HP 2009 Annual Report Download - page 80

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)
In addition to the above, at October 31, 2009, we had approximately $1.3 billion of recorded
liabilities and related interest and penalties pertaining to uncertainty in income tax positions, which will
be partially offset by $58 million of deferred tax assets and interest receivable. These liabilities and
related interest and penalties include $19 million expected to be paid within one year. For the
remaining amount, we are unable to make a reasonable estimate as to when cash settlement with the
tax authorities might occur due to the uncertainties related to these tax matters. See Note 14 to the
Consolidated Financial Statements in Item 8, which is incorporated herein by reference, for additional
information on taxes.
Funding Commitments
In fiscal 2010, we expect to contribute approximately $820 million to our pension and
post-retirement plan funding. Our funding policy is to contribute cash to our pension plans so that we
meet at least the minimum contribution requirements, as established by local government, funding and
taxing authorities. Funding for the years following 2010 would be based on the then current market
conditions, actuarial estimates and plan funding status. See Note 16 to the Consolidated Financial
Statements in Item 8, which is incorporated herein by reference, for additional information on pension
activity.
As a result of our approved restructuring plans, we expect future cash expenditures of
approximately $1.9 billion. We expect to make cash payments of approximately $1.1 billion in fiscal
2010 and the majority of the remaining amount through 2012. See Note 8 to the Consolidated
Financial Statements in Item 8, which is incorporated herein by reference, for additional information
on restructuring activities.
Guarantees and Indemnifications
See Note 12 to the Consolidated Financial Statements in Item 8, which is incorporated herein by
reference, for additional information on liabilities that may arise from guarantees and indemnifications.
Litigation and Contingencies
See Note 18 to the Consolidated Financial Statements in Item 8, which is incorporated herein by
reference, for additional information on liabilities that may arise from litigation and contingencies.
Off-Balance Sheet Arrangements
As part of our ongoing business, we have not participated in transactions that generate material
relationships with unconsolidated entities or financial partnerships, such as entities often referred to as
structured finance or special purpose entities (‘‘SPEs’’), which would have been established for the
purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited
purposes. As of October 31, 2009, we are not involved in any material unconsolidated SPEs.
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