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Retirement and Post-Retirement Benefit Plans | 9 Months Ended
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Jul. 31, 2020
Retirement Benefits [Abstract] |
Retirement and Post-Retirement Benefit Plans | Retirement and Post-Retirement Benefit Plans The components of HP’s pension and post-retirement benefit (credit) cost recognized in the Consolidated Condensed Statements of Earnings were as follows:
| Three months ended July 31 |  |  |  |  |  |  |  |  |  |
| U.S. Defined Benefit Plans |  |  |  | Non-U.S. Defined Benefit Plans |  |  |  | Post-Retirement Benefit Plans |  |
| 2020 |  | 2019 |  | 2020 |  | 2019 |  | 2020 |  | 2019
| In millions |  |  |  |  |  |  |  |  |  |
Service cost | $ | — |  |  | $ | — |  |  | $ | 16 |  |  | $ | 14 |  |  | $ | — |  |  | $ | — |
Interest cost | 103 |  |  | 123 |  |  | 4 |  |  | 6 |  |  | 3 |  |  | 4 |
Expected return on plan assets | (175) |  |  | (146) |  |  | (10) |  |  | (9) |  |  | (6) |  |  | (5) |
Amortization and deferrals: |  |  |  |  |  |  |  |  |  |  |
Actuarial loss (gain) | 16 |  |  | 15 |  |  | 11 |  |  | 8 |  |  | (3) |  |  | (8) |
Prior service benefit | — |  |  | — |  |  | (1) |  |  | (1) |  |  | (3) |  |  | (3) |
Net periodic (credit) benefit cost | (56) |  |  | (8) |  |  | 20 |  |  | 18 |  |  | (9) |  |  | (12) |
Curtailment gain | — |  |  | — |  |  | — |  |  | (9) |  |  | — |  |  | — |
Settlement loss | 2 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |
Total periodic (credit) benefit cost | $ | (54) |  |  | $ | (7) |  |  | $ | 20 |  |  | $ | 9 |  |  | $ | (9) |  |  | $ | (12) |
| Nine months ended July 31 |  |  |  |  |  |  |  |  |  |
| U.S. Defined Benefit Plans |  |  |  | Non-U.S. Defined Benefit Plans |  |  |  | Post- Retirement Benefit Plans |  |
| 2020 |  | 2019 |  | 2020 |  | 2019 |  | 2020 |  | 2019
| In millions |  |  |  |  |  |  |  |  |  |
Service cost | $ | — |  |  | $ | — |  |  | $ | 47 |  |  | $ | 43 |  |  | $ | 1 |  |  | $ | — |
Interest cost | 309 |  |  | 369 |  |  | 13 |  |  | 18 |  |  | 8 |  |  | 12 |
Expected return on plan assets | (525) |  |  | (437) |  |  | (31) |  |  | (28) |  |  | (17) |  |  | (15) |
Amortization and deferrals: |  |  |  |  |  |  |  |  |  |  |
Actuarial loss (gain) | 48 |  |  | 45 |  |  | 32 |  |  | 24 |  |  | (8) |  |  | (24) |
Prior service benefit | — |  |  | — |  |  | (2) |  |  | (2) |  |  | (9) |  |  | (9) |
Net periodic (credit) benefit cost | (168) |  |  | (23) |  |  | 59 |  |  | 55 |  |  | (25) |  |  | (36) |
Curtailment gain | — |  |  | — |  |  | — |  |  | (9) |  |  | — |  |  | — |
Settlement loss | 3 |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | — |
Special termination benefit cost | — |  |  | — |  |  | — |  |  | — |  |  | 44 |  |  | — |
Total periodic (credit) benefit cost | $ | (165) |  |  | $ | (21) |  |  | $ | 59 |  |  | $ | 46 |  |  | $ | 19 |  |  | $ | (36) |
Employer Contributions and Funding Policy HP’s policy is to fund its pension plans so that it makes at least the minimum contribution required by local government, funding and taxing authorities. During fiscal year 2020, HP anticipates making contributions of approximately $76 million to its non-U.S. pension plans, approximately $36 million to its U.S. non-qualified plan participants and approximately $6 million to cover benefit claims under HP’s post-retirement benefit plans. During the nine months ended July 31, 2020, HP contributed $30 million to its non-U.S. pension plans, paid $27 million to cover benefit payments to U.S. non-qualified plan participants and paid $4 million to cover benefit claims under HP’s post-retirement benefit plans. HP’s pension and other post-retirement benefit costs and obligations depend on various assumptions. Differences between expected and actual returns on investments and changes in discount rates and other actuarial assumptions are reflected as unrecognized gains or losses, and such gains or losses are amortized to earnings in future periods. A deterioration in the funded status of a plan could result in a need for additional company contributions or an increase in net pension and post- retirement benefit costs in future periods. Actuarial gains or losses are determined at the measurement date and amortized over the remaining service life for active plans or the life expectancy of plan participants for frozen plans. Retirement Incentive Program As part of the Fiscal 2020 Plan, HP announced the voluntary EER program for its U.S. employees in October 2019. Voluntary participation in the EER program was limited to those employees who are at least 50 years old with 20 or more years of service at HP. Employees accepted into the EER program will leave HP on dates ranging from December 31, 2019 to September 30, 2020. The EER benefit will be a cash lump sum payment which is calculated based on years of service at HP at the time of the retirement and ranging from 13 to 52 weeks of pay. All employees participating in the EER program were offered the opportunity to continue health care coverage at the active employee contribution rates for up to 36 months following retirement. In addition, HP provided up to $12,000 in employer credits under the Retirement Medical Savings Account (“RMSA”) program. In relation to the continued health care coverage and employer credits under the RMSA program, HP recognized special termination benefit costs of $44 million as restructuring and other charges for the nine months ended July 31, 2020. Lump Sum Program HP offered a lump sum program during the third quarter of fiscal year 2020. Certain terminated vested participants in the HP Inc. Pension Plan (“Pension Plan”) could elect to take a one-time voluntary lump sum payment equal to the present value of future benefits. Approximately 12,000 participants elected the lump sum option. Payments of approximately $2.0 billion will be made from plan assets to the participants in the fourth quarter of fiscal year 2020 and an estimated non-cash settlement expense of approximately $240 million arising from the accelerated recognition of previously deferred actuarial losses will be recorded in such quarter.

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