HP 2011 Annual Report Download - page 136

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 15: Stockholders’ Equity (Continued)
The components of accumulated other comprehensive loss, net of taxes, were as follows for the
following fiscal years ended October 31:
2011 2010 2009
In millions
Net unrealized gain on available-for-sale securities ................. $ 37 $ 20 $ 4
Net unrealized loss on cash flow hedges ......................... (41) (201) (169)
Cumulative translation adjustment ............................. (385) (431) (459)
Unrealized components of defined benefit plans ................... (3,109) (3,225) (2,623)
Accumulated other comprehensive loss .......................... $(3,498) $(3,837) $(3,247)
Note 16: Retirement and Post-Retirement Benefit Plans
Defined Benefit Plans
HP sponsors a number of defined benefit pension plans worldwide, of which the most significant
are in the United States. Both the HP Retirement Plan (the ‘‘Retirement Plan’’), a traditional defined
benefit pension plan based on pay and years of service, and the HP Company Cash Account Pension
Plan (the ‘‘Cash Account Pension Plan’’), under which benefits are accrued pursuant to a cash
accumulation account formula based upon a percentage of pay plus interest, were frozen effective
January 1, 2008. The Cash Account Pension Plan and the Retirement Plan were merged in 2005 for
certain funding and investment purposes. The merged plan is referred to as the HP Pension Plan.
Following the acquisition of EDS on August 26, 2008, HP announced that it was modifying the
EDS U.S. qualified and non-qualified plans for employees accruing benefits under those plans.
Effective January 1, 2009, EDS employees in the U.S. ceased accruing pension benefits, and the final
pension benefit for EDS employees who retire on and after that date will be calculated based on pay
and service through December 31, 2008.
Effective October 30, 2009, the EDS U.S. qualified pension plan was also merged into the HP
Pension Plan. The EDS U.S. qualified pension plan, like the Cash Account Pension Plan and the
Retirement Plan, remains a separate sub-plan within the HP Pension Plan for purposes of determining
benefit amounts. As a result, the merger had no impact on the separate benefit structures of the plans.
HP reduces the benefit payable to a U.S. employee under the Retirement Plan for service before
1993, if any, by any amounts due to the employee under HP’s frozen defined contribution Deferred
Profit-Sharing Plan (the ‘‘DPSP’’). HP closed the DPSP to new participants in 1993. The DPSP plan
obligations are equal to the plan assets and are recognized as an offset to the Pension Plan when HP
calculates its defined benefit pension cost and obligations. The fair value of plan assets and projected
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