HP 2014 Annual Report Download - page 117

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 4: Retirement and Post-Retirement Benefit Plans (Continued)
Pension and Post-Retirement Benefit Expense
HP’s net pension and post-retirement benefit (credit) cost recognized in the Consolidated
Statements of Earnings was as follows:
For the fiscal years ended October 31
2014 2013 2012 2014 2013 2012 2014 2013 2012
U.S. Defined Non-U.S. Defined Post-Retirement
Benefit Plans Benefit Plans Benefit Plans
In millions
Service cost ................ $ 1 $ 1 $ 1 $ 308 $ 337 $294 $ 5 $ 6 $ 7
Interest cost ................ 569 560 566 737 676 690 32 31 35
Expected return on plan assets . . (811) (845) (793) (1,140) (1,007) (816) (34) (34) (38)
Amortization and deferrals:
Actuarial loss (gain) ........ 15 77 43 318 341 235 (10) 2 (3)
Prior service benefit .........——— (23)(27)(24)(41)(67)(79)
Net periodic benefit (credit) cost . (226) (207) (183) 200 320 379 (48) (62) (78)
Curtailment (gain) loss ......——— (7) (3)4—(7)(30)
Settlement loss (gain) ....... 1 12 11 12 18 (18) — — —
Special termination benefits . . . — — 833 50 31 17 32 (5) 227
Net benefit (credit) cost ....... $(225) $(195) $ 661 $ 255 $ 366 $ 382 $(16) $(74) $119
The weighted-average assumptions used to calculate net benefit (credit) cost were as follows:
For the fiscal years ended October 31
2014 2013 2012 2014 2013 2012 2014 2013 2012
U.S. Defined Non-U.S. Defined Post-Retirement
Benefit Plans Benefit Plans Benefit Plans
Discount rate ..................... 4.9% 4.1% 4.8% 3.9% 3.8% 4.5% 3.9% 3.0% 4.4%
Expected increase in compensation levels 2.0% 2.0% 2.0% 2.4% 2.4% 2.5% — — —
Expected long-term return on plan assets 7.7% 7.8% 7.6% 7.0% 7.2% 6.4% 8.9% 9.0% 10.0%
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