Pitney Bowes 2008 Annual Report Download - page 89

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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share data)
70
Information provided in the table below is only for pension plans with an accumulated benefit obligation in excess of plan assets at
December 31, 2008 and 2007:
United States Foreign
2008 2007 2008 2007
Projected benefit obligation $ 1,605,380 $ 101,428 $ 37,094 $ 36,086
Accumulated benefit obligation $ 1,501,848 $ 80,497 $ 34,747 $ 34,428
Fair value of plan assets $ 1,175,271 $ 1,656 $ 9,120 $ 10,885
The accumulated benefit obligation for all U.S. defined benefit plans at December 31, 2008 and 2007 was $1.5 billion for both years.
The accumulated benefit obligation for all foreign defined benefit plans at December 31, 2008 and 2007 was $337 million and $484
million, respectively.
Amounts recognized in the Consolidated United States Foreign
Balance Sheets: 2008 2007 2008 2007
Non-current asset $ - $ 178,288 $ 184 $ 6,921
Current liability (6,513) (5,387) (875) (884)
Non-current liability (423,596) (94,385) (71,610) (30,595)
Net amount recognized $ (430,109) $ 78,516 $ (72,301) $ (24,558)
Pre-tax amounts recognized in accumulated other
comprehensive income (“AOCI”) consist of:
Net actuarial loss $ 833,674 $ 328,968 $ 119,733 $ 93,186
Prior service cost/(credit) (113) (2,673) 1,211 2,266
Transition obligation (asset) - - (97) (14)
Total $ 833,561 $ 326,295 $ 120,847 $ 95,438
The estimated amounts that will be amortized from
AOCI into net periodic benefits cost in 2009 are as
follows:
Net actuarial loss $ 27,309 $ 2,645
Prior service cost/(credit) (2,645) 471
Transition obligation - (10)
Total $ 24,664 $ 3,106
Weighted average assumptions used to determine
end of year benefit obligations:
Discount rate 6.05% 6.15% 2.25% - 6.60% 2.25% - 5.80%
Rate of compensation increase 4.25% 4.50% 2.50% - 5.10% 2.50% - 5.50%
At December 31, 2008 there are 8,800 shares of our common stock included in the plan assets of our pension plans.
We anticipate making contributions of up to $10 million to both our U.S. and foreign pension plans during 2009. We will reassess
our funding alternatives as the year progresses.