Pitney Bowes 2012 Annual Report Download - page 97

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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share amounts)
79
Nonpension Postretirement Benefits
We provide certain health care and life insurance benefits in the U.S. and Canada to eligible retirees and their dependents. The cost of
these benefits is recognized over the period the employee provides credited service to the company. Employees hired before January 1,
2005 in the U.S. and before April 1, 2005 in Canada 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.
Effective January 1, 2013, we amended our retiree medical coverage for certain eligible retirees by eliminating company provided coverage
in some instances in favor of a Retirement Reimbursement Account and a third party health insurance exchange to assist retirees in making
health care coverage choices. These changes do not impact active employees or pre-age 65 retirees who are not otherwise Medicare
eligible.
The benefit obligation and funded status for nonpension postretirement benefit plans are as follows:
2012 2011
Benefit obligation
Benefit obligation at beginning of year $ 285,828 $ 280,386
Service cost 3,563 3,328
Interest cost 11,187 13,528
Plan participants' contributions 9,547 8,861
Actuarial loss 4,150 20,792
Foreign currency changes 697 (648)
Plan amendment 8,501 —
Curtailment —3,245
Special termination benefits —300
Benefits paid (40,616)(43,964)
Benefit obligation at end of year (1) $ 282,857 $ 285,828
(1) The benefit obligation for the U.S. nonpension postretirement plans was $256 million and $262 million at December 31, 2012 and
2011, respectively.
2012 2011
Fair value of plan assets
Fair value of plan assets at beginning of year $—
$—
Company contribution 31,069 35,103
Plan participants' contributions 9,547 8,861
Gross benefits paid (40,616)(43,964)
Fair value of plan assets at end of year $—
$—
Funded status $(282,857)$ (285,828)
Amounts recognized in the Consolidated Balance Sheets
Current liability $(25,483)$ (28,855)
Non-current liability (257,374)(256,973)
Net amount recognized $(282,857)$ (285,828)