Pitney Bowes 2011 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)
74
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, the Pitney Bowes
Pension Restoration Plan and the Canadian pension plans, will be determined and frozen and no future benefit accruals under these
plans will occur after that date.
The obligations and funded status of defined benefit pension plans are as follows:
United States Foreign
2011 2010 2011 2010
Accumulated benefit obligation $ 1,684,050 $ 1,603,320 $ 543,599 $ 504,471
Projected benefit obligation:
Benefit obligation at beginning of year $ 1,632,286 $ 1,599,506 $ 541,241 $ 507,932
Service cost 19,450 23,157 7,310 6,907
Interest cost 87,738 89,602 28,329 27,507
Plan participants’ contributions - - 1,868 1,962
Actuarial loss 94,495 39,971 30,648 27,129
Foreign currency changes - - (6,424) (5,257)
Settlement / curtailment 2,941 6,419 16 (3,396)
Special termination benefits 1,489 8,148 277 557
Benefits paid (131,009) (134,517) (21,361) (22,100)
Benefit obligation at end of year $ 1,707,390 $ 1,632,286 $ 581,904 $ 541,241
Fair value of plan assets:
Fair value of plan assets at beginning of year $ 1,385,174 $ 1,350,045 $ 450,683 $ 414,313
Actual return on plan assets 41,388 149,599 (7,478) 50,609
Company contributions 130,983 20,047 18,616 9,291
Plan participants’ contributions - - 1,868 1,962
Foreign currency changes - - (3,480) (3,392)
Benefits paid (131,009) (134,517) (21,361) (22,100)
Fair value of plan assets at end of year $ 1,426,536 $ 1,385,174 $ 438,848 $ 450,683
Funded status $ (280,854) $ (247,112) $ (143,056) $ (90,558)
Amounts recognized in the Consolidated Balance Sheets:
Non-current asset $ 40 $ 29 $ 888 $ 508
Current liability (11,323) (6,962) (852) (901)
Non-current liability (269,571) (240,179) (143,092) (90,165)
Net amount recognized $ (280,854) $ (247,112) $ (143,056) $ (90,558)
Information provided in the table below is only for pension plans with an accumulated benefit obligation in excess of plan assets at
December 31, 2011 and 2010:
United States Foreign
2011 2010 2011 2010
Projected benefit obligation $ 1,705,732 $ 1,630,712 $ 579,646 $ 538,637
Accumulated benefit obligation $ 1,682,392 $ 1,601,746 $ 541,723 $ 502,317
Fair value of plan assets $ 1,424,837 $ 1,383,571 $ 435,702 $ 447,569