INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

Domestic and Foreign Earnings From Continuing Operations Before Income Taxes

Domestic and Foreign Earnings From Continuing Operations Before Income Taxes

DOLLAR AMOUNTS IN MILLIONS
	2016		2015		2014
Domestic earnings	$	353	$	326	$	679
Foreign earnings	151		27		8
Total earnings before income taxes	$	504	$	353	$	687

Provision (Benefit) for Income Taxes From Continuing Operations

Provision (Benefit) for Income Taxes From Continuing Operations

DOLLAR AMOUNTS IN MILLIONS
	2016			2015			2014
Current:
Federal	$	1		$	7		$	(49	)
State	1			(2		)	7
Foreign	11			(5		)	3
Total current	13			—			(39		)
Deferred:
Federal	37			(69		)	107
State	(3		)	(3		)	—
Foreign	42			14			3
Total deferred	76			(58		)	110
Total income tax provision (benefit)	$	89		$	(58	)	$	71

Effective Income Tax Rate Applicable to Continuing Operations

Effective Income Tax Rate Applicable to Continuing Operations

DOLLAR AMOUNTS IN MILLIONS
	2016			2015			2014
U.S. federal statutory income tax	$	177		$	123		$	240
State income taxes, net of federal tax benefit	(3		)	(5		)	5
REIT income not subject to federal income tax	(99		)	(158		)	(161		)
REIT benefit from change to tax law	—			(13		)	—
Foreign taxes	(4		)	4			2
Provision for unrecognized tax benefits	—			(7		)	(4		)
Repatriation of Canadian earnings	24			—			—
Other, net	(6		)	(2		)	(11		)
Total income tax provision (benefit)	$	89		$	(58	)	$	71
Effective income tax rate	17.6		%	(16.4		)%	10.3		%

Balance Sheet Classification of Deferred Income Tax Assets (Liabilities) Related to Continuing Operations

Balance Sheet Classification of Deferred Income Tax Assets (Liabilities) Related to Continuing Operations

DOLLAR AMOUNTS IN MILLIONS
	DECEMBER 31, 2016		DECEMBER 31, 2015
Net noncurrent deferred tax asset	$	293	$	254
Net noncurrent deferred tax liability	—		—
Net deferred tax asset (liability)	$	293	$	254

Items Included in Our Deferred Income Tax Assets (Liabilities)

Items Included in Our Deferred Income Tax Assets (Liabilities)

DOLLAR AMOUNTS IN MILLIONS
	DECEMBER 31, 2016			DECEMBER 31, 2015
Postretirement benefits	$	76		$	80
Pension	395			260
State tax credits	46			49
Net operating loss carryforwards	25			64
Cellulosic biofuel producers credit	—			78
Other	232			178
Gross deferred tax assets	774			709
Valuation allowance	(56		)	(65		)
Net deferred tax assets	718			644
Property, plant and equipment	(214		)	(169		)
Timber installment notes	(180		)	(180		)
Other	(31		)	(41		)
Deferred tax liabilities	(425		)	(390		)
Net deferred tax asset (liability)	$	293		$	254

Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

DOLLAR AMOUNTS IN MILLIONS
	DECEMBER 31, 2016		DECEMBER 31, 2015
Balance at beginning of year	$	6	$	11
Settlements	—		(4		)
Lapse of statute	—		(1		)
Balance at end of year	$	6	$	6