We maintain three defined benefit pension plans: one for United Kingdom employees, one for German employees, and one for Philippine employees. We deposit funds for these plans, consistent with the requirements of local law, with investment management companies, insurance companies, banks or trustees and/or accrue for the unfunded portion of the obligations. The measurement date for the projected benefit obligations and the plan assets is March 31. The United Kingdom and German plans have been curtailed. As such, the plans are closed to new entrants and no credit is provided for additional periods of service. The German plan was held by a separate legal entity. As of June 30, 2014, the German defined benefit plan was completely unfunded. We expect to contribute approximately $1.1 million to the United Kingdom and the Philippines plans in the fiscal year ending March 31, 2015. This contribution is primarily contractual.

The net periodic pension expense includes the following components (in thousands):

	Three Months Ended
	June 30,
	2014		2013

	(unaudited)
Service cost	$	26	$	28
Interest cost on projected benefit obligation		473		458
Expected return on plan assets		(497)		(409)
Recognized actuarial loss		18		56
Net periodic pension expense	$	20	$	133

We report and measure the plan assets of our defined benefit pension plans at fair value. The table below sets forth the fair value of our plan assets as of June 30, 2014 and March 31, 2014, using the same three-level hierarchy of fair-value inputs described in Note 4, “Fair Value” (in thousands):


	June 30, 2014								March 31, 2014
Description	Level 1		Level 2		Level 3			Total	Level 1		Level 2		Level 3			Total
		(unaudited)								(unaudited)
Cash and cash funds	$	2,467	$	-	$	-	$	2,467	$	1,523	$	-	$	-	$	1,523
Currency contracts		-		18		-		18		-		(4)		-		(4)
Equity		20,294		470		6		20,770		20,946		439		2		21,387
Fixed interest		777		6,015		2		6,794		749		5,323		1		6,073
Mortgage backed securities		-		16		-		16		-		15		-		15
Swaps and other		-		26		-		26		1		18		-		19
Total	$	23,538	$	6,545	$	8	$	30,091	$	23,219	$	5,791	$	3	$	29,013