HP 2014 Annual Report Download - page 120

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 4: Retirement and Post-Retirement Benefit Plans (Continued)
The following table summarizes the net actuarial loss (gain) and prior service benefit that are
expected to be amortized from accumulated other comprehensive loss (income) and recognized as
components of net periodic benefit cost (credit) during the next fiscal year.
U.S. Defined Non-U.S. Defined Post-Retirement
Benefit Plans Benefit Plans Benefit Plans
In millions
Net actuarial loss (gain) ......................... $54 $452 $(10)
Prior service benefit ............................ — (22) (20)
Total expected to be recognized in net periodic benefit
cost (credit) ................................ $54 $430 $(30)
Defined benefit plans with projected benefit obligations exceeding the fair value of plan assets
were as follows:
As of October 31
2014 2013 2014 2013
U.S. Defined Non-U.S. Defined
Benefit Plans Benefit Plans
In millions
Aggregate fair value of plan assets ..................... $11,979 $10,866 $12,701 $10,462
Aggregate projected benefit obligation .................. $13,756 $11,866 $16,774 $14,010
Defined benefit plans with accumulated benefit obligations exceeding the fair value of plan assets
were as follows:
As of October 31
2014 2013 2014 2013
U.S. Defined Non-U.S. Defined
Benefit Plans Benefit Plans
In millions
Aggregate fair value of plan assets ..................... $11,979 $10,866 $12,578 $ 9,926
Aggregate accumulated benefit obligation ................ $13,755 $11,865 $15,797 $12,703
Retirement Incentive Program
As part of the 2012 restructuring plan, the company announced a voluntary enhanced early
retirement program for its U.S employees. Participation in the EER program was limited to those
employees whose combined age and years of service equaled 65 or more. Approximately 8,500
employees elected to participate in the EER program and left the company on dates designated by the
company, with the majority of the EER participants having left the company on August 31, 2012 and
others exiting through August 31, 2013. The HP Pension Plan was amended to provide for an EER
benefit from the plan for electing EER participants who were current participants in the plan. The
retirement incentive benefit was calculated as a lump sum and ranged between five and fourteen
months of pay depending on years of service at the time of retirement under the program. As a result
of this retirement incentive, HP recognized a special termination benefit (‘‘STB’’) of $833 million,
which reflected the present value of all additional benefits that HP would distribute from the HP
Pension Plan. HP recorded these expenses as a restructuring charge. In addition, the HP Pension Plan
was remeasured on June 30, 2012, which resulted in no material change to the 2012 net periodic
benefit cost or funded status.
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