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| Item
2.05 |
Costs
Associated with Exit and Disposal Activities |
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In connection with
the retirement plan changes discussed under Item 8.01 below, on February
15, 2007 HP determined that it will offer a voluntary early retirement
program to U.S. employees impacted by those changes whose combined age and
years of service exceed certain levels. Eligible U.S. employees who apply
to participate in the program and are accepted will exit the company by
May 31, 2007. In connection with the early retirement program, HP will
record a one-time charge in its second fiscal quarter of 2007. The exact
amount of the charge will depend upon the level of participation in the
program, but HP does not expect the charge to exceed the amount of the
pension curtailment gain that will be incurred in connection with the
retirement plan changes. HP expects predominately to fund the cash
expenditures to be incurred in connection with the early retirement
program using available U.S. pension plan assets. HP expects to replace
the majority of the employees who participate in the early retirement
program. |
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| Item
8.01 |
Other
Events |
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| |
On February 20,
2007, HP announced that, effective January 1, 2008, it will freeze its
U.S. defined benefit pension plan for employees currently accruing
benefits under the plan and that, effective July 1, 2007, it will reduce
eligibility for its subsidized retiree medical program in order to align
HPfs U.S. retirement programs more closely with industry-competitive
practices. Employees affected by the pension plan changes will not lose
any benefits earned prior to January 1, 2008, and on that date will begin
receiving the 6% match on amounts contributed to the HP 401(k) Plan
currently available to other U.S. employees. Eligible employees affected
by the changes to the retiree medical program may participate in the
non-subsidized retiree medical program and receive retiree medical savings
account credits to help pay premium costs. As a result of these actions,
HP estimates that it will recognize a one-time pension curtailment gain of
approximately $500 million in its second fiscal quarter of
2007. |
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| Item 9.01
|
Financial
Statements and Exhibits |
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|
| Exhibit
99.1 |
Text of HPfs press
release relating to its fiscal quarter ended January 31, 2007, entitled
gHP Reports First Quarter 2007 Results,h with the related GAAP
consolidated condensed statements of earnings, GAAP consolidated condensed
balance sheets, adjustments to certain GAAP financial information, GAAP
consolidated condensed statements of cash flows, certain segment and
business unit information, and certain additional financial information
(furnished herewith). |
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|
| Exhibit
99.2 |
HPfs GAAP
consolidated condensed statements of earnings, GAAP consolidated condensed
balance sheets, and segment information for the fiscal quarter
ended January 31, 2007 (filed herewith). |
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| Exhibit
99.3 |
HPfs revised
business unit revenue for fiscal 2005 and 2006 and certain supplemental
financial tables (furnished herewith). |