Pitney Bowes 2013 Annual Report Download - page 92

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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share amounts)
81
The target asset allocation used to manage the investment portfolio is based on the broad asset categories shown above. The plan asset
categories presented in the fair value hierarchy are subsets of the broad asset categories.
The fair value of the U.K. plan assets was $414 million and $370 million at December 31, 2013 and 2012, respectively, and the expected
long-term weighted average rate of return on these plan assets was 7.38% in 2013 and 7.25% in 2012.
Fair Value Measurements of Plan Assets
The following tables show, by level within the fair value hierarchy, the financial assets and liabilities that are accounted for at fair value
on a recurring basis at December 31, 2013 and 2012, respectively, for the U.S. and foreign pension plans. Financial assets and liabilities
are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the
significance of a particular input to the fair value measurement requires judgment and may affect placement within the fair value hierarchy
levels.
United States Pension Plans
December 31, 2013
Level 1 Level 2 Level 3 Total
Money market funds $ — $ 30,374 $ — $ 30,374
Equity securities 279,988 165,303 — 445,291
Commingled fixed income securities — 209,674 — 209,674
Debt securities - U.S. and foreign governments, agencies and
municipalities 43,390 30,477 — 73,867
Debt securities - corporate — 568,567 — 568,567
Mortgage-backed securities — 31,738 2,634 34,372
Asset-backed securities — 625 — 625
Private equity — — 87,470 87,470
Real estate — — 67,917 67,917
Securities lending collateral (1) — 6,602 — 6,602
Total plan assets at fair value $ 323,378 $ 1,043,360 $ 158,021 $ 1,524,759
Securities lending payable (1) (6,602)
Cash 634
Other 4,888
Fair value of plan assets available for benefits $ 1,523,679
(1) Securities lending collateral is offset by a corresponding securities lending payable amount.