INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2011

Domestic and Foreign Earnings (Loss) From Continuing Operations Before Income Taxes

Domestic and Foreign Earnings (Loss) From Continuing Operations Before Income Taxes

DOLLAR AMOUNTS IN MILLIONS
	2011			2010			2009
Domestic earnings (loss)	$	341		$	96		$	(605	)
Foreign loss	(84		)	(14		)	(169		)
Total	$	257		$	82		$	(774	)

Provision (Benefit) for Income Taxes From Continuing Operations

Provision (Benefit) for Income Taxes From Continuing Operations

DOLLAR AMOUNTS IN MILLIONS
	2011			2010			2009
Federal:
Current	$	(73	)	$	53		$	(333	)
Deferred	11			(1,180		)	140
	(62		)	(1,127		)	(193		)
State:
Current	16			3			(1		)
Deferred	(11		)	(69		)	(22		)
	5			(66		)	(23		)
Foreign:
Current	8			9			12
Deferred	(13		)	(8		)	(45		)
	(5		)	1			(33		)
Total income tax benefit	$	(62	)	$	(1,192	)	$	(249	)

Effective Income Tax Rate Applicable to Continuing Operations

Effective Income Tax Rate Applicable to Continuing Operations

DOLLAR AMOUNTS IN MILLIONS
	2011			2010			2009
U.S. federal statutory income tax	$	90		$	29		$	(271	)
State income taxes, net of federal tax benefit	4			4			(24		)
REIT income not subject to federal income tax	(80		)	(37		)	—
Foreign taxes	20			4			23
Federal income tax credits	(4		)	(4		)	(6		)
Medicare Part D subsidy	—			26			2
Provision for unrecognized tax benefits	(7		)	(3		)	18
REIT conversion benefit	—			(1,064		)	—
Cellulosic biofuel producer credit	—			(149		)	—
Repatriation of Canadian earnings	(76		)	—			—
Other, net	(9		)	2			9
Total income tax benefit	$	(62	)	$	(1,192	)	$	(249	)
Effective income tax rate	(23.3		)%	N/M*			32.1		%
* Not meaningful

Deferred Income Tax Assets (Liabilities) Related to Continuing Operations by Category

Deferred Income Tax Assets (Liabilities) Related to Continuing Operations by Category

DOLLAR AMOUNTS IN MILLIONS
	DECEMBER 31, 2011			DECEMBER 31, 2010
Forest Products:
Current	$	81		$	113
Noncurrent	(93		)	(366		)
Real Estate	240			266
Net deferred tax assets (liabilities)	$	228		$	13

Items included in Our Deferred Income Tax Assets (Liabilities)

Items Included in Our Deferred Income Tax Assets (Liabilities)

DOLLAR AMOUNTS IN MILLIONS
	DECEMBER 31, 2011			DECEMBER 31, 2010
Postretirement benefits	$	134		$	172
Pension	337			109
Real estate impairments	141			205
State tax credits	57			57
Net operating loss carryforwards	169			162
Cellulosic biofuel producers credit	238			240
Other	371			390
Gross deferred tax assets	1,447			1,335
Valuation allowance	(146		)	(142		)
Net deferred tax assets	1,301			1,193
Property, plant and equipment	(610		)	(668		)
Timber installment notes	(277		)	(277		)
Other	(186		)	(235		)
Deferred tax liabilities	(1,073		)	(1,180		)
Net deferred tax assets (liabilities)	$	228		$	13

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, 2011			DECEMBER 31, 2010
Balance at beginning of year	$	180		$	170
Additions based on tax positions related to current year	1			1
Additions for tax positions of prior years	91			17
Reductions for tax positions of prior years	(11		)	(6		)
Foreign currency translation	(2		)	4
Settlements	(2		)	—
Lapse of statute	(6		)	(6		)
Balance at end of year	$	251		$	180