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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share amounts)
75
Foreign Plans
December 31, 2015
Level 1 Level 2 Level 3 Total
Money market funds $ — $ 7,596 $ — $ 7,596
Equity securities 33,855 183,110 — 216,965
Commingled fixed income securities — 138,220 — 138,220
Debt securities - U.S. and foreign governments, agencies and
municipalities — 73,573 — 73,573
Debt securities - corporate — 27,279 — 27,279
Real estate — — 39,177 39,177
Diversified growth funds — — 20,513 20,513
Total plan assets at fair value $ 33,855 $ 429,778 $ 59,690 $ 523,323
Cash 6,376
Other 413
Fair value of plan assets available for benefits $ 530,112
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
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. They 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