1. What is the funded status of the U.S. Plan in 2016. How does this fact affect International Papers 2016 balance sheet? Comment on the change of funded status from 2015 to 2016.

2. What average interest rate did International Paper use to calculate interest cost on its U.S. pension plan during 2016?

3. How much did International Paper contribute to both of its pension plans during 2016? How does that compare to the contribution in 2015?

4. What amount of pension benefits were paid to former employees for all plans during 2016?

5. Why do the benefits paid affect both the pension obligation and the pension assets?

6. What is the amount of net change in actuarial gains/losses occurred during the year 2016 for the U.S. plan? What is the process of amortization of such gains/losses to pension expense in a particular fiscal period and how does it impact periodic pension expense?

7. Explain how the return on plan assets affects the amount of cash that the company must contribute to fund the pension plan.

8. Compare International Papers U.S. 2016 actual plan investment performance, its contribution to pension plans and benefit payment to retirees, and comment on the funded status of the U.S. plan.

International Paper, Inc. disclosed the following pension information in its 2016 annual report: 20162015 In millions U.S.PlansNon-U.S.PlansU.S.PlansNon-U.S.Plans Change in projected benefit obligation: Effect of foreign currency exchange rate (21) movements Benefit obligation, December 31$13,683$219$14,438$204 Change in plan assets: Fair value of plan assets, January 1$10,923$155$10,918$180 Actual return on plan assets 607 (1) 4 Company contributions 7718813 Benefits paid (767) (9) (764) (7) Settlements (1,222) (2) (43) (12) Effect of foreign currency exchange rate (16) movements Fair value of plan assets, December 31$10,312$153$10,923$155 Funded status, December 31 $(3,371)$(66)$(3,515)$(49)