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HPQ » Topics » Implementation of SFAS 158

These excerpts taken from the HPQ 10-K filed Dec 18, 2008.

Implementation of SFAS 158

        SFAS 158 requires that the funded status of defined benefit postretirement plans be recognized on the company's balance sheet and changes in the funded status be reflected in comprehensive income, effective for fiscal years ending after December 15, 2006, which HP adopted effective October 31, 2007.

140

Table of Contents


HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 15: Retirement and Post-Retirement Benefit Plans (Continued)

The following table summarizes the financial impact stemming from the initial adoption of SFAS 158 on October 31, 2007:

 
   Before
application
of SFAS 158 		  Adjustments   After
application
of SFAS 158 		 
 
   In millions
  

Other long-term assets (including pension assets)

   $ 3,431   $ 477   $ 3,908  

Deferred tax assets, long-term

   $ 1,040   $ (79 ) $ 961  

Total assets

   $ 88,301   $ 398   $ 88,699  

Pension, post-retirement, and post-employment liabilities

   $ 1,739   $ (244 ) $ 1,495  

Deferred tax liabilities, long-term

   $ 223   $ 174   $ 397  

Total liabilities

   $ 50,243   $ (70 ) $ 50,173  

Accumulated other comprehensive income

   $ 91   $ 468   $ 559  

Total stockholders' equity

   $ 38,058   $ 468   $ 38,526  

Implementation of SFAS 158





        SFAS 158 requires that the funded status of defined benefit postretirement plans be recognized on the company's balance sheet
and changes in the funded status be reflected in comprehensive income, effective for fiscal years ending after December 15, 2006, which HP adopted effective October 31, 2007.



140








HREF="#bg72001a_main_toc">Table of Contents





HEWLETT-PACKARD COMPANY AND SUBSIDIARIES



Notes to Consolidated Financial Statements (Continued)




Note 15: Retirement and Post-Retirement Benefit Plans (Continued)



The
following table summarizes the financial impact stemming from the initial adoption of SFAS 158 on October 31, 2007:











































































































































 
 Before

application

of SFAS 158 		 Adjustments  After

application

of SFAS 158 		 
 
 In millions
 

Other long-term assets (including pension assets)

 $3,431 $477 $3,908 

Deferred tax assets, long-term

 $1,040 $(79)$961 

Total assets

 $88,301 $398 $88,699 

Pension, post-retirement, and post-employment liabilities

 $1,739 $(244)$1,495 

Deferred tax liabilities, long-term

 $223 $174 $397 

Total liabilities

 $50,243 $(70)$50,173 

Accumulated other comprehensive income

 $91 $468 $559 

Total stockholders' equity

 $38,058 $468 $38,526 





This excerpt taken from the HPQ 10-K filed Dec 18, 2007.

Implementation of SFAS 158

        SFAS 158 requires that the funded status of defined benefit postretirement plans be recognized on the company's balance sheet and changes in the funded status be reflected in comprehensive income, effective for fiscal years ending after December 15, 2006, which HP adopted effective October 31, 2007. SFAS 158 also requires companies to measure the funded status of the plan as of the date of their fiscal year-end, effective for fiscal years ending after December 15, 2008. HP expects to adopt the measurement provisions of SFAS 158 effective October 31, 2009. The following table summarizes the financial impact stemming from the initial adoption of SFAS 158:

 
   Before
application
of SFAS 158
   Adjustments
   After
application
of SFAS 158
 
   In millions
Other long-term assets (including pension assets)   $ 3,431   $ 477   $ 3,908
Deferred tax assets, long-term   $ 1,040   $ (79 ) $ 961
Total assets   $ 88,301   $ 398   $ 88,699

Pension, post-retirement, and post-employment
liabilities
 
$
1,739
 
$
(244
)
$
1,495
Deferred tax liabilities, long-term   $ 223   $ 174   $ 397
Total liabilities   $ 50,243   $ (70 ) $ 50,173

Accumulated other comprehensive income
 
$
91
 
$
468
 
$
559
Total stockholders' equity   $ 38,058   $ 468   $ 38,526

        The following table summarizes the pre-tax net experience (gain) / loss and prior service cost / (benefit) recognized in accumulated other comprehensive income for the company's defined benefit and postretirement benefit plans as of October 31, 2007.

 
   U.S. Defined
Benefit Plans
   Non-U.S. Defined
Benefit Plans
   Post-Retirement
Benefit Plans
  
 
   In millions

  
Net experience (gain) loss   $ (450 ) $ 104   $ 214  
Prior service cost (benefit)     (1 )   (96 )   (462 )
   
 
 
 
Total recognized in accumulated other comprehensive (income) loss   $ (451 ) $ 8   $ (248 )
   
 
 
 

125

        The following table summarizes the experience (gain) / loss and prior service cost / (benefit) that will be amortized from accumulated other comprehensive income and recognized as components of net periodic benefit cost / (credit) during the next fiscal year.

 
   U.S. Defined
Benefit Plans
   Non-U.S. Defined
Benefit Plans
   Post-Retirement
Benefit Plans
  
 
   In millions

  
Net experience (gain) loss   $ (36 ) $ 2   $ 19  
Prior service cost (benefit)     —     (8 )   (56 )
   
 
 
 
Total recognized in accumulated other comprehensive (gain) loss   $ (36 ) $ (6 ) $ (37 )
   
 
 
 

EXCERPTS ON THIS PAGE:

10-K (2 sections)
Dec 18, 2008
10-K
Dec 18, 2007

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