Employee Benefit Plans

12 Months Ended

Jun. 30, 2014

Compensation and Retirement Disclosure [Abstract]

EMPLOYEE BENEFIT PLANS:

Defined contribution plans

The Company sponsors an employee savings plan (the “Plan”), which conforms to the provisions of Section 401(k) of the Internal Revenue Code. The Plan covers substantially all full-time and part-time associates in the U.S. and enables associates to voluntarily defer their eligible compensation through contributions to the Plan, up to the maximum amount per year permitted under the Internal Revenue Code. The Company matches 50% of the first 5% in eligible compensation deferred by each participating employee.

During fiscal years 2014, 2013 and 2012, the Company’s matching contributions to the Plan were approximately $2.4 million, $2.2 million, and $2.1 million, respectively. The Company does not have any material obligations to past or present associates related to post-employment benefits under the Plan.

Defined benefit plans

The Company currently sponsors two defined benefit plans: a Supplemental Executive Retirement Plan (“SERP”), and pension plans that were acquired as a result of the Company's acquisition of Torex (the “Former Torex Plans”). The SERP provides designated officers and executives of the Company or their designated beneficiaries with benefits upon retirement or death. The Company funds the benefits under the SERP with corporate owned life insurance policies held by a segregated trust (known as a “Rabbi Trust”), whose assets are subject to the claims of creditors of the Company. As of June 30, 2014, there are three participants in the SERP, all of whom are all fully vested and the Former Torex Plans participants are fully vested and the plan was fully funded. As of June 30, 2014 and 2013, total accumulated benefit obligations of approximately $7.1 million and $7.5 million, respectively, were included in Other Non-Current Liabilities on the consolidated balance sheets.

The following tables provide information regarding the Former Torex Plans for the fiscal years ended June 30, 2014 and 2013 (in thousands):



	Fiscal Year Ended June 30,
	2014			2013
Change in Projected Benefit Obligation (“PBO”):
PBO at the beginning of year	$	38,452		$	40,546
Interest cost	1,979			1,715
Service cost	17			29
Benefit payments	(1,889		)	(1,331		)
Actuarial loss (gain)	2,381			(1,248		)
Foreign currency translation gain	4,686			(1,259		)
PBO at the end of year	$	45,626		$	38,452



Fair Value of Plan Assets:
Fair value at the beginning of year	$	39,305		$	40,179
Return on assets	3,455			1,489
Company contributions	397			291
Benefit payments	(1,889		)	(1,331		)
Actuarial (loss) gain	5			(72		)
Foreign currency translation loss	4,789			(1,251		)
Fair value at the end of year	$	46,062		$	39,305



Funded Status of the Plan:
Funded status of PBO	$	436	$	853
Unrecognized prior service cost	N/A		N/A
Unrecognized net actuarial (gain) losses	N/A		N/A
Prepaid benefit cost	$	436	$	853




Accumulated prepaid benefit	$	436	$	853



Amount recognized in the consolidated balance sheet:
Other non-current assets	$	439		$	879
Other non-current liabilities	(3		)	(26		)
Prepaid benefit cost	$	436		$	853



Assumptions used to measure benefit obligation at June 30, 2014 and 2013:
Discount rate	4.0% - 4.3%	3.9% - 4.7%
Return on plan assets	4.4%	4.0% - 4.6%



Plan Assets by asset category as of June 30, 2014 and 2013:
Bonds	60	%	60	%
Government debt securities	21	%	21	%
Equities	18	%	17	%
Cash and other	1	%	2	%
Total plan assets	100	%	100	%

The total periodic pension costs for the fiscal years ended June 30, 2014, 2013 and 2012 for the Former Torex Plans were immaterial.

As of June 30, 2014, the projected benefit payments to be paid from the Company’s defined benefit plans are as follows for the fiscal years ending June 30 (in thousands):



2015	$	3,098
2016	2,719
2017	2,862
2018	2,985
2019	3,082
2020 – 2024	14,108

MICROS SYSTEMS INC 10-K