Hewlett-Packard Co., Palo Alto, Calif., settled about $810 million in U.S. defined benefit plan liabilities in May, following a voluntary lump-sum offer made to former employees vested in the plan who have yet to retire.
The company announced the lump-sum offer Monday in a 10-Q filing with the Securities and Exchange Commission. About 50% of the participants to whom the offer was made in January accepted the offer. The number of participants given the offer was not available by press time.
HP froze its U.S. defined benefit plan in 2008.
As of Oct. 31, U.S. defined benefit plan assets totaled $11.979 billion, and projected benefit obligations totaled $13.756 billion, for a funding ratio of 87.1%, according to the company’s most recent 10-K filing.
Gretchen Tai, HP vice president, global treasury, and chief investment officer; and Sarah Pompei, HP spokeswoman, couldn't be reached for comment by press time.