HP 2007 Annual Report Download - page 139

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 15: Retirement and Post-Retirement Benefit Plans (Continued)
Effective January 31, 2004, HP designated the HP Stock Fund, an investment option under the HP 401(k) Plan, as an
Employee Stock Ownership Plan and, as a result, participants in the HP Stock Fund may receive dividends in cash or may
reinvest such dividends into the HP Stock Fund. HP paid approximately $9 million, $10 million and $12 million in dividends
for the HP common shares held by the HP Stock Fund in fiscal 2007, 2006 and 2005, respectively. HP records the dividends
as a reduction of retained earnings in the Consolidated Statements of Stockholders’ Equity. The HP Stock Fund held
approximately $28 million shares of HP common stock at October 31, 2007.
Implementation of SFAS 158
SFAS 158 requires that the funded status of defined benefit postretirement plans be recognized on the company’ s
balance sheet and changes in the funded status be reflected in comprehensive income, effective for fiscal years ending after
December 15, 2006, which HP adopted effective October 31, 2007. SFAS 158 also requires companies to measure the funded
status of the plan as of the date of their fiscal year-end, effective for fiscal years ending after December 15, 2008. HP expects
to adopt the measurement provisions of SFAS 158 effective October 31, 2009. The following table summarizes the financial
impact stemming from the initial adoption of SFAS 158:
Before
application
of SFAS 158 Adjustments
After
application
of SFAS 158
In millions
Other long-term assets (including pension assets).................... $3,431 $477 $3,908
Deferred tax assets, long-term .................................................. $1,040 $(79) $961
Total assets ............................................................................... $88,301 $398 $88,699
Pension, post-retirement, and post-employment
liabilities ...................................................................................
$1,739 $(244) $1,495
Deferred tax liabilities, long-term............................................. $223 $174 $397
Total liabilities.......................................................................... $50,243 $(70) $50,173
Accumulated other comprehensive income.............................. $91 $468 $559
Total stockholders’ equity ........................................................ $38,058 $468 $38,526
The following table summarizes the pre-tax net experience (gain) / loss and prior service cost / (benefit) recognized in
accumulated other comprehensive income for the company’ s defined benefit and postretirement benefit plans as of
October 31, 2007.
U.S. Defined
Benefit Plans
Non-U.S. Defined
Benefit Plans
Post-Retirement
Benefit Plans
In millions
Net experience (gain) loss ................................. $(450) $104 $214
Prior service cost (benefit)................................. (1) (96) (462)
Total recognized in accumulated other
comprehensive (income) loss ............................ $(451) $8 $(248)
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