Pitney Bowes 2014 Annual Report Download - page 82

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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share amounts)
72
Foreign Plans
December 31, 2014
Level 1 Level 2 Level 3 Total
Money market funds $ — $ 6,684 $ — $ 6,684
Equity securities 99,570 190,924 — 290,494
Commingled fixed income securities — 151,017 — 151,017
Debt securities - U.S. and foreign governments, agencies and
municipalities — 85,711 — 85,711
Debt securities - corporate — 26,154 — 26,154
Total plan assets at fair value $ 99,570 $ 460,490 $ — $ 560,060
Cash 10,859
Other 4,073
Fair value of plan assets available for benefits $ 574,992
December 31, 2013
Level 1 Level 2 Level 3 Total
Money market funds $ — $ 6,058 $ — $ 6,058
Equity securities 109,403 257,046 — 366,449
Commingled fixed income securities — 104,070 — 104,070
Debt securities - U.S. and foreign governments, agencies and
municipalities — 60,204 — 60,204
Debt securities - corporate — 17,944 — 17,944
Total plan assets at fair value $ 109,403 $ 445,322 $ — $ 554,725
Cash 5,285
Other 1,068
Fair value of plan assets available for benefits $ 561,078
The following information relates to our classification of investments into the fair value hierarchy:
• Money Market Funds: Money market funds typically invest in government securities, certificates of deposit, commercial paper of
companies and other highly liquid, low risk securities. Money market funds are principally used for overnight deposits. The money
market funds are classified as Level 2 since they are not actively traded on an exchange.
• Equity Securities: Equity securities include U.S. and foreign common stock, American Depository Receipts, preferred stock and
commingled funds. Equity securities classified as Level 1 are valued using active, high volume trades for identical securities. Equity
securities classified as Level 2 represent those not listed on an exchange in an active market. These securities are valued based on
quoted market prices of similar securities.
• Commingled Fixed Income Securities: Mutual funds that invest in a variety of fixed income securities including securities of the
U.S. government and its agencies, corporate debt, mortgage-backed securities and asset-backed securities. Value of the funds is based
on the net asset value (NAV) per unit as reported by the fund manager. NAV is based on the market value of the underlying investments
owned by each fund, minus its liabilities, divided by the number of shares outstanding. Commingled fixed income securities are not
listed on an active exchange and are classified as Level 2.
• Debt Securities - U.S. and Foreign Governments, Agencies and Municipalities: Government securities include treasury notes and
bonds, foreign government issues, U.S. government sponsored agency debt and commingled funds. Municipal debt securities include
general obligation securities and revenue-backed securities. Debt securities classified as Level 1 are valued using active, high volume
trades for identical securities. Debt securities classified as Level 2 are valued through benchmarking model derived prices to quoted
market prices and trade data for identical or comparable securities.