Pitney Bowes 2011 Annual Report Download - page 100

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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share data)
82
Nonpension Postretirement Benefits
We provide certain health care and life insurance benefits to eligible retirees and their dependents. The cost of these benefits is
recognized over the period the employee provides credited service to the Company. Substantially all of our U.S. and Canadian
employees become eligible for retiree health care benefits after reaching age 55 or in the case of employees of Pitney Bowes
Management Services after reaching age 60 and with the completion of the required service period. U.S. employees hired after
January 1, 2005, and Canadian employees hired after April 1, 2005, are not eligible for retiree health care benefits.
The benefit obligation and funded status for nonpension postretirement benefit plans are as follows:
December 31,
2011 2010
Benefit obligation:
Benefit obligations at beginning of year $ 280,386 $ 254,405
Service cost 3,328 3,724
Interest cost 13,528 13,828
Plan participants’ contributions 8,861 9,182
Actuarial loss 20,792 33,983
Foreign currency changes (648) 1,061
Benefits paid (43,964) (43,563)
Curtailment 3,245 7,575
Special termination benefits 300 191
Benefit obligations at end of year $ 285,828 $ 280,386
Fair value of plan assets:
Fair value of plan assets at beginning of year $ - $ -
Company contribution 35,103 34,381
Plan participants’ contributions 8,861 9,182
Gross benefits paid (43,964) (43,563)
Fair value of plan assets at end of year $ - $ -
Funded status $ (285,828) $ (280,386)
Amounts recognized in the Consolidated Balance Sheets:
Current liability $ (28,855) $ (29,374)
Non-current liability (256,973) (251,012)
Net amount recognized $ (285,828) $ (280,386)
Pre-tax amounts recognized in AOCI consist of:
Net actuarial loss $ 115,713 $ 102,910
Prior service credit (5,696) (5,886)
Total $ 110,017 $ 97,024
(1) The benefit obligation for the United States nonpension postretirement plans was $262 and $259 million December 31, 2011 and
2010