Curtailment gain

      —          (308 )* 

Actuarial (gain) loss

      (688 )      2,064   

Foreign exchange (gain) loss

      2,617        (2,002 ) 
  

 

 

    

 

 

  

Benefit obligation—ending

      18,231        15,507   

Less: current portion

      (489 )      (405 ) 
  

 

 

    

 

 

  

Noncurrent portion of benefit obligation

    $ 17,742      $ 15,102   
  

 

 

    

 

 

  

* Includes portion charged to the purchase price adjustment in accordance with ASC Topic 715, paragraph 30-15.

The following are the details of net pension expense for the CDT pension plan for the periods indicated:

 

     Year ended
June 30, 2011		      Year ended
June 30, 2010		  

Pension expense:

      

Service cost

    $ 350       $ 403   

Interest cost

      868         862   

Curtailment gain

      —           (403 ) 
  

 

 

     

 

 

  

Net pension expense

    $ 1,218       $ 862   
  

 

 

     

 

 

  

The CDT pension plan is an unfunded plan and therefore no contributions have been made since the inception of the plan.

In determining the fair value of the CDT pension plan benefit obligations as of June 30, 2011 and June 30, 2010, respectively, we used the following weighted-average key assumptions:

 

     June 30, 2011     June 30, 2010  

Assumptions:

     

Salary increases

      2.25 %      2.25 % 

Pension increases

      1.50 %      1.50 % 

Discount rate

      5.25 %      5.00 % 

Employee fluctuation rate:

     

to age 30

      1.00 %      1.00 % 

to age 35

      0.50 %      0.50 % 

to age 40

      0.00 %      0.00 % 

to age 45

      0.50 %      0.50 % 

to age 50

      0.50 %      0.50 % 

from age 51

      1.00 %      1.00 % 

 

Anticipated pension payments under the CDT pension plan for the fiscal years indicated below are as follows:

 

2012

    $ 489   

2013

      542   

2014

      602   

2015

      682   

2016

      751   

2017 to 2021

      4,947   
  

 

 

  

Total

    $ 8,013   
  

 

 

  

CDT Long-term Employee Benefit Obligations.

CDT's long-term employee benefit obligations arise under CDT's "Anniversary plan" and an early retirement plan. The obligation is unfunded and carried at a fair value of $0.6 million for the Anniversary plan and $0.2 million for the early retirement plan as of June 30, 2011 ($0.5 million and $0.4 million, respectively, as of June 30, 2010).

The Anniversary plan is a defined benefit plan for long-tenured CDT employees. The plan provides for a lump-sum payment to employees of two months of salary upon reaching the anniversary of twenty-five years of service and three months of salary upon reaching the anniversary of forty years of service. The early retirement plan is designed to create an incentive for employees, within a certain age group, to transition from (full or part-time) employment into retirement before their legal retirement age. This plan allows employees, upon reaching a certain age, to elect to work full-time for a period of time and be paid 50% of their full-time salary. After working within this arrangement for a designated period of time, the employee is eligible to take early retirement and receive payments from the earned but unpaid salaries until they are eligible to receive payments under the postretirement benefit plan discussed above. Benefits under the early retirement plan are generally based on the employee's compensation and the number of years of service.

IXOS AG Defined Benefit Plans

Included within "Pension liability" are net pension liabilities of $9,000 (June 30, 2010 –net pension assets of $0.2 million included under "Other Assets") relating to two IXOS defined benefit pensions plans (IXOS pension plans) in connection with certain former members of the IXOS Board of Directors and certain IXOS employees, respectively . The net periodic pension cost with respect to the IXOS pension plans is determined using the projected unit credit method and several actuarial assumptions, the most significant of which are the discount rate and the expected return on plan assets. The fair value of our total plan assets under the IXOS pension plans, as of June 30, 2011, is $4.0 million (June 30, 2010 – $3.3 million). The fair value of our total pension obligation under the IXOS pension plans as of June 30, 2011 is $4.0 million (June 30, 2010 – $3.1 million).