XML 32 R21.htm IDEA: XBRL DOCUMENT v3.21.1
PENSION PLANS AND OTHER POST RETIREMENT BENEFITS
 9 Months Ended
Mar. 31, 2021
Retirement Benefits [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), GXS GmbH (GXS GER), GXS Philippines, Inc. (GXS PHP) and other plans as of March 31, 2021 and June 30, 2020:
As of March 31, 2021
Total benefit
obligation
Current portion of
benefit obligation(1)
Non-current portion of
benefit obligation
CDT defined benefit plan$35,001 $861 $34,140 
GXS GER defined benefit plan25,564 1,007 24,557 
GXS PHP defined benefit plan13,652 210 13,442 
Other plans9,231 721 8,510 
Total $83,448 $2,799 $80,649 
 
As of June 30, 2020
Total benefit
obligation
Current portion of
benefit obligation(1)
Non-current portion of
benefit obligation
CDT defined benefit plan$32,851 $777 $32,074 
GXS GER defined benefit plan24,105 943 23,162 
GXS PHP defined benefit plan10,270 115 10,155 
Other plans8,590 852 7,738 
Total$75,816 $2,687 $73,129 
(1) The current portion of the benefit obligation has been included within "Accrued salaries and commissions", all within "Accounts payable and accrued liabilities" in the Condensed Consolidated Balance Sheets (see note 10 "Accounts Payable and Accrued Liabilities").
Defined Benefit Plans
CDT Plan
CDT sponsors an unfunded defined benefit pension plan covering substantially all CDT employees (CDT plan) which provides for old age, disability and survivors’ benefits. Benefits under the CDT 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. No contributions have been made since the inception of the plan. Actuarial gains or losses in excess of 10% of the projected benefit obligation 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.
GXS GER Plan
As part of our acquisition of GXS Group, Inc. (GXS) in Fiscal 2014, we assumed an unfunded defined benefit pension plan covering certain German employees which provides for old age, disability and survivors' benefits. The GXS GER plan has been closed to new participants since 2006. Benefits under the GXS GER plan are generally based on a participant’s remuneration, date of hire, years of eligible service and age at retirement. 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. No contributions have been made since the inception of the plan. Actuarial gains or losses in excess of 10% of the projected benefit obligation 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.
GXS PHP Plan
As part of our acquisition of GXS in Fiscal 2014, we assumed a primarily unfunded defined benefit pension plan covering substantially all of the GXS Philippines employees which provides for retirement, disability and survivors' benefits. Benefits under the GXS PHP plan are generally based on a participant’s remuneration, years of eligible service and age at retirement. 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. Aside from an initial contribution which has a fair value of $0.04 million as of March 31, 2021, no additional contributions have been made since the inception of the plan. Actuarial gains or losses in excess of 10% of the projected benefit obligation 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.
The following are the details of the change in the benefit obligation for each of the above mentioned pension plans for the periods indicated: 
As of March 31, 2021As of June 30, 2020
CDTGXS GERGXS PHPTotalCDTGXS GERGXS PHPTotal
Benefit obligation—beginning of fiscal year$32,851 $24,105 $10,270 $67,226 $35,836 $26,739 $6,904 $69,479 
Service cost354 155 1,245 1,754 572 319 1,247 2,138 
Interest cost378 272 299 949 459 337 368 1,164 
Benefits paid(592)(766)(9)(1,367)(644)(926)(792)(2,362)
Actuarial (gain) loss550 725 1,537 2,812 (3,073)(2,083)2,333 (2,823)
Foreign exchange (gain) loss1,460 1,073 310 2,843 (299)(281)210 (370)
Benefit obligation—end of period35,001 25,564 13,652 74,217 32,851 24,105 10,270 67,226 
Less: Current portion(861)(1,007)(210)(2,078)(777)(943)(115)(1,835)
Non-current portion of benefit obligation$34,140 $24,557 $13,442 $72,139 $32,074 $23,162 $10,155 $65,391 

The following are details of net pension expense relating to the following pension plans:
 Three Months Ended March 31,
 20212020
Pension expense:CDTGXS GERGXS PHPTotalCDTGXS GERGXS PHPTotal
Service cost$117 $51 $404 $572 $140 $78 $305 $523 
Interest cost125 90 104 319 112 82 92 286 
Amortization of actuarial (gains) and losses175 28 — 203 234 61 (72)223 
Net pension expense$417 $169 $508 $1,094 $486 $221 $325 $1,032 

 Nine Months Ended March 31,
 20212020
Pension expense:CDTGXS GERGXS PHPTotalCDTGXS GERGXS PHPTotal
Service cost$354 $155 $1,245 $1,754 $426 $237 $914 $1,577 
Interest cost378 272 299 949 341 250 265 856 
Amortization of actuarial (gains) and losses529 85 — 614 703 183 (215)671 
Net pension expense$1,261 $512 $1,544 $3,317 $1,470 $670 $964 $3,104 
Service-related net periodic pension costs are recorded within operating expense and all other non-service related net periodic pension costs are classified under "Other income (expense), net" on our Condensed Consolidated Statements of Income.
In determining the fair value of the pension plan benefit obligations as of March 31, 2021 and June 30, 2020, respectively, we used the following weighted-average key assumptions:
As of March 31, 2021As of June 30, 2020
CDTGXS GERGXS PHPCDTGXS GERGXS PHP
Assumptions:
Salary increases1.75%2.50%6.50%1.75%2.50%6.50%
Pension increases1.50%2.00%N/A1.50%2.00%N/A
Discount rate1.36%1.36%5.00%1.46%1.46%3.50%
Normal retirement age
65-67
65-67
60
65-67
65-67
60
Employee fluctuation rate:
to age 20—%—%13.98%—%—%12.19%
to age 25—%—%7.10%—%—%16.58%
to age 301.00%—%3.00%1.00%—%13.97%
to age 350.50%—%2.44%0.50%—%10.77%
to age 40—%—%2.59%—%—%7.39%
to age 450.50%—%1.15%0.50%—%3.28%
to age 500.50%—%—%0.50%—%—%
from age 511.00%—%—%1.00%—%—%
Anticipated pension payments under the pension plans for the fiscal years indicated below are as follows:
Fiscal years ending June 30,
CDTGXS GERGXS PHP
2021 (three months ended)$203 $246 $28 
2022877 1,014 254 
2023975 1,014 100 
20241,083 1,022 140 
20251,130 1,051 190 
2026 to 20306,486 5,154 2,456 
Total$10,754 $9,501 $3,168 
Other Plans
Other plans include defined benefit pension plans that are offered by certain of our foreign subsidiaries. Many of these plans were assumed through our acquisitions or are required by local regulatory requirements. These other plans are primarily unfunded, with the aggregate projected benefit obligation included in our pension liability. The net periodic costs of these plans are determined using the projected unit credit method and several actuarial assumptions, the most significant of which are the discount rate and estimated service costs.