Pitney Bowes 2009 Annual Report Download - page 107

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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share data)
89
The change in benefit obligations, plan assets and the funded status for nonpension postretirement benefit plans are as follows:
December 31,
2009 2008
Change in benefit obligation:
Benefit obligations at beginning of year $ 244,544 $ 246,572
Service cost 3,424 3,613
Interest cost 14,437 14,410
Plan participants’ contributions 8,778 8,627
Actuarial loss (gain) 21,489 14,662
Foreign currency changes 2,509 (3,653)
Gross benefits paid (43,494) (42,259)
Less federal subsidy on benefits paid 2,718 2,572
Benefit obligations at end of year $ 254,405 $ 244,544
Change in plan assets:
Fair value of plan assets at beginning of year $ - $ -
Company contribution 31,998 31,060
Plan participants’ contributions 8,778 8,627
Gross benefits paid (43,494) (42,259)
Less federal subsidy on benefits paid 2,718 2,572
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 254,405 244,544
Funded status $ (254,405) $ (244,544)
The discount rates used in determining the accumulated postretirement benefit obligations for the U.S. plan were 5.35% in 2009 and
5.95% in 2008. The discount rates used in determining the accumulated postretirement benefit obligations for the Canadian plan were
5.85% in 2009 and 6.60% in 2008.
Amounts recognized in the Consolidated
Balance Sheets consist of: 2009 2008
Current liability $ (26,293) $ (26,920)
Non-current liability (228,112) (217,624)
Net amount recognized $ (254,405) $ (244,544)
Pre-tax amounts recognized in AOCI consist of:
Net actuarial loss $ 74,044 $ 55,764
Prior service credit (8,397) (10,872)
Total $ 65,647 $ 44,892
The components of the net periodic benefit cost for nonpension postretirement benefit plans are as follows:
2009 2008 2007
Service cost $ 3,424 $ 3,613 $ 3,529
Interest cost 14,437 14,410 13,904
Amortization of prior service benefit (2,475) (2,471) (2,472)
Recognized net actuarial loss 4,092 3,386 2,214
Net periodic benefit cost $ 19,478 $ 18,938 $ 17,175