Pitney Bowes 2007 Annual Report Download - page 85

PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share data)
67
United States Foreign
2007
2006 2007 2006
Change in plan assets:
Fair value of plan assets at beginning of year.... $ 1,655,283 $ 1,528,917
$ 476,939 $ 411,518
Actual return on plan assets............................... 121,973 232,254
31,490 40,721
Company contributions ..................................... 8,781 7,139
8,926 9,513
Plan participants’ contributions......................... - -
2,924 2,781
Foreign currency changes.................................. - -
28,479 29,617
Benefits paid...................................................... (111,035) (113,027)
(18,443) (17,211)
Fair value of plan assets at end of year.............. $ 1,675,002 $ 1,655,283
$ 530,315
$ 476,939
Funded status, end of year:
Fair value of plan assets at end of year.............. $ 1,675,002 $ 1,655,283
$ 530,315 $ 476,939
Benefit obligations at end of year...................... 1,592,729 1,621,463
555,017 522,451
Funded status..................................................... $ 82,273 $ 33,820
$ (24,702)
$ (45,512)
Information for pension plans, that are included above, with an accumulated benefit obligation in excess of plan assets at
December 31, 2007 and 2006 were as follows:
United States Foreign
2007 2006 2007 2006
Projected benefit obligation............................... $ 97,671 $ 95,370
$ 36,086
$ 35,700
Accumulated benefit obligation ........................ $ 78,564 $ 78,392
$ 34,428
$ 33,955
Fair value of plan assets .................................... $ 1,656 $ 1,521
$ 10,885
$ 9,548
The accumulated benefit obligation for all U.S. defined benefit plans at December 31, 2007 and 2006 was $1.5 billion for
both years. The accumulated benefit obligation for all foreign defined benefit plans at December 31, 2007 and 2006 was
$484 million and $467 million, respectively.
Amounts recognized in the Consolidated United States Foreign
Balance Sheets: 2007 2006 2007
2006
Non-current asset............................................... $ 178,288 $ 127,670
$ 6,630
$ 7,084
Current liability ................................................. (5,354) (7,638)
(884) (872)
Non-current liability .......................................... (90,661) (86,212)
(30,448) (51,724)
Net amount recognized...................................... $ 82,273 $ 33,820
$ (24,702) $ (45,512)
Pre-tax amounts recognized in accumulated
other comprehensive income (“AOCI”)
consist of:
Net actuarial loss ............................................... $ 328,726 $ 394,556
$ 93,346 $ 114,400
Prior service cost/(credit) .................................. (3,177) (5,342)
2,266 2,672
Transition obligation (asset).............................. - -
131 (532)
Total .................................................................. $ 325,549 $ 389,214
$ 95,743 $ 116,540
The estimated amounts that will be
amortized from AOCI into net periodic
benefits cost in 2008 are as follows:
Net actuarial loss ............................................... $ 19,161
$ 4,211
Prior service cost/(credit) .................................. (2,609)
703
Transition obligation ........................................ -
130
Total .................................................................. $ 16,552
$ 5,044
Weighted average assumptions used to
determine end of year benefit obligations:
Discount rate ..................................................... 6.15% 5.85% 2.25% - 5.80% 2.25% - 5.30%
Rate of compensation increase .......................... 4.50% 4.50% 2.50% - 4.70% 2.50% - 4.30%