HP Inc., along with Hewlett-Packard Enterprise Co., both in Palo Alto, Calif., plans to contribute about $402 million to its non-U.S. defined benefit plans in fiscal year 2016, said a 10-K filing from HP to the Securities and Exchange Commission.
HP and Hewlett-Packard Enterprise separated effective Nov. 1, but the retirement plans have yet to separate. HP also plans to contribute $73 million to its U.S. non-qualified defined benefit plans.
HP contributed $619 million to the non-U.S. plans and $29 million to the U.S. plans during the fiscal year ended Oct. 31. Also during the fiscal year 2015, the company made $826 million in lump-sum payments to former U.S. employees who had yet to retire following a lump-sum window offer that about 50% of eligible participants accepted, according to the 10-K.
As of Oct. 31, HP's non-U.S. defined benefit plan assets totaled $17.5 billion and projected benefit obligations totaled $20.5 billion, for a funding ratio of 85.4%. U.S. defined benefit plan assets totaled $11.1 billion and projected benefit obligations totaled $12.7 billion, for a funding ratio of 87.4%.
As of Oct. 31, the U.S. defined benefit plans' asset allocation was 45.4% fixed income, 17% domestic equities, 12.1% international equities, 10.6% private equity, 7% other, 5.8% hedge funds, 2.1% cash and cash equivalents.
As of the same date, the non-U.S. defined benefit plans' asset allocation was 28% fixed income, 26.7% international equity, 16.7% U.S. equity, 15.4% hybrid alternatives, 6.2% real estate funds, 2.8% cash and cash equivalents, 2.3% hedge funds, 0.7% each insurance group annuity contracts and other, and 0.5% private equity.
Officials at HP could not be reached by press time.