INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Domestic and Foreign Earnings from Continuing Operations Before Income Taxes

Domestic and Foreign Earnings from Continuing Operations Before Income Taxes

DOLLAR AMOUNTS IN MILLIONS
	2017		2016		2015
Domestic earnings	$	643	$	353	$	326
Foreign earnings	73		151		27
Total earnings before income taxes	$	716	$	504	$	353

Provision (Benefit) for Income Taxes from Continuing Operations

Provision (Benefit) for Income Taxes from Continuing Operations

DOLLAR AMOUNTS IN MILLIONS
	2017			2016			2015
Current:
Federal	$	10		$	1		$	7
State	—			1			(2		)
Foreign	82			11			(5		)
Total current	92			13			—
Deferred:
Federal	61			37			(69		)
State	(18		)	(3		)	(3		)
Foreign	(1		)	42			14
Total deferred	42			76			(58		)
Total income tax provision (benefit)	$	134		$	89		$	(58	)

Effective Income Tax Rate Applicable to Continuing Operations

Effective Income Tax Rate Applicable to Continuing Operations

DOLLAR AMOUNTS IN MILLIONS
	2017			2016			2015
U.S. federal statutory income tax	$	250		$	177		$	123
State income taxes, net of federal tax benefit	(2		)	(3		)	(5		)
REIT income not subject to federal income tax	(198		)	(99		)	(158		)
REIT benefit from change to tax law	—			—			(13		)
Tax affect of U.S. corporate rate change	74			—			—
Foreign taxes	54			(4		)	4
Provision for unrecognized tax benefits	(2		)	—			(7		)
Repatriation of Canadian earnings	(22		)	24			—
Other, net	(20		)	(6		)	(2		)
Total income tax provision (benefit)	$	134		$	89		$	(58	)
Effective income tax rate	18.8		%	17.6		%	(16.4		)%

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, 2017		DECEMBER 31, 2016
Net noncurrent deferred tax asset	$	268	$	293
Net noncurrent deferred tax liability	—		—
Net deferred tax asset (liability)	$	268	$	293

Items Included in Our Deferred Income Tax Assets (Liabilities)

Items Included in Our Deferred Income Tax Assets (Liabilities)

DOLLAR AMOUNTS IN MILLIONS
	DECEMBER 31, 2017			DECEMBER 31, 2016
Postretirement benefits	$	50		$	76
Pension	306			395
State tax credits	56			46
Other reserves	38			14
Net operating loss carryforwards	18			25
Other	152			218
Gross deferred tax assets	620			774
Valuation allowance	(63		)	(56		)
Net deferred tax assets	557			718
Property, plant and equipment	(154		)	(214		)
Timber installment notes	(116		)	(180		)
Other	(19		)	(31		)
Deferred tax liabilities	(289		)	(425		)
Net deferred tax asset (liability)	$	268		$	293

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, 2017			DECEMBER 31, 2016
Balance at beginning of year	$	6		$	6
Lapse of statute	(2		)	—
Balance at end of year	$	4		$	6