HP 2013 Annual Report Download - page 145

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 15: Retirement and Post-Retirement Benefit Plans (Continued)
the HP Retiree Welfare Benefits Plan. HP currently leverages the employer group waiver plan process
to provide HP Retiree Welfare Benefits Plan post-65 prescription drug coverage under Medicare
Part D, thereby giving HP access to federal subsidies to help pay for retiree benefits.
Certain employees not grandfathered under the above programs, as well as employees hired after
2002 but before August 2008, are eligible for credits under the HP Retirement Medical Savings
Account Plan (the ‘‘RMSA’’) upon attaining age 45. Credits offered after September 2008 are provided
only in the form of matching credits on employee contributions made to a voluntary employee
beneficiary association. Upon retirement, former employees may use these credits for the
reimbursement of certain eligible medical expenses, including premiums required for coverage.
Defined Contribution Plans
HP offers various defined contribution plans for U.S. and non-U.S. employees. Total defined
contribution expense was $603 million in fiscal 2013, $628 million in fiscal 2012 and $626 million in
fiscal 2011. U.S. employees are automatically enrolled in the Hewlett-Packard Company 401(k) Plan
(the ‘‘HP 401(k) Plan’’) when they meet eligibility requirements, unless they decline participation.
Effective at the beginning of fiscal 2011, the quarterly employer matching contributions in the HP
401(k) Plan were set to equal 100% of an employee’s contributions, up to a maximum of 4% of eligible
compensation.
Pension and Post-Retirement Benefit Expense
HP’s net pension and post-retirement benefit cost (credit) recognized in the Consolidated
Statements of Earnings was as follows for the following fiscal years ended October 31:
U.S. Defined Non-U.S. Defined Post-Retirement
Benefit Plans Benefit Plans Benefit Plans
2013 2012 2011 2013 2012 2011 2013 2012 2011
In millions
Service cost ............... $ 1 $ 1 $ 1 $ 337 $294 $343 $ 6 $ 7 $ 9
Interest cost .............. 560 566 594 676 690 694 31 35 35
Expected return on plan assets . (845) (793) (744) (1,007) (816) (890) (34) (38) (37)
Amortization and deferrals:
Actuarial loss (gain) ....... 77 43 33 341 235 235 2 (3) 3
Prior service benefit .......——— (27)(24)(14)(67)(79)(83)
Net periodic benefit (credit)
cost ................... (207) (183) (116) 320 379 368 (62) (78) (73)
Curtailment (gain) loss .....——— (3) 4—(7)(30)—
Settlement loss (gain) ...... 12 11 3 18 (18) 9 — — —
Special termination benefits . — 833 — 31 17 16 (5) 227 —
Net benefit (credit) cost ...... $(195) $ 661 $(113) $ 366 $ 382 $ 393 $(74) $119 $(73)
137