HP 2012 Annual Report Download - page 119
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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 8: Restructuring Charges (Continued)
remaining charges expected to be paid out through the first half of fiscal 2015. As of October 31, 2012,
approximately 8,200 positions had been eliminated. This plan is now closed with no further
restructuring charges anticipated. HP expects the majority of the remaining severance for the plan to
be paid out through fiscal year 2013.
Fiscal 2009 Restructuring Plan
In May 2009, HP’s management approved and initiated a restructuring plan to structurally change
and improve the effectiveness of the Imaging and Printing Group (‘‘IPG’’), the Personal Systems Group
(‘‘PSG’’), and ESSN businesses. The total expected cost of the plan was $301 million in severance-
related costs associated with the planned elimination of approximately 4,400 positions. All planned
eliminations had occurred and the restructuring costs have been paid out as of October 31, 2012.
Fiscal 2008 HP/EDS Restructuring Plan
In connection with the acquisition of Electronic Data Systems Corporation (‘‘EDS’’) on August 26,
2008, HP’s management approved and initiated a restructuring plan to combine and align HP’s services
businesses, eliminate duplicative overhead functions and consolidate and vacate duplicative facilities.
The restructuring plan is expected to be implemented at a total expected cost of $3.3 billion.
Approximately $1.5 billion of the expected costs were associated with pre-acquisition EDS and were
reflected in the fair value of purchase consideration of EDS. These costs are subject to change based
on the actual costs incurred. The remaining costs are primarily associated with HP and will be recorded
as a restructuring charge.
The restructuring plan includes severance costs related to eliminating approximately 25,000
positions. As of October 31, 2011, all actions had occurred and the associated severance costs have
been paid out. The infrastructure charges in the restructuring plan include facility closure and
consolidation costs and the costs associated with early termination of certain contractual obligations.
HP has recorded the majority of these costs based upon the execution of site closure and consolidation
plans. The associated cash payments are expected to be paid out through fiscal 2016.
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