HP 2007 Annual Report Download - page 143

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 15: Retirement and Post-Retirement Benefit Plans (Continued)
After the adoption of SFAS 158, the net amount recognized for HP’ s defined benefit and post-retirement benefit plans in
HP’ s Consolidated Balance Sheet as of October 31, 2007 was as follows:
U.S. Defined
Benefit Plans
Non-U.S. Defined
Benefit Plans
Post-Retirement
Benefit Plans
In millions
Non-current assets ......................................................................... $407 $1,751 $—
Current liability.............................................................................. (15) (18) (70)
Non-current liability ...................................................................... (116) (330) (758)
Net amount recognized.................................................................. $276 $1,403
$(828)
The net amount recognized for HP’ s defined benefit and post-retirement benefit plans was as follows for the fiscal year ended
October 31, 2006(1):
U.S. Defined
Benefit Plans
Non-U.S. Defined
Benefit Plans
Post-Retirement
Benefit Plans
In millions
Prepaid benefit costs .................................................................... $— $1,527 $—
Pension, post-retirement and post-employment liabilities ........... (502) (297) (1,053)
Intangible asset............................................................................. — 4 —
Accumulated other comprehensive loss....................................... — 30 —
Contribution after measurement date ........................................... — 25 4
Net amount recognized ................................................................ $(502) $1,289
$(1,049)
(1) Due to the adoption of SFAS 158, which was implemented at October 31, 2007, year-to-year comparability is not
practical.
The weighted average assumptions used to calculate the benefit obligation as of the September 30 measurement date
were as follows:
U.S. Defined
Benefit Plans
Non-U.S.
Defined
Benefit Plans
Post-Retirement
Benefit Plans
2007 2006 2007 2006 2007 2006
Discount rate....................................................................................................... 6.2% 5.8% 5.1% 4.4% 6.2% 5.8%
Average increase in compensation levels ........................................................... 4.0% 4.0% 3.4% 3.3% — —
Current medical cost trend rate........................................................................... — — — — 7.5% 8.5%
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, 2007 by $30 million, while a 1.0 percentage point decrease would have resulted in a
decrease of $36 million.
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