International Paper 2012 Annual Report Download - page 109

The fair value measurements using significant
unobservable inputs (Level 3) at December 31, 2012
were as follows:
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
In millions
Equities-
Domestic
Other Fixed
Income
Hedge
Funds
Private
Equity
Real
Estate Derivatives Total
Beginning balance at December 31, 2011 $ 1 $ 9 $699 $473 $ 872 $303 $2,357
Temple-Inland Acquisition ———594—99
Actual return on plan assets:
Relating to assets still held at the reporting date 2 1 10 28 70 54 165
Relating to assets sold during the period — — 31 (5 ) 5 80 111
Purchases, sales and settlements — — (248) 2 (4) (83) (333 )
Transfers in and/or out of Level 3 — (2 ) — — — — (2 )
Ending balance at December 31, 2012 $ 3 $ 8 $ 492 $ 503 $1,037 $ 354 $ 2,397
FUNDING AND CASH FLOWS
The Company’s funding policy for the Pension Plan is
to contribute amounts sufficient to meet legal funding
requirements, plus any additional amounts that the
Company may determine to be appropriate consider-
ing the funded status of the plans, tax deductibility,
cash flow generated by the Company, and other fac-
tors. The Company continually reassesses the
amount and timing of any discretionary con-
tributions. Voluntary contributions totaling $44 mil-
lion , $300 million and $1.15 billion were made by the
Company in 2012 , 2011 and 2010 , respectively.
Generally, International Paper’s non-U.S. pension
plans are funded using the projected benefit as a
target, except in certain countries where funding of
benefit plans is not required.
At December 31, 2012 , projected future pension
benefit payments, excluding any termination benefits,
were as follows:
In millions
2013 $ 736
2014 741
2015 752
2016 762
2017 774
2018 – 2022 4,090
OTHER U.S. PLANS
International Paper sponsors the International Paper
Company Salaried Savings Plan and the International
Paper Company Hourly Savings Plan, both of which
are tax-qualified defined contribution 401(k) savings
plans. Substantially all U.S. salaried and certain
hourly employees are eligible to participate and may
make elective deferrals to such plans to save for
retirement. International Paper makes matching con-
tributions to participant accounts on a specified per-
centage of employee deferrals as determined by the
provisions of each plan. For eligible employees hired
after June 30, 2004, the Company makes Retirement
Savings Account contributions equal to a percentage
of an eligible employee’s pay. From February 1, 2009
to December 31, 2010, matching contributions to the
International Paper Salaried Savings Plan were made
in Company stock. Beginning in January 2011,
matching contributions to the International Paper
Salaried Savings Plan were again made in the form of
cash contributions.
In connection with the Temple-Inland acquisition,
International Paper acquired two savings plans which
were merged into the International Paper savings
plans on December 31, 2012.
The Company also sponsors the International Paper
Company Deferred Compensation Savings Plan,
which is an unfunded nonqualified defined con-
tribution plan. This plan permits eligible employees to
continue to make deferrals and receive company
matching contributions when their contributions to
the International Paper Salaried Savings Plan are
stopped due to limitations under U.S. tax law. Partic-
ipant deferrals and company matching contributions
are not invested in a separate trust, but are paid
directly from International Paper’s general assets at
the time benefits become due and payable.
Company matching contributions to the plans totaled
approximately $122 million, $83 million and $87
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