diff --git a/moses-cmd/IOWrapper.cpp b/moses-cmd/IOWrapper.cpp
index b04257e8b..ce017ecf2 100644
--- a/moses-cmd/IOWrapper.cpp
+++ b/moses-cmd/IOWrapper.cpp
@@ -188,6 +188,25 @@ InputType*IOWrapper::GetInput(InputType* inputType)
   }
 }
 
+std::map<size_t, const Factor*> GetPlaceholders(const Hypothesis &hypo, FactorType placeholderFactor)
+{
+  const InputPath &inputPath = hypo.GetTranslationOption().GetInputPath();
+  const Phrase &inputPhrase = inputPath.GetPhrase();
+
+  std::map<size_t, const Factor*> ret;
+
+  for (size_t sourcePos = 0; sourcePos < inputPhrase.GetSize(); ++sourcePos) {
+	  const Factor *factor = inputPhrase.GetFactor(sourcePos, placeholderFactor);
+	  if (factor) {
+		  std::set<size_t> targetPos = hypo.GetTranslationOption().GetTargetPhrase().GetAlignTerm().GetAlignmentsForSource(sourcePos);
+		  CHECK(targetPos.size() == 1);
+		  ret[*targetPos.begin()] = factor;
+	  }
+  }
+
+  return ret;
+}
+
 /***
  * print surface factor only for the given phrase
  */
@@ -195,23 +214,31 @@ void OutputSurface(std::ostream &out, const Hypothesis &edge, const std::vector<
                    char reportSegmentation, bool reportAllFactors)
 {
   CHECK(outputFactorOrder.size() > 0);
-  const Phrase& phrase = edge.GetCurrTargetPhrase();
+  const TargetPhrase& phrase = edge.GetCurrTargetPhrase();
   bool markUnknown = StaticData::Instance().GetMarkUnknown();
   if (reportAllFactors == true) {
     out << phrase;
   } else {
-    FactorType placeholderFactor = StaticData::Instance().GetPlaceholderFactor().second;
+    FactorType placeholderFactor = StaticData::Instance().GetPlaceholderFactor().first;
+
+    std::map<size_t, const Factor*> placeholders;
+    if (placeholderFactor != NOT_FOUND) {
+    	// creates map of target position -> factor for placeholders
+    	placeholders = GetPlaceholders(edge, placeholderFactor);
+    }
 
     size_t size = phrase.GetSize();
     for (size_t pos = 0 ; pos < size ; pos++) {
       const Factor *factor = phrase.GetFactor(pos, outputFactorOrder[0]);
 
-      if (placeholderFactor != NOT_FOUND) {
-        const Factor *origFactor = phrase.GetFactor(pos, placeholderFactor);
-        if (origFactor) {
-          factor = origFactor;
-        }
+      if (placeholders.size()) {
+    	  // do placeholders
+    	  std::map<size_t, const Factor*>::const_iterator iter = placeholders.find(pos);
+    	  if (iter != placeholders.end()) {
+    		  factor = iter->second;
+    	  }
       }
+
       CHECK(factor);
 
       //preface surface form with UNK if marking unknowns
diff --git a/moses-cmd/IOWrapper.h b/moses-cmd/IOWrapper.h
index 7e8ae2640..519091e67 100644
--- a/moses-cmd/IOWrapper.h
+++ b/moses-cmd/IOWrapper.h
@@ -56,6 +56,8 @@ POSSIBILITY OF SUCH DAMAGE.
 namespace Moses
 {
 class ScoreComponentCollection;
+class Hypothesis;
+class Factor;
 }
 
 namespace MosesCmd
@@ -154,6 +156,9 @@ void OutputFeatureScores( std::ostream& out
                           , const Moses::FeatureFunction *ff
                           , std::string &lastName );
 
+// creates a map of target positions which should be replaced by word using placeholder
+std::map<size_t, const Moses::Factor*> GetPlaceholders(const Moses::Hypothesis &hypo, Moses::FactorType placeholderFactor);
+
 }
 
 #endif
diff --git a/moses/InputPath.cpp b/moses/InputPath.cpp
index eb27e41f6..3a3d3381b 100644
--- a/moses/InputPath.cpp
+++ b/moses/InputPath.cpp
@@ -20,14 +20,6 @@ InputPath::InputPath(const Phrase &phrase, const NonTerminalSet &sourceNonTerms,
 {
   //cerr << "phrase=" << phrase << " m_inputScore=" << *m_inputScore << endl;
 
-  FactorType placeholderFactor = StaticData::Instance().GetPlaceholderFactor().first;
-  if (placeholderFactor != NOT_FOUND) {
-    for (size_t pos = 0; pos < m_phrase.GetSize(); ++pos) {
-      if (m_phrase.GetFactor(pos, placeholderFactor)) {
-        m_placeholders.push_back(pos);
-      }
-    }
-  }
 }
 
 InputPath::~InputPath()
@@ -63,26 +55,6 @@ void InputPath::SetTargetPhrases(const PhraseDictionary &phraseDictionary
   m_targetPhrases[&phraseDictionary] = value;
 }
 
-bool InputPath::SetPlaceholders(TargetPhrase *targetPhrase) const
-{
-  FactorType sourcePlaceholderFactor = StaticData::Instance().GetPlaceholderFactor().first;
-  FactorType targetPlaceholderFactor = StaticData::Instance().GetPlaceholderFactor().second;
-
-  const AlignmentInfo &alignments = targetPhrase->GetAlignTerm();
-  for (size_t i = 0; i < m_placeholders.size(); ++i) {
-    size_t sourcePos = m_placeholders[i];
-    set<size_t> targetPos = alignments.GetAlignmentsForSource(sourcePos);
-    if (targetPos.size() == 1) {
-      const Word &sourceWord = m_phrase.GetWord(sourcePos);
-      Word &targetWord = targetPhrase->GetWord(*targetPos.begin());
-      targetWord[targetPlaceholderFactor] = sourceWord[sourcePlaceholderFactor];
-    } else {
-      return false;
-    }
-  }
-  return true;
-}
-
 const Word &InputPath::GetLastWord() const
 {
   size_t len = m_phrase.GetSize();
diff --git a/moses/InputPath.h b/moses/InputPath.h
index d152b496b..b06fd485a 100644
--- a/moses/InputPath.h
+++ b/moses/InputPath.h
@@ -37,8 +37,6 @@ protected:
   std::map<const PhraseDictionary*, std::pair<const TargetPhraseCollection*, const void*> > m_targetPhrases;
   const NonTerminalSet m_sourceNonTerms;
 
-  std::vector<size_t> m_placeholders;
-
   bool SetPlaceholders(TargetPhrase *targetPhrase) const;
 public:
   explicit InputPath()
diff --git a/moses/Parameter.cpp b/moses/Parameter.cpp
index 10b7de174..d34ff7394 100644
--- a/moses/Parameter.cpp
+++ b/moses/Parameter.cpp
@@ -199,7 +199,7 @@ Parameter::Parameter()
 
   AddParam("alternate-weight-setting", "aws", "alternate set of weights to used per xml specification");
 
-  AddParam("placeholder-factor", "Which factor to use to store the original text for placeholders");
+  AddParam("placeholder-factor", "Which factors to use to store the original text for placeholders. Must be 2, source target");
 }
 
 Parameter::~Parameter()