Pitney Bowes 2012 Annual Report Download - page 89

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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share amounts)
71
17. 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. Benefit accruals
for all participants in our U.K. pension plans will be frozen effective June 30, 2013. Benefit accruals for participants with 16 or more
years of service as of March 31, 2013 in our two largest U.S. pension plans and all participants in our Canadian pension plans, will be
frozen effective December 31, 2014.
In January 2013, the Board of Directors approved a plan to freeze benefit accruals under our two largest U.S. pension plans for certain
participants on March 31, 2013. The freeze is effective for those participants with less than 16 years of service as of March 31, 2013.
We are in the process of re-measuring the assets and liabilities of these plans, but currently estimate that annual pension costs for 2013
will be $10-$15 million lower than 2012 pension costs.
The benefit obligations and funded status of defined benefit pension plans are as follows:
United States Foreign
2012 2011 2012 2011
Accumulated benefit obligation $ 1,802,811 $ 1,684,050 $ 648,439 $ 543,599
Projected benefit obligation
Benefit obligation at beginning of year $ 1,707,390 $ 1,632,286 $ 581,904 $ 541,241
Service cost 18,939 19,450 7,763 7,310
Interest cost 81,040 87,738 27,793 28,329
Plan participants' contributions ——1,106 1,868
Actuarial loss 145,641 94,495 45,537 30,648
Foreign currency changes ——22,115 (6,424)
Settlement / curtailment 62,941 (1,489)16
Special termination benefits —1,489 601 277
Benefits paid (130,339)(131,009)(21,504)(21,361)
Benefit obligation at end of year 1,822,677 1,707,390 663,826 581,904
Fair value of plan assets available for benefits
Fair value of plan assets at beginning of year 1,426,536 1,385,174 438,848 450,683
Actual return on plan assets 193,696 41,388 44,928 (7,478)
Company contributions 94,039 130,983 30,089 18,616
Plan participants' contributions ——1,106 1,868
Settlement / curtailment ——(1,489)—
Foreign currency changes ——17,353 (3,480)
Benefits paid (130,339)(131,009)(21,504)(21,361)
Fair value of plan assets at end of year 1,583,932 1,426,536 509,331 438,848
Funded status $ (238,745)$(280,854)$(154,495)$ (143,056)
Amounts recognized in Consolidated Balance Sheets
Non-current asset $ 175 $40
$ 530 $ 888
Current liability (7,456)(11,323)(967)(852)
Non-current liability (231,464)(269,571)(154,058)(143,092)
Net amount recognized $(238,745)$(280,854)$(154,495)$ (143,056)