XML 68 R43.htm IDEA: XBRL DOCUMENT v2.4.0.6
Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2012
Defined Benefit Plan Disclosure [Line Items]  
Components Of Postretirement Benefit Expense
Net periodic pension expense for qualified and nonqualified U.S. defined benefit plans comprised the following: 
  
 
2012

 
2011

 
2010

In millions
U.S.
Plans

Non-
U.S.
Plans

U.S.
Plans

Non-
U.S.
Plans

U.S.
Plans

Non-
U.S.
Plans

Service cost
$
152

$
3

$
121

$
2

$
116

$
3

Interest cost
604

12

544

12

541

12

Expected return on plan assets
(753
)
(12
)
(713
)
(12
)
(631
)
(11
)
Actuarial loss / (gain)
307

—

212

—

174

—

Amortization of prior service cost
32

—

31

—

31

—

Curtailment gain
—

—

—

—

—

(2
)
Settlement gain
—

—

—

(1
)
—

(2
)
Net periodic pension expense
$
342

$
3

195

$
1

$
231

$
—
Postretirement Benefits [Member]
  
Defined Benefit Plan Disclosure [Line Items]  
Components Of Postretirement Benefit Expense
The components of postretirement benefit expense in 2012, 2011 and 2010 were as follows:
 
In millions
2012

2011

2010

Service cost
$
3

$
2

$
2

Interest cost
20

21

23

Actuarial loss
10

9

12

Amortization of prior service credits
(30
)
(25
)
(31
)
Curtailment gain
(7
)
—

—

Net postretirement (benefit) expense
$
(4
)
$
7

$
6
Changes In Postretirement Benefit Obligation, Plan Assets, Funded Status And Amounts Recognized In Balance Sheet And Accumulated Other Comprehensive (Loss) Income
The plan is only funded in an amount equal to benefits paid. The following table presents the changes in benefit obligation and plan assets for 2012 and 2011:
 
In millions
2012

2011

Change in projected benefit obligation:
 
 
Benefit obligation, January 1
$
425

$
425

Service cost
3

2

Interest cost
20

21

Participants’ contributions
34

46

Actuarial (gain) loss
44

29

Acquisitions
108

—

Plan amendments
(63
)
—

Benefits paid
(107
)
(108
)
Less: Federal subsidy
7

10

Restructuring
(17
)
—

Curtailment
(5
)
—

Benefit obligation, December 31
$
449

$
425

Change in plan assets:
 
 
Fair value of plan assets, January 1
$
0

$
0

Company contributions
73

62

Participants’ contributions
34

46

Benefits paid
(107
)
(108
)
Fair value of plan assets, December 31
$
0

$
0

Funded status, December 31
$
(449
)
$
(425
)
Amounts recognized in the consolidated balance sheet under ASC 715:
 
 
Current liability
$
(59
)
$
(43
)
Non-current liability
(390
)
(382
)
 
$
(449
)
$
(425
)
Amounts recognized in accumulated other comprehensive income under ASC 715 (pre-tax):
 
 
Net actuarial loss
$
115

$
81

Prior service credit
(65
)
(35
)
 
$
50

$
46
Postretirement Benefit Adjustments Recognized In Other Comprehensive (Loss) Income
The components of the $4 million increase in the amounts recognized in OCI during 2012 consisted of:
 
In millions
  
Curtailment
$
2

Current year actuarial loss
44

Amortization of actuarial loss
(10
)
Current year prior service credit
(62
)
Amortization of prior service credit
30

 
$
4
Estimated Total Future Postretirement Benefit Payments, Net Of Participant Contributions And Estimated Future Medicare Part D Subsidy Receipts
At December 31, 2012, estimated total future postretirement benefit payments, net of participant contributions and estimated future Medicare Part D subsidy receipts, were as follows:
 
In millions
Benefit
Payments

Subsidy
Receipts

2013
$
63

$
3

2014
49

3

2015
41

3

2016
39

3

2017
37

3

2018 – 2022
155

13
Net Cost [Member] | Postretirement Benefits [Member]
  
Defined Benefit Plan Disclosure [Line Items]  
Discount Rates Used To Determine Net Cost
The discount rates used to determine net cost for the years ended December 31, 2012, 2011 and 2010 were as follows: 
 
2012

 
2011

2010

Discount rate
4.40
%
(a)
5.30
%
5.40
%

(a)
Represents the weighted average rate for the IP plan for 2012 due to the remeasurement. The weighted average rate used for Temple-Inland in 2012 was 4.19%.
Benefit Obligation [Member] | Postretirement Benefits [Member]
  
Defined Benefit Plan Disclosure [Line Items]  
Discount Rates Used To Determine Net Cost
The weighted average assumptions used to determine the benefit obligation at December 31, 2012 and 2011 were as follows: 
 
2012

2011

Discount rate
3.70
%
4.80
%
Health care cost trend rate assumed for next year
7.50
%
8.00
%
Rate that the cost trend rate gradually declines to
5.00
%
5.00
%
Year that the rate reaches the rate it is assumed to remain
2017

2017