Note 4: Retirement and Post-Retirement Benefit Plans

HP's net pension and post-retirement benefit (credit) cost recognized in the Consolidated Condensed Statements of Earnings was as follows:

	Three months ended April 30
	U.S. Defined Benefit Plans						Non-U.S. Defined Benefit Plans						Post- Retirement Benefit Plans
	2015			2014			2015			2014			2015			2014
	In millions
Service cost	$	—		$	—		$	81		$	77		$	1		$	1
Interest cost		143			142			153			185			7			8
Expected return on plan assets		(217	)		(202	)		(287	)		(286	)		(9	)		(9	)
Amortization and deferrals:
Actuarial loss (gain)		13			4			104			80			(3	)		(2	)
Prior service benefit		—			—			(5	)		(6	)		(5	)		(10	)

Net periodic benefit (credit) cost		(61	)		(56	)		46			50			(9	)		(12	)
Curtailment gain		—			—			—			(5	)		—			—
Settlement loss		—			—			3			2			—			—
Special termination benefits		—			—			7			22			—			—

Net benefit (credit) cost	$	(61	)	$	(56	)	$	56		$	69		$	(9	)	$	(12	)

	Six months ended April 30
	U.S. Defined Benefit Plans						Non-U.S. Defined Benefit Plans						Post- Retirement Benefit Plans
	2015			2014			2015			2014			2015			2014
	In millions
Service cost	$	—		$	—		$	167		$	155		$	2		$	3
Interest cost		286			284			316			368			14			16
Expected return on plan assets		(433	)		(405	)		(592	)		(568	)		(18	)		(17	)
Amortization and deferrals:
Actuarial loss (gain)		26			8			216			158			(6	)		(5	)
Prior service benefit		—			—			(10	)		(12	)		(10	)		(21	)

Net periodic benefit (credit) cost		(121	)		(113	)		97			101			(18	)		(24	)
Curtailment gain		—			—			—			(5	)		—			—
Settlement loss		—			—			3			2			—			—
Special termination benefits		—			—			13			28			—			(11	)

Net benefit (credit) cost	$	(121	)	$	(113	)	$	113		$	126		$	(18	)	$	(35	)

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.

As of April 30, 2015, HP lowered its initial estimates related to expected contributions in fiscal 2015 by $52 million due to favorable foreign exchange rates and a change in the estimated local funding requirements. HP now expects its fiscal 2015 contributions to be approximately $641 million to its non-U.S. pension plans, approximately $32 million to cover benefit payments to U.S. non-qualified plan participants and approximately $43 million to cover benefit claims for HP's post-retirement benefit plans.

During the six months ended April 30, 2015, HP contributed $471 million to its non-U.S. pension plans, paid $14 million to cover benefit payments to U.S. non-qualified plan participants, and paid $21 million to cover benefit claims under HP's post-retirement benefit plans. During the remainder of fiscal 2015, HP anticipates making additional contributions of approximately $170 million to its non-U.S. pension plans and approximately $18 million to its U.S. non-qualified plan participants and expects to pay approximately $22 million to cover benefit claims under HP's post-retirement benefit plans.

In January 2015, HP offered certain terminated vested participants of the U.S. HP Pension Plan the option of receiving their pension benefit in a one-time voluntary lump sum window. Approximately 50% of the eligible participants elected to receive their benefits and as a result the pension plan trust paid $810 million in lump sum payments to these participants in May 2015. The program resulted in a reduction in the projected benefit obligation that was offset by a lower decrease in plan assets such that the net funded status of the plan improved.

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.