XML 34 R17.htm IDEA: XBRL DOCUMENT v2.3.0.15
Pension Plans And Other Post Retirement Benefits
3 Months Ended
Sep. 30, 2011
Pension Plans And Other Post Retirement Benefits [Abstract] 
Pension Plans And Other Post Retirement Benefits

NOTE 11—PENSION PLANS AND OTHER POST RETIREMENT BENEFITS

The following table provides details of our defined benefit pension plans and long-term employee benefit obligations for Open Text Document Technologies GmbH (CDT) and IXOS AG (IXOS) as of September 30, 2011 and June 30, 2011:

 

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

CDT defined benefit plan

    $ 18,045       $ 484       $ 17,561   

CDT Anniversary plan

      492         78         414   

CDT early retirement plan

      182         —           182   

IXOS defined benefit plan

      14         —           14   
  

 

 

     

 

 

     

 

 

  

Total as of September 30, 2011

    $ 18,733       $ 562       $ 18,171   
  

 

 

     

 

 

     

 

 

  

 

     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   

IXOS defined benefit plan

      9         —           9   
  

 

 

     

 

 

     

 

 

  

Total as of June 30, 2011

    $ 19,024       $ 546       $ 18,478   
  

 

 

     

 

 

     

 

 

  

* The current portion of the benefit obligation has been included within Accounts payable and accrued liabilities within the Condensed 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 September 30,
2011		     As of June 30,
2011		  

Benefit obligation—beginning of period

    $ 18,231      $ 15,507   

Service cost

      85        350   

Interest cost

      227        868   

Benefits paid

      (108 )      (423 ) 

Actuarial (gain) loss

      550        (688 ) 

Foreign exchange (gain) loss

      (940 )      2,617   
  

 

 

    

 

 

  

Benefit obligation—end of period

      18,045        18,231   

Less: current portion

      (484 )      (489 ) 
  

 

 

    

 

 

  

Noncurrent portion of benefit obligation

    $ 17,561      $ 17,742   
  

 

 

    

 

 

  

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

 

     Three months ended
September 30, 		  
     2011      2010  

Pension expense:

      

Service cost

    $ 85       $ 86   

Interest cost

      227         214   
  

 

 

     

 

 

  

Net pension expense

    $ 312       $ 300   
  

 

 

     

 

 

  

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 September 30, 2011 and June 30, 2011, respectively, we used the following weighted-average key assumptions:

 

     As of September  30,
2011		     As of June  30,
2011		  

Assumptions:

     

Salary increases

      2.25 %      2.25 % 

Pension increases

      1.75 %      1.50 % 

Discount rate

      5.20 %      5.25 % 

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 (nine months ended June 30)

    $ 467   

2013

      535   

2014

      592   

2015

      650   

2016

      733   

2017 to 2021

      4,832   
  

 

 

  

Total

    $ 7,809   
  

 

 

  

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 $0.5 million for the Anniversary plan and $0.2 million for the early retirement plan as of September 30, 2011 ($0.6 million and $0.2 million, respectively, as of June 30, 2011).

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 in our pension liability, as of September 30, 2011 is a net amount of $14,000 (June 30, 2011—$9,000) that relates 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.