HP 2015 Annual Report Download - page 127

Table of Contents
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In advance of the Separation, HP underwent a plan-by-plan analysis in which it was determined if each plan would be assigned to HP Inc. or Hewlett
Packard Enterprise. While some pension plans transitioned in their entirety to Hewlett Packard Enterprise or remain in their entirety with HP Inc., other plans
were split into two identical plans resulting in both companies splitting the plan's assets and liabilities. As a result of these plan separations, HP Inc. will
retain defined benefit plan assets of approximately $11,930 million, of which approximately $11,077 million pertain to the U.S. defined benefit plans. The
projected benefit obligation for these defined benefit plans as of October 31, 2015 was $13,792 million, of which $12,709 million pertains to the U.S. defined
benefit plans. The net funded status of these plans represents a net obligation which is recognized on HP Inc.'s Consolidated Balance Sheets for
approximately $1,862 million of which $1,632 million pertains to the U.S. defined benefit plans. In addition, HP Inc. will retain post-retirement benefit plan
assets of approximately $434 million. The projected benefit obligation for these post-retirement benefit plans as of October 31, 2015 was approximately
$598 million. The net funded status of these plans represents a net obligation which is recognized on HP Inc.'s Consolidated Balance Sheets for
approximately $164 million.
The current Hewlett-Packard Company 401(k) Plan ("HP 401(k) Plan") will remain with HP Inc. A new 401(k) Plan was created for the employees of
Hewlett Packard Enterprise and the respective balances were transferred after the Separation.
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HP's stock-based compensation plans include incentive compensation plans and an employee stock purchase plan ("ESPP").
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Stock-based compensation expense and the resulting tax benefits were as follows:
In connection with the Separation, the Board of Directors approved amendments to certain outstanding long-term incentive awards on July 29, 2015. The
amendments provided for the accelerated vesting on September 17, 2015 of certain stock-based awards that were otherwise scheduled to vest between
September 18, 2015 and December 31, 2015. The pre-tax stock-based compensation expense due to the acceleration was approximately $76 million in fiscal
year 2015.
Cash received from option exercises and purchases under the Hewlett-Packard Company 2011 Employee Stock Purchase Plan (the "2011 ESPP") was
$0.4 billion in fiscal 2015, $0.3 billion in fiscal 2014 and $0.3 billion in fiscal 2013. The benefit realized for the tax deduction from option exercises in fiscal
2015, 2014 and 2013 was $75 million, $51 million and $13 million, respectively.
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     
   
Stock-based compensation expense $ 709 $ 560 $ 500
Income tax benefit (208) (179) (158)
Stock-based compensation expense, net of tax $ 501 $ 381 $ 342
Source: HP INC, 10-K, December 16, 2015 Powered by Morningstar® Document Research℠
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