HP 2008 Annual Report Download - page 139
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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 14: Stockholders’ Equity (Continued)
Comprehensive Income
The changes in the components of other comprehensive income, net of taxes, were as follows for
the following fiscal years ended October 31:
2008 2007 2006
In millions
Net earnings .............................................. $8,329 $7,264 $6,198
Increase/(decrease) in unrealized gain/loss on available-for-sale securities:
(Decrease)/increase in net unrealized gain/loss, net of tax benefit of $7 in
2008, net of tax of $2 in 2007 and of $3 in 2006 ................. (17) 2 7
Net unrealized gain/loss reclassified into earnings, with no tax effect in
2008, net of tax benefit of $7 in 2007 and $9 in 2006 .............. 1 (14) (13)
(16) (12) (6)
Increase/(decrease) in unrealized gain/loss on cash flow hedges:
Increase/(decrease) in net unrealized gain/loss, net of tax of $468 in 2008,
net of tax benefit of $37 in 2007 and $24 in 2006 ................ 808 (63) (41)
Net unrealized gain/loss reclassified into earnings, net of tax of $34 in
2008, $26 in 2007 and $24 in 2006 ........................... 58 45 41
866 (18) —
(Decrease)/increase in cumulative translation adjustment, net of tax benefit
of $476 in 2008, net of tax of $37 in 2007 and $40 in 2006 ........... (936) 106 54
(Decrease)/increase in unrealized components of defined benefit pension
plans, net of tax benefit of $42 in 2008, $1 in 2007 and tax of $1 in 2006 . (538) (3) (9)
Comprehensive income ...................................... $7,705 $7,337 $6,237
The components of accumulated other comprehensive income, net of taxes, were as follows for the
following fiscal years ended October 31:
2008 2007 2006
In millions
Net unrealized (loss)/gain on available-for-sale securities .............. $ (12) $ 4 $ 16
Net unrealized gain/(loss) on cash flow hedges ...................... 802 (64) (46)
Cumulative translation adjustment .............................. (763) 173 67
Unrealized components of defined benefit pension plans .............. (92) 446 (19)
Accumulated other comprehensive (loss)/income .................... $ (65) $ 559 $ 18
Note 15: Retirement and Post-Retirement Benefit Plans
Acquisition of EDS
On August 26, 2008, EDS became a wholly owned subsidiary of HP. EDS sponsors qualified and
non-qualified defined benefit pension plans covering substantially all of its employees. The majority of
the EDS defined benefit pension plans are noncontributory. In most plans, employees become fully
vested upon attaining two to five years of service, and benefits are based on many factors, which differ
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