HP 2006 Annual Report Download - page 130
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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 15: Retirement and Post-Retirement Benefit Plans (Continued)
Estimated Future Benefits Payable
HP estimates that the future benefits payable for the retirement and post-retirement plans in place
were as follows at October 31, 2006:
U.S. Defined Non-U.S. Defined Post-Retirement
Benefit Plans Benefit Plans Benefit Plans(1)
In millions
Fiscal year ending October 31
2007 ............................... $ 337 $ 198 $109
2008 ............................... $ 335 $ 176 $104
2009 ............................... $ 346 $ 191 $100
2010 ............................... $ 362 $ 205 $103
2011 ............................... $ 314 $ 229 $106
Next five fiscal years to October 31, 2016 ...... $1,664 $1,601 $555
(1) The estimated future benefits payable for the post-retirement plans are reflected net of the
expected Medicare Part D subsidy.
Note 16: Commitments
HP leases certain real and personal property under non-cancelable operating leases. Certain leases
require HP to pay property taxes, insurance and routine maintenance and include escalation clauses.
Rent expense was approximately $744 million in fiscal 2006, $770 million in fiscal 2005 and
$766 million in fiscal 2004. Sublease rental income was approximately $47 million in fiscal 2006, and
$43 million in fiscal 2005 and fiscal 2004, respectively.
Future annual minimum lease payments and sublease rental income commitments, excluding future
obligations included in the restructuring liabilities on the Consolidated Balance Sheets, at October 31,
2006 were as follows:
2007 2008 2009 2010 2011 Thereafter
In millions
Minimum lease payments ...................... $506 $410 $308 $226 $169 $446
Less: Sublease rental income .................... (43) (34) (30) (31) (23) (71)
$463 $376 $278 $195 $146 $375
At October 31, 2006, HP had unconditional purchase obligations of approximately $2.8 billion.
These unconditional purchase obligations include agreements to purchase goods or services that are
enforceable and legally binding on HP and that specify all significant terms, including fixed or
minimum quantities to be purchased, fixed, minimum or variable price provisions and the approximate
timing of the transaction. Purchase obligations exclude agreements that are cancelable without penalty.
These unconditional purchase obligations are related principally to cost of sales, inventory and other
items. Future unconditional purchase obligations at October 31, 2006 were as follows:
2007 2008 2009 2010 2011 Thereafter
In millions
Unconditional purchase obligations ............... $2,052 $277 $227 $187 $11 $23
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