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, 2013 and June 30, 2013:



	As of September 30, 2013
	Total benefit obligation		Current portion of benefit obligation*		Non-current portion of benefit obligation
CDT defined benefit plan	$	24,873	$	577	$	24,296
CDT anniversary plan	422		52		370
IXOS defined benefit plans	823		—		823
Total	$	26,118	$	629	$	25,489



	As of June 30, 2013
	Total benefit obligation		Current portion of benefit obligation*		Non-current portion of benefit obligation
CDT defined benefit plan	$	23,871	$	535	$	23,336
CDT anniversary plan	425		49		376
IXOS defined benefit plans	797		—		797
Total	$	25,093	$	584	$	24,509


*	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 details of the change in the benefit obligation for the CDT pension plan for the periods indicated:



	As of September 30, 2013			As of June 30, 2013
Benefit obligation—beginning of period	$	23,871		$	21,461
Service cost	113			457
Interest cost	217			888
Benefits paid	(123		)	(466		)
Actuarial (gain) loss	(83		)	278
Foreign exchange (gain) loss	878			1,253
Benefit obligation—end of period	24,873			23,871
Less: Current portion	(577		)	(535		)
Non current portion of benefit obligation	$	24,296		$	23,336

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



	Three Months Ended September 30,
	2013		2012
Pension expense:
Service cost	$	113	$	113
Interest cost	217		220
Amortization of actuarial gains and losses	69		68
Net pension expense	$	399	$	401

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, 2013 and June 30, 2013, respectively, we used the following weighted-average key assumptions:



	As of September 30, 2013		As of June 30, 2013
Assumptions:
Salary increases	2.50	%	2.50	%
Pension increases	2.00	%	2.00	%
Discount rate	3.50	%	3.50	%
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	%

The Company's discount rate is based on AA-rated bonds, denominated in Euros, from German corporations.

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



	Fiscal years ending June 30,
2014 (nine months ended June 30)	$	433
2015	608
2016	679
2017	751
2018	802
2019 to 2023	5,634
Total	$	8,907

CDT Anniversary Plan

CDT’s long-term employee benefit obligations arise under CDT’s “anniversary plan”. The obligation is unfunded and is carried at its fair value.

IXOS Defined Benefit Plans

Included in our pension liability, as of September 30, 2013, is a net amount of $0.8 million (June 30, 2013—$0.8 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.