HP 2008 Annual Report Download - page 120
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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 8: Restructuring Charges (Continued)
approximately $77 million of accrued restructuring expenses associated with these plans. HP expects to
pay the majority of these costs through 2018.
Workforce Rebalancing
As part of HP’s ongoing business operations, HP incurred workforce rebalancing charges for
severance and related costs within certain business segments during fiscal 2008. Workforce rebalancing
activities are considered part of normal operations as HP continues to optimize its cost structure.
Workforce rebalancing costs are included in HP’s business segment results, and HP expects to incur
additional workforce rebalancing costs in the future.
Summary of Restructuring Plans
The activity in the accrued restructuring balances related to all of the plans described above was as
follows for fiscal 2008:
As of October 31, 2008
Fiscal Non-cash Total costs Total
Balance, year 2008 settlements Balance, and expected
October 31, charges Goodwill Cash and other October 31, adjustments costs and
2007 (reversals) adjustments payments adjustments 2008 to date adjustments
In millions
Fiscal 2008 HP/EDS Plan:
Severance ...................... $— $245 $1,290 $ (64) $(27) $1,444 $1,535 $1,772
Infrastructure .................... — 1 252 (5) — 248 253 294
Total severance and other restructuring
activities ..................... $— $246 $1,542 $ (69) $(27) $1,692 $1,788 $2,066
Prior fiscal year plans ............... 173 24 (13) (96) (11) 77 6,348 6,348
Total restructuring plans ............. $173 $270 $1,529 $(165) $(38) $1,769 $8,136 $8,414
At October 31, 2008 and October 31, 2007, HP included the long-term portion of the restructuring
liability of $670 million and $50 million, respectively, in Other liabilities, and the short-term portion in
Other accrued liabilities in the accompanying Consolidated Balance Sheets.
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