HP 2013 Annual Report Download - page 144

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 14: Stockholders’ Equity (Continued)
The components of accumulated other comprehensive loss, net of taxes, were as follows for the
following fiscal years ended October 31:
2013 2012 2011
In millions
Net unrealized gain on available-for-sale securities ................. $ 76 $ 87 $ 37
Net unrealized loss on cash flow hedges ......................... (188) (99) (41)
Unrealized components of defined benefit plans ................... (3,084) (5,090) (3,109)
Cumulative translation adjustment ............................. (582) (457) (385)
Accumulated other comprehensive loss .......................... $(3,778) $(5,559) $(3,498)
Note 15: Retirement and Post-Retirement Benefit Plans
Defined Benefit Plans
HP sponsors a number of defined benefit pension plans worldwide, of which the most significant
are in the United States. Both the HP Retirement Plan (the ‘‘Retirement Plan’’), a traditional defined
benefit pension plan based on pay and years of service, and the HP Company Cash Account Pension
Plan (the ‘‘Cash Account Pension Plan’’), under which benefits are accrued pursuant to a cash
accumulation account formula based upon a percentage of pay plus interest, were frozen effective
January 1, 2008. The Cash Account Pension Plan and the Retirement Plan were merged in 2005 for
certain funding and investment purposes. Effective October 30, 2009 the EDS U.S. qualified pension
plan was also merged into the HP Pension Plan.
HP reduces the benefit payable to a U.S. employee under the Retirement Plan for service before
1993, if any, by any amounts due to the employee under HP’s frozen defined contribution Deferred
Profit-Sharing Plan (the ‘‘DPSP’’). HP closed the DPSP to new participants in 1993. The DPSP plan
obligations are equal to the plan assets and are recognized as an offset to the Retirement Plan when
HP calculates its defined benefit pension cost and obligations. The fair value of plan assets and
projected benefit obligations for the U.S. defined benefit plans combined with the DPSP are as follows
for the following fiscal years ended October 31:
2013 2012
Projected Projected
Benefit Benefit
Plan Assets Obligation Plan Assets Obligation
In millions
U.S. defined benefit plans ....................... $10,866 $11,866 $11,536 $14,237
DPSP...................................... 837 837 958 958
Total ..................................... $11,703 $12,703 $12,494 $15,195
Post-Retirement Benefit Plans
HP sponsors retiree health and welfare benefit plans in the Americas, of which the most significant
are in the United States. Under the HP Retiree Welfare Benefits Plan, certain pre-2003 retirees and
grandfathered participants with continuous service with HP since 2002 are eligible to receive partially-
subsidized medical coverage based on years of service at retirement. Former grandfathered employees
of Digital Equipment Corporation also receive partially-subsidized medical benefits that are not service-
based. HP’s share of the premium cost is capped for all subsidized medical coverage provided under
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