HP 2007 Annual Report Download - page 140

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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 following table summarizes the experience (gain) / loss and prior service cost / (benefit) that will be amortized from
accumulated other comprehensive income and recognized as components of net periodic benefit cost / (credit) during the next
fiscal year.
U.S. Defined
Benefit Plans
Non-U.S. Defined
Benefit Plans
Post-Retirement
Benefit Plans
In millions
Net experience (gain) loss ...................................................... $(36) $2 $19
Prior service cost (benefit)...................................................... — (8) (56)
Total recognized in accumulated other comprehensive (gain)
loss...................................................................................... $(36) $(6) $(37)
Pension and Post-Retirement Benefit Expense
HP’ s net pension and post-retirement benefit costs were as follows for the following fiscal years ended October 31:
U.S. Defined
Benefit Plans
Non-U.S. Defined
Benefit Plans
Post-Retirement
Benefit Plans
2007 2006 2005 2007 2006 2005 2007 2006 2005
In millions
Service cost............................................ $130 $177 $338 $261 $299 $236 $31 $32 $63
Interest cost............................................ 260 276 275 366 325 304 77 84 98
Expected return on plan assets............... (355) (361) (290) (579) (495) (412) (38) (34) (32)
Amortization and deferrals:
Actuarial (gain) / loss.......................... (13) (14) 38 87 136 104 26 39 35
Prior service cost (benefit).................. — 1 2 (7) (3) (1) (54) (55) (18)
Net periodic benefit cost........................ 22 79 363 128 262 231 42 66 146
Curtailment (gain) / loss...................... (541) — (199) (13) 1 — (26) (24) —
Settlement loss / (gain)........................ 8 (46) — 4 2 1 — — —
Special termination benefits................ 307 —352 412 3 60 —55
Net benefit (gain) / cost ......................... $(204) $33 $516 $123 $277 $235 $76 $42 $201
The weighted average assumptions used to calculate net benefit cost were as follows for the following fiscal years ended
October 31:
U.S. Defined
Benefit Plans
Non-U.S. Defined
Benefit Plans
Post-Retirement
Benefit Plans
2007 2006 2005 2007 2006 2005 2007 2006 2005
Discount rate................................................................. 5.9% 5.9% 5.7% 4.4% 4.2% 4.9% 5.8% 5.8% 5.6%
Average increase in compensation levels ..................... 4.0% 4.0% 4.0% 3.3% 3.7% 3.7% — — —
Expected long-term return on assets ............................. 8.3% 8.3% 8.3% 6.7% 6.7% 6.7% 8.3% 8.3% 8.3%
As a result of the restructuring plans implemented in fiscal 2007, HP re-measured its U.S. defined benefit plan and post-
retirement benefit plan obligations. The 2007 discount rates outlined in the table
126