HP 2007 Annual Report Download - page 141

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 15: Retirement and Post-Retirement Benefit Plans (Continued)
above are those rates used by HP in conducting each of the respective plan re-measurements and reflect the weighted-average
rate across all measurement periods.
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:
2007 2006 2005
Current medical cost trend rate................................................................................................................ 8.5% 9.5% 10.5%
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 2007 service and interest
components of the post-retirement benefit costs by $1.8 million, while a 1.0 percentage point decrease would have resulted in
a decrease of $2.2 million in the same period.
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