HP 2006 Annual Report Download - page 125

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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 medical cost and related assumptions used to calculate the net post-retirement benefit cost for
the following fiscal years ended October 31 were as follows:
2006 2005 2004
Current medical cost trend rate ..................................... 9.5% 10.5% 11.5%
Ultimate medical cost trend rate .................................... 5.5% 5.5% 5.5%
Year the medical cost rate reaches ultimate trend rate .................... 2010 2010 2010
A 1.0 percentage point increase in the medical cost trend rate would have increased the fiscal 2006
service and interest components of the post-retirement benefit costs by $1.7 million, while a
1.0 percentage point decrease would have resulted in a decrease of $2.1 million in the same period.
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