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Employee Benefit Plans and Other Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Schedule of Obligations and Funded Status of Defined Benefit Pension and Postretirement Benefit Plans The following table, which includes only company-sponsored defined benefit and other postretirement benefit plans, reconciles the beginning and ending balances of the projected benefit obligation and the fair value of plan assets. We recognize the unfunded status of these plans on the Consolidated Balance Sheets, and we recognize changes in funded status in the year changes occur through the Consolidated Statements of Comprehensive Income (dollars in millions):

 

 

 

Pension Plans

 

 

Postretirement Plans

 

 

 

Year Ended December 31

 

 

Year Ended December 31

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Change in Benefit Obligation:

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation at beginning of period

 

$

1,565.6

 

 

$

1,420.1

 

 

$

13.1

 

 

$

14.5

 

Service cost

 

 

21.4

 

 

 

23.0

 

 

 

0.2

 

 

 

0.3

 

Interest cost

 

 

29.6

 

 

 

39.8

 

 

 

0.3

 

 

 

0.4

 

Plan amendments

 

 

2.1

 

 

 

1.3

 

 

 

(0.1

)

 

 

—

 

Actuarial (gain) loss (a)

 

 

(61.1

)

 

 

132.0

 

 

 

1.3

 

 

 

(1.5

)

Participant contributions

 

 

—

 

 

 

—

 

 

 

0.6

 

 

 

0.9

 

Benefits paid

 

 

(53.8

)

 

 

(50.6

)

 

 

(1.8

)

 

 

(1.5

)

Benefit obligation at plan year end

 

$

1,503.8

 

 

$

1,565.6

 

 

$

13.6

 

 

$

13.1

 

Accumulated benefit obligation portion of above

 

$

1,464.8

 

 

$

1,520.4

 

 

 

 

 

 

 

Change in Fair Value of Plan Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Plan assets at fair value at beginning of period

 

$

1,300.7

 

 

$

1,073.8

 

 

$

—

 

 

$

—

 

Actual return on plan assets

 

 

84.7

 

 

 

193.8

 

 

 

—

 

 

 

—

 

Company contributions

 

 

51.1

 

 

 

83.7

 

 

 

1.2

 

 

 

0.6

 

Participant contributions

 

 

—

 

 

 

—

 

 

 

0.6

 

 

 

0.9

 

Benefits paid

 

 

(53.8

)

 

 

(50.6

)

 

 

(1.8

)

 

 

(1.5

)

Fair value of plan assets at plan year end

 

$

1,382.7

 

 

$

1,300.7

 

 

$

—

 

 

$

—

 

Underfunded status

 

$

(121.1

)

 

$

(264.9

)

 

$

(13.6

)

 

$

(13.1

)

Amounts Recognized on Consolidated Balance Sheets:

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

$

(1.9

)

 

$

(1.2

)

 

$

(0.6

)

 

$

(0.6

)

Noncurrent liabilities

 

 

(119.2

)

 

 

(263.7

)

 

 

(13.0

)

 

 

(12.5

)

Accrued obligation recognized at December 31

 

$

(121.1

)

 

$

(264.9

)

 

$

(13.6

)

 

$

(13.1

)

Amounts Recognized in Accumulated Other
Comprehensive Loss (Income) (Pre-Tax):

 

 

 

 

 

 

 

 

 

 

 

 

Prior service cost (credit)

 

$

20.0

 

 

$

21.7

 

 

$

(4.7

)

 

$

(4.9

)

Actuarial loss (gain)

 

 

130.4

 

 

 

223.5

 

 

 

(3.6

)

 

 

(5.5

)

Total

 

$

150.4

 

 

$

245.2

 

 

$

(8.3

)

 

$

(10.4

)

 

(a)
For the year ended December 31, 2021, the most significant driver of the decrease in benefit obligations for the pension plans was the actuarial gains due to an increase in the discount rate assumption. The OPEB plans experienced an actuarial loss primarily due to adverse medical claims experience that was partially offset by the effect of the change in the discount rate assumption. For the year ended December 31, 2020, the most significant driver of the increase in benefit obligations for the plans was the actuarial losses due to the decrease in the discount rate assumption. The OPEB plans experienced a net actuarial gain primarily due to changes in demographic assumptions that were partially offset by the effect of the change in the discount rate assumption.
Components of Net Periodic Benefit Costs and Other Comprehensive (Income) Loss (Pretax)

The components of net periodic benefit cost and other comprehensive (income) loss (pretax) were as follows (dollars in millions):

 

 

 

Pension Plans

 

 

Postretirement Plans

 

 

 

Year Ended December 31,

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

 

2021

 

 

2020

 

 

2019

 

Service cost

 

$

21.4

 

 

$

23.0

 

 

$

24.5

 

 

$

0.2

 

 

$

0.3

 

 

$

0.3

 

Interest cost

 

 

29.6

 

 

 

39.8

 

 

 

47.0

 

 

 

0.3

 

 

 

0.4

 

 

 

0.5

 

Expected return on plan assets

 

 

(63.1

)

 

 

(56.8

)

 

 

(52.1

)

 

 

—

 

 

 

—

 

 

 

—

 

Net amortization of unrecognized amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service cost (credit)

 

 

3.8

 

 

 

4.3

 

 

 

6.3

 

 

 

(0.4

)

 

 

(0.4

)

 

 

(0.3

)

Actuarial loss (gain)

 

 

10.4

 

 

 

10.8

 

 

 

7.0

 

 

 

(0.5

)

 

 

(0.4

)

 

 

(0.4

)

Net periodic benefit cost

 

$

2.1

 

 

$

21.1

 

 

$

32.7

 

 

$

(0.4

)

 

$

(0.1

)

 

$

0.1

 

Changes in plan assets and benefit obligations
   recognized in other comprehensive (income)
   loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial net loss (gain)

 

$

(82.7

)

 

$

(5.0

)

 

$

51.8

 

 

$

1.3

 

 

$

(1.5

)

 

$

0.2

 

Prior service cost (credit)

 

 

2.1

 

 

 

1.3

 

 

 

2.3

 

 

 

(0.1

)

 

 

—

 

 

 

(0.3

)

Amortization of prior service cost (credit)

 

 

(3.8

)

 

 

(4.3

)

 

 

(6.3

)

 

 

0.4

 

 

 

0.4

 

 

 

0.3

 

Amortization of actuarial loss (gain)

 

 

(10.4

)

 

 

(10.8

)

 

 

(7.0

)

 

 

0.5

 

 

 

0.4

 

 

 

0.4

 

Total recognized in other comprehensive
   loss (income) (b)

 

$

(94.8

)

 

$

(18.8

)

 

$

40.8

 

 

$

2.1

 

 

$

(0.7

)

 

$

0.6

 

Total recognized in net periodic benefit
   cost and other comprehensive loss (income)
   (pre-tax)

 

$

(92.7

)

 

$

2.3

 

 

$

73.5

 

 

$

1.7

 

 

$

(0.8

)

 

$

0.7

 

 

(b)
Accumulated losses in excess of 10% of the greater of the projected benefit obligation or the market-related value of assets will be recognized on a straight-line basis over the average remaining service period of active employees in PCA plans (which is between six and nine years) and over the average remaining lifetime of inactive participants of Boise plans (which is between 22 and 26 years), to the extent that losses are not offset by gains in subsequent years.
Weighted-Average Assumptions Used To Determine Benefit Obligations and Net Periodic Benefit Cost

The following table presents the assumptions used in the measurement of our benefits obligations:

 

 

 

Pension Plans

 

Postretirement Plans

 

 

December 31,

 

December 31,

 

 

2021

 

2020

 

2019

 

2021

 

2020

 

2019

Weighted-Average Assumptions Used to
   Determine Benefit Obligations at
   December 31:

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

2.89 %

 

2.57 %

 

3.25 %

 

2.91 %

 

2.60 %

 

3.18 %

Rate of compensation increase

 

4.00 %

 

4.00 %

 

4.00 %

 

N/A

 

N/A

 

N/A

Weighted-Average Assumptions Used to
   Determine Net Periodic Benefit Cost for the
   Years Ended December 31:

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

2.57 %

 

3.25 %

 

4.31 %

 

2.60 %

 

3.18 %

 

4.21 %

Expected return on plan assets

 

4.91 %

 

5.29 %

 

6.06 %

 

N/A

 

N/A

 

N/A

Rate of compensation increase

 

4.00 %

 

4.00 %

 

4.00 %

 

N/A

 

N/A

 

N/A
Assumed Health Care Cost Trend Rates For Postretirement Benefits

Health Care Cost Trend Rate Assumptions. PCA assumed health care cost trend rates for its postretirement benefits plans were as follows:

 

 

 

2021

 

2020

 

2019

Health care cost trend rate assumed for next year

 

6.55 %

 

6.82 %

 

7.09 %

Rate to which the cost trend rate is assumed to decline
   (the ultimate trend rate)

 

4.50 %

 

4.50 %

 

4.50 %

Year that the rate reaches the ultimate trend rate

 

2030

 

2029

 

2029
Schedule of Pension Plans' Assets Investment Policies and Strategies Assets of our pension plans were invested in the following classes of securities at December 31, 2021 and 2020:

 

 

 

Percentage
of Fair Value at December 31,

 

 

 

2021

 

 

2020

 

Fixed income securities

 

 

67

%

 

 

48

%

International equity securities

 

 

18

%

 

 

29

%

Domestic equity securities

 

 

13

%

 

 

21

%

Other

 

 

2

%

 

 

2

%
Schedule of Fair Value Measurements of Plan Assets by Major Asset Category

The following tables set forth, by level within the fair value hierarchy, discussed in Note 2, Summary of Significant Accounting Policies, the pension plan assets, by major asset category, at fair value at December 31, 2021 and 2020 (dollars in millions):

 

 

 

Fair Value Measurements at December 31, 2021

 

Asset Category

 

Quoted Prices in
Active Markets
for Identical
Assets (Level 1)

 

 

Significant
Other Observable Inputs (Level 2)

 

 

Significant
Unobservable
Inputs (Level 3)

 

 

Net Asset Value (NAV) (a)

 

 

Total

 

Short-term investments

 

$

—

 

 

$

19.3

 

 

$

—

 

 

$

—

 

 

$

19.3

 

Common/collective trust funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International equities

 

 

134.4

 

 

 

20.1

 

 

 

—

 

 

 

90.1

 

 

 

244.6

 

Domestic equities

 

 

—

 

 

 

185.7

 

 

 

—

 

 

 

—

 

 

 

185.7

 

Corporate and government bonds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

—

 

 

 

436.2

 

 

 

—

 

 

 

—

 

 

 

436.2

 

Government bonds and agencies

 

 

—

 

 

 

320.2

 

 

 

—

 

 

 

—

 

 

 

320.2

 

Fixed income

 

 

—

 

 

 

147.7

 

 

 

—

 

 

 

—

 

 

 

147.7

 

Municipal bonds

 

 

—

 

 

 

24.0

 

 

 

—

 

 

 

—

 

 

 

24.0

 

Private equity securities (b)

 

 

—

 

 

 

—

 

 

 

1.5

 

 

 

—

 

 

 

1.5

 

Total securities at fair value

 

$

134.4

 

 

$

1,153.2

 

 

$

1.5

 

 

$

90.1

 

 

$

1,379.2

 

Accrued income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.5

 

Total fair value of plan assets

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,382.7

 

 

 

 

Fair Value Measurements at December 31, 2020

 

Asset Category

 

Quoted Prices in
Active Markets
for Identical
Assets (Level 1)

 

 

Significant
Other Observable
Inputs (Level 2)

 

 

Significant
Unobservable
Inputs (Level 3)

 

 

Net Asset Value (NAV) (a)

 

 

Total

 

Short-term investments

 

$

—

 

 

$

25.1

 

 

$

—

 

 

$

—

 

 

$

25.1

 

Common/collective trust funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International equities

 

 

198.4

 

 

 

32.8

 

 

 

—

 

 

 

136.9

 

 

 

368.1

 

Domestic equities

 

 

—

 

 

 

276.9

 

 

 

—

 

 

 

—

 

 

 

276.9

 

Corporate and government bonds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

—

 

 

 

318.3

 

 

 

—

 

 

 

—

 

 

 

318.3

 

Government bonds and agencies

 

 

—

 

 

 

243.4

 

 

 

—

 

 

 

—

 

 

 

243.4

 

Fixed income

 

 

—

 

 

 

49.4

 

 

 

—

 

 

 

—

 

 

 

49.4

 

Municipal bonds

 

 

—

 

 

 

15.9

 

 

 

 

 

 

—

 

 

 

15.9

 

Private equity securities (b)

 

 

—

 

 

 

—

 

 

 

2.0

 

 

 

—

 

 

 

2.0

 

Total securities at fair value

 

$

198.4

 

 

$

961.8

 

 

$

2.0

 

 

$

136.9

 

 

$

1,299.1

 

Accrued income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.6

 

Total fair value of plan assets

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,300.7

 

 

(a)
In accordance with ASC 820, Fair Value Measurement, certain investments that do not have readily determinable fair values are measured at fair value using the net asset value (NAV) per share practical expedient and are not classified within the fair value hierarchy.
(b)
Investments in this category are invested in the Pantheon Global Secondary Fund IV, LP. The fund specializes in investments in the private equity secondary market and occasionally directly in private companies to maximize capital growth. Fund investments are carried at fair value as determined quarterly using the market approach to estimate the fair value of private investments. The market approach utilizes prices and other relevant information generated by market transactions, type of security, size of the position, degree of liquidity, restrictions on the disposition, latest round of financing data, current financial position, and operating results, among other factors. In circumstances where fair values are not provided with respect to any of the company's fund investments, the investment advisor will seek to determine the fair value of such investments based on information provided by the general partners or managers of such funds or from other sources. Audited financial statements are provided by fund management annually. Notwithstanding the above, the variety of valuation bases adopted and quality of management data of the ultimate underlying investee companies means that there are inherent difficulties in determining the value of the investments. Amounts realized on the sale of these investments may differ from the calculated values. Boise had originally committed to a $15.0 million investment, with $2.0 million of the commitment unfunded at December 31, 2021.
Summary of Changes in Pension Plans' Level 3 Assets

The following table sets forth a summary of changes in the fair value of the pension plans' Level 3 assets for the year ended December 31, 2021 (dollars in millions):

 

 

 

2021

 

Balance, beginning of year

 

$

2.0

 

Acquisitions

 

 

—

 

Purchases

 

 

0.4

 

Sales

 

 

(0.9

)

Unrealized gain

 

 

—

 

Balance, end of year

 

$

1.5

 
Schedule of Estimated Benefit Payments

The following are estimated benefit payments to be paid to current plan participants by year (dollars in millions). Qualified pension benefit payments are paid from plan assets, while nonqualified pension benefit payments are paid by the Company.

 

 

 

Pension
Plans

 

 

Postretirement
Plans

 

2022

 

$

60.1

 

 

$

0.5

 

2023

 

 

63.9

 

 

 

0.5

 

2024

 

 

66.8

 

 

 

0.5

 

2025

 

 

70.0

 

 

 

0.6

 

2026 - 2031

 

 

469.3

 

 

 

3.9