14. Employee Benefit Plans

We have a multi-employer defined contribution profit sharing plan with a 401(k) arrangement for employees in the United States. To become eligible for the profit sharing portion of the plan, an employee must complete two years of service and attain the age of twenty-one. Participation is automatic beginning the following January or July. To become eligible for the 401(k) portion of the plan, the employee must complete three-months of service and attain the age of twenty-one.

Both portions of the plan allow for employer contributions. We are required to match 50% of the employee’s contribution to the 401(k) portion of the plan up to 6% of the employee’s salary. Our matching contributions for the 401(k) portion of the plan were $2,122, $1,871 and $1,464 for the fiscal years ended September 30, 2013, 2012 and 2011, respectively. Employee’s contributions are fully vested immediately while employer contributions vest over a five-year period.

Contributions to the profit sharing portion of the Plans are discretionary, ranging from 0% to 3%, and are approved by our board of directors. Total profit sharing expense for the fiscal years ended September 30, 2013, 2012 and 2011 were $1,997, $1,847 and $1,516, respectively. Employer contributions are fully vested immediately.

Centaur sponsors a defined contribution plan for all other staff not participating in the defined benefit plan described below. The contributions made by the employer over the period are detailed below. Contributions are currently payable at a minimum of 3% up to a maximum of 6% of eligible pay if matched by employee. The matching contribution for the plan was $257, $250 and $269 for the fiscal years ended September 30, 2013, 2012 and 2011, respectively.

Centaur operates a defined benefit pension plan which provides benefits based on pensionable pay and is closed to future benefit accrual.

The fair value of plan assets, benefit obligation and funded status of the defined benefit plan as of September 30 is as follows:



	2013		2012		2011
Fair value of plan assets	$	5,242	$	5,329	$	4,760
Benefit obligation		(6,667)		(7,228)		(7,031)
Unfunded pension liability	$	(1,425)	$	(1,899)	$	(2,271)

The unfunded pension liability is recognized as other long-term liabilities in the Consolidated Balance Sheets. Net periodic benefit expense for the fiscal year ended September 30 consisted of the following:



	2013		2012		2011
Interest cost	$	195	$	219	$	255
Expected return on plan assets		(252)		(249)		(205)
Net periodic (benefit)/cost		(57)		(30)		50

Other changes recognized in other comprehensive income
Actuarial gain		(187)		(373)		(88)
Total recognized in net periodic benefit costs and
other comprehensive income	$	(244)	$	(403)	$	(38)

Total gain recognized in other comprehensive income, net of tax	$	(139)	$	(228)	$	(21)

The estimated net actuarial gain that will be amortized from accumulated other comprehensive income into net periodic benefit costs during fiscal year 2014 is not significant. The following table provides the weighted-average actuarial assumptions:



	2013	2012
Assumptions used to determine benefit obligations
Discount rate	3.6%	3.0%
Rate of compensation increase⁽¹⁾	N/A	N/A


	2013	2012	2011
Assumptions used to determine net periodic benefit cost
Discount rate	3.0%	3.1%	3.6%
Expected return on plan assets	5.0%	5.2%	4.3%
Rate of compensation increase⁽¹⁾	N/A	N/A	N/A

(1) There is no assumed rate of compensation increase as there have been no current active members since April 2006.

The following table sets forth, by level within the fair value hierarchy, as discussed in Note 15, Fair Value of Financial Instruments, the assets of the plan, by major asset category, at fair value as of September 30:



	2013				2012
	Market		Asset	Fair Value	Market		Asset	Fair Value
Asset Class	Value		Allocation	Level	Value		Allocation	Level
Equities	$	2,062	39%	2	$	1,793	34%	2
Corporate bonds		979	19%	2		1,275	24%	2
UK Government bonds		-	0%	2		485	9%	2
Cash		82	2%	1		218	4%	1
Other assets		2,119	40%	2		1,558	29%	2
Total	$	5,242	100%		$	5,329	100%