INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of geographic allocation of income

Geographic Allocation of Income and Provision for Income Taxes
In millions	2021		2020		2019
Income (loss) before income taxes
Domestic	$	531	$	558	$	696
Foreign	(2)		(1)		(5)
Income before income taxes	$	529	$	557	$	691
Current tax expense (benefit)
Federal	$	(11)	$	82	$	70
State and local	5		2		4
Foreign	20		—		—
Total current tax expense	$	14	$	84	$	74
Deferred tax expense (benefit)
Federal	$	122	$	42	$	(9)
State and local	23		4		(1)
Foreign	(5)		—		—
Total deferred tax expense (benefit)	$	140	$	46	$	(10)
Provision for income taxes	$	154	$	130	$	64
Net income	$	375	$	427	$	627

Schedule of Effective Income Tax Rate Reconciliation

Reconciliation to U.S. Statutory Rate	2021		2020		2019
Statutory U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
Unrecognized tax benefits	3.0		(0.9)		(1.0)
Federal tax accrual adjustments	—		3.0		1.7
Restoration of tax basis	—		—		(12.2)
State and local tax impact	5.3		0.2		0.9
Other - net	(0.2)		—		(1.1)
Effective Tax Rate 1	29.1	%	23.3	%	9.3	%

1.In 2021, the Corporation recognized additional charges related to state and local jurisdictions and an uncertain tax position related to litigation in a foreign jurisdiction which negatively impacted the effective tax rate. The tax rate for 2020 was unfavorably impacted by an accrual to return adjustment. The tax rate for 2019 was favorably impacted by the restoration of tax basis in assets, driven by a court judgment that did not involve the Corporation.

Schedule of Deferred Tax Assets and Liabilities

Deferred Tax Balances at Dec 31	2021				2020 1
In millions	Assets		Liabilities		Assets		Liabilities
Property	$	—	$	167	$	—	$	172
Tax loss and credit carryforwards	23		—		34		—
Postretirement benefit obligations	119		—		318		—
Other accruals and reserves	313		6		313		4
Inventory	—		—		4		—
Other - net	18		—		19		—
Subtotal	$	473	$	173	$	688	$	176
Valuation allowances 2	(12)		—		(18)		—
Total	$	461	$	173	$	670	$	176

1.Certain prior year balances have been adjusted to conform with the current year presentation.

2.Primarily related to the realization of recorded tax benefits on state tax loss carryforwards from operations in the United States.

Summary of Operating Loss Carryforwards

Operating Loss and Tax Credit Carryforwards at Dec 31	2021		2020
In millions	Assets		Assets
Operating loss carryforwards
Expire within 5 years	$	11	$	21
Expire after 5 years or indefinite expiration	7		7
Total operating loss carryforwards	$	18	$	28
Tax credit carryforwards
Expire within 5 years	$	5	$	—
Expire after 5 years or indefinite expiration	—		6
Total tax credit carryforwards	$	5	$	6
Total tax loss and tax credit carryforwards	$	23	$	34

Schedule of Total Gross Unrecognized Tax Benefits

The following table provides a reconciliation of the Corporation's unrecognized tax benefits:

Total Gross Unrecognized Tax Benefits
In millions	2021		2020		2019
Total unrecognized tax benefits at Jan 1	$	1	$	1	$	1
Decreases related to positions taken on items from prior years	(1)		—		—
Increases related to positions taken on items from prior years	8		—		—
Total unrecognized tax benefits at Dec 31	$	8	$	1	$	1
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate	$	8	$	1	$	1
Total amount of interest and penalties (benefit) recognized in "Provision for income taxes"	$	11	$	(5)	$	(7)
Total accrual for interest and penalties recognized in the consolidated balance sheets	$	12	$	—	$	—

Schedule of Tax Years Subject to Examination by Major Tax Jurisdiction

Tax Years Subject to Examination by Major Tax Jurisdiction at Dec 31, 2021	Earliest Open Year
Jurisdiction
United States:
Federal income tax	2007
State and local income tax	2004