INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Domestic and Foreign Earnings (Loss) Before Income Taxes

Domestic and Foreign Earnings (Loss) Before Income Taxes

DOLLAR AMOUNTS IN MILLIONS
	2020		2019			2018
Domestic earnings (loss)	$	723	$	(268	)	$	556
Foreign earnings		259		55			251
Total earnings (loss) before income taxes	$	982	$	(213	)	$	807

Provision (Benefit) for Income Taxes

PROVISION (BENEFIT) FOR INCOME TAXES

DOLLAR AMOUNTS IN MILLIONS
	2020			2019			2018
Current:
Federal	$	147		$	21		$	(69	)
State		30			1			(5	)
Foreign		64			10			61
Total current		241			32			(13	)
Deferred:
Federal		(66	)		(137	)		45
State		(1	)		(31	)		12
Foreign		11			(1	)		15
Total deferred		(56	)		(169	)		72
Total income tax provision (benefit)	$	185		$	(137	)	$	59

Effective Income Tax Rate Applicable

EFFECTIVE INCOME TAX RATE

DOLLAR AMOUNTS IN MILLIONS
	2020			2019			2018
U.S. federal statutory income tax	$	207		$	(45	)	$	170
State income taxes, net of federal tax benefit		23			(31	)		8
REIT income not subject to federal income tax		(51	)		(68	)		(116	)
SDT settlement(1)		—			—			21
Voluntary pension contribution(2)		—			—			(41	)
Return to provision adjustment		(3	)		4			(1	)
Foreign taxes		11			(2	)		15
Other, net		(2	)		5			3
Total income tax provision (benefit)	$	185		$	(137	)	$	59
Effective income tax rate	18.8%			64.1%			7.3%

(1) In fourth quarter 2018, we recorded tax expense of $21 million related to the settlement of a dispute with the IRS. Refer to “Resolution of IRS Matter” below for further information.

(2) At the end of 2017, we revalued our deferred tax assets and liabilities to the 21 percent federal tax rate prescribed by H.R. 1 (the Tax Act). During 2018, we made a voluntary contribution of $300 million to our U.S. qualified pension plan. We deducted this contribution on our 2017 U.S. federal tax return at the 2017 federal tax rate of 35 percent. This resulted in an incremental $41 million tax benefit for the portion attributable to our TRSs. Refer to Note 9: Pension and Other Post-Employment Benefit Plans for further information on the voluntary contribution.

Balance Sheet Classification of Deferred Income Tax Assets (Liabilities)

Balance Sheet Classification of Deferred Income Tax Assets (Liabilities)

DOLLAR AMOUNTS IN MILLIONS
	DECEMBER 31, 2020			DECEMBER 31, 2019
Net noncurrent deferred tax asset	$	120		$	72
Net noncurrent deferred tax liability		(24	)		(6	)
Net deferred tax asset	$	96		$	66

Items Included in Our Deferred Income Tax Assets (Liabilities)

Items Included in Our Deferred Income Tax Assets (Liabilities)

DOLLAR AMOUNTS IN MILLIONS
	DECEMBER 31, 2020			DECEMBER 31, 2019
Deferred tax assets:
Pension and post-employment benefits		207		$	159
State tax credits		48			53
Depletion		14			34
Excess interest		—			55
Incentive compensation		19			17
Workers compensation		18			18
Net operating loss carryforwards		16			28
Other		107			101
Gross deferred tax assets		429			465
Valuation allowance		(66	)		(64	)
Net deferred tax assets		363			401
Deferred tax liabilities:
Property, plant and equipment		(239	)		(224	)
Timber installment notes		—			(74	)
Other		(28	)		(37	)
Net deferred tax liabilities		(267	)		(335	)
Net deferred tax asset	$	96		$	66