Retirement and Post-Retirement Benefit Plans

The components of HP’s pension and post-retirement (credit) benefit cost recognized in the Consolidated Condensed Statements of Earnings were as follows:



	Three months ended July 31
	U.S. Defined Benefit Plans						Non-U.S. Defined Benefit Plans						Post-Retirement Benefit Plans
	2018			2017			2018			2017			2018			2017
	In millions
Service cost	$	—		$	—		$	14		$	12		$	—		$	1
Interest cost	113			117			6			4			4			4
Expected return on plan assets	(180		)	(168		)	(10		)	(8		)	(6		)	(7		)
Amortization and deferrals:
Actuarial loss (gain)	14			19			7			10			(4		)	(5		)
Prior service benefit	—			—			(1		)	(1		)	(5		)	(4		)
Net periodic (credit) benefit cost	(53		)	(32		)	16			17			(11		)	(11		)
Settlement loss	1			—			—			1			—			—
Total periodic (credit) benefit cost	$	(52	)	$	(32	)	$	16		$	18		$	(11	)	$	(11	)



	Nine months ended July 31
	U.S. Defined Benefit Plans						Non-U.S. Defined Benefit Plans						Post- Retirement Benefit Plans
	2018			2017			2018			2017			2018			2017
	In millions
Service cost	$	—		$	—		$	42		$	36		$	—		$	1
Interest cost	339			351			18			12			12			13
Expected return on plan assets	(540		)	(507		)	(30		)	(24		)	(18		)	(19		)
Amortization and deferrals:
Actuarial loss (gain)	45			55			21			30			(12		)	(12		)
Prior service benefit	—			—			(3		)	(3		)	(15		)	(14		)
Net periodic (credit) benefit cost	(156		)	(101		)	48			51			(33		)	(31		)
Settlement loss	2			3			—			1			—			—
Total periodic (credit) benefit cost	$	(154	)	$	(98	)	$	48		$	52		$	(33	)	$	(31	)

Employer Contributions and Funding Policy

HP’s policy is to fund its pension plans so that it makes at least the minimum contribution required by local government, funding and taxing authorities.

During fiscal year 2018, HP anticipates making contributions of approximately $33 million to its non-U.S. pension plans, approximately $33 million to its U.S. non-qualified plan participants and approximately $7 million to cover benefit claims under HP’s post-retirement benefit plans. During the nine months ended July 31, 2018, HP contributed $21 million to its non-U.S. pension plans, paid $25 million to cover benefit payments to U.S. non-qualified plan participants and paid $3 million to cover benefit claims under HP’s post-retirement benefit plans.

HP’s pension and other post-retirement benefit costs and obligations depend on various assumptions. Differences between expected and actual returns on investments and changes in discount rates and other actuarial assumptions are reflected as unrecognized gains or losses, and such gains or losses are amortized to earnings in future periods. A deterioration in the funded status of a plan could result in a need for additional company contributions or an increase in net pension and post-retirement benefit costs in future periods. Actuarial gains or losses are determined at the measurement date and amortized over the remaining service life for active plans or the life expectancy of plan participants for frozen plans.