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) and GXS Philippines, Inc. (GXS PHP) as of December 31, 2017 and June 30, 2017:



	As of December 31, 2017
	Total benefit obligation		Current portion of benefit obligation*		Non-current portion of benefit obligation
CDT defined benefit plan	$	30,825	$	642	$	30,183
GXS Germany defined benefit plan	25,304		983		24,321
GXS Philippines defined benefit plan	4,566		102		4,464
Other plans	3,404		159		3,245
Total	$	64,099	$	1,886	$	62,213



	As of June 30, 2017
	Total benefit obligation		Current portion of benefit obligation*		Non-current portion of benefit obligation
CDT defined benefit plan	$	28,881	$	583	$	28,298
GXS Germany defined benefit plan	23,730		926		22,804
GXS Philippines defined benefit plan	4,495		81		4,414
Other plans	3,256		145		3,111
Total	$	60,362	$	1,735	$	58,627

*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 9 "Accounts Payable and Accrued Liabilities").

Defined Benefit Plans

CDT 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. 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. As of December 31, 2017, there is approximately $0.3 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 remainder of Fiscal 2018.

GXS Germany 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. As of December 31, 2017, there is approximately $36.1 thousand in accumulated other comprehensive income related to the GXS GER plan that is expected to be recognized as a component of net periodic benefit costs over the remainder of Fiscal 2018.

GXS Philippines 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 approximately $33.3 thousand as of December 31, 2017, 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. As of December 31, 2017, there is approximately $0.1 million in accumulated other comprehensive income related to the GXS PHP plan that is expected to be recognized as a component of net periodic benefit costs over the remainder of Fiscal 2018.

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 December 31, 2017												As of June 30, 2017
	CDT			GXS GER			GXS PHP			Total			CDT			GXS GER			GXS PHP			Total
Benefit obligation—beginning of period	$	28,881		$	23,730		$	4,495		$	57,106		$	29,450		$	24,729		$	7,341		$	61,520
Service cost	249			234			447			930			467			395			1,051			1,913
Interest cost	301			243			114			658			456			377			226			1,059
Benefits paid	(280		)	(482		)	(60		)	(822		)	(469		)	(807		)	(53		)	(1,329		)
Actuarial (gain) loss	352			492			(444		)	400			(1,708		)	(1,548		)	(3,728		)	(6,984		)
Foreign exchange (gain) loss	1,322			1,087			14			2,423			685			584			(342		)	927
Benefit obligation—end of period	30,825			25,304			4,566			60,695			28,881			23,730			4,495			57,106
Less: Current portion	(642		)	(983		)	(102		)	(1,727		)	(583		)	(926		)	(81		)	(1,590		)
Non-current portion of benefit obligation	$	30,183		$	24,321		$	4,464		$	58,968		$	28,298		$	22,804		$	4,414		$	55,516

The following are details of net pension expense relating to the following pension plans:



	Three Months Ended December 31,
	2017									2016
Pension expense:	CDT		GXS GER		GXS PHP			Total		CDT		GXS GER		GXS PHP			Total
Service cost	$	125	$	117	$	228		$	470	$	112	$	94	$	203		$	409
Interest cost	151		122		59			332		109		90		45			244
Amortization of actuarial (gains) and losses	134		18		(62		)	90		150		40		(12		)	178
Net pension expense	$	410	$	257	$	225		$	892	$	371	$	224	$	236		$	831



	Six Months Ended December 31,
	2017									2016
Pension expense:	CDT		GXS GER		GXS PHP			Total		CDT		GXS GER		GXS PHP			Total
Service cost	$	249	$	234	$	447		$	930	$	232	$	195	$	642		$	1,069
Interest cost	301		243		114			658		226		186		121			533
Amortization of actuarial (gains) and losses	268		36		(123		)	181		310		83		(24		)	369
Net pension expense	$	818	$	513	$	438		$	1,769	$	768	$	464	$	739		$	1,971

In determining the fair value of the pension plan benefit obligations as of December 31, 2017 and June 30, 2017, respectively, we used the following weighted-average key assumptions:



	As of December 31, 2017			As of June 30, 2017
	CDT	GXS GER	GXS PHP	CDT	GXS GER	GXS PHP
Assumptions:
Salary increases	2.00%	2.00%	6.20%	2.00%	2.00%	6.20%
Pension increases	1.75%	2.00%	N/A	1.75%	2.00%	N/A
Discount rate	1.93%	1.93%	5.75%	2.00%	2.00%	5.00%
Normal retirement age	65	65-67	60	65	65-67	60
Employee fluctuation rate:
to age 20	—%	—%	12.19%	—%	—%	12.19%
to age 25	—%	—%	16.58%	—%	—%	16.58%
to age 30	1.00%	—%	13.97%	1.00%	—%	13.97%
to age 35	0.50%	—%	10.77%	0.50%	—%	10.77%
to age 40	—%	—%	7.39%	—%	—%	7.39%
to age 45	0.50%	—%	3.28%	0.50%	—%	3.28%
to age 50	0.50%	—%	—%	0.50%	—%	—%
from age 51	1.00%	—%	—%	1.00%	—%	—%

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



	Fiscal years ending June 30,
	CDT		GXS GER		GXS PHP
2018 (six months ended June 30)	$	304	$	484	$	51
2019	674		997		131
2020	727		1,004		149
2021	821		1,047		240
2022	904		1,057		270
2023 to 2027	5,652		5,637		1,990
Total	$	9,082	$	10,226	$	2,831

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.