Employee Benefit Plans and Other Postretirement Benefits (Tables)

6 Months Ended

Jun. 30, 2014

Pension Plans

Components of Net Periodic Benefit Costs

The components of net periodic benefit cost for our pension plans were as follows (dollars in thousands):

	Pension Plans
	Three Months Ended June 30						Six Months Ended June 30
	2014			2013			2014			2013
Service cost	$	5,806		$	6,249		$	11,600		$	12,497
Interest cost	11,459			3,991			22,893			7,982
Expected return on plan assets	(12,672		)	(3,751		)	(25,351		)	(7,501		)
Net amortization of unrecognized amounts
Prior service cost	1,640			1,560			3,281			3,121
Actuarial loss	155			1,502			310			3,003
Curtailment loss (a)	—			7,776			—			7,776
Net periodic benefit cost	$	6,388		$	17,327		$	12,733		$	26,878

___________

(a) In June 2013, the United Steelworkers (“USW”) ratified a master labor agreement with PCA under which we froze certain USW-represented corrugated plant employees pension accruals under PCA’s hourly pension plan. As of the date of the pension freeze, affected USW-represented employees will transition to a defined contribution 401k plan. In accordance with ASC 715, “Compensation — Retirement Benefits,” we recorded a $7.8 million pre-tax pension curtailment charge related to the unrecognized prior service costs of employees impacted by the pension freeze during the second quarter of 2013. We also remeasured the hourly pension plan benefit obligation using current fair values of plan assets and current assumptions, resulting in a decrease in the benefit obligation of $13.8 million with a corresponding decrease in accumulated other comprehensive income (loss) of $8.4 million and deferred taxes of $5.4 million.

Postretirement Plans

Components of Net Periodic Benefit Costs

The components of net periodic benefit cost for our postretirement plans were as follows (dollars in thousands):

	Postretirement Plans
	Three Months Ended June 30						Six Months Ended June 30
	2014			2013			2014			2013
Service cost	$	393		$	515		$	785		$	1,030
Interest cost	314			311			622			623
Net amortization of unrecognized amounts
Prior service benefit	(56		)	(106		)	(113		)	(212		)
Actuarial loss	27			134			51			267
Net periodic benefit cost	$	678		$	854		$	1,345		$	1,708