INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Components of Income (Loss) from Continuing Operations Before Income Taxes

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

(In millions)	2016		2015			2014
United States	$	445	$	122		$	(286	)
Foreign		14		(7	)		(5	)
Total income (loss) from continuing operations before income taxes	$	459	$	115		$	(291	)

Schedule Income Tax Expense Related to Income (Loss) From Continuing Operations

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

(In millions)	2016			2015			2014
Current:
Federal	$	17		$	18		$	(2	)
State		6			4			(1	)
Foreign		3			1			3
Deferred :
Federal		(210	)		(1	)		—
State		(37	)		2			3
Foreign		1			(1	)		(1	)
Total income tax expense (benefit)	$	(220	)	$	23		$	2

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)	2016			2015			2014
Federal tax computed at the statutory rate	$	160		$	40		$	(102	)
State taxes, net of Federal benefit		(20	)		5			1
Foreign income taxed at rates other than Federal		—			6			8
Increase (decrease) in valuation allowance		(349	)		(46	)		85
Non-deductible Merger expenses		—			11			—
Other non-deductible expenses		3			4			13
Non-taxable income and additional deductible expenses		(13	)		(2	)		(2	)
Change in unrecognized tax benefits		(3	)		—			—
Tax expense from intercompany transactions		—			6			—
Subpart F and dividend income, net of foreign tax credits		2			1			2
Other items, net		—			(2	)		(3	)
Income tax expense (benefit)	$	(220	)	$	23		$	2

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 31, 2016			December 26, 2015
U.S. and foreign loss carryforwards	$	275		$	79
Deferred rent credit		61			68
Pension and other accrued compensation		134			200
Accruals for facility closings		29			43
Inventory		20			19
Self-insurance accruals		29			33
Deferred revenue		24			45
U.S. and foreign income tax credit carryforwards		197			223
Allowance for bad debts		5			12
Accrued expenses		28			32
Basis difference in fixed assets		69			73
Other items, net		5			—
Gross deferred tax assets		876			827
Valuation allowance		(140	)		(522	)
Deferred tax assets		736			305
Internal software		5			5
Installment gain on sale of timberlands		260			263
Deferred Subpart F income		—			27
Undistributed foreign earnings		8			2
Deferred tax liabilities		273			297
Net deferred tax assets	$	463		$	8

Summary of Valuation Allowances

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

(In millions)	2016			2015			2014
Beginning balance	$	522		$	571		$	448
Additions, charged to expense		—			—			123
Reductions		(382	)		(49	)		—
Ending balance	$	140		$	522		$	571

Summary of Activity Related to Unrecognized Tax Benefits

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

(In millions)	2016			2015			2014
Beginning balance	$	18		$	22		$	15
Increase related to current year tax positions		1			1			6
Increase related to prior year tax positions		—			1			4
Decrease related to prior year tax positions		—			(5	)		(2	)
Decrease related to lapse of statute of limitations		—			(1	)		—
Decrease related to settlements with taxing authorities		(5	)		—			(1	)
Ending balance	$	14		$	18		$	22