INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Domestic and Foreign Earnings from Continuing Operations Before Income Taxes

Domestic and Foreign Earnings from Continuing Operations Before Income Taxes

DOLLAR AMOUNTS IN MILLIONS
	2018		2017		2016
Domestic earnings	$	556	$	643	$	353
Foreign earnings	251		73		151
Total earnings before income taxes	$	807	$	716	$	504

Provision (Benefit) for Income Taxes from Continuing Operations

Provision (Benefit) for Income Taxes from Continuing Operations

DOLLAR AMOUNTS IN MILLIONS
	2018			2017			2016
Current:
Federal	$	(69	)	$	10		$	1
State	(5		)	—			1
Foreign	61			82			11
Total current	(13		)	92			13
Deferred:
Federal	45			61			37
State	12			(18		)	(3		)
Foreign	15			(1		)	42
Total deferred	72			42			76
Total income tax provision (benefit)	$	59		$	134		$	89

Effective Income Tax Rate Applicable to Continuing Operations

Effective Income Tax Rate Applicable to Continuing Operations

DOLLAR AMOUNTS IN MILLIONS
	2018			2017			2016
U.S. federal statutory income tax	$	170		$	250		$	177
State income taxes, net of federal tax benefit	8			(2		)	(3		)
REIT income not subject to federal income tax	(116		)	(198		)	(99		)
SDT settlement	21			—			—
Tax effect of U.S. corporate rate change	—			74			—
Voluntary pension contribution	(41		)	—			—
Foreign taxes	15			54			(4		)
Repatriation of Canadian earnings	—			(22		)	24
Other, net	2			(22		)	(6		)
Total income tax provision (benefit)	$	59		$	134		$	89
Effective income tax rate	7.3		%	18.8		%	17.6		%

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, 2018			DECEMBER 31, 2017
Net noncurrent deferred tax asset	$	15		$	268
Net noncurrent deferred tax liability	(43		)	—
Net deferred tax asset (liability)	$	(28	)	$	268

Items Included in Our Deferred Income Tax Assets (Liabilities)

Items Included in Our Deferred Income Tax Assets (Liabilities)

DOLLAR AMOUNTS IN MILLIONS
	DECEMBER 31, 2018			DECEMBER 31, 2017
Deferred tax assets:
Postretirement benefits	$	37		$	50
Pension	75			306
State tax credits	51			56
Other reserves	13			38
Depletion	41			40
Excess interest	30			—
Incentive compensation	20			23
Workers compensation	18			19
Net operating loss carryforwards	19			18
Other	83			70
Gross deferred tax assets	387			620
Valuation allowance	(61		)	(63		)
Net deferred tax assets	326			557
Deferred tax liabilities:
Property, plant and equipment	(197		)	(154		)
Timber installment notes	(116		)	(116		)
Other	(41		)	(19		)
Net deferred tax liabilities	(354		)	(289		)
Net deferred tax asset (liability)	(28		)	268

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, 2018			DECEMBER 31, 2017
Balance at beginning of year	$	4		$	6
Lapse of statute	(1		)	(2		)
Balance at end of year	$	3		$	4