Note 11 - Accrued Pension Liabilities

12 Months Ended

Dec. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

NOTE 11:- ACCRUED PENSION LIABILITIES

As of December 31, 2015 and 2014, the defined benefits plans that the Company assumed in connection with the CIPT Acquisition that are accounted for in the Company’s consolidated financial statements are the pension plans in Germany and India. Consistent with the requirements of local law, the Company deposits funds for certain plans with insurance companies, third-party trustees, or into government-managed accounts, and/or accrues for the unfunded portion of the obligation.

The Company’s pension obligation in Germany relating to the unvested pension claims (i.e. future obligation that will result from future service period) of the employees were outsourced in November 2010 to an external insurance company (“Nuremberger Versicherung”). From and after the outsourcing date, the Company is required to pay premiums to the external insurance company and in return the pension benefits earned by the German employees are covered by the Company’s arrangement with the external insurance company. The Company legally is released from its obligations to the German employees once the premiums are paid, and it is no longer subject to any of the risks and rewards associated with the benefit obligations covered and the plan assets transferred to the external insurance company. Since the outsourcing arrangement meets the requirements of a nonparticipating annuity contract, the Company treats the costs of the outsourcing arrangement as the costs of the benefits being earned in accordance with ASC Paragraph 715-30-25-7 of ASC 715 “Compensation—Retirement Benefits.”

The following tables provide a reconciliation of the changes in the pension plans’ benefit obligation and fair value of assets for the years ended December 31, 2015 and 2014, and the statement of funded status as of December 31, 2015 and 2014:

	December 31,
	2015			2014
Accumulated benefit obligation	$	937		$	1,194
Change in benefit obligation
Benefit obligation at beginning of year	$	1,205		$	1,239
Service cost		5			5
Interest cost		17			29
Benefits paid from the plan		(96	)		(152	)
Actuarial loss		(62	)		218
Exchange rates and others		(123	)		(134	)
Benefit obligation at end of year	$	946		$	1,205
Change in plan assets
Fair value of plan assets at beginning of year		116			258
Actual return on plan assets		5			6
Benefits paid from the plan		(56	)		(127	)
Exchange rates		(11	)		(21	)
Fair value of plan assets at end of year	$	54		$	116

The assumptions used in the measurement of the Company’s pension expense and benefit obligations as of December 31, 2015, 2014 and 2013 are as follows:

	Year ended December 31,
	2015			2014			2013
Weighted-average assumptions
Discount rate		2.5	%		2.1	%		3.5	%
Expected return on plan assets		4.28	%		2.86	%		2.88	%
Rate of compensation increase		2.5	%		2.5	%		2.5	%

The amounts reported for net periodic pension costs and the respective benefit obligation amounts are dependent upon the actuarial assumptions used. The Company reviews historical trends, future expectations, current market conditions, and external data to determine the assumptions. The discount rate is determined considering the yield of government bonds. The rate of compensation increase is determined by the Company, based on its long-term plans for such increases.

The following table provides the components of net periodic benefit cost for the years ended December 31, 2015, 2014 and 2013:

	December 31,
	2015			2014			2013
Components of net periodic benefit cost
Service cost	$	5		$	5		$	5
Interest cost		17			29			35
Expected return on plan assets		(5	)		(6	)		(6	)
Amortization of net loss		20			11			11
Net periodic benefit cost	$	37		$	39		$	45

	December 31,
	2015			2014
Net amounts recognized in the consolidated balance sheets as of December 31, 2015 and 2014 consist of:
Current liabilities	$	-		$	-
Noncurrent liabilities		892			1,089
Net amounts recognized in the consolidated balance sheets	$	892		$	1,089
Net amounts recognized in accumulated other comprehensive income as of December 31, 2015 and 2014 consist of:
Net actuarial loss	$	(351	)	$	(435	)
Net amounts recognized in accumulated other comprehensive loss	$	(351	)	$	(435	)

The estimated amount that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in 2016 is as follows:

	2016
Net actuarial loss and other	$	14

Benefit payments are expected to be paid as follows:

Year ending December 31,
2016	$	55
2017	$	21
2018	$	8
2019	$	8
2020	$	9
2021-2025	$	104

The plan asset allocations at December 31 of the relevant years are as follows:

	December 31,
	2015			2014
Bonds		-			-
Real estate		-			-
Cash		-			-
Shares		-			-
Other		100	%		100	%
		100	%		100	%

The fair value of the Company’s pension plan assets at December 31, 2015 by asset category, classified by the three levels of inputs described in Note 2, are as follows:

	Fair value measurements at December 31, 2015 using:
	Total fair value at December 31, 2015		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash	$	-	$	-	$	-	$	-
Equity securities		-		-		-		-
Real estate		-		-		-		-
Corporate bonds		-		-		-		-
Others		54		-		54		-
Total assets measured at fair value	$	54	$	-	$	54	$	-

Valuation techniques - For Level 2 inputs, the Company utilizes quoted market prices in markets that are not active, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency.

Regarding the policy for amortizing actuarial gains or losses for pension and post-employment plans, the Company has chosen the “corridor” option. This option consists of recognizing in the consolidated statements of operations, the part of unrecognized actuarial gains or losses exceeding 10% of the greater of the PBO or the market value of the plan assets. If amortization is required, the minimum amortization amount is that excess divided by the average remaining service period of the active employees expected to receive benefits under the plan.

Actuarial profits were recognized in other comprehensive income (loss) in the amount of $63 for the year ended December 31, 2015. Actuarial losses were recognized in other comprehensive income (loss) in the amount of $209 and $11 for the years ended December 31, 2014 and 2013, respectively.