Pitney Bowes 2010 Annual Report Download - page 99

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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share data)
80
19. Retirement Plans and Postretirement Medical Benefits
We have several defined benefit retirement plans. Benefits are primarily based on employees’ compensation and years of service.
Our contributions are determined based on the funding requirements of U.S. federal and other governmental laws and regulations. We
use a measurement date of December 31 for all of our retirement plans.
U.S. employees hired after January 1, 2005, Canadian employees hired after April 1, 2005, and U.K. employees hired after July 1,
2005, are not eligible for our defined benefit retirement plans. As of December 31, 2014, benefit accruals for our U.S. pension plans,
the Pitney Bowes Pension Plan and the Pitney Bowes Pension Restoration Plan, will be determined and frozen and no future benefit
accruals under these plans will occur after that date.
The change in benefit obligation, plan assets and the funded status of defined benefit pension plans are as follows:
United States Foreign
2010 2009 2010 2009
Change in benefit obligation:
Benefit obligation at beginning of year $ 1,599,506 $ 1,605,380 $ 507,932 $ 384,507
Service cost 23,157 24,274 6,907 6,853
Interest cost 89,602 93,997 27,507 25,200
Plan participants’ contributions - - 1,962 2,231
Actuarial loss 39,971 17,698 27,129 63,325
Foreign currency changes - - (5,257) 45,858
Settlement / curtailment 6,419 (24,297) (3,396) (1,579)
Special termination benefits 8,148 112 557 2,012
Benefits paid (134,517) (117,658) (22,100) (20,475)
Benefit obligation at end of year $ 1,632,286 $ 1,599,506 $ 541,241 $ 507,932
Change in plan assets:
Fair value of plan assets at beginning of year $ 1,350,045 $ 1,175,271 $ 414,313 $ 312,206
Actual return on plan assets 149,599 177,119 50,609 48,128
Company contributions 20,047 115,313 9,291 32,755
Plan participants’ contributions - - 1,962 2,231
Foreign currency changes - - (3,392) 39,468
Benefits paid (134,517) (117,658) (22,100) (20,475)
Fair value of plan assets at end of year $ 1,385,174 $ 1,350,045 $ 450,683 $ 414,313
Funded status, end of year:
Fair value of plan assets at end of year $ 1,385,174 $ 1,350,045 $ 450,683 $ 414,313
Benefit obligations at end of year 1,632,286 1,599,506 541,241 507,932
Funded status $ (247,112) $ (249,461) $ (90,558) $ (93,619)
Amounts recognized in the
Consolidated Balance Sheets:
Non-current asset $ 29 $ - $ 508 $ 484
Current liability (6,962) (19,424) (901) (957)
Non-current liability (240,179) (230,037) (90,165) (93,146)
Net amount recognized $ (247,112) $ (249,461) $ (90,558) $ (93,619)