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 April 30
	U.S. Defined Benefit Plans						Non-U.S. Defined Benefit Plans						Post-Retirement Benefit Plans
	2019			2018			2019			2018			2019			2018
	In millions
Service cost	$	—		$	—		$	15		$	14		$	—		$	—
Interest cost	123			113			6			6			4			4
Expected return on plan assets	(146		)	(179		)	(9		)	(10		)	(5		)	(6		)
Amortization and deferrals:
Actuarial loss (gain)	15			16			8			7			(8		)	(4		)
Prior service benefit	—			—			—			(1		)	(3		)	(5		)
Net periodic (credit) benefit cost	(8		)	(50		)	20			16			(12		)	(11		)
Settlement loss	1			—			—			—			—			—
Total periodic (credit) benefit cost	$	(7	)	$	(50	)	$	20		$	16		$	(12	)	$	(11	)



	Six months ended April 30
	U.S. Defined Benefit Plans						Non-U.S. Defined Benefit Plans						Post- Retirement Benefit Plans
	2019			2018			2019			2018			2019			2018
	In millions
Service cost	$	—		$	—		$	29		$	28		$	—		$	—
Interest cost	246			226			12			12			8			8
Expected return on plan assets	(291		)	(360		)	(19		)	(20		)	(10		)	(12		)
Amortization and deferrals:
Actuarial loss (gain)	30			31			16			14			(16		)	(8		)
Prior service benefit	—			—			(1		)	(2		)	(6		)	(10		)
Net periodic (credit) benefit cost	(15		)	(103		)	37			32			(24		)	(22		)
Settlement loss	1			1			—			—			—			—
Total periodic (credit) benefit cost	(14		)	(102		)	37			32			(24		)	(22		)

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 2019, HP anticipates making contributions of approximately $46 million to its non-U.S. pension plans, approximately $32 million to its U.S. non-qualified plan participants and approximately $6 million to cover benefit claims under HP’s post-retirement benefit plans. During the six months ended April 30, 2019, HP contributed $15 million to its non-U.S. pension plans, paid $17 million to cover benefit payments to U.S. non-qualified plan participants.

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.