Retirement and Post-Retirement Benefit Plans

9 Months Ended

Jul. 31, 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 (credit) costs were as follows:

	Three months ended July 31
	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	$	1		$	1		$	83		$	72		$	2		$	2
Interest cost		140			140			166			170			8			9
Expected return on plan assets		(211	)		(198	)		(247	)		(201	)		(8	)		(9	)
Amortization and deferrals:
Actuarial loss (gain)		19			11			82			57			—			(1	)
Prior service benefit		—			—			(7	)		(6	)		(16	)		(20	)
Net periodic benefit (credit) cost		(51	)		(46	)		77			92			(14	)		(19	)
Curtailment gain		—			—			—			—			—			(4	)
Settlement loss		1			5			11			—			—			—
Special termination benefits		—			833			7			—			—			227
Net benefit (credit) cost	$	(50	)	$	792		$	95		$	92		$	(14	)	$	204

	Nine months ended July 31
	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	$	1		$	1		$	253		$	219		$	5		$	6
Interest cost		420			424			507			519			23			26
Expected return on plan assets		(634	)		(594	)		(754	)		(614	)		(25	)		(28	)
Amortization and deferrals:
Actuarial loss (gain)		58			32			254			177			—			(3	)
Prior service benefit		—			—			(20	)		(18	)		(50	)		(63	)
Net periodic benefit (credit) cost		(155	)		(137	)		240			283			(47	)		(62	)
Curtailment gain		—			—			—			—			(7	)		(4	)
Settlement loss (gain)		9			5			11			(20	)		—			—
Special termination benefits		—			833			12			2			—			227
Net benefit (credit) cost	$	(146	)	$	701		$	263		$	265		$	(54	)	$	161

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-U.S. 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 nine months ended July 31, 2013, HP made $544 million of contributions to its non-U.S. pension plans, paid $42 million to cover benefit payments to U.S. non-qualified plan participants, and paid $72 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 $112 million to its non-U.S. pension plans and approximately $9 million to its U.S. non-qualified plan participants and expects to pay approximately $52 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 are reflected as unrecognized gains or losses, and such gains or losses are amortized to income 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 post-retirement expense in future periods. Asset 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.