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Pension Plans And Other Post Retirement Benefits
 6 Months Ended
Dec. 31, 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 December 31, 2011 and June 30, 2011:

 

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

CDT defined benefit plan

    $ 17,119       $ 480       $ 16,639   

CDT Anniversary plan

      486         93         393   

CDT early retirement plan

      129         —           129   

IXOS defined benefit plan

      19         —           19   
    

 

 

     

 

 

     

 

 

  

Total as of December 31, 2011

    $ 17,753       $ 573       $ 17,180   
    

 

 

     

 

 

     

 

 

  

 

                         
     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 December  31,
2011		     As of June  30,
2011		  

Benefit obligation—beginning of period

    $ 18,231      $ 15,507   

Service cost

      166        350   

Interest cost

      444        868   

Benefits paid

      (213 )      (423 ) 

Actuarial (gain) loss

      209        (688 ) 

Foreign exchange (gain) loss

      (1,718 )      2,617   
    

 

 

    

 

 

  

Benefit obligation—end of period

      17,119        18,231   

Less: current portion

      (480 )      (489 ) 
    

 

 

    

 

 

  

Noncurrent portion of benefit obligation

    $ 16,639      $ 17,742   
    

 

 

    

 

 

  

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

 

                                 
     Three months ended
December 31,		      Six months ended
December 31,		  
       2011          2010          2011          2010    

Pension expense:

                                    

Service cost

    $ 81       $ 83       $ 166       $ 169   

Interest cost

      217         206         444         420   
    

 

 

     

 

 

     

 

 

     

 

 

  

Net pension expense

    $ 298       $ 289       $ 610       $ 589   
    

 

 

     

 

 

     

 

 

     

 

 

  

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 December 31, 2011 and June 30, 2011, respectively, we used the following weighted-average key assumptions:

 

                 
     As of December  31,
2011		     As of June  30,
2011		  

Assumptions:

                 

Salary increases

      2.25 %      2.25 % 

Pension increases

      1.75 %      1.50 % 

Discount rate

      5.30 %      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 (six months ending June 30)

    $ 224   

2013

      513   

2014

      598   

2015

      637   

2016

      731   

2017 to 2021

      4,685   
    

 

 

  

Total

    $ 7,388   
    

 

 

  

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 $0.1 million for the early retirement plan as of December 31, 2011 ($0.6 million and $0.2 million, respectively, as of June 30, 2011).

IXOS AG Defined Benefit Plans

Included in our pension liability, as of December 31, 2011, is a net amount of $19,000 (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.