HP 2005 Annual Report Download - page 120

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 15: Retirement and Post-Retirement Benefit Plans (Continued)
The weighted average assumptions used to calculate the benefit obligation as of the September 30
measurement date were as follows:
U.S. Defined Non-U.S. Defined Post-Retirement
Benefit Plans Benefit Plans Benefit Plans
2005 2004 2005 2004 2005 2004
Discount rate .............................. 5.6% 5.8% 4.2% 4.9% 5.7% 5.8%
Average increase in compensation levels .......... 4.0% 4.0% 3.7% 3.7% — —
Current medical cost trend rate ................ — — — — 9.5% 10.5%
Ultimate medical cost trend rate ................ — — — — 5.5% 5.5%
Year the rate reaches ultimate trend rate .......... — — — — 2010 2010
A 1.0 percentage point increase in the medical cost trend rate would have increased the total
post-retirement benefit obligation reported at October 31, 2005 by $11 million, while a 1.0 percentage
point decrease would have resulted in a decrease of $13 million.
The net amount recognized for HP’s defined benefit and post-retirement benefit plans was as
follows for the following fiscal years ended October 31:
U.S. Defined Non-U.S. Defined Post-Retirement
Benefit Plans Benefit Plans Benefit Plans
2005 2004 2005 2004 2005 2004
In millions
Prepaid benefit costs ..................... $395 $ — $1,494 $1,306 $ — $ —
Other accrued liabilities ................... — (300) — — —
Pension, post-retirement and post-employment
liabilities ............................ (915) (1,152) (284) (269) (1,110) (973)
Accumulated other comprehensive loss ........ — 274 20 4 — —
Contribution after measurement date ......... — — 19 6 4 3
Net amount recognized ................... $(520) $(1,178) $1,249 $1,047 $(1,106) $(970)
Defined benefit plans with projected benefit obligations exceeding the fair value of plan assets
were as follows:
U.S. Defined Non-U.S. Defined
Benefit Plans Benefit Plans
2005 2004 2005 2004
In millions
Aggregate fair value of plan assets ........................ $1,929 $3,244 $5,211 $4,051
Aggregate projected benefit obligation ..................... $2,677 $4,970 $5,824 $4,512
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