HP 2008 Annual Report Download - page 149
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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, 2008:
U.S. Defined Non-U.S. Defined Post-Retirement
Benefit Plans Benefit Plans Benefit Plans(1)
In millions
Fiscal year ending October 31
2009 ............................... $ 502 $ 337 $117
2010 ............................... $ 461 $ 321 $100
2011 ............................... $ 500 $ 353 $102
2012 ............................... $ 560 $ 385 $104
2013 ............................... $ 480 $ 420 $104
Next five fiscal years to October 31, 2018 ...... $2,963 $6,298 $557
(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 renewal options and
escalation clauses. Rent expense was approximately $935 million in fiscal 2008, $767 million in fiscal
2007 and $744 million in fiscal 2006. The increase in fiscal 2008 rent expense was primarily a result of
the acquisition of EDS. Sublease rental income was approximately $37 million in fiscal 2008,
$44 million in fiscal 2007 and $47 million in fiscal 2006.
Future annual minimum lease payments and sublease rental income commitments at October 31,
2008 were as follows:
2009 2010 2011 2012 2013 Thereafter Total
In millions
Minimum lease payments ............... $1,017 $807 $550 $391 $265 $724 $3,754
Less: Sublease rental income ............ (46) (39) (27) (22) (17) (34) (185)
$ 971 $768 $523 $369 $248 $690 $3,569
At October 31, 2008, HP had unconditional purchase obligations of approximately $3.3 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. Unconditional 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, 2008 were as follows:
2009 2010 2011 2012 2013 Thereafter
In millions
Unconditional purchase obligations ............... $2,596 $365 $207 $103 $7 $25
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