Pitney Bowes 2007 Annual Report Download - page 88

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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share data)
70
The change in benefit obligations, plan assets and the funded status for nonpension postretirement benefit plans are as
follows:
December 31,
2007
2006
Change in benefit obligation:
Benefit obligations at beginning of year....................... $ 261,720
$ 272,682
Service cost .................................................................. 3,529
3,347
Interest cost .................................................................. 13,904
13,352
Plan participants’ contributions.................................... 7,951
6,640
Plan amendments.......................................................... (4,839) -
Actuarial loss (gain) ..................................................... (95) 2,569
Foreign currency changes............................................. 2,522
594
Gross benefits paid ....................................................... (41,415) (40,819)
Less federal subsidy on benefits paid ...................... 3,281
3,355
Special termination benefits ......................................... 14
-
Benefit obligations at end of year................................. $ 246,572
$ 261,720
Change in plan assets:
Fair value of plan assets at beginning of year............... $ -
$ -
Company contribution.................................................. 30,183
30,824
Plan participants’ contributions.................................... 7,951
6,640
Gross benefits paid ....................................................... (41,415) (40,819)
Less federal subsidy on benefits paid ...................... 3,281
3,355
Fair value of plan assets at end of year......................... $ -
$ -
Funded status, end of year:
Fair value of plan assets at end of year......................... $ -
$ -
Benefit obligations at end of year................................. 246,572
261,720
Funded status ............................................................... $ (246,572) $ (261,720)
The discount rates used in determining the accumulated postretirement benefit obligations for the U.S. plan were 5.90% in
2007 and 5.85% in 2006. The discount rates used in determining the accumulated postretirement benefit obligations for the
Canadian plan were 5.25% in 2007 and 5.00% in 2006.
Amounts recognized in the Consolidated
Balance Sheets consist of:
2007
2006
Current liability ............................................................ $ (27,728) $ (30,849)
Non-current liability ..................................................... (218,844) (230,871)
Net amount recognized................................................. $ (246,572) $ (261,720)
Amounts recognized in AOCI consist of:
Net actuarial loss .......................................................... $ 43,913
Prior service credit........................................................ (13,326)
Total ............................................................................. $ 30,587
The components of the net periodic benefit cost for nonpension postretirement benefit plans are as follows:
2007 2006 2005
Service cost................................................................... $ 3,529
$ 3,347 $ 3,154
Interest cost................................................................... 13,904
13,352 14,716
Amortization of prior service benefit............................ (2,472)
(1,856) (2,122)
Recognized net actuarial loss........................................ 2,214
1,908 1,871
Net periodic benefit cost............................................... $ 17,175
$ 16,751 $ 17,619