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Retirement and Post-Retirement Benefit Plans
 6 Months Ended
Apr. 30, 2014
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 April 30  
 
   U.S.
Defined
Benefit Plans		   Non-U.S.
Defined
Benefit Plans		   Post-
Retirement
Benefit Plans		  
 
   2014   2013   2014   2013   2014   2013  
 
   In millions
  

Service cost

   $ —   $ —   $ 77   $ 84   $ 1   $ 2  

Interest cost

     142     140     185     168     8     8  

Expected return on plan assets

     (202 )   (211 )   (286 )   (250 )   (9 )   (8 )

Amortization and deferrals:

                                      

Actuarial loss (gain)

     4     19     80     85     (2 )   —  

Prior service benefit

     —     —     (6 )   (6 )   (10 )   (17 )
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net periodic benefit (credit) cost

     (56 )   (52 )   50     81     (12 )   (15 )

Curtailment gain

     —     —     (5 )   —     —     (4 )

Settlement loss

     —     3     2     —     —     —  

Special termination benefits

     —     —     22     2     —     —  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net benefit (credit) cost

   $ (56 ) $ (49 ) $ 69   $ 83   $ (12 ) $ (19 )
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

 
   Six months ended April 30  
 
   U.S.
Defined
Benefit Plans		   Non-U.S.
Defined
Benefit Plans		   Post-
Retirement
Benefit Plans		  
 
   2014   2013   2014   2013   2014   2013  
 
   In millions
  

Service cost

   $ —   $ —   $ 155   $ 170   $ 3   $ 3  

Interest cost

     284     280     368     341     16     15  

Expected return on plan assets

     (405 )   (423 )   (568 )   (507 )   (17 )   (17 )

Amortization and deferrals:

                                      

Actuarial loss (gain)

     8     39     158     172     (5 )   —  

Prior service benefit

     —     —     (12 )   (13 )   (21 )   (34 )
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net periodic benefit (credit) cost

     (113 )   (104 )   101     163     (24 )   (33 )

Curtailment gain

     —     —     (5 )   —     —     (7 )

Settlement loss

     —     8     2     —     —     —  

Special termination benefits

     —     —     28     5     (11 )   —  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net benefit (credit) cost

   $ (113 ) $ (96 ) $ 126   $ 168   $ (35 ) $ (40 )
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

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.

        HP previously disclosed in its Consolidated Financial Statements for the fiscal year ended October 31, 2013 that it expected to contribute approximately $617 million in fiscal 2014 to its non-U.S. pension plans and expected to pay approximately $33 million to cover benefit payments to U.S. non-qualified plan participants. HP expected to pay approximately $109 million to cover benefit claims for HP's post-retirement benefit plans.

        During the six months ended April 30, 2014, HP contributed $220 million to its non-U.S. pension plans, paid $13 million to cover benefit payments to U.S. non-qualified plan participants, and paid $48 million to cover benefit claims under HP's post-retirement benefit plans. During the remainder of fiscal 2014, HP anticipates making additional contributions of approximately $397 million to its non-U.S. pension plans and approximately $20 million to its U.S. non-qualified plan participants and expects to pay approximately $61 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 are amortized over the remaining service life for active plans or the life expectancy of plan participants for frozen plans.