Pitney Bowes 2008 Annual Report Download - page 92

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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share data)
73
The change in benefit obligations, plan assets and the funded status for nonpension postretirement benefit plans are as follows:
December 31,
2008 2007
Change in benefit obligation:
Benefit obligations at beginning of year $ 246,572 $ 261,720
Service cost 3,613 3,529
Interest cost 14,410 13,904
Plan participants’ contributions 8,627 7,951
Plan amendments - (4,839)
Actuarial loss (gain) 14,662 (95)
Foreign currency changes (3,653) 2,522
Gross benefits paid (42,259) (41,415)
Less federal subsidy on benefits paid 2,572 3,281
Special termination benefits - 14
Benefit obligations at end of year $ 244,544 $ 246,572
Change in plan assets:
Fair value of plan assets at beginning of year $ - $ -
Company contribution 31,060 30,183
Plan participants’ contributions 8,627 7,951
Gross benefits paid (42,259) (41,415)
Less federal subsidy on benefits paid 2,572 3,281
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 244,544 246,572
Funded status $ (244,544) $ (246,572)
The discount rates used in determining the accumulated postretirement benefit obligations for the U.S. plan were 5.95% in 2008 and
5.90% in 2007. The discount rates used in determining the accumulated postretirement benefit obligations for the Canadian plan
were 6.60% in 2008 and 5.25% in 2007.
Amounts recognized in the Consolidated
Balance Sheets consist of: 2008 2007
Current liability $ (26,920) $ (27,728)
Non-current liability (217,624) (218,844)
Net amount recognized $ (244,544) $ (246,572)
Pre-tax amounts recognized in AOCI consist of:
Net actuarial loss $ 55,764
Prior service credit (10,872)
Total $ 44,892