HP 2015 Annual Report Download - page 116

Table of Contents
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On May 23, 2012, HP adopted a multi-year restructuring plan (the "2012 Plan") designed to simplify business processes, accelerate innovation and
deliver better results for customers, employees and stockholders. As of October 31, 2015 HP eliminated 55,800 positions in connection with the 2012 Plan,
with a portion of those employees exiting the company as part of voluntary enhanced early retirement ("EER") programs in the U.S. and in certain other
countries. HP recognized $5.5 billion in total aggregate charges in connection with the 2012 Plan, with $4.9 billion related to workforce reductions,
including the EER programs, and $589 million related to infrastructure, including data center and real estate consolidation and other items. The severance
and infrastructure related cash payments associated with the 2012 Plan are expected to be paid out through fiscal 2021. As of October 31, 2015, the 2012
Plan is considered completed. HP does not expect any additional charges to this plan.
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Restructuring plans initiated by HP in fiscal 2008 and 2010 were substantially completed as of October 31, 2015. Severance and infrastructure related
cash payments associated with the other plans are expected to be paid out through fiscal 2019.
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HP sponsors a number of defined benefit pension plans worldwide. The most significant defined benefit plans are in the U.S. The HP Pension Plan
("Pension Plan") includes the former HP Retirement Plan and the former HP Company Cash Account Pension Plan ("Cash Account Pension Plan"). Under the
HP Retirement Plan, benefits are based on pay and years of service, and under the Cash Account Pension Plan, benefits are accrued pursuant to a formula
based on a percentage of pay plus interest. The Pension Plan was frozen effective January 1, 2008. The Cash Account Pension Plan was merged into the
Pension Plan in 2005 for certain funding and investment purposes. Effective October 30, 2009, the Electronic Data Systems Corporation ("EDS") U.S.
qualified pension plan was merged into the Pension Plan. The EDS plan was frozen effective January 1, 2009.
HP reduces the benefit payable to certain U.S. employees under the Pension Plan for service before 1993, if any, by any amounts due to the employee
under HP's frozen defined contribution Deferred Profit-Sharing Plan ("DPSP"). HP closed the DPSP to new participants in 1993. The DPSP obligations are
equal to the plan assets and are recognized as an offset to the Pension Plan when HP
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Source: HP INC, 10-K, December 16, 2015 Powered by Morningstar® Document Research℠
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