XML 69 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
Pension Plans And Other Post Retirement Benefits
 3 Months Ended
Sep. 30, 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 Open Text Software GmbH (IXOS) as of September 30, 2012 and June 30, 2012: 
 
Total  benefit
obligation
 
Current portion  of
benefit obligation*
 
Noncurrent portion of
benefit obligation
CDT defined benefit plan
$
22,860

 
$
508

 
$
22,352

CDT Anniversary plan
475

 
88

 
387

CDT early retirement plan
43

 
43

 
—

IXOS defined benefit plan
719

 
—

 
719

Total as of September 30, 2012
$
24,097

 
$
639

 
$
23,458

 
 
Total  benefit
obligation
 
Current portion  of
benefit obligation*
 
Noncurrent 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 plan
698

 
—

 
698

Total as of June 30, 2012
$
22,685

 
$
611

 
$
22,074

 
*
The current portion of the benefit obligation has been included within "Accounts payable and accrued liabilities" in 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, 2012
 
As of June 30, 2012
Benefit obligation—beginning of period
$
21,461

 
$
18,231

Service cost
113

 
326

Interest cost
220

 
873

Benefits paid
(111
)
 
(441
)
Actuarial (gain) loss
181

 
5,179

Foreign exchange (gain) loss
996

 
(2,707
)
Benefit obligation—end of period
22,860

 
21,461

Less: current portion
(508
)
 
(475
)
Noncurrent portion of benefit obligation
$
22,352

 
$
20,986


 
The following are the details of net pension expense for the CDT pension plan for the periods indicated:
 
 
 
Three Months Ended
September 30,
 
 
2012
 
2011
Pension expense:
 
 
 
 
Service cost
 
$
113

 
$
85

Interest cost
 
220

 
227

Amortization of actuarial gains and losses
 
68

 
—

Net pension expense
 
$
401

 
$
312


The CDT pension plan is an unfunded plan and therefore no contributions have been made since the inception of the plan. Actuarial gains and losses in excess of 10% of the greater of the projected benefit obligation or the market-related value of plan obligations are being amortized and recognized as a component of net periodic benefit costs over the average remaining service period of the plan's active employees. Currently there is approximately $0.2 million in accumulated other comprehensive income related to the CDT pension plan that is expected to be recognized as a component of net periodic benefit costs over the remaining fiscal year.
In determining the fair value of the CDT pension plan benefit obligations as of September 30, 2012 and June 30, 2012, respectively, we used the following weighted-average key assumptions:
 
 
As of September 30, 2012
 
As of June 30, 2012
Assumptions:
 
 
 
Salary increases
2.50
%
 
2.50
%
Pension increases
2.00
%
 
2.00
%
Discount rate
3.80
%
 
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
%


Anticipated pension payments under the CDT pension plan for the fiscal years indicated below are as follows: 
2013 (nine months ended June 30)
$
381

2014
551

2015
597

2016
668

2017
740

2018 to 2022
5,180

Total
$
8,117


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 approximately $43,000 for the early retirement plan as of September 30, 2012 ($0.5 million and $0.1 million, respectively, as of June 30, 2012).
IXOS Defined Benefit Plans
Included in our pension liability, as of September 30, 2012, is a net amount of $0.7 million (June 30, 2012—$0.7 million) 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.