HP 2011 Annual Report Download - page 139

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 16: Retirement and Post-Retirement Benefit Plans (Continued)
Pension and Post-Retirement Benefit Expense
HP’s net pension and post-retirement benefit cost (gain) recognized in the Consolidated
Statements of Earnings was as follows for the following fiscal years ended October 31:
U.S. Defined Non-U.S. Defined Post-Retirement
Benefit Plans Benefit Plans Benefit Plans
2011 2010 2009 2011 2010 2009 2011 2010 2009
In millions
Service cost ...................... $ 1 $ 1 $ 27 $343 $319 $312 $ 9 $12 $14
Interest cost ...................... 594 578 592 694 657 619 35 47 70
Expected return on plan assets ........ (744) (662) (533) (890) (756) (669) (37) (32) (32)
Amortization and deferrals:
Actuarial loss (gain) .............. 33 27 (72) 235 214 71 3 14 6
Prior service benefit ..............———(14)(11)(9)(83)(87)(78)
Net periodic benefit cost ............. (116) (56) 14 368 423 324 (73) (46) (20)
Curtailment (gain) loss ............————(6) 5—(13)(2)
Settlement loss (gain) ............. 3 7 (1) 9 7 12———
Special termination benefits .........———162955———
Net benefit (gain) cost .............. $(113) $ (49) $ 13 $ 393 $ 453 $ 396 $(73) $(59) $(22)
The weighted-average assumptions used to calculate net benefit cost were as follows for the
following fiscal years ended October 31:
U.S. Defined Non-U.S. Defined Post-Retirement
Benefit Plans Benefit Plans Benefit Plans
2011 2010 2009 2011 2010 2009 2011 2010 2009
Discount rate ........................ 5.6% 5.9% 8.0% 4.4% 5.0% 6.0% 4.4% 5.4% 8.2%
Average increase in compensation levels ..... 2.0% 2.0% 2.0% 2.5% 2.5% 2.6% — — —
Expected long-term return on assets ....... 8.0% 8.0% 7.5% 6.8% 7.0% 6.9% 10.5% 9.5% 9.3%
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