INCOME TAXES (Tables)

12 Months Ended

Dec. 26, 2015

Schedule of Components of Income (Loss) Before Income Taxes

The components of income (loss) before income taxes consisted of the following:

(In millions)	2015			2014			2013
United States	$	136		$	(264	)	$	(230	)
Foreign		(89	)		(76	)		357
Total income (loss) before income taxes	$	47		$	(340	)	$	127

Schedule of Income Tax Expense Related To Income (Loss) From Operations

The income tax expense related to income (loss) from operations consisted of the following:

(In millions)	2015			2014			2013
Current:
Federal	$	18		$	(2	)	$	15
State		4			(1	)		5
Foreign		10			15			125
Deferred :
Federal		(1	)		—			(4	)
State		2			3			(1	)
Foreign		6			(3	)		7
Total income tax expense	$	39		$	12		$	147

Reconciliation Of Income Taxes At The Federal Statutory Rate To The Provision For Income Taxes

The following is a reconciliation of income taxes at the U.S. Federal statutory rate to the provision for income taxes:

(In millions)	2015			2014			2013
Federal tax computed at the statutory rate	$	16		$	(119	)	$	44
State taxes, net of Federal benefit		5			4			3
Foreign income taxed at rates other than Federal		(10	)		(10	)		(28	)
Increase (decrease) in valuation allowance		(3	)		112			8
Non-deductible goodwill impairment		—			—			15
Non-deductible Merger expenses		11			—			13
Non-deductible foreign interest		11			13			8
Other non-deductible expenses		5			12			4
Non-taxable income and additional deductible expenses		(4	)		—			—
Change in unrecognized tax benefits		—			(2	)		—
Tax expense from intercompany transactions		7			2			2
Subpart F and dividend income, net of foreign tax credits		1			2			75
Change in tax rate		1			—			2
Deferred taxes on undistributed foreign earnings		—			—			5
Other items, net		(1	)		(2	)		(4	)
Income tax expense	$	39		$	12		$	147

Schedule of Components Deferred Income Tax Assets and Liabilities

The components of deferred income tax assets and liabilities consisted of the following:

(In millions)	December 26, 2015			December 27, 2014
U.S. and foreign net operating loss carryforwards	$	324		$	322
Deferred rent credit		68			80
Pension and other accrued compensation		181			184
Accruals for facility closings		43			45
Inventory		20			23
Self-insurance accruals		33			33
Deferred revenue		39			39
U.S. and foreign income tax credit carryforwards		232			246
Allowance for bad debts		6			5
Accrued expenses		43			80
Basis difference in fixed assets		81			59
Other items, net		8			8
Gross deferred tax assets		1,078			1,124
Valuation allowance		(763	)		(804	)
Deferred tax assets		315			320
Internal software		5			8
Installment gain on sale of timberlands		260			251
Deferred Subpart F income		27			27
Undistributed foreign earnings		2			2
Deferred tax liabilities		294			288
Net deferred tax assets	$	21		$	32

Summary of Valuation Allowances

The following summarizes the activity related to valuation allowances for deferred tax assets:

(In millions)	2015			2014		2013
Beginning balance	$	804		$	683	$	583
Additions, charged to expense		—			121		26
Additions, due to the Merger		—			—		84
Reductions		(41	)		—		(10	)
Ending balance	$	763		$	804	$	683

Summary of Activity Related to Unrecognized Tax Benefits

The following table summarizes the activity related to unrecognized tax benefits:

(In millions)	2015			2014			2013
Beginning balance	$	23		$	15		$	5
Increase related to current year tax positions		1			7			4
Increase related to prior year tax positions		1			4			—
Decrease related to prior year tax positions		(6	)		(2	)		—
Decrease related to lapse of statute of limitations		(1	)		—			—
Decrease related to settlements with taxing authorities		—			(1	)		—
Increase related to the Merger		—			—			6
Ending balance	$	18		$	23		$	15