Pitney Bowes 2013 Annual Report Download - page 96

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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share amounts)
85
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 on or after January 1, 2005 and Canadian employees hired on or after April 1, 2005, are not eligible for retiree health
care benefits.
The benefit obligation and funded status for nonpension postretirement benefit plans are as follows:
2013 2012
Benefit obligation
Benefit obligation at beginning of year $ 282,857 $ 285,828
Service cost 3,684 3,563
Interest cost 9,503 11,187
Plan participants' contributions 4,313 9,547
Actuarial (gain) loss (30,051)4,150
Foreign currency changes (1,693)697
Plan amendment —8,501
Curtailment (4,839)—
Benefits paid (32,621)(40,616)
Benefit obligation at end of year (1) $ 231,153 $ 282,857
(1) The benefit obligation for the U.S. nonpension postretirement plans was $208 million and $256 million at December 31, 2013 and
2012, respectively.
2013 2012
Fair value of plan assets
Fair value of plan assets at beginning of year $—
$—
Company contribution 28,308 31,069
Plan participants' contributions 4,313 9,547
Benefits paid (32,621)(40,616)
Fair value of plan assets at end of year $—
$—
Funded status $(231,153)$ (282,857)
Amounts recognized in the Consolidated Balance Sheets
Current liability $(23,668)$ (25,483)
Non-current liability (207,485)(257,374)
Net amount recognized $(231,153)$ (282,857)