Retirement and Post-Retirement Benefit Plans

6 Months Ended

Apr. 30, 2013

Retirement and Post-Retirement Benefit Plans

Retirement and Post-Retirement Benefit Plans

Note 14: Retirement and Post-Retirement Benefit Plans

        HP's net pension and post-retirement benefit costs were as follows:

	Three months ended April 30
	U.S. Defined Benefit Plans						Non-U.S. Defined Benefit Plans						Post- Retirement Benefit Plans
	2013			2012			2013			2012			2013			2012
	In millions
Service cost	$	—		$	—		$	84		$	74		$	2		$	2
Interest cost		140			141			168			174			8			8
Expected return on plan assets		(211	)		(198	)		(250	)		(206	)		(8	)		(9	)
Amortization and deferrals:
Actuarial loss (gain)		19			11			85			59			—			(1	)
Prior service benefit		—			—			(6	)		(6	)		(17	)		(22	)
Net periodic benefit (credit) cost		(52	)		(46	)		81			95			(15	)		(22	)
Curtailment gain		—			—			—			—			(4	)		—
Settlement loss		3			—			—			8			—			—
Special termination benefits		—			—			2			1			—			—
Net benefit (credit) cost	$	(49	)	$	(46	)	$	83		$	104		$	(19	)	$	(22	)

	Six months ended April 30
	U.S. Defined Benefit Plans						Non-U.S. Defined Benefit Plans						Post- Retirement Benefit Plans
	2013			2012			2013			2012			2013			2012
	In millions
Service cost	$	—		$	—		$	170		$	148		$	3		$	4
Interest cost		280			283			341			349			15			17
Expected return on plan assets		(423	)		(396	)		(507	)		(413	)		(17	)		(18	)
Amortization and deferrals:
Actuarial loss (gain)		39			22			172			119			—			(2	)
Prior service benefit		—			—			(13	)		(12	)		(34	)		(43	)
Net periodic benefit (credit) cost		(104	)		(91	)		163			191			(33	)		(42	)
Curtailment gain		—			—			—			—			(7	)		—
Settlement loss (gain)		8			—			—			(20	)		—			—
Special termination benefits		—			—			5			2			—			—
Net benefit (credit) cost	$	(96	)	$	(91	)	$	168		$	173		$	(40	)	$	(42	)

• Employer Contributions and Funding Policy

        HP previously disclosed in its Consolidated Financial Statements for the fiscal year ended October 31, 2012 that it expected to contribute in fiscal 2013 approximately $674 million to its non-US pension plans and approximately $33 million to cover benefit payments to U.S. non-qualified plan participants. HP expected to pay approximately $124 million to cover benefit claims for HP's post-retirement benefit plans. HP's funding policy is to contribute cash to its pension plans so that it makes at least the minimum contribution required by local government, funding and taxing authorities.

        During the six months ended April 30, 2013, HP made $363 million of contributions to its non-US pension plans, paid $35 million to cover benefit payments to U.S. non-qualified plan participants, and paid $47 million to cover benefit claims under HP's post-retirement benefit plans. During the remainder of fiscal 2013, HP anticipates making additional contributions of approximately $293 million to its non-U.S. pension plans and approximately $16 million to its U.S. non-qualified plan participants and expects to pay approximately $77 million to cover benefit claims under HP's post-retirement benefit plans.

        HP's pension and other post-retirement benefit costs and obligations are dependent on various assumptions. Differences between expected and actual returns on investments will be reflected as unrecognized gains or losses, and such gains or losses will be amortized and recorded in future periods. Poor financial performance of invested assets in any year could lead to increased contributions in certain countries and increased future pension plan expense. Asset gains or losses are determined at the measurement date and amortized over the remaining service life or life expectancy of plan participants.