HP 2012 Annual Report Download - page 145

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:
2012 2011 2010
In millions
Net unrealized gain on available-for-sale securities ................ $ 87 $ 37 $ 20
Net unrealized loss on cash flow hedges ........................ (99) (41) (201)
Cumulative translation adjustment ............................ (457) (385) (431)
Unrealized components of defined benefit plans .................. (5,090) (3,109) (3,225)
Accumulated other comprehensive loss ......................... $(5,559) $(3,498) $(3,837)
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. Effective October 30, 2009 the EDS U.S. qualified pension
plan was also merged into the HP Pension Plan. The merged plan is referred to as the HP Pension
Plan.
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
benefit obligations for the U.S. defined benefit plans combined with the DPSP are as follows for the
following fiscal years ended October 31:
2012 2011
Projected Projected
Benefit Benefit
Plan Assets Obligation Plan Assets Obligation
In millions
U.S. defined benefit plans ....................... $11,536 $14,237 $10,662 $11,945
DPSP ...................................... 958 958 945 945
Total ..................................... $12,494 $15,195 $11,607 $12,890
Post-Retirement Benefit Plans
Through fiscal 2005, substantially all of HP’s U.S. employees at December 31, 2002 could become
eligible for partially subsidized retiree medical benefits and retiree life insurance benefits under the
Pre-2003 HP Retiree Medical Program (the ‘‘Pre-2003 Program’’) and certain other retiree medical
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