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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share amounts)
77
18. 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 those participants in our two largest U.S. pension plans with less than 16 years of service as of March 31, 2013 were
frozen on March 31, 2013. Benefit accruals for all participants in our U.K. pension plans were frozen during 2013. Benefit accruals for
those participants in our two largest U.S. pension plans with 16 or more years of service as of March 31, 2013 and all participants in our
Canadian pension plans, will be frozen effective December 31, 2014.
The benefit obligations and funded status of defined benefit pension plans are as follows:
United States Foreign
2013 2012 2013 2012
Accumulated benefit obligation $ 1,611,457 $ 1,802,811 $ 659,602 $ 648,439
Projected benefit obligation
Benefit obligation at beginning of year $ 1,822,677 $ 1,707,390 $ 663,826 $ 581,904
Service cost 13,981 18,939 6,272 7,763
Interest cost 74,370 81,040 27,365 27,793
Plan participants' contributions ——496 1,106
Actuarial (gain) loss (154,996)145,641 (1,224)45,537
Foreign currency changes ——(204)22,115
Settlement / curtailment (3,275)6(86)(1,489)
Special termination benefits 548 —935 601
Benefits paid (130,714)(130,339)(24,607)(21,504)
Benefit obligation at end of year 1,622,591 1,822,677 672,773 663,826
Fair value of plan assets available for benefits
Fair value of plan assets at beginning of year 1,583,932 1,426,536 509,331 438,848
Actual return on plan assets 60,569 193,696 62,777 44,928
Company contributions 9,892 94,039 14,509 30,089
Plan participants' contributions ——496 1,106
Settlement / curtailment ———(1,489)
Foreign currency changes ——(1,428)17,353
Benefits paid (130,714)(130,339)(24,607)(21,504)
Fair value of plan assets at end of year 1,523,679 1,583,932 561,078 509,331
Funded status $ (98,912)$(238,745)$(111,695)$ (154,495)
Amounts recognized in Consolidated Balance Sheets
Non-current asset $ 195 $ 175 $ 11,951 $ 530
Current liability (18,097)(7,456)(1,051)(967)
Non-current liability (81,010)(231,464)(122,595)(154,058)
Net amount recognized $(98,912)$(238,745)$(111,695)$ (154,495)