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Pension Plans And Other Post Retirement Benefits
 9 Months Ended
Mar. 31, 2012
Compensation and Retirement Disclosure [Abstract]  
Pension Plans And Other Post Retirement Benefits
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 March 31, 2012 and June 30, 2011:
 
 
Total  benefit
obligation
 
Current portion  of
benefit obligation*
 
Noncurrent portion of
benefit obligation
CDT defined benefit plan
$
20,975

 
$
507

 
$
20,468

CDT Anniversary plan
496

 
90

 
406

CDT early retirement plan
102

 
—

 
102

IXOS defined benefit plan
25

 
—

 
25

Total as of March 31, 2012
$
21,598

 
$
597

 
$
21,001

 
 
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 March 31, 2012
 
As of June 30, 2011
Benefit obligation—beginning of period
$
18,231

 
$
15,507

Service cost
248

 
350

Interest cost
666

 
868

Benefits paid
(320
)
 
(423
)
Actuarial (gain) loss
3,527

 
(688
)
Foreign exchange (gain) loss
(1,377
)
 
2,617

Benefit obligation—end of period
20,975

 
18,231

Less: current portion
(507
)
 
(489
)
Noncurrent portion of benefit obligation
$
20,468

 
$
17,742


 
The following are the details of net pension expense for the CDT pension plan for the periods indicated:
 
 
Three Months Ended
March 31,
 
Nine Months Ended
March 31,
 
2012
 
2011
 
2012
 
2011
Pension expense:
 
 
 
 
 
 
 
Service cost
$
82

 
$
89

 
$
248

 
$
258

Interest cost
222

 
222

 
666

 
642

Net pension expense
$
304

 
$
311

 
$
914

 
$
900


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 March 31, 2012 and June 30, 2011, respectively, we used the following weighted-average key assumptions:
 
 
As of March 31, 2012
 
As of June 30, 2011
Assumptions:
 
 
 
Salary increases
2.25
%
 
2.25
%
Pension increases
1.75
%
 
1.50
%
Discount rate
4.30
%
 
5.25
%
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
%


Anticipated pension payments under the CDT pension plan for the fiscal years indicated below are as follows:
 
 
 
2012 (three months ending June 30)
$
114

2013
524

2014
610

2015
650

2016
745

2017 to 2021
4,779

 
 
Total
$
7,422


CDT 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 March 31, 2012 ($0.6 million and $0.2 million, respectively, as of June 30, 2011).
IXOS Defined Benefit Plans
Included in our pension liability, as of March 31, 2012, is a net amount of $25,000 (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.