HP 2007 Annual Report Download - page 146

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 15: Retirement and Post-Retirement Benefit Plans (Continued)
Estimated Future Benefits Payable
HP estimates that the future benefits payable for the retirement and post-retirement plans in place were as follows at
October 31, 2007:
U.S. Defined
Benefit Plans
Non-U.S. Defined
Benefit Plans
Post-Retirement
Benefit Plans(1)
In millions
Fiscal year ending October 31
2008 .................................................... $365 $204 $123
2009 .................................................... $269 $215 $115
2010 .................................................... $289 $228 $118
2011 .................................................... $316 $253 $121
2012 .................................................... $353 $272 $112
Next five fiscal years to October 31,
2017................................................... $1,623 $1,809 $584
(1) The estimated future benefits payable for the post-retirement plans are reflected net of the expected Medicare Part D
subsidy.
Note 16: Commitments
HP leases certain real and personal property under non-cancelable operating leases. Certain leases require HP to pay
property taxes, insurance and routine maintenance and include escalation clauses. Rent expense was approximately $767
million in fiscal 2007, $744 million in fiscal 2006 and $770 million in fiscal 2005. Sublease rental income was approximately
$44 million in fiscal 2007, $47 million in fiscal 2006 and $43 million in fiscal 2005.
Future annual minimum lease payments and sublease rental income commitments at October 31, 2007 were as follows:
2008 2009 2010 2011 2012 Thereafter
In millions
Minimum lease payments ...................................................................... $595 $441 $320 $233 $176 $428
Less: Sublease rental income................................................................. (56) (57) (57) (40) (34) (74)
$539 $384 $263 $193 $142 $354
At October 31, 2007, HP had unconditional purchase obligations of approximately $2.0 billion. These unconditional
purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on HP and
that specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price
provisions and the approximate timing of the transaction. Purchase obligations exclude agreements that are cancelable
without penalty. These unconditional purchase obligations are related principally to inventory and other items. Future
unconditional purchase obligations at October 31, 2007 were as follows:
2008 2009 2010 2011 2012 Thereafter
In millions
Unconditional purchase obligations................................................... $1,826 $100 $64 $12 $12 $15
132