10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 1-15399

 

(Exact Name of Registrant as Specified in its Charter)

Delaware	36-4277050
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
1 North Field Court, Lake Forest, Illinois	60045
(Address of Principal Executive Offices)	(Zip Code)

Registrant's telephone number, including area code

(847) 482-3000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐	Emerging growth company	☐
Non-accelerated filer	☐	Smaller reporting company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 29, 2022 the Registrant had outstanding 93,701,172 shares of common stock, par value $0.01 per share.

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	PKG	New York Stock Exchange

Table of Contents

	PART I
Item 1.	Financial Statements	1
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	24
Item 4.	Controls and Procedures	24
	PART II
Item 1.	Legal Proceedings	25
Item 1A.	Risk Factors	25
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25
Item 3.	Defaults Upon Senior Securities	25
Item 4.	Mine Safety Disclosures	25
Item 5.	Other Information	25
Item 6.	Exhibits	26

All reports we file with the Securities and Exchange Commission (SEC) are available free of charge via the Electronic Data Gathering Analysis and Retrieval (EDGAR) System on the SEC website at www.sec.gov. We also provide copies of our SEC filings at no charge upon request and make electronic copies of our reports available through our website at www.packagingcorp.com as soon as reasonably practicable after filing such material with the SEC.

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PART I

FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

Packaging Corporation of America

Consolidated Statements of Income and Comprehensive Income

(unaudited, dollars in millions, except per-share data)

	Three Months Ended
	March 31,
	2022			2021
Statements of Income:
Net sales	$	2,136.4		$	1,807.2
Cost of sales		(1,603.2	)		(1,403.5	)
Gross profit		533.2			403.7
Selling, general and administrative expenses		(161.1	)		(145.0	)
Other expense, net		(15.6	)		(20.4	)
Income from operations		356.5			238.3
Non-operating pension income		3.6			4.8
Interest expense, net		(19.8	)		(23.5	)
Income before taxes		340.3			219.6
Provision for income taxes		(86.1	)		(53.1	)
Net income	$	254.2		$	166.5
Net income per common share:
Basic	$	2.71		$	1.75
Diluted	$	2.70		$	1.75
Dividends declared per common share	$	1.00		$	1.00
Statements of Comprehensive Income:
Net income	$	254.2		$	166.5
Other comprehensive income, net of tax:
Changes in unrealized losses on marketable debt securities,    net of tax of $0.4 million and $0.0 million for 2022 and 2021,    respectively		(1.2	)		(0.1	)
Amortization of pension and postretirement plans actuarial loss and    prior service cost, net of tax of ($0.3) million and ($0.8) million for    2022 and 2021, respectively		1.2			2.5
Other comprehensive income		—			2.4
Comprehensive income	$	254.2		$	168.9

See accompanying condensed notes to unaudited quarterly consolidated financial statements.

1

Packaging Corporation of America

Consolidated Balance Sheets

(unaudited, dollars and shares in millions, except per-share data)

	March 31,			December 31,
	2022			2021
ASSETS
Current assets:
Cash and cash equivalents	$	628.6		$	618.7
Short-term marketable debt securities		81.3			86.1
Accounts receivable, net of allowance for credit losses and customer deductions    of $20.0 million and $14.3 million as of March 31, 2022 and December 31, 2021,    respectively		1,140.7			1,071.0
Inventories		941.2			902.5
Prepaid expenses and other current assets		77.6			47.0
Federal and state income taxes receivable		—			7.4
Total current assets		2,869.4			2,732.7
Property, plant, and equipment, net		3,670.7			3,529.0
Goodwill		923.1			923.5
Other intangible assets, net		298.2			308.4
Operating lease right-of-use assets		264.4			238.3
Long-term marketable debt securities		68.5			60.0
Other long-term assets		43.5			44.9
Total assets	$	8,137.8		$	7,836.8
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Operating lease obligations	$	69.7		$	67.1
Finance lease obligations		1.8			1.7
Accounts payable		546.7			452.4
Dividends payable		96.9			96.3
Accrued liabilities		188.6			255.0
Accrued interest		26.0			12.3
Federal and state income taxes payable		38.2			—
Total current liabilities		967.9			884.8
Long-term liabilities:
Long-term debt		2,472.0			2,471.5
Operating lease obligations		202.6			179.3
Finance lease obligations		12.2			12.7
Deferred income taxes		488.8			465.9
Compensation and benefits		157.0			157.4
Other long-term liabilities		58.0			58.0
Total long-term liabilities		3,390.6			3,344.8
Commitments and contingent liabilities (Note 20)
Stockholders' equity:
Common stock, par value $0.01 per share, 300.0 million shares authorized, 93.7 million    and 93.5 million shares issued as of March 31, 2022 and December 31, 2021,    respectively		0.9			0.9
Additional paid in capital		591.7			579.4
Retained earnings		3,261.9			3,102.1
Accumulated other comprehensive loss		(75.2	)		(75.2	)
Total stockholders' equity		3,779.3			3,607.2
Total liabilities and stockholders' equity	$	8,137.8		$	7,836.8

See accompanying condensed notes to unaudited quarterly consolidated financial statements.

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Packaging Corporation of America

Consolidated Statements of Cash Flows

(unaudited, dollars in millions)

	Three Months Ended
	March 31,
	2022			2021
Cash Flows from Operating Activities:
Net income	$	254.2		$	166.5
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion, and amortization of intangibles		109.7			100.8
Amortization of deferred financing costs		0.5			0.7
Share-based compensation expense		12.3			11.6
Deferred income tax provision		22.9			12.0
Loss on asset disposals		2.8			3.7
Pension and post-retirement benefits expense, net of contributions		0.8			(0.2	)
Other, net		3.8			3.7
Changes in operating assets and liabilities:
Increase in assets —
Accounts receivable		(69.6	)		(76.2	)
Inventories		(38.8	)		(11.7	)
Prepaid expenses and other current assets		(30.1	)		(19.0	)
Increase (decrease) in liabilities —
Accounts payable		63.6			(12.3	)
Accrued liabilities		(52.4	)		(15.8	)
Federal and state income taxes payable / receivable		45.6			27.8
Net cash provided by operating activities		325.3			191.6
Cash Flows from Investing Activities:
Additions to property, plant, and equipment		(213.2	)		(85.1	)
Additions to other long-term assets		(2.4	)		(1.3	)
Proceeds from asset disposals		0.2			0.7
Purchases of marketable debt securities		(36.4	)		(31.4	)
Proceeds from sales of marketable debt securities		7.8			11.4
Proceeds from maturities of marketable debt securities		22.8			18.2
Net cash used for investing activities		(221.2	)		(87.5	)
Cash Flows from Financing Activities:
Repayments of debt and finance lease obligations		(0.4	)		(0.4	)
Common stock dividends paid		(93.6	)		(94.8	)
Shares withheld to cover employee restricted stock taxes		(0.2	)		(0.1	)
Net cash used for financing activities		(94.2	)		(95.3	)
Net increase in cash and cash equivalents		9.9			8.8
Cash and cash equivalents, beginning of period		618.7			974.6
Cash and cash equivalents, end of period	$	628.6		$	983.4

See accompanying condensed notes to unaudited quarterly consolidated financial statements.

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Packaging Corporation of America

Consolidated Statements of Changes in Stockholders’ Equity

(unaudited, dollars in millions and shares in thousands)

	Common Stock					Additional Paid in		Retained			Accumulated Other Comprehensive			Total Stockholders'
	Shares			Amount		Capital		Earnings			Loss			Equity
Balance at January 1, 2022		93,539		$	0.9	$	579.4	$	3,102.1		$	(75.2	)	$	3,607.2
Common stock withheld and retired    to cover taxes on vested stock awards		(1	)		—		—		(0.2	)		—			(0.2	)
Common stock dividends declared		—			—		—		(94.2	)		—			(94.2	)
Share-based compensation and other		166			—		12.3		—			—			12.3
Comprehensive income		—			—		—		254.2			—			254.2
Balance at March 31, 2022		93,704		$	0.9	$	591.7	$	3,261.9		$	(75.2	)	$	3,779.3
	Common Stock					Additional Paid in		Retained			Accumulated Other Comprehensive			Total Stockholders'
	Shares			Amount		Capital		Earnings			Loss			Equity
Balance at January 1, 2021		94,830		$	0.9	$	554.4	$	2,835.5		$	(144.5	)	$	3,246.3
Common stock withheld and retired to    cover taxes on vested stock awards		(1	)		—		—		(0.1	)		—			(0.1	)
Common stock dividends declared		—			—		—		(95.5	)		—			(95.5	)
Share-based compensation and other		165			0.1		11.6		(0.1	)		—			11.6
Comprehensive income		—			—		—		166.5			2.4			168.9
Balance at March 31, 2021		94,994		$	1.0	$	566.0	$	2,906.3		$	(142.1	)	$	3,331.2

See accompanying condensed notes to unaudited quarterly consolidated financial statements.

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Condensed Notes to Unaudited Quarterly Consolidated Financial Statements

1. Nature of Operations and Basis of Presentation

Packaging Corporation of America ("we," "us," "our," PCA," or the "Company") was incorporated on January 25, 1999. In April 1999, PCA acquired the containerboard and corrugated packaging products business of Pactiv Corporation ("Pactiv"), formerly known as Tenneco Packaging, Inc. We are a large diverse manufacturer of both packaging and paper products. We are headquartered in Lake Forest, Illinois and we operate primarily in the United States.

We report our business in three reportable segments: Packaging, Paper, and Corporate and Other. Our Packaging segment produces a wide variety of containerboard and corrugated packaging products. The Paper segment manufactures and sells a range of communication-based papers. Corporate and Other includes support staff services and related assets and liabilities, transportation assets, and activity related to other ancillary support operations. For more information about our segments, see Note 19, Segment Information.

Our Jackson, Alabama mill had historically operated as an uncoated freesheet ("UFS") paper mill, with its results of operations reported in our Paper segment. During the fourth quarter of 2020, in order to meet strong packaging demand and maintain appropriate inventory levels, we temporarily began producing linerboard on the No. 3 machine at our Jackson, Alabama mill. In the first quarter of 2021, we announced the discontinuation of production of UFS paper grades on the machine and the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities. In the third quarter of 2021, we began producing corrugating medium on the No. 1 machine at the Jackson mill (which had produced UFS paper in the past) to help satisfy our demand for containerboard, build necessary inventories, and evaluate the capability of the machine to produce containerboard on a cost-effective basis. For the periods presented in this Form 10-Q, operating results for the Jackson mill are included in both the Packaging and Paper segments, as appropriate.

In these consolidated financial statements, certain amounts in prior periods’ consolidated financial statements have been reclassified to conform with the current period presentation.

The consolidated financial statements of PCA as of March 31, 2022 and for the three months ended March 31, 2022 and 2021 are unaudited but include all adjustments (consisting only of normal recurring adjustments) that management considers necessary for a fair presentation of such financial statements. The preparation of the consolidated financial statements involves the use of estimates and accruals. Actual results may vary from those estimates. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with Article 10 of Regulation S-X of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete audited financial statements. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. These consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021.

The consolidated financial statements include the accounts of PCA and its majority-owned subsidiaries after elimination of intercompany balances and transactions.

2. New Accounting Standards

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ASU 2021-08 requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. Under current business combination guidance in ASC 805, Business Combinations, such assets and liabilities are recognized by the acquirer at fair value on the acquisition date, whereas the new guidance requires the acquirer to recognize such assets and liabilities as if it had originated the contracts. The ASU is effective for annual periods beginning after December 15, 2022, and interim periods within those annual periods, with early adoption permitted. The amended guidance should be applied on a prospective basis to any business combinations that occur on or after the adoption date. The Company is currently evaluating the impact of this guidance, but does not expect the guidance to have a significant impact on the Company's financial position, results of operations, or cash flow.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. The amendments in this Update are elective and apply to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU 2021-01, which extends some of the optional expedients under Topic 848 to include derivative contracts impacted by discounting transition. Companies can apply the ASU immediately. The ASU can be adopted on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to any new modification from any date within an interim period that includes or is subsequent to the date of the issuance of a final Update, up to the date that financial statements are available to be issued. The optional guidance will only be available until December 31, 2022. While the Company’s fixed-rate outstanding debt will not be impacted by the reference rate reform, the Company is still evaluating the impact of this guidance on its revolving credit facility, as the interest rate associated with any future borrowings against the revolving credit facility is based on LIBOR. Overall, the Company does not expect the guidance to have a significant impact on its financial position or related disclosures.

There were no other accounting standards recently issued that had or are expected to have a material impact on our financial position or results of operations.

5

3. Revenue

Revenue Recognition

Revenue is recognized when control of the promised goods or services is transferred to customers in an amount that reflects the consideration expected to be received in exchange for those goods or services. Sales, value added, and other taxes collected concurrently with revenue-producing activities are excluded from revenue.

The following table presents our revenues disaggregated by product line (dollars in millions):

	Three Months Ended March 31,
	2022		2021
Packaging	$	1,964.5	$	1,623.6
Paper		153.5		164.6
Corporate and Other		18.4		19.0
Total revenue	$	2,136.4	$	1,807.2

Packaging Revenue

Our containerboard mills produce linerboard and corrugating medium which are papers primarily used in the production of corrugated products. The majority of our containerboard production is used internally by our corrugated products manufacturing facilities. The remaining containerboard is sold to outside domestic and export customers. Our corrugated products manufacturing plants produce a wide variety of corrugated packaging products and retail merchandise displays. We sell corrugated products to national, regional and local accounts, which are broadly diversified across industries and geographic locations.

The Company recognizes revenue for its packaging products when performance obligations under the terms of a contract with a customer are satisfied. This occurs with the transfer of control of our products at a specific point in time. Based on our express terms and conditions of the sale of products to our customers, as well as terms included in contractual arrangements with our customers, we do not have an enforceable right of payment that includes a reasonable profit throughout the duration of the contract for products that do not have an alternative use. Revenue is recognized when the product is shipped from the mill or from our manufacturing facility to our customer. Certain customers may receive volume-based incentives, which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenue recognized.

Certain customers receive a portion of their packaging products as consigned inventory with billing triggered once the customer uses or consumes the designated product. Prior to invoicing, these amounts are handled as unbilled receivables. Total unbilled receivables, which are immaterial in amount, are included in the accounts receivable financial statement caption.

Paper Revenue

We manufacture and sell a range of communication-based papers. Communication papers consist of cut-size office papers, and printing and converting papers.

The Company recognizes revenue for its paper products when performance obligations under the terms of a contract with a customer are satisfied. This occurs with the transfer of control of our products at a specific point in time. Revenue is recognized when the product is shipped from the mill or from our manufacturing facility or distribution center to our customer. Certain customers may receive volume-based incentives, which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenue recognized.

Corporate and Other Revenue

Revenue in this segment primarily relates to Louisiana Timber Procurement Company, L.L.C. ("LTP"), a variable-interest entity that is 50% owned by PCA and 50% owned by Boise Cascade Company ("Boise Cascade"). PCA is the primary beneficiary of LTP and has the power to direct the activities that most significantly affect the economic performance of LTP. Therefore, we consolidate 100% of LTP in our financial statements. See Note 18, Transactions With Related Parties, for more information related to LTP.

The Company recognizes revenue within this segment when performance obligations under the terms of a contract with a customer are satisfied. This occurs with the transfer of control of our products at a specific point in time.

Practical Expedients and Exemption

Shipping and handling fees billed to a customer are recorded on a gross basis in "Net sales" with the corresponding shipping and handling costs included in "Cost of sales" in the concurrent period as the revenue is recorded. We expense sales commissions when incurred because the amortization period is one year or less. Sales commissions are recorded in "Selling, general, and administrative expenses".

We do not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less.

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4. Acquisitions

Advance Packaging Acquisition

On December 11, 2021, PCA acquired the assets of Advance Packaging Corporation ("Advance Packaging"), an independent corrugated products producer, for $194.9 million, including working capital adjustments. Assets acquired include full-line corrugated products operations in Grand Rapids, Michigan. Advance Packaging is a full-service producer of corrugated packaging products, including graphics, retail displays, sustainable shipping containers, and protective packaging. Advance Packaging's financial results are included in the Packaging segment from the date of acquisition.

The Company accounted for the Advance Packaging acquisition using the acquisition method of accounting in accordance with ASC 805, Business Combinations. The total purchase price has been preliminarily allocated to tangible and intangible assets acquired and liabilities assumed based on respective fair values, as follows (dollars in millions):

	12/31/2021 Allocation		Adjustments			Revised Allocation
Goodwill	$	60.0	$	(0.4	)	$	59.6
Other intangible assets		50.2		—			50.2
Property, plant and equipment		66.7		0.4			67.1
Other net assets		18.0		—			18.0
Net assets acquired	$	194.9	$	—		$	194.9

The purchase price allocation above is preliminary and is subject to finalization of various valuations and assessments, primarily related to intangible assets. Our current estimates and assumptions may change as more information becomes available. We expect to finalize the valuation within the 12-month period following the acquisition date.

Goodwill is calculated as the excess of the purchase price over the fair value of the net assets acquired. Among the factors that contributed to the recognition of goodwill were Advance Packaging's commitment to continuous improvement and synergies, as well as the expected increases in PCA's containerboard integration levels. Goodwill is deductible for tax purposes.

Other intangible assets, primarily customer relationships, were assigned an estimated weighted average useful life of 9.7 years.

Property, plant, and equipment were assigned estimated useful lives ranging from one to 20 years.

5. Earnings Per Share

The following table sets forth the computation of basic and diluted income per common share for the periods presented (dollars and shares in millions, except per share data):

	Three Months Ended
	March 31,
Numerator:	2022			2021
Net income	$	254.2		$	166.5
Less: Distributed and undistributed earnings allocated to participating    securities		(2.0	)		(1.3	)
Net income attributable to common shareholders	$	252.2		$	165.2
Denominator:
Weighted average basic common shares outstanding		92.9			94.2
Effect of dilutive securities		0.4			0.4
Weighted average diluted common shares outstanding		93.3			94.6
Basic income per common share	$	2.71		$	1.75
Diluted income per common share	$	2.70		$	1.75

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6. Other Expense, Net

The components of other income (expense), net, were as follows (dollars in millions):

	Three Months Ended
	March 31,
	2022			2021
Asset disposals and write-offs	$	(12.7	)	$	(10.4	)
Jackson mill conversion-related activities (a)		(0.4	)		(0.5	)
Acquisition-related, facilities closure and other costs (b)		(0.4	)		(2.1	)
Other		(2.1	)		(7.4	)
Total	$	(15.6	)	$	(20.4	)

(a)Includes charges related to the announced discontinuation of production of uncoated freesheet paper grades on the No. 3 machine at the Jackson, Alabama mill in the first quarter of 2021 associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.

(b)For 2022, includes charges consisting of closure costs related to corrugated products facilities and acquisition and integration costs related to the December 2021 Advance Packaging Corporation acquisition. For 2021, includes charges consisting of closure costs related to corrugated products facilities.

7. Income Taxes

For the three months ended March 31, 2022 and 2021, we recorded $86.1 million and $53.1 million of income tax expense and had an effective tax rate of 25.3% and 24.2%, respectively. The increase in our effective tax rate for the three months ended March 31, 2022 compared to the same period in 2021 was primarily due to a favorable state law change during the three months ended March 31, 2021 with no corresponding favorable state law change during the three months ended March 31, 2022.

Our current effective tax rate may differ from the federal statutory income tax rate of 21.0% due primarily to the effect of state and local income taxes. During the three months ended March 31, 2022 and 2021, cash paid for taxes, net of refunds received, was $17.6 million and $13.3 million, respectively. The increase in cash tax payments between the periods is primarily due to higher 2022 forecasted taxable income.

During the three months ended March 31, 2022, there were no significant changes to our uncertain tax positions. For more information, see Note 8, Income Taxes, of the Notes to Consolidated Financial Statements in “Part II, Item 8. Financial Statements and Supplementary Data” of our 2021 Annual Report on Form 10-K.

8. Inventories

We value our raw materials, work in process, and finished goods inventories using lower of cost, as determined by the average cost method, or net realizable value. Supplies and materials are valued at the first-in, first-out (FIFO) or average cost methods.

The components of inventories were as follows (dollars in millions):

	March 31,		December 31,
	2022		2021
Raw materials	$	354.1	$	324.2
Work in process		16.7		16.2
Finished goods		201.1		201.0
Supplies and materials		369.3		361.1
Inventories	$	941.2	$	902.5

9. Property, Plant, and Equipment

The components of property, plant, and equipment were as follows (dollars in millions):

	March 31,			December 31,
	2022			2021
Land and land improvements	$	192.9		$	189.8
Buildings		949.1			938.7
Machinery and equipment		6,248.6			6,159.1
Construction in progress		581.4			481.0
Other		121.7			102.9
Property, plant and equipment, at cost		8,093.7			7,871.5
Less accumulated depreciation		(4,423.0	)		(4,342.5	)
Property, plant, and equipment, net	$	3,670.7		$	3,529.0

8

Depreciation expense for the three months ended March 31, 2022 and 2021 was $98.5 million and $90.0 million, respectively. We recognized $1.1 million and $0.5 million of incremental depreciation expense during the three months ended March 31, 2022 and 2021, respectively, as a result of the Jackson mill conversion-related activities.

At March 31, 2022 and December 31, 2021, purchases of property, plant, and equipment included in accounts payable were $103.1 million and $73.6 million, respectively.

10. Goodwill and Intangible Assets

Goodwill

Goodwill represents the excess of the cost of an acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. At March 31, 2022 and December 31, 2021 we had $923.1 million and $923.5 million of goodwill recorded in our Packaging segment respectively, which represents the entire goodwill balance reported on our Consolidated Balance Sheets.

Changes in the carrying amount of our goodwill are as follows (dollars in millions):

	Goodwill
Balance at January 1, 2022	$	923.5
Acquisitions (a)		(0.4	)
Balance at March 31, 2022	$	923.1

(a)During the three months ended March 31, 2022, the Company recorded a $0.4 million adjustment to decrease the goodwill balance for the Company's December 2021 acquisition of Advanced Packaging.

Intangible Assets

Intangible assets are primarily comprised of customer relationships and trademarks and trade names.

The weighted average remaining useful life, gross carrying amount, and accumulated amortization of our intangible assets were as follows (dollars in millions):

	March 31, 2022						December 31, 2021
	Weighted Average Remaining Useful Life (in Years)		Gross Carrying Amount		Accumulated Amortization		Weighted Average Remaining Useful Life (in Years)		Gross Carrying Amount		Accumulated Amortization
Customer relationships		8.3	$	551.1	$	264.5		8.5	$	551.1	$	254.9
Trademarks and trade names		8.3		37.6		26.1		8.4		37.6		25.5
Other		2.2		4.4		4.3		2.2		4.4		4.3
Total intangible assets (excluding goodwill)		8.3	$	593.1	$	294.9		8.5	$	593.1	$	284.7

During the three months ended March 31, 2022 and 2021, amortization expense was $10.2 million and $9.6 million, respectively.

11. Accrued Liabilities

The components of accrued liabilities were as follows (dollars in millions):

	March 31,		December 31,
	2022		2021
Compensation and benefits	$	87.9	$	157.1
Customer rebates and other credits		33.7		36.9
Medical insurance and workers’ compensation		25.7		26.9
Franchise, property, sales and use taxes		22.9		17.6
Environmental liabilities and asset retirement obligations		4.3		4.0
Severance, retention, and relocation		2.6		2.7
Other		11.5		9.8
Total	$	188.6	$	255.0

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12. Debt

For both the three months ended March 31, 2022 and 2021, cash payments for interest were $7.5 million.

Included in interest expense, net is the amortization of financing costs. For the three months ended March 31, 2022 and 2021, amortization of financing costs was $0.4 million and $0.5 million, respectively.

At March 31, 2022, we had $2,491.1 million of fixed-rate senior notes outstanding. The fair value of our fixed-rate debt was estimated to be $2,395.3 million. The difference between the book value and fair value is due to the difference between the period-end market interest rate and the stated rate of our fixed-rate debt. We estimated the fair value of our fixed-rate debt using quoted market prices (Level 2 inputs) within the fair value hierarchy, which is further defined in Note 2, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements in "Part II, Item 8. Financial Statements and Supplementary Data" of our 2021 Annual Report on Form 10-K.

For more information on our long-term debt and interest rates on that debt, see Note 11, Debt, of the Notes to Consolidated Financial Statements in "Part II, Item 8. Financial Statements and Supplementary Data" of our 2021 Annual Report on Form 10-K.

13. Cash, Cash Equivalents, and Marketable Debt Securities

The following table shows the Company’s cash and available-for-sale ("AFS") debt securities by major asset category at March 31, 2022 and December 31, 2021 (in millions):

	March 31, 2022
	Adjusted Cost Basis		Unrealized Gain		Unrealized Loss			Fair Value		Cash and Cash Equivalents		Short-Term Marketable Debt Securities		Long-Term Marketable Debt Securities
Cash and cash equivalents	$	627.4	$	—	$	—		$	627.4	$	627.4	$	—	$	—
Level 1 (a):
U.S. Treasury securities		22.9		—		(0.3	)		22.6		—		12.7		9.9
Money market funds		1.2		—		—			1.2		1.2		—		—
Subtotal		24.1		—		(0.3	)		23.8		1.2		12.7		9.9
Level 2 (b):
Corporate debt securities		122.3		—		(1.6	)		120.7		—		63.6		57.1
U.S. government agency securities		5.6		—		(0.1	)		5.5		—		4.0		1.5
Certificates of deposit		1.0		—		—			1.0		—		1.0		—
Subtotal		128.9		—		(1.7	)		127.2		—		68.6		58.6
Total	$	780.4	$	—	$	(2.0	)	$	778.4	$	628.6	$	81.3	$	68.5

	December 31, 2021
	Adjusted Cost Basis		Unrealized Gain		Unrealized Loss			Fair Value		Cash and Cash Equivalents		Short-Term Marketable Debt Securities		Long-Term Marketable Debt Securities
Cash and cash equivalents	$	612.3	$	—	$	—		$	612.3	$	612.3	$	—	$	—
Level 1 (a):
U.S. Treasury securities		26.4		—		(0.1	)		26.3		2.0		14.7		9.6
Money market funds		0.9		—		—			0.9		0.9		—		—
Subtotal		27.3		—		(0.1	)		27.2		2.9		14.7		9.6
Level 2 (b):
Corporate debt securities		118.9		—		(0.3	)		118.6		3.5		66.0		49.1
U.S. government agency securities		4.8		—		—			4.8		—		3.5		1.3
Certificates of deposit		1.9		—		—			1.9		—		1.9		—
Subtotal		125.6		—		(0.3	)		125.3		3.5		71.4		50.4
Total	$	765.2	$	—	$	(0.4	)	$	764.8	$	618.7	$	86.1	$	60.0

(a)Valuations based on quoted prices for identical assets or liabilities in active markets.

(b)Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

For both the three months ended March 31, 2022 and 2021, net realized gains and losses on the sales and maturities of certain marketable debt securities were insignificant.

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The Company invests in highly rated securities, with the primary objective of minimizing the potential risk of principal loss. The Company’s investment policy requires securities to be investment grade and limits the amount of credit exposure to any one issuer. The maturities of the Company’s long-term marketable debt securities generally range from one to two years.

Fair values were determined for each individual marketable debt security in the investment portfolio. When evaluating a marketable debt security for impairment, PCA reviews factors such as the duration and extent to which the fair value of the marketable debt security is less than its cost, the financial condition of the issuer and any changes thereto, the general market condition in which the issuer operates, and PCA’s intent to sell, or whether it will be more likely than not be required to sell, the marketable debt security before recovery of its amortized cost basis.

As of March 31, 2022 and December 31, 2021, we do not consider any of the impairments related to our marketable debt securities to be the result of credit losses. Therefore, we have not recorded an allowance for credit losses related to our marketable debt securities. All unrealized gains and losses were recorded in other comprehensive income (OCI).

The following table provides information about the Company’s marketable debt securities that have been in a continuous loss position as of March 31, 2022 and December 31, 2021 (in millions, except number of marketable debt securities in a loss position):

	March 31, 2022						December 31, 2021
	Fair Value of Marketable Debt Securities		Number of Marketable Debt Securities in a Loss Position		Unrealized Losses		Fair Value of Marketable Debt Securities		Number of Marketable Debt Securities in a Loss Position		Unrealized Losses
Corporate debt securities (c)	$	113.7		160	$	1.6	$	106.9		153	$	0.3
U.S. Treasury securities		22.6		25		0.1		22.4		27		0.1
U.S. government agency securities		5.5		7		0.3		4.8		6		—
Certificates of deposit		1.0		2		—		0.5		1		—
	$	142.8		194	$	2.0	$	134.6		187	$	0.4

(c)For 2022, includes one marketable debt security in a continuous loss position greater than 12 months with a fair value of $0.3 million and an insignificant amount of unrealized loss.

14. Employee Benefit Plans and Other Postretirement Benefits

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

	Pension Plans
	Three Months Ended March 31,
	2022			2021
Service cost	$	4.9		$	5.4
Interest cost		8.7			7.4
Expected return on plan assets		(13.9	)		(15.8	)
Net amortization of unrecognized amounts
Prior service cost		0.9			1.0
Actuarial loss		0.8			2.5
Net periodic benefit cost	$	1.4		$	0.5

PCA makes pension plan contributions that are sufficient to fund its actuarially determined costs, generally equal to the minimum amounts required by the Employee Retirement Income Security Act (ERISA). From time to time, PCA may make additional discretionary contributions based on the funded status of the plans, tax deductibility, income from operations, and other factors. During the three months ended March 31, 2022 and 2021, payments to our nonqualified pension plans were insignificant. During both the three months ended March 31, 2022 and 2021, we did not make any contributions to our qualified pension plans. We do not have a required minimum contribution amount for 2022, but we expect to make discretionary contributions to our plans.

For both the three months ended March 31, 2022 and 2021, the net periodic benefit cost for our postretirement plans was insignificant.

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15. Share-Based Compensation

The Company has a long-term equity incentive plan, which allows for grants of restricted stock, performance awards, stock appreciation rights, and stock options to directors, officers, and employees, as well as others who engage in services for PCA. On February 25, 2020, our board of directors approved and, on May 5, 2020, our stockholders approved, the amendment and restatement of the plan. The amendment extended the plan’s term to May 5, 2030 and increased the number of shares of common stock available for issuance under the plan by 1.4 million shares. The total number of shares authorized for past and future awards is 12.0 million shares.

As of March 31, 2022, assuming performance units are paid out at the target level of performance, 1.1 million shares were available for future grants under the current plan. Forfeitures are added back to the pool of shares of common stock available to be granted at a future date.

The following table presents restricted stock and performance unit award activity for the three months ended March 31, 2022:

	Restricted Stock					Performance Units
	Shares			Weighted Average Grant- Date Fair Value		Shares		Weighted Average Grant- Date Fair Value
Outstanding at January 1, 2022		651,448		$	109.16		358,092	$	105.38
Granted		170,232			145.26		96,309		154.21
Vested		(4,113	)		106.50		—		—
Forfeitures		(3,926	)		107.95		—		—
Outstanding at March 31, 2022		813,641		$	116.73		454,401	$	115.73

Compensation Expense

Our share-based compensation expense is primarily recorded in "Selling, general, and administrative expenses." Compensation expense for share-based awards recognized in the Consolidated Statements of Income, net of forfeitures, was as follows (dollars in millions):

	Three Months Ended March 31,
	2022			2021
Restricted stock	$	9.2		$	8.6
Performance units		3.1			3.0
Total share-based compensation expense		12.3			11.6
Income tax benefit		(3.1	)		(2.9	)
Share-based compensation expense, net of tax benefit	$	9.2		$	8.7

The fair value of restricted stock is determined based on the closing price of the Company’s stock on the grant date. Compensation expense, net of estimated forfeitures, is recorded over the requisite service period. As PCA’s Board of Directors has the ability to accelerate the vesting of these awards upon an employee’s retirement, the Company accelerates the recognition of compensation expense for certain employees approaching normal retirement age.

Performance unit awards granted to certain key employees are earned based on the achievement of defined performance rankings of Return on Invested Capital (ROIC) or Total Shareholder Return (TSR) compared to ROIC and TSR for peer companies. For performance unit awards made in 2022 and 2021, in terms of grant date value, 50% used TSR as the performance measure and 50% used ROIC as the performance measure. The ROIC component of performance unit awards is valued based on the closing price of the stock on the grant date. As the ROIC component contains a performance condition, compensation expense, net of estimated forfeitures, is recorded over the requisite service period based on the most probable number of awards expected to vest. The TSR component of performance unit awards is valued using a Monte Carlo simulation as the TSR component contains a market condition. The Monte Carlo simulation estimates the fair value of the TSR component based on the expected term of the award, a risk-free interest rate, expected dividends, and expected volatility of the Company’s common stock and the common stock of the peer companies. Compensation expense is recorded ratably over the expected term of the award.

The unrecognized compensation expense for all share-based awards at March 31, 2022 was as follows (dollars in millions):

	March 31, 2022
	Unrecognized Compensation Expense		Remaining Weighted Average Recognition Period (in years)
Restricted stock	$	41.2		2.9
Performance units		29.7		2.7
Total unrecognized share-based compensation expense	$	70.9		2.8

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16. Stockholders' Equity

Dividends

During the three months ended March 31, 2022, we paid $93.6 million of dividends to shareholders. On February 23, 2022, PCA’s Board of Directors declared a regular quarterly cash dividend of $1.00 per share of common stock, which was paid on April 15, 2022 to shareholders of record as of March 15, 2022. The dividend payment was $93.7 million.

Repurchases of Common Stock

On January 26, 2022, PCA announced that its Board of Directors authorized the repurchase of an additional $1 billion of the Company’s outstanding common stock. Repurchases may be made from time to time in open market or privately negotiated transactions in accordance with applicable securities regulations. The timing and amount of repurchases will be determined by the Company in its discretion based on factors such as PCA’s stock price and market and business conditions.

The Company did not repurchase any shares of its common stock under this authority during the three months ended March 31, 2022. At March 31, 2022, $1 billion of the authorized amount remained available for repurchase of the Company’s common stock.

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) (AOCI) by component were as follows (dollars in millions). Amounts in parentheses indicate losses:

	Unrealized Loss On Foreign Exchange Contracts			Unrealized Loss on Marketable Debt Securities			Unfunded Employee Benefit Obligations			Total
Balance at January 1, 2022	$	(0.2	)	$	(0.2	)	$	(74.8	)	$	(75.2	)
Other comprehensive income before reclassifications,    net of tax		—			(1.2	)		—			(1.2	)
Amounts reclassified from AOCI, net of tax		—			—			1.2			1.2
Balance at March 31, 2022	$	(0.2	)	$	(1.4	)	$	(73.6	)	$	(75.2	)

Reclassifications out of AOCI were as follows (dollars in millions). Amounts in parentheses indicate expenses in the Consolidated Statements of Income:

	Amounts Reclassified from AOCI
	Three Months Ended March 31,
Details about AOCI Components	2022			2021
Unfunded employee benefit obligations (a)
Amortization of prior service costs	$	(0.8	)	$	(0.8	)	See (a) below
Amortization of actuarial losses		(0.7	)		(2.5	)	See (a) below
		(1.5	)		(3.3	)	Total before tax
		0.3			0.8		Tax benefit
	$	(1.2	)	$	(2.5	)	Net of tax

(a)These AOCI components are included in the computation of net pension and postretirement benefit costs. See Note 14, Employee Benefit Plans and Other Postretirement Benefits, for additional information.

17. Concentrations of Risk

Our Paper segment has a long-standing commercial and contractual relationship with Office Depot, our largest customer in the paper business. This relationship exposes us to a significant concentration of business and financial risk. Our sales to Office Depot represent approximately 4% of our total Company sales revenue for both the three month periods ended March 31, 2022 and 2021 and approximately 58% and 45% of our Paper segment sales revenue for both of those periods, respectively. For the full year 2021, sales to Office Depot represented 51% of our Paper segment sales. At March 31, 2022 and December 31, 2021, we had $54.8 million and $49.8 million of accounts receivable due from Office Depot, respectively, which represents approximately 5% and 4% of our total Company accounts receivable, respectively.

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18. Transactions With Related Parties

Louisiana Timber Procurement Company, L.L.C. ("LTP") is a variable-interest entity that is 50% owned by PCA and 50% owned by Boise Cascade Company ("Boise Cascade"). LTP procures sawtimber, pulpwood, residual chips, and other residual wood fiber to meet the wood and fiber requirements of PCA and Boise Cascade in Louisiana. PCA is the primary beneficiary of LTP and has the power to direct the activities that most significantly affect the economic performance of LTP. Therefore, we consolidate 100% of LTP in our financial statements in our Corporate and Other segment. The carrying amounts of LTP's assets and liabilities (which relate primarily to non-inventory working capital items) on our Consolidated Balance Sheets were $3.0 million at March 31, 2022 and $3.5 million at December 31, 2021. During the three months ended March 31, 2022 and 2021, we recorded $20.8 million and $20.3 million, respectively, of LTP sales to Boise Cascade in "Net Sales" in the Consolidated Statements of Income and approximately the same amount of expenses in "Cost of Sales".

During the three months ended March 31, 2022 and 2021, fiber purchases from related parties were $3.8 million and $3.3 million, respectively. Most of these purchases related to chip and log purchases by LTP from Boise Cascade's wood products business. These purchases are recorded in "Cost of Sales" in the Consolidated Statements of Income.

19. Segment Information

We report our business in three reportable segments: Packaging, Paper, and Corporate and Other. These segments represent distinct businesses that are managed separately because of differing products and services. Each of these businesses requires distinct operating and marketing strategies.

Our Jackson, Alabama mill had historically operated as a UFS mill, with its results of operations reported in our Paper segment. During the fourth quarter of 2020, in order to meet strong packaging demand and maintain appropriate inventory levels, we temporarily began producing linerboard on the No. 3 machine at our Jackson, Alabama mill. In the first quarter of 2021, we announced the discontinuation of production of UFS paper grades on the machine and the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities. In the third quarter of 2021, we began producing corrugating medium on the No. 1 machine at the Jackson mill (which had produced UFS paper in the past) to help satisfy our demand for containerboard, build necessary inventories, and evaluate the capability of the machine to produce containerboard on a cost-effective basis. For the periods presented, operating results for the Jackson mill are included in both the Packaging and Paper segments, as appropriate.

Each segment’s profits and losses are measured on operating profits before interest expense, net, non-operating pension income, and income taxes. For certain allocated expenses, the related assets and liabilities remain in the Corporate and Other segment.

Selected financial information by reportable segment was as follows (dollars in millions):

	Sales, net
Three Months Ended March 31, 2022	Trade		Intersegment			Total			Operating Income (Loss)
Packaging	$	1,960.0	$	4.5		$	1,964.5		$	362.2		(a)
Paper		153.5		—			153.5			22.4		(a)
Corporate and Other		22.9		35.4			58.3			(28.1	)
Intersegment eliminations		—		(39.9	)		(39.9	)		—
	$	2,136.4	$	—		$	2,136.4			356.5
Non-operating pension income										3.6
Interest expense, net										(19.8	)
Income before taxes									$	340.3

	Sales, net
Three Months Ended March 31, 2021	Trade		Intersegment			Total			Operating Income (Loss)
Packaging	$	1,619.8	$	3.8		$	1,623.6		$	257.9		(b)
Paper		164.4		0.2			164.6			8.7		(b)
Corporate and Other		23.0		32.4			55.4			(28.3	)
Intersegment eliminations		—		(36.4	)		(36.4	)		—
	$	1,807.2	$	—		$	1,807.2			238.3
Non-operating pension income										4.8
Interest expense, net										(23.5	)
Income before taxes									$	219.6

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(a)	The three months ended March 31, 2022 include the following:
	1.	$1.5 million of charges related to the announced discontinuation of production of UFS paper grades on the No. 3 machine at the Jackson, Alabama mill associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.
	2.	$0.6 million of charges consisting of closure costs related to corrugated products facilities and acquisition and integration costs related to the December 2021 Advance Packaging Corporation acquisition.
(b)	The three months ended March 31, 2021 include the following:
	1.	$2.1 million of charges consisting of closure costs related to corrugated products facilities.
	2.	$1.1 million of charges related to the announced discontinuation of UFS paper grades on the No. 3 machine at the Jackson, Alabama mill in the first quarter of 2021 associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.

20. Commitments, Guarantees, Indemnifications and Legal Proceedings

We have financial commitments and obligations that arise in the ordinary course of our business. These include long-term debt, capital commitments, lease obligations, and purchase commitments for goods and services, and legal proceedings, all of which are discussed in Note 11, Debt, and Note 21, Commitments, Guarantees, Indemnifications, and Legal Proceedings, of the Notes to Consolidated Financial Statements in "Part II, Item 8. Financial Statements and Supplementary Data" of our 2021 Annual Report on Form 10-K.

Guarantees and Indemnifications

We provide guarantees, indemnifications, and other assurances to third parties in the normal course of our business. These include tort indemnifications, product guarantees, environmental assurances, and representations and warranties in commercial agreements. At March 31, 2022, we are not aware of any material liabilities arising from any guarantee, indemnification, or financial assurance we have provided. If we determined such a liability was probable and subject to reasonable determination, we would accrue for it at that time.

DeRidder Mill Incident

On February 8, 2017, a tank located in the pulp mill at the Company's DeRidder, Louisiana facility exploded, resulting in three contractor fatalities and other injuries. The Company has been served with multiple lawsuits involving the decedents and other allegedly injured parties, alleging negligence on the part of the Company and claiming compensatory and punitive damages. The Company is vigorously defending these lawsuits. The Company believes that these suits are covered by its liability insurance policies, subject to an aggregate $1.0 million deductible, which has been satisfied in full as a result of settlement of various lawsuits and fees and expenses incurred by the Company. Cases involving nine plaintiffs are pending in the U.S. District Court for the Middle District of Louisiana and one case remains pending in state court in Alabama. One case previously dismissed by the federal district court for the Western District of Louisiana has been appealed by the plaintiff to the United States Court of Appeals for the Fifth Circuit. The remaining lawsuits pending in federal district court and state court are in the early stages. Accordingly, the Company is unable to estimate a range of reasonable possible losses at this time.

The Company has cooperated with investigations from the U.S. Occupational Health and Safety Administration ("OSHA"), the U.S. Chemical Safety Board ("CSB") and the U.S. Environmental Protection Agency ("EPA"). The U.S. Chemical Safety Board completed its investigation and issued its report during the second quarter of 2018. The Company settled with OSHA during the second quarter of 2018 and paid approximately $40,000 in penalties for citations.

The EPA investigation is ongoing. In May 2017, the EPA conducted an on-site inspection of the facility to assess compliance with the Clean Air Act, Risk Management Program ("RMP"). The Company provided additional information to the EPA promptly after the inspection to address certain areas of concern ("AOCs") observed during the inspection. In January 2021, the EPA and U.S. Department of Justice ("DOJ") initiated civil judicial enforcement discussions with PCA. These discussions are ongoing. As of the date of filing of this report, no complaint has been filed. PCA continues to cooperate with the agencies. Since the inspection in 2017, PCA performed several voluntary activities to address the AOCs presented in the EPA’s inspection report and has removed the RMP covered process from the facility.

Legal Proceedings

We are also a party to various legal actions arising in the ordinary course of our business. These legal actions include commercial liability claims, premises liability claims, and employment-related claims, among others. As of the date of this filing, we believe it is not reasonably possible that any of the legal actions against us will, either individually or in the aggregate, have a material adverse effect on our financial condition, results of operations, or cash flows.

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This management’s discussion and analysis includes statements regarding our expectations with respect to our future performance, expected business conditions, liquidity, and capital resources. Such statements, along with any other statements that are not historical in nature, are forward-looking. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the risks and uncertainties described in our 2021 Annual Report on Form 10-K, as well as those factors listed in other documents we file with the Securities and Exchange Commission ("SEC"). We do not assume any obligation to update any forward-looking statement. Our actual results may differ materially from those contained in or implied by any of the forward-looking statements in this Form 10-Q. Please see “Forward Looking Statements” elsewhere in this Item 2.

Overview

PCA is the third largest producer of containerboard products and a leading producer of UFS paper in North America. We operate eight mills and 90 corrugated products manufacturing plants. Our containerboard mills produce linerboard and corrugating medium, which are papers primarily used in the production of corrugated products. Our corrugated products manufacturing plants produce a wide variety of corrugated packaging products, including conventional shipping containers used to protect and transport manufactured goods, multi-color boxes and displays with strong visual appeal that help to merchandise the packaged product in retail locations, and honeycomb protective packaging. In addition, we are a large producer of packaging for meat, fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products. We also manufacture and sell UFS papers, including both commodity and specialty papers, which may have custom or specialized features such as colors, coatings, high brightness, and recycled content. We are headquartered in Lake Forest, Illinois and operate primarily in the United States.

This Item 2 is intended to supplement, and should be read in conjunction with, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our 2021 Annual Report on Form 10-K.

Executive Summary

First quarter net sales were $2.14 billion in 2022 and $1.81 billion in 2021. We reported $254 million of net income, or $2.70 per diluted share, during the first quarter of 2022, compared to $167 million, or $1.75 per diluted share, during the same period in 2021. Net income included $2 million of expense for special items in both first quarters of 2022 and 2021 (discussed below). Excluding special items, net income was $256 million, or $2.72 per diluted share, during the first quarter of 2022, compared to $169 million, or $1.77 per diluted share, in the first quarter of 2021. The increase in net income was driven primarily by higher prices and mix and volume in the Packaging segment, higher prices and mix in the Paper segment, a lower share count resulting from share repurchases completed during the fourth quarter of 2021, and lower interest expense. These items were partially offset by inflation-related operating cost increases primarily in energy, fiber, chemicals, operating labor, repair labor, and materials; higher freight and logistics expenses; higher converting costs driven by labor and materials expenses; higher depreciation expense; lower volume in the Paper segment; higher scheduled outage expenses; a higher tax rate; and other costs. For additional detail on special items included in reported GAAP results, as well as segment income (loss) excluding special items, earnings before non-operating pension income (expense), interest, income taxes, and depreciation, amortization, and depletion ("EBITDA"), and EBITDA excluding special items, see “Item 2. Reconciliations of Non-GAAP Financial Measures to Reported Amounts.”

Packaging segment income from operations was $362 million in the first quarter of 2022, compared to $258 million in the first quarter of 2021. Packaging segment EBITDA excluding special items was $464 million in the first quarter of 2022 compared to $352 million in the first quarter of 2021. The increase was due primarily to higher prices and mix and higher sales and production volumes, partially offset by higher operating and converting costs, higher annual outage expense, and higher freight and logistic expenses. Demand in the Packaging segment remained strong, as we set a quarterly record in corrugated products shipments. Although we still face significant inflation in our manufacturing costs as well as freight and logistic expenses, our facilities continued to deliver on numerous cost reduction initiatives, efficiency improvements, integration and optimization enhancements, and capital project benefits to maximize our returns and margins. Labor availability in our corrugated products plants improved as we experienced fewer COVID-related absences as the quarter progressed.

Paper segment income from operations was $22 million in the first quarter of 2022, compared to $9 million in the first quarter of 2021. Paper segment EBITDA excluding special items was $29 million in the first quarter of 2022, compared to $16 million in the first quarter of 2021. The increase was due to higher prices and mix and lower operating costs, partially offset by lower sales and production volumes, and higher freight and logistic expenses.

During the fourth quarter of 2020, in order to meet strong packaging demand and maintain appropriate inventory levels in the packaging segment, we temporarily began producing linerboard on the No. 3 machine at the Jackson mill, and we have produced linerboard on the machine since that time. In the first quarter of 2021, we announced the discontinuation of production of UFS paper grades on the machine and the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities. Sales and production in the Paper segment will remain below pre-pandemic levels as we will no longer be producing paper products on the machine. In the third quarter of 2021, we began producing corrugating medium on the No. 1 machine at the Jackson mill (which had produced UFS paper in the past) to help satisfy our demand for containerboard, build necessary inventories, and evaluate the capability of the machine to produce containerboard on a cost-effective basis. We expect to continue producing corrugating medium on the machine for the foreseeable future. For the periods presented, operating results for the Jackson mill are included in both the Packaging and Paper segments, as appropriate.

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Special Items and Earnings per Diluted Share, Excluding Special Items

A reconciliation of reported earnings per diluted share to earnings per diluted share, excluding special items, for the three months ended March 31, 2022 and 2021 are as follows:

	Three Months Ended
	March 31,
	2022		2021
Earnings per diluted share, as reported	$	2.70	$	1.75
Special items:
Jackson mill conversion-related activities (a)		0.01		0.01
Acquisition-related, facilities closure and other costs (b)		0.01		0.01
Total special items		0.02		0.02
Earnings per diluted share, excluding special items	$	2.72	$	1.77

(a)For the three months ended March 31, 2022 and 2021, includes $1.5 million and $1.1 million, respectively, of charges related to the announced discontinuation of production of UFS paper grades on the No. 3 machine at the Jackson, Alabama mill associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.

(b)For the three months ended March 31, 2022, includes $0.6 million of closure costs related to corrugated products facilities and acquisition and integration costs related to the December 2021 Advance Packaging Corporation acquisition. For the three months ended March 31, 2021, includes $2.1 million of charges consisting of closure costs related to corrugated products facilities.

Included in this Item 2 are various non-GAAP financial measures, including diluted EPS excluding special items, segment income excluding special items and EBITDA excluding special items. Management excludes special items as it believes these items are not necessarily reflective of the ongoing results of operations of our business. We present these measures because they provide a means to evaluate the performance of our segments and our Company on an ongoing basis using the same measures that are used by our management, because these measures assist in providing a meaningful comparison between periods presented and because these measures are frequently used by investors and other interested parties in the evaluation of companies and the performance of their segments. A reconciliation of diluted EPS to diluted EPS excluding special items is included above and the reconciliations of other non-GAAP measures used in this Management’s Discussion and Analysis of Financial Condition and Results of Operations, to the most comparable measure reported in accordance with GAAP, are included in Item 2 under “Reconciliations of Non-GAAP Financial Measures to Reported Amounts.” Any analysis of non-GAAP financial measures should be done in conjunction with results presented in accordance with GAAP. The non-GAAP measures are not intended to be substitutes for GAAP financial measures and should not be used as such.

Industry and Business Conditions

Trade publications reported North American industry-wide corrugated products shipments per work day were down 1.8% during the first quarter of 2022 compared to the same quarter of 2021. Reported industry containerboard production increased 2.0% compared to the first quarter of 2021. Reported industry containerboard inventories at the end of the first quarter of 2022 were approximately 2.7 million tons, up 17.5% compared to the same period in 2021. Reported containerboard export shipments were up 9.1% compared to the first quarter of 2021. Prices reported by trade publications increased by $60 per ton for linerboard and $70 per ton for corrugating medium in March 2022.

Trade publications reported North American UFS paper shipments were down 1% in the first quarter of 2022, compared to the same quarter of 2021. Average prices reported by a trade publication for cut size office papers were higher by $67 per ton, or 5.4%, in the first quarter of 2022, compared to the fourth quarter of 2021, and higher by $233 per ton, or 21.8%, compared to the first quarter of 2021.

Outlook

We expect demand in our Packaging segment to remain strong in the second quarter of 2022, and we expect higher prices in both our Packaging and Paper segments as we implement price increases previously communicated to customers. Scheduled mill outage costs will be higher compared to the first quarter, and the planned outage at the International Falls mill will result in lower Paper segment sales volume. We also anticipate continued inflation with freight and logistics expenses as well as most of our operating costs, although we expect recycled fiber prices to be slightly lower than the first quarter. Considering these items, and excluding the effect of any special items, we expect second quarter earnings to be higher than our earnings for the first quarter.

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Results of Operations

Three Months Ended March 31, 2022, compared to Three Months Ended March 31, 2021

The historical results of operations of PCA for the three months ended March 31, 2022 and 2021 are set forth below (dollars in millions):

	Three Months Ended
	March 31,
	2022			2021			Change
Packaging	$	1,964.5		$	1,623.6		$	340.9
Paper		153.5			164.6			(11.1	)
Corporate and Other		58.3			55.4			2.9
Intersegment eliminations		(39.9	)		(36.4	)		(3.5	)
Net sales	$	2,136.4		$	1,807.2		$	329.2
Packaging	$	362.2		$	257.9		$	104.3
Paper		22.4			8.7			13.7
Corporate and Other		(28.1	)		(28.3	)		0.2
Income from operations	$	356.5		$	238.3		$	118.2
Non-operating pension income		3.6			4.8			(1.2	)
Interest expense, net		(19.8	)		(23.5	)		3.7
Income before taxes		340.3			219.6			120.7
Income tax provision		(86.1	)		(53.1	)		(33.0	)
Net income	$	254.2		$	166.5		$	87.7
Non-GAAP Measures (a)
Net income excluding special items	$	255.7		$	168.9		$	86.8
Consolidated EBITDA		466.2			339.1			127.1
Consolidated EBITDA excluding special items		467.2			341.8			125.4
Packaging EBITDA		463.1			350.0			113.1
Packaging EBITDA excluding special items		463.9			352.1			111.8
Paper EBITDA		28.8			15.2			13.6
Paper EBITDA excluding special items		29.0			15.8			13.2

(a)See “Reconciliations of Non-GAAP Financial Measures to Reported Amounts” included in this Item 2 for a reconciliation of non-GAAP measures to the most comparable GAAP measure.

Net Sales

Net sales increased $329 million, or 18.2%, to $2,136 million during the three months ended March 31, 2022, compared to $1,807 million during the same period in 2021.

Packaging. Net sales increased $341 million, or 21.0%, to $1,965 million, compared to $1,624 million in the first quarter of 2021 due to higher prices and mix ($268 million) and higher containerboard and corrugated products volume ($73 million). In the first quarter of 2022, our domestic containerboard prices were 20.2% higher, while export prices were 42.5% higher, than the same period in 2021. In the first quarter of 2022, export and domestic containerboard outside shipments increased 26.0% compared to the first quarter of 2021. Our total corrugated products shipments were up 2.9% with one additional workday and shipments per day were up 1.3%, compared to the same period in 2021, driven by continued strong demand.

Paper. Net sales decreased $11 million, or 6.7%, to $154 million, compared to $165 million in the first quarter of 2021, due to lower volume ($30 million), partially offset by higher prices and mix ($19 million).

Gross Profit

Gross profit increased $130 million during the three months ended March 31, 2022, compared to the same period in 2021. The increase was driven primarily by higher prices and mix and volume in the Packaging segment, higher prices and mix in the Paper segment, partially offset by higher operating and converting costs, higher freight and logistics expenses, higher depreciation expense, lower volume in the Paper segment, and higher scheduled outage expenses. In the three months ended March 31, 2022, gross profit included $1 million of special items for charges related to the Jackson mill conversion. In the three months ended March 31, 2021, gross profit included $0.5 million of special items for charges related to the Jackson mill conversion.

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Selling, General, and Administrative Expenses

Selling, general, and administrative expenses (“SG&A”) increased $16 million during the three months ended March 31, 2022, compared to the same period in 2021. The increase was primarily due to higher employee fringes and incentives, commissions, travel, and an increase to bad debt expense.

Other Expense, Net

Other income (expense), net, for the three months ended March 31, 2022 and 2021 are set forth below (dollars in millions):

	Three Months Ended
	March 31,
	2022			2021
Asset disposals and write-offs	$	(12.7	)	$	(10.4	)
Jackson mill conversion-related activities		(0.4	)		(0.5	)
Acquisition-related, facilities closure and other costs		(0.4	)		(2.1	)
Other		(2.1	)		(7.4	)
Total	$	(15.6	)	$	(20.4	)

We discuss these items in more detail in Note 6, Other Expense, Net, of the Condensed Notes to Unaudited Quarterly Consolidated Financial Statements in “Part I, Item 1. Financial Statements” of this Form 10-Q.

Income from Operations

Income from operations increased $118 million, or 49.6%, during the three months ended March 31, 2022, compared to the same period in 2021. The first quarter of 2022 included $2 million of special items expense primarily related to the Jackson mill conversion activities, corrugated facility closures, and expenses related to the acquisition of Advanced Packaging, compared to $3 million of special items expense related to corrugated facility closure costs and Jackson mill conversion-related activities in the first quarter of 2021.

Packaging. Packaging segment income from operations increased $104 million to $362 million, compared to $258 million during the three months ended March 31, 2021. The increase related primarily to higher containerboard and corrugated products prices and mix ($233 million), higher sales and production volumes ($30 million), partially offset by higher operating and converting costs ($114 million), higher freight expenses ($28 million), higher depreciation expense ($9 million), higher annual outage expenses ($6 million), and other costs ($3 million). Special items during the first quarter of 2022 included $1 million of expense for corrugated facility closures and Advanced Packaging acquisition costs, compared to $2 million of special items expense related to corrugated facility closure costs in the first quarter of 2021.

Paper. Paper segment income from operations increased $13 million to $22 million, compared to $9 million during the three months ended March 31, 2021. The increase primarily related to higher prices and mix ($19 million), lower operating costs ($9 million), and lower annual outage expenses ($1 million), partially offset by lower sales and production volumes ($9 million) and higher freight expenses ($8 million). Special items during both the first quarter of 2022 and the first quarter of 2021 each included $1 million of expense for Jackson mill conversion-related activities.

Non-Operating Pension Income, Interest Expense, Net and Income Taxes

Non-operating pension income decreased $1 million during the three months ended March 31, 2022, compared to the same period in 2021. The decrease in non-operating pension income was primarily related to assumption changes, partially offset by favorable 2021 asset performance.

Interest expense, net for the three months ended March 31, 2022 decreased $4 million when compared to the same period in 2021. The decrease in interest expense, net was primarily due to lower interest rates on the Company's fixed-rate debt as a result of the Company's debt refinancing completed in October 2021.

During the three months ended March 31, 2022, we recorded $86 million of income tax expense, compared to $53 million of expense during the three months ended March 31, 2021. The effective tax rate for the three months ended March 31, 2022 and 2021 was 25.3% and 24.2%, respectively. The increase in our effective tax rate for the three months ended March 31, 2022 compared to the same period in 2021 was primarily due to a favorable state law change during the three months ended March 31, 2021 with no corresponding favorable state law change during the three months ended March 31, 2022.

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Liquidity and Capital Resources

Sources and Uses of Cash

Our primary sources of liquidity are net cash provided by operating activities and available borrowing capacity under our revolving credit facility. At March 31, 2022, we had $629 million of cash and cash equivalents, $150 million of marketable debt securities, and $321 million of unused borrowing capacity under the revolving credit facility, net of letters of credit. Currently, our primary uses of cash are for operations, capital expenditures, acquisitions, debt service, common stock dividends, and repurchases of common stock. We believe that net cash generated from operating activities, cash on hand, available borrowings under our revolving credit facility, and available capital through access to capital markets will be adequate to meet our liquidity and capital requirements, including payments of any declared common stock dividends, for the foreseeable future. As our debt or credit facilities become due, we will need to repay, extend, or replace such facilities. Our ability to do so will be subject to future economic conditions and financial, business, and other factors, many of which are beyond our control.

Below is a summary table of our cash flows, followed by a discussion of our sources and uses of cash through operating activities, investing activities, and financing activities (dollars in millions):

	March 31,
	2022			2021			Change
Net cash provided by (used for):
Operating activities	$	325.3		$	191.6		$	133.7
Investing activities		(221.2	)		(87.5	)		(133.7	)
Financing activities		(94.2	)		(95.3	)		1.1
Net increase in cash and cash equivalents	$	9.9		$	8.8		$	1.1

Operating Activities

Our operating cash flow is primarily driven by our earnings and changes in operating assets and liabilities, such as accounts receivable, inventories, accounts payable and other accrued liabilities, as well as factors described below. Cash requirements for operating activities are subject to PCA’s operating needs and the timing of collection of receivables and payments of payables and expenses.

During the three months ended March 31, 2022, net cash provided by operating activities was $325 million, compared to $192 million in the same period in 2021, an increase of $133 million. Cash from operations excluding changes in cash used for operating assets and liabilities increased $108 million primarily due to higher income from operations in 2022 as discussed above. Cash from operations increased by $26 million due to changes in operating assets and liabilities, primarily due to an increase in accounts payable in the first quarter of 2022 primarily due to the timing of payments. This increase was partially offset by the following:

a)a larger decrease in accrued liabilities primarily in compensation and benefits liabilities in the first quarter of 2022 compared to the corresponding period in 2021; and

b)a larger increase in inventory in the first quarter of 2022 as compared to 2021, primarily in the Paper segment in finished goods, raw materials as well as supplies and materials.

Investing Activities

We used $221 million for investing activities during the three months ended March 31, 2022 compared to $88 million during the same period in 2021. We spent $213 million for internal capital investments during the three months ended March 31, 2022, compared to $85 million during the same period in 2021.

We expect capital investments in 2022 to be approximately $800 million, including capital spending related to the conversion of the No. 3 paper machine to containerboard at our Jackson mill. These expenditures could increase or decrease as a result of a number of factors, including our financial results, strategic opportunities, future economic conditions, and our regulatory compliance requirements. We currently estimate capital expenditures to comply with environmental regulations will be about $17 million in 2022. Our estimated environmental expenditures could vary significantly depending upon the enactment of new environmental laws and regulations. For additional information, see “Environmental Matters” in “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2021 Annual Report on Form 10-K.

20

Financing Activities

During the three months ended March 31, 2022, net cash used for financing activities was $94 million, compared to $95 million of net cash used for financing activities during the same period in 2021. We paid $94 million of dividends during the first three months of 2022, compared to $95 million of dividends paid during the comparable period in 2021.

In addition to the items discussed in Note 12, Debt, of the Condensed Notes to Unaudited Quarterly Consolidated Financial Statements in "Part I, Item 1. Financial Statements" of this Form 10-Q, see Note 11, Debt, of the Notes to Consolidated Financial Statements in “Part II, Item 8. Financial Statements and Supplementary Data” of our 2021 Annual Report on Form 10-K for more information.

Contractual Obligations

There have been no material changes to the contractual obligations disclosed in Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2021 Annual Report on Form 10-K.

Reconciliations of Non-GAAP Financial Measures to Reported Amounts

Income from operations excluding special items, net income excluding special items, EBITDA, and EBITDA excluding special items are non-GAAP financial measures. Management excludes special items, as it believes that these items are not necessarily reflective of the ongoing operations of our business. These measures are presented because they provide a means to evaluate the performance of our segments and our Company on an ongoing basis using the same measures that are used by our management, because these measures assist in providing a meaningful comparison between periods and because these measures are frequently used by investors and other interested parties in the evaluation of companies and the performance of their segments. Any analysis of non-GAAP financial measures should be done in conjunction with results presented in accordance with GAAP. The non-GAAP measures are not intended to be substitutes for GAAP financial measures and should not be used as such. Reconciliations of the non-GAAP measures to the most comparable measure reported in accordance with GAAP for the three months ended March 31, 2022 and 2021 follow (dollars in millions):

	Three Months Ended March 31,
	2022							2021
	Income before Taxes		Income Taxes			Net Income		Income before Taxes		Income Taxes			Net Income
As reported in accordance with GAAP	$	340.3	$	(86.1	)	$	254.2	$	219.6	$	(53.1	)	$	166.5
Special items:
Jackson mill conversion-related activities (a)		1.5		(0.4	)		1.1		1.1		(0.3	)		0.8
Acquisition-related, facilities closure and other costs (b)		0.6		(0.2	)		0.4		2.1		(0.5	)		1.6
Total special items		2.1		(0.6	)		1.5		3.2		(0.8	)		2.4
Excluding special items	$	342.4	$	(86.7	)	$	255.7	$	222.8	$	(53.9	)	$	168.9

(a)Includes charges related to the announced discontinuation of production of UFS paper grades on the No. 3 machine at the Jackson, Alabama mill associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.

(b)For 2022, includes charges consisting of closure costs related to corrugated products facilities and acquisition and integration costs related to the December 2021 Advance Packaging Corporation acquisition. For 2021, includes charges consisting of closure costs related to corrugated products facilities.

The following table reconciles net income to EBITDA and EBITDA excluding special items for the periods indicated (dollars in millions):

	Three Months Ended
	March 31,
	2022			2021
Net income	$	254.2		$	166.5
Non-operating pension income		(3.6	)		(4.8	)
Interest expense, net		19.8			23.5
Income tax provision		86.1			53.1
Depreciation, amortization, and depletion		109.7			100.8
EBITDA	$	466.2		$	339.1
Special items:
Acquisition-related, facilities closure and other costs		0.6			2.1
Jackson mill conversion-related activities		0.4			0.6
Total special items		1.0			2.7
EBITDA excluding special items	$	467.2		$	341.8

21

The following table reconciles segment income (loss) to EBITDA and EBITDA excluding special items for the periods indicated (dollars in millions):

	Three Months Ended
	March 31,
	2022			2021
Packaging
Segment income	$	362.2		$	257.9
Depreciation, amortization, and depletion		100.9			92.1
EBITDA		463.1			350.0
Acquisition-related, facilities closure and other costs		0.6			2.1
Jackson mill conversion-related activities		0.2			—
EBITDA excluding special items	$	463.9		$	352.1
Paper
Segment income	$	22.4		$	8.7
Depreciation, amortization, and depletion		6.4			6.5
EBITDA		28.8			15.2
Jackson mill conversion-related activities		0.2			0.6
EBITDA excluding special items	$	29.0		$	15.8
Corporate and Other
Segment loss	$	(28.1	)	$	(28.3	)
Depreciation, amortization, and depletion		2.4			2.2
EBITDA		(25.7	)		(26.1	)
EBITDA excluding special items	$	(25.7	)	$	(26.1	)
EBITDA	$	466.2		$	339.1
EBITDA excluding special items	$	467.2		$	341.8

Market Risk and Risk Management Policies

PCA is exposed to the impact of interest rate changes and changes in the market value of its financial instruments. We periodically enter into derivatives to minimize these risks, but not for trading purposes. We were not a party to any derivatives-based arrangements at March 31, 2022. For a discussion of derivatives and hedging activities, see Note 16, Derivative Instruments and Hedging Activities, of the Notes to Consolidated Financial Statements in “Part II, Item 8. Financial Statements and Supplementary Data” of our 2021 Annual Report on Form 10-K.

At March 31, 2022, interest rates on 100% of PCA’s outstanding debt are fixed.

Off-Balance-Sheet Activities

The Company does not have any off-balance sheet arrangements as of March 31, 2022.

Environmental Matters

There have been no material changes to the disclosure set forth in Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Environmental Matters” filed with our 2021 Annual Report on Form 10-K.

Critical Accounting Policies and Estimates

Management’s discussion and analysis of financial condition and results of operations are based upon the Company’s consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. On an ongoing basis, PCA evaluates its estimates, including those related to business combinations, pensions and other postretirement benefits, goodwill and intangible assets, long-lived asset impairment, environmental liabilities, and income taxes, among others. PCA bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

22

PCA has included in its 2021 Annual Report on Form 10-K a discussion of its critical accounting policies and estimates which require management’s most difficult, subjective, or complex judgments used in the preparation of its consolidated financial statements. PCA has not had any changes to these critical accounting estimates during the first three months of 2022.

New and Recently Adopted Accounting Standards

For a listing of our new and recently adopted accounting standards, see Note 2, New and Recently Adopted Accounting Standards, of the Condensed Notes to Unaudited Quarterly Consolidated Financial Statements in “Part I, Item 1. Financial Statements” of this Form 10-Q.

Forward-Looking Statements

Some of the statements in this Quarterly Report on Form 10-Q, and in particular, statements found in this Management’s Discussion and Analysis of Financial Condition and Results of Operations, that are not historical in nature are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about our expectations regarding our future liquidity, earnings, expenditures, and financial condition. These statements are often identified by the words “will,” “should,” “anticipate,” “believe,” “expect,” “intend,” “estimate,” “hope,” or similar expressions. These statements reflect management’s current views with respect to future events and are subject to risks and uncertainties. There are important factors that could cause actual results to differ materially from those in forward-looking statements, many of which are beyond our control. These factors, risks and uncertainties include the following:

•the impact of general economic conditions;

•the impact of the COVID-19 pandemic on the health of our employees, on our vendors and customers and on economic conditions affecting our business;

•the impact of acquired businesses and risks and uncertainties regarding operation, expected benefits and integration of such businesses;

•containerboard, corrugated products, and white paper general industry conditions, including competition, product demand, product pricing, and input costs;

•fluctuations in wood fiber and recycled fiber costs;

•fluctuations in purchased energy costs;

•the possibility of unplanned outages or interruptions at our principal facilities;

•legislative or regulatory actions or requirements, particularly concerning environmental or tax matters.

Our actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements, and accordingly, we can give no assurances that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do occur, what impact they will have on our results of operations or financial condition. Given these uncertainties, investors are cautioned not to place undue reliance on these forward-looking statements. We expressly disclaim any obligation to publicly revise any forward-looking statements that have been made to reflect the occurrence of events after the date hereof. For a discussion of other factors, risks and uncertainties that may affect our business, see Item 1A. Risk Factors included in our Annual Report on Form 10-K for the year ended December 31, 2021.

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Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For a discussion of market risks related to PCA, see Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Market Risk and Risk Management Policies” in this Quarterly Report on Form 10-Q.

Item 4. CONTROLS AND PROCEDURES

PCA maintains disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934) that are designed to provide reasonable assurance that information required to be disclosed in PCA’s filings under the Securities Exchange Act is recorded, processed, summarized and reported within the periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to PCA’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Prior to filing this report, PCA completed an evaluation under the supervision and with the participation of PCA’s management, including PCA’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of PCA’s disclosure controls and procedures as of March 31, 2022. The evaluation of PCA’s disclosure controls and procedures included a review of the controls’ objectives and design, PCA’s implementation of the controls, and the effect of the controls on the information generated for use in this report. Based on this evaluation, PCA’s Chief Executive Officer and Chief Financial Officer concluded that PCA’s disclosure controls and procedures were effective at the reasonable assurance level as of March 31, 2022.

Changes in Internal Control over Financial Reporting

On December 11, 2021, PCA acquired Advance Packaging Corporation ("Advance Packaging"). We are currently in the process of evaluating and integrating Advance Packaging's controls over financial reporting which may result in changes or additions to PCA's internal control over financial reporting. Under guidelines established by the SEC, companies are permitted to exclude acquisitions from their assessment of internal control over financial reporting during the first year of an acquisition while integrating the acquired company. We excluded Advance Packaging from the assessment of internal control over financial reporting at March 31, 2022. Except as may relate to the integration of the Advance Packaging acquisition, there were no other changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the most recent fiscal quarter ended March 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. As of and for the quarter ended March 31, 2022, Advance Packaging accounted for approximately 2% of both the Company's consolidated total assets and consolidated net sales.

24

PART II

OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

The disclosure set forth under the caption "Legal Proceedings" in Note 20, Commitments, Guarantees, Indemnifications and Legal Proceedings, of the Condensed Notes to Unaudited Quarterly Consolidated Financial Statements in "Part I, Item 1. Financial Statements" of this Form 10-Q is incorporated herein by reference.

Item 1A. RISK FACTORS

There have been no material changes to the risk factors disclosed in “Part I, Item IA. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021.

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table presents information related to our repurchases of common stock made under repurchase plans authorized by PCA's Board of Directors, and shares withheld to cover taxes on vesting of equity awards, during the three months ended March 31, 2022:

Issuer Purchases of Equity Securities
Period	Total Number of Shares Purchased (a)		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (in millions)
January 1-31, 2022		275	$	150.63		—	$	1,000.0
February 1-28, 2022		1,020		146.76		—		1,000.0
March 1-31, 2022		—		—		—		1,000.0
Total		1,295	$	147.58		—	$	1,000.0

(a)All shares were withheld from employees to cover income and payroll taxes on equity awards that vested during the period.

Item 3. DEFAULTS UPON SENIOR SECURITIES

None.

Item 4. MINE SAFETY DISCLOSURES

Not applicable.

Item 5. OTHER INFORMATION

None.

25

Item 6. EXHIBITS

Exhibit Number	Description
31.1	Certification of Chief Executive Officer, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. †
31.2	Certification of Chief Financial Officer, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. †
32	Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. §1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. †
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. †
101.SCH	Inline XBRL Taxonomy Extension Schema Document. †
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document. †
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document. †
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document. †
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document. †
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). †

† Filed herewith.

26

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Packaging Corporation of America

/s/ PAMELA A. BARNES

Pamela A. Barnes

Senior Vice President, Finance and Controller

Date: May 5, 2022

27

EX-31.1

Exhibit 31.1

CEO CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Mark W. Kowlzan, certify that:

(1) I have reviewed this quarterly report on Form 10-Q of Packaging Corporation of America (PCA);

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of PCA as of, and for, the periods presented in this report;

(4) PCA’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for PCA and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to PCA, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of PCA’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in PCA’s internal control over financial reporting that occurred during PCA’s most recent fiscal quarter (PCA’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, PCA’s internal control over financial reporting; and

(5) PCA’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to PCA’s auditors and the Audit Committee of PCA’s Board of Directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect PCA’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in PCA’s internal control over financial reporting.

/s/ Mark W. Kowlzan

Mark W. Kowlzan

Chairman and Chief Executive Officer

Date: May 5, 2022

EX-31.2

Exhibit 31.2

CFO CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Robert P. Mundy, certify that:

(1) I have reviewed this quarterly report on Form 10-Q of Packaging Corporation of America (PCA);

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of PCA as of, and for, the periods presented in this report;

(4) PCA’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for PCA and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to PCA, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of PCA’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in PCA’s internal control over financial reporting that occurred during PCA’s most recent fiscal quarter (PCA’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, PCA’s internal control over financial reporting; and

(5) PCA’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to PCA’s auditors and the Audit Committee of PCA’s Board of Directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect PCA’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in PCA’s internal control over financial reporting.

/s/ Robert P. Mundy

Robert P. Mundy

Executive Vice President and Chief Financial Officer

Date: May 5, 2022

EX-32

Exhibit 32

CERTIFICATIONS OF CHIEF EXECUTIVE OFFICER AND

CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. §1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

_______________________________________

I, Mark W. Kowlzan, Chief Executive Officer of Packaging Corporation of America (the “Company”), certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Quarterly Report of the Company on Form 10-Q for the period ended March 31, 2022 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in such Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Mark W. Kowlzan

Mark W. Kowlzan

Chairman and Chief Executive Officer

Date: May 5, 2022

I, Robert P. Mundy, Chief Financial Officer of Packaging Corporation of America (the “Company”), certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Quarterly Report of the Company on Form 10-Q for the period ended March 31, 2022 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in such Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Robert P. Mundy

Robert P. Mundy

Executive Vice President and Chief Financial Officer

Date: May 5, 2022

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	Apr. 29, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Registrant Name	PACKAGING CORP OF AMERICA
Entity Central Index Key	0000075677
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		93,701,172
Entity File Number	1-15399
Entity Tax Identification Number	36-4277050
Entity Address, Address Line One	1 North Field Court
Entity Address, City or Town	Lake Forest
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60045
City Area Code	847
Local Phone Number	482-3000
Document Quarterly Report	true
Entity Incorporation, State or Country Code	DE
Document Transition Report	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	PKG
Security Exchange Name	NYSE

XML

Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Net sales	$ 2,136.4	$ 1,807.2
Cost of sales	(1,603.2)	(1,403.5)
Gross profit	533.2	403.7
Selling, general and administrative expenses	(161.1)	(145.0)
Other expense, net	(15.6)	(20.4)
Income from operations	356.5	238.3
Non-operating pension income	3.6	4.8
Interest expense, net	(19.8)	(23.5)
Income before taxes	340.3	219.6
Provision for income taxes	(86.1)	(53.1)
Net income	$ 254.2	$ 166.5
Net income per common share:
Basic	$ 2.71	$ 1.75
Diluted	2.70	1.75
Dividends declared per common share	$ 1.00	$ 1.00
Statements of Comprehensive Income:
Net income	$ 254.2	$ 166.5
Changes in unrealized (losses) gains on marketable debt securities, net of tax of $0.0 million and $0.0 million for 2022 and 2021	(1.2)	(0.1)
Amortization of pension and postretirement plans actuarial loss and prior service cost, net of tax of ($0.8) million and ($0.8) million for 2022 and 2021	1.2	2.5
Other comprehensive income	0.0	2.4
Comprehensive income	$ 254.2	$ 168.9

XML

Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Changes in unrealized losses on marketable debt securities, tax	$ 0.4	$ 0.0
Amortization of pension and postretirement plans actuarial loss and prior service cost, tax	$ 0.3	$ 0.8

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 628.6	$ 618.7
Short-term marketable debt securities	81.3	86.1
Accounts receivable, net of allowance for credit losses and customer deductions of $20.0 million and $14.3 million as of March 31, 2022 and December 31, 2021, respectively	1,140.7	1,071.0
Inventories	941.2	902.5
Prepaid expenses and other current assets	77.6	47.0
Federal and state income taxes receivable		7.4
Total current assets	2,869.4	2,732.7
Property, plant, and equipment, net	3,670.7	3,529.0
Goodwill	923.1	923.5
Other intangible assets, net	298.2	308.4
Operating lease right-of-use assets	264.4	238.3
Long-term marketable debt securities	68.5	60.0
Other long-term assets	43.5	44.9
Total assets	8,137.8	7,836.8
Current liabilities:
Operating lease obligations	69.7	67.1
Finance lease obligations	1.8	1.7
Accounts payable	546.7	452.4
Dividends payable	96.9	96.3
Accrued liabilities	188.6	255.0
Accrued interest	26.0	12.3
Federal and state income taxes payable	38.2
Total current liabilities	967.9	884.8
Long-term liabilities:
Long-term debt	2,472.0	2,471.5
Operating lease obligations	202.6	179.3
Finance lease obligations	12.2	12.7
Deferred income taxes	488.8	465.9
Compensation and benefits	157.0	157.4
Other long-term liabilities	58.0	58.0
Total long-term liabilities	3,390.6	3,344.8
Commitments and contingent liabilities
Stockholders' equity:
Common stock, par value $0.01 per share, 300.0 million shares authorized, 95.0 million and 93.5 million shares issued as of March 31, 2022 and December 31, 2021, respectively	0.9	0.9
Additional paid in capital	591.7	579.4
Retained earnings	3,261.9	3,102.1
Accumulated other comprehensive loss	(75.2)	(75.2)
Total stockholders' equity	3,779.3	3,607.2
Total liabilities and stockholders' equity	$ 8,137.8	$ 7,836.8

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for credit losses and customer deductions	$ 20.0	$ 14.3
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	300.0	300.0
Common stock, shares issued	93.7	93.5

XML

Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash Flows from Operating Activities:
Net income	$ 254.2	$ 166.5
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion, and amortization of intangibles	109.7	100.8
Amortization of deferred financing costs	0.5	0.7
Share-based compensation expense	12.3	11.6
Deferred income tax provision	22.9	12.0
Loss on asset disposals	2.8	3.7
Pension and post-retirement benefits expense, net of contributions	0.8	(0.2)
Other, net	3.8	3.7
Increase in assets -
Accounts receivable	(69.6)	(76.2)
Inventories	(38.8)	(11.7)
Prepaid expenses and other current assets	(30.1)	(19.0)
Increase (decrease) in liabilities -
Accounts payable	63.6	(12.3)
Accrued liabilities	(52.4)	(15.8)
Federal and state income taxes payable / receivable	45.6	27.8
Net cash provided by operating activities	325.3	191.6
Cash Flows from Investing Activities:
Additions to property, plant, and equipment	(213.2)	(85.1)
Additions to other long term assets	(2.4)	(1.3)
Proceeds from asset disposals	0.2	0.7
Purchases of marketable debt securities	(36.4)	(31.4)
Proceeds from sales of marketable debt securities	7.8	11.4
Proceeds from maturities of marketable debt securities	22.8	18.2
Net cash used for investing activities	(221.2)	(87.5)
Cash Flows from Financing Activities:
Repayments of debt and finance lease obligations	(0.4)	(0.4)
Common stock dividends paid	(93.6)	(94.8)
Shares withheld to cover employee restricted stock taxes	(0.2)	(0.1)
Net cash used for financing activities	(94.2)	(95.3)
Net increase in cash and cash equivalents	9.9	8.8
Cash and cash equivalents, beginning of period	618.7	974.6
Cash and cash equivalents, end of period	$ 628.6	$ 983.4

XML

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Millions	Total	Common Stock	Additional Paid in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning Balance at Dec. 31, 2020	$ 3,246.3	$ 0.9	$ 554.4	$ 2,835.5	$ (144.5)
Beginning Balance (in shares) at Dec. 31, 2020		94,830,000
Common stock withheld and retired to cover taxes on vested stock awards	0.1			0.1
Common stock withheld and retired to cover taxes on vested stock awards (in shares)		1,000
Common stock dividends declared	(95.5)			(95.5)
Share-based compensation and other	11.6	$ 0.1	11.6	(0.1)
Share-based compensation expense (in shares)		165,000
Comprehensive income	168.9	$ 0.0	0.0	166.5	2.4
Ending Balance at Mar. 31, 2021	3,331.2	$ 1.0	566.0	2,906.3	(142.1)
Ending Balance (in shares) at Mar. 31, 2021		94,994,000
Beginning Balance at Dec. 31, 2021	3,607.2	$ 0.9	579.4	3,102.1	(75.2)
Beginning Balance (in shares) at Dec. 31, 2021		93,539,000
Common stock withheld and retired to cover taxes on vested stock awards	(0.2)	$ 0.0	0.0	(0.2)	0.0
Common stock withheld and retired to cover taxes on vested stock awards (in shares)		(1,000)
Common stock dividends declared	(94.2)	$ 0.0	0.0	(94.2)	0.0
Share-based compensation and other	12.3	$ 0.0	12.3	0.0	0.0
Share-based compensation expense (in shares)		166,000
Comprehensive income	254.2	$ 0.0	0.0	254.2	0.0
Ending Balance at Mar. 31, 2022	$ 3,779.3	$ 0.9	$ 591.7	$ 3,261.9	$ (75.2)
Ending Balance (in shares) at Mar. 31, 2022		93,704,000

XML

Nature of Operations and Basis of Presentation

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations and Basis of Presentation

1. Nature of Operations and Basis of Presentation

Packaging Corporation of America ("we," "us," "our," PCA," or the "Company") was incorporated on January 25, 1999. In April 1999, PCA acquired the containerboard and corrugated packaging products business of Pactiv Corporation ("Pactiv"), formerly known as Tenneco Packaging, Inc. We are a large diverse manufacturer of both packaging and paper products. We are headquartered in Lake Forest, Illinois and we operate primarily in the United States.

We report our business in three reportable segments: Packaging, Paper, and Corporate and Other. Our Packaging segment produces a wide variety of containerboard and corrugated packaging products. The Paper segment manufactures and sells a range of communication-based papers. Corporate and Other includes support staff services and related assets and liabilities, transportation assets, and activity related to other ancillary support operations. For more information about our segments, see Note 19, Segment Information.

Our Jackson, Alabama mill had historically operated as an uncoated freesheet ("UFS") paper mill, with its results of operations reported in our Paper segment. During the fourth quarter of 2020, in order to meet strong packaging demand and maintain appropriate inventory levels, we temporarily began producing linerboard on the No. 3 machine at our Jackson, Alabama mill. In the first quarter of 2021, we announced the discontinuation of production of UFS paper grades on the machine and the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities. In the third quarter of 2021, we began producing corrugating medium on the No. 1 machine at the Jackson mill (which had produced UFS paper in the past) to help satisfy our demand for containerboard, build necessary inventories, and evaluate the capability of the machine to produce containerboard on a cost-effective basis. For the periods presented in this Form 10-Q, operating results for the Jackson mill are included in both the Packaging and Paper segments, as appropriate.

In these consolidated financial statements, certain amounts in prior periods’ consolidated financial statements have been reclassified to conform with the current period presentation.

The consolidated financial statements of PCA as of March 31, 2022 and for the three months ended March 31, 2022 and 2021 are unaudited but include all adjustments (consisting only of normal recurring adjustments) that management considers necessary for a fair presentation of such financial statements. The preparation of the consolidated financial statements involves the use of estimates and accruals. Actual results may vary from those estimates. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with Article 10 of Regulation S-X of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete audited financial statements. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. These consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021.

The consolidated financial statements include the accounts of PCA and its majority-owned subsidiaries after elimination of intercompany balances and transactions.

XML

New Accounting Standards

3 Months Ended

Mar. 31, 2022

Accounting Standards Update and Change in Accounting Principle [Abstract]

New Accounting Standards

2. New Accounting Standards

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ASU 2021-08 requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. Under current business combination guidance in ASC 805, Business Combinations, such assets and liabilities are recognized by the acquirer at fair value on the acquisition date, whereas the new guidance requires the acquirer to recognize such assets and liabilities as if it had originated the contracts. The ASU is effective for annual periods beginning after December 15, 2022, and interim periods within those annual periods, with early adoption permitted. The amended guidance should be applied on a prospective basis to any business combinations that occur on or after the adoption date. The Company is currently evaluating the impact of this guidance, but does not expect the guidance to have a significant impact on the Company's financial position, results of operations, or cash flow.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. The amendments in this Update are elective and apply to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU 2021-01, which extends some of the optional expedients under Topic 848 to include derivative contracts impacted by discounting transition. Companies can apply the ASU immediately. The ASU can be adopted on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to any new modification from any date within an interim period that includes or is subsequent to the date of the issuance of a final Update, up to the date that financial statements are available to be issued. The optional guidance will only be available until December 31, 2022. While the Company’s fixed-rate outstanding debt will not be impacted by the reference rate reform, the Company is still evaluating the impact of this guidance on its revolving credit facility, as the interest rate associated with any future borrowings against the revolving credit facility is based on LIBOR. Overall, the Company does not expect the guidance to have a significant impact on its financial position or related disclosures.

There were no other accounting standards recently issued that had or are expected to have a material impact on our financial position or results of operations.

XML

Acquisitions

3 Months Ended

Mar. 31, 2022

Asset Acquisition [Abstract]

Acquisitions

4. Acquisitions

Advance Packaging Acquisition

On December 11, 2021, PCA acquired the assets of Advance Packaging Corporation ("Advance Packaging"), an independent corrugated products producer, for $194.9 million, including working capital adjustments. Assets acquired include full-line corrugated products operations in Grand Rapids, Michigan. Advance Packaging is a full-service producer of corrugated packaging products, including graphics, retail displays, sustainable shipping containers, and protective packaging. Advance Packaging's financial results are included in the Packaging segment from the date of acquisition.

The Company accounted for the Advance Packaging acquisition using the acquisition method of accounting in accordance with ASC 805, Business Combinations. The total purchase price has been preliminarily allocated to tangible and intangible assets acquired and liabilities assumed based on respective fair values, as follows (dollars in millions):

	12/31/2021 Allocation		Adjustments			Revised Allocation
Goodwill	$	60.0	$	(0.4	)	$	59.6
Other intangible assets		50.2		—			50.2
Property, plant and equipment		66.7		0.4			67.1
Other net assets		18.0		—			18.0
Net assets acquired	$	194.9	$	—		$	194.9

The purchase price allocation above is preliminary and is subject to finalization of various valuations and assessments, primarily related to intangible assets. Our current estimates and assumptions may change as more information becomes available. We expect to finalize the valuation within the 12-month period following the acquisition date.

Goodwill is calculated as the excess of the purchase price over the fair value of the net assets acquired. Among the factors that contributed to the recognition of goodwill were Advance Packaging's commitment to continuous improvement and synergies, as well as the expected increases in PCA's containerboard integration levels. Goodwill is deductible for tax purposes.

Other intangible assets, primarily customer relationships, were assigned an estimated weighted average useful life of 9.7 years.

Property, plant, and equipment were assigned estimated useful lives ranging from one to 20 years.

XML

Revenue

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue

3. Revenue

Revenue Recognition

Revenue is recognized when control of the promised goods or services is transferred to customers in an amount that reflects the consideration expected to be received in exchange for those goods or services. Sales, value added, and other taxes collected concurrently with revenue-producing activities are excluded from revenue.

The following table presents our revenues disaggregated by product line (dollars in millions):

	Three Months Ended March 31,
	2022		2021
Packaging	$	1,964.5	$	1,623.6
Paper		153.5		164.6
Corporate and Other		18.4		19.0
Total revenue	$	2,136.4	$	1,807.2

Packaging Revenue

Our containerboard mills produce linerboard and corrugating medium which are papers primarily used in the production of corrugated products. The majority of our containerboard production is used internally by our corrugated products manufacturing facilities. The remaining containerboard is sold to outside domestic and export customers. Our corrugated products manufacturing plants produce a wide variety of corrugated packaging products and retail merchandise displays. We sell corrugated products to national, regional and local accounts, which are broadly diversified across industries and geographic locations.

The Company recognizes revenue for its packaging products when performance obligations under the terms of a contract with a customer are satisfied. This occurs with the transfer of control of our products at a specific point in time. Based on our express terms and conditions of the sale of products to our customers, as well as terms included in contractual arrangements with our customers, we do not have an enforceable right of payment that includes a reasonable profit throughout the duration of the contract for products that do not have an alternative use. Revenue is recognized when the product is shipped from the mill or from our manufacturing facility to our customer. Certain customers may receive volume-based incentives, which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenue recognized.

Certain customers receive a portion of their packaging products as consigned inventory with billing triggered once the customer uses or consumes the designated product. Prior to invoicing, these amounts are handled as unbilled receivables. Total unbilled receivables, which are immaterial in amount, are included in the accounts receivable financial statement caption.

Paper Revenue

We manufacture and sell a range of communication-based papers. Communication papers consist of cut-size office papers, and printing and converting papers.

The Company recognizes revenue for its paper products when performance obligations under the terms of a contract with a customer are satisfied. This occurs with the transfer of control of our products at a specific point in time. Revenue is recognized when the product is shipped from the mill or from our manufacturing facility or distribution center to our customer. Certain customers may receive volume-based incentives, which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenue recognized.

Corporate and Other Revenue

Revenue in this segment primarily relates to Louisiana Timber Procurement Company, L.L.C. ("LTP"), a variable-interest entity that is 50% owned by PCA and 50% owned by Boise Cascade Company ("Boise Cascade"). PCA is the primary beneficiary of LTP and has the power to direct the activities that most significantly affect the economic performance of LTP. Therefore, we consolidate 100% of LTP in our financial statements. See Note 18, Transactions With Related Parties, for more information related to LTP.

The Company recognizes revenue within this segment when performance obligations under the terms of a contract with a customer are satisfied. This occurs with the transfer of control of our products at a specific point in time.

Practical Expedients and Exemption

Shipping and handling fees billed to a customer are recorded on a gross basis in "Net sales" with the corresponding shipping and handling costs included in "Cost of sales" in the concurrent period as the revenue is recorded. We expense sales commissions when incurred because the amortization period is one year or less. Sales commissions are recorded in "Selling, general, and administrative expenses".

We do not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less.

XML

Earnings Per Share

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Earnings Per Share

5. Earnings Per Share

The following table sets forth the computation of basic and diluted income per common share for the periods presented (dollars and shares in millions, except per share data):

	Three Months Ended
	March 31,
Numerator:	2022			2021
Net income	$	254.2		$	166.5
Less: Distributed and undistributed earnings allocated to participating    securities		(2.0	)		(1.3	)
Net income attributable to common shareholders	$	252.2		$	165.2
Denominator:
Weighted average basic common shares outstanding		92.9			94.2
Effect of dilutive securities		0.4			0.4
Weighted average diluted common shares outstanding		93.3			94.6
Basic income per common share	$	2.71		$	1.75
Diluted income per common share	$	2.70		$	1.75

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Other Expense, Net

3 Months Ended

Mar. 31, 2022

Other Income and Expenses [Abstract]

Other Expense, Net

. Other Expense, Net

The components of other income (expense), net, were as follows (dollars in millions):

	Three Months Ended
	March 31,
	2022			2021
Asset disposals and write-offs	$	(12.7	)	$	(10.4	)
Jackson mill conversion-related activities (a)		(0.4	)		(0.5	)
Acquisition-related, facilities closure and other costs (b)		(0.4	)		(2.1	)
Other		(2.1	)		(7.4	)
Total	$	(15.6	)	$	(20.4	)

(a)Includes charges related to the announced discontinuation of production of uncoated freesheet paper grades on the No. 3 machine at the Jackson, Alabama mill in the first quarter of 2021 associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.

(b)For 2022, includes charges consisting of closure costs related to corrugated products facilities and acquisition and integration costs related to the December 2021 Advance Packaging Corporation acquisition. For 2021, includes charges consisting of closure costs related to corrugated products facilities.

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Income Taxes

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

7. Income Taxes

For the three months ended March 31, 2022 and 2021, we recorded $86.1 million and $53.1 million of income tax expense and had an effective tax rate of 25.3% and 24.2%, respectively. The increase in our effective tax rate for the three months ended March 31, 2022 compared to the same period in 2021 was primarily due to a favorable state law change during the three months ended March 31, 2021 with no corresponding favorable state law change during the three months ended March 31, 2022.

Our current effective tax rate may differ from the federal statutory income tax rate of 21.0% due primarily to the effect of state and local income taxes. During the three months ended March 31, 2022 and 2021, cash paid for taxes, net of refunds received, was $17.6 million and $13.3 million, respectively. The increase in cash tax payments between the periods is primarily due to higher 2022 forecasted taxable income.

During the three months ended March 31, 2022, there were no significant changes to our uncertain tax positions. For more information, see Note 8, Income Taxes, of the Notes to Consolidated Financial Statements in “Part II, Item 8. Financial Statements and Supplementary Data” of our 2021 Annual Report on Form 10-K.

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Inventories

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Inventories

. Inventories

We value our raw materials, work in process, and finished goods inventories using lower of cost, as determined by the average cost method, or net realizable value. Supplies and materials are valued at the first-in, first-out (FIFO) or average cost methods.

The components of inventories were as follows (dollars in millions):

	March 31,		December 31,
	2022		2021
Raw materials	$	354.1	$	324.2
Work in process		16.7		16.2
Finished goods		201.1		201.0
Supplies and materials		369.3		361.1
Inventories	$	941.2	$	902.5

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Property, Plant, and Equipment

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

Property, Plant, and Equipment

9. Property, Plant, and Equipment

The components of property, plant, and equipment were as follows (dollars in millions):

	March 31,			December 31,
	2022			2021
Land and land improvements	$	192.9		$	189.8
Buildings		949.1			938.7
Machinery and equipment		6,248.6			6,159.1
Construction in progress		581.4			481.0
Other		121.7			102.9
Property, plant and equipment, at cost		8,093.7			7,871.5
Less accumulated depreciation		(4,423.0	)		(4,342.5	)
Property, plant, and equipment, net	$	3,670.7		$	3,529.0

Depreciation expense for the three months ended March 31, 2022 and 2021 was $98.5 million and $90.0 million, respectively. We recognized $1.1 million and $0.5 million of incremental depreciation expense during the three months ended March 31, 2022 and 2021, respectively, as a result of the Jackson mill conversion-related activities.

At March 31, 2022 and December 31, 2021, purchases of property, plant, and equipment included in accounts payable were $103.1 million and $73.6 million, respectively.

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Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

10. Goodwill and Intangible Assets

Goodwill

Goodwill represents the excess of the cost of an acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. At March 31, 2022 and December 31, 2021 we had $923.1 million and $923.5 million of goodwill recorded in our Packaging segment respectively, which represents the entire goodwill balance reported on our Consolidated Balance Sheets.

Changes in the carrying amount of our goodwill are as follows (dollars in millions):

	Goodwill
Balance at January 1, 2022	$	923.5
Acquisitions (a)		(0.4	)
Balance at March 31, 2022	$	923.1

(a)During the three months ended March 31, 2022, the Company recorded a $0.4 million adjustment to decrease the goodwill balance for the Company's December 2021 acquisition of Advanced Packaging.

Intangible Assets

Intangible assets are primarily comprised of customer relationships and trademarks and trade names.

The weighted average remaining useful life, gross carrying amount, and accumulated amortization of our intangible assets were as follows (dollars in millions):

	March 31, 2022						December 31, 2021
	Weighted Average Remaining Useful Life (in Years)		Gross Carrying Amount		Accumulated Amortization		Weighted Average Remaining Useful Life (in Years)		Gross Carrying Amount		Accumulated Amortization
Customer relationships		8.3	$	551.1	$	264.5		8.5	$	551.1	$	254.9
Trademarks and trade names		8.3		37.6		26.1		8.4		37.6		25.5
Other		2.2		4.4		4.3		2.2		4.4		4.3
Total intangible assets (excluding goodwill)		8.3	$	593.1	$	294.9		8.5	$	593.1	$	284.7

During the three months ended March 31, 2022 and 2021, amortization expense was $10.2 million and $9.6 million, respectively.

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Accrued Liabilities

3 Months Ended

Mar. 31, 2022

Accrued Liabilities [Abstract]

Accrued Liabilities

11. Accrued Liabilities

The components of accrued liabilities were as follows (dollars in millions):

	March 31,		December 31,
	2022		2021
Compensation and benefits	$	87.9	$	157.1
Customer rebates and other credits		33.7		36.9
Medical insurance and workers’ compensation		25.7		26.9
Franchise, property, sales and use taxes		22.9		17.6
Environmental liabilities and asset retirement obligations		4.3		4.0
Severance, retention, and relocation		2.6		2.7
Other		11.5		9.8
Total	$	188.6	$	255.0

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Debt

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Debt

12. Debt

For both the three months ended March 31, 2022 and 2021, cash payments for interest were $7.5 million.

Included in interest expense, net is the amortization of financing costs. For the three months ended March 31, 2022 and 2021, amortization of financing costs was $0.4 million and $0.5 million, respectively.

At March 31, 2022, we had $2,491.1 million of fixed-rate senior notes outstanding. The fair value of our fixed-rate debt was estimated to be $2,395.3 million. The difference between the book value and fair value is due to the difference between the period-end market interest rate and the stated rate of our fixed-rate debt. We estimated the fair value of our fixed-rate debt using quoted market prices (Level 2 inputs) within the fair value hierarchy, which is further defined in Note 2, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements in "Part II, Item 8. Financial Statements and Supplementary Data" of our 2021 Annual Report on Form 10-K.

For more information on our long-term debt and interest rates on that debt, see Note 11, Debt, of the Notes to Consolidated Financial Statements in "Part II, Item 8. Financial Statements and Supplementary Data" of our 2021 Annual Report on Form 10-K.

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Cash, Cash Equivalents, and Marketable Debt Securities

3 Months Ended

Mar. 31, 2022

Cash, Cash Equivalents, and Short-term Investments [Abstract]

Cash, Cash Equivalents, and Marketable Debt Securities

13. Cash, Cash Equivalents, and Marketable Debt Securities

The following table shows the Company’s cash and available-for-sale ("AFS") debt securities by major asset category at March 31, 2022 and December 31, 2021 (in millions):

	March 31, 2022
	Adjusted Cost Basis		Unrealized Gain		Unrealized Loss			Fair Value		Cash and Cash Equivalents		Short-Term Marketable Debt Securities		Long-Term Marketable Debt Securities
Cash and cash equivalents	$	627.4	$	—	$	—		$	627.4	$	627.4	$	—	$	—
Level 1 (a):
U.S. Treasury securities		22.9		—		(0.3	)		22.6		—		12.7		9.9
Money market funds		1.2		—		—			1.2		1.2		—		—
Subtotal		24.1		—		(0.3	)		23.8		1.2		12.7		9.9
Level 2 (b):
Corporate debt securities		122.3		—		(1.6	)		120.7		—		63.6		57.1
U.S. government agency securities		5.6		—		(0.1	)		5.5		—		4.0		1.5
Certificates of deposit		1.0		—		—			1.0		—		1.0		—
Subtotal		128.9		—		(1.7	)		127.2		—		68.6		58.6
Total	$	780.4	$	—	$	(2.0	)	$	778.4	$	628.6	$	81.3	$	68.5

	December 31, 2021
	Adjusted Cost Basis		Unrealized Gain		Unrealized Loss			Fair Value		Cash and Cash Equivalents		Short-Term Marketable Debt Securities		Long-Term Marketable Debt Securities
Cash and cash equivalents	$	612.3	$	—	$	—		$	612.3	$	612.3	$	—	$	—
Level 1 (a):
U.S. Treasury securities		26.4		—		(0.1	)		26.3		2.0		14.7		9.6
Money market funds		0.9		—		—			0.9		0.9		—		—
Subtotal		27.3		—		(0.1	)		27.2		2.9		14.7		9.6
Level 2 (b):
Corporate debt securities		118.9		—		(0.3	)		118.6		3.5		66.0		49.1
U.S. government agency securities		4.8		—		—			4.8		—		3.5		1.3
Certificates of deposit		1.9		—		—			1.9		—		1.9		—
Subtotal		125.6		—		(0.3	)		125.3		3.5		71.4		50.4
Total	$	765.2	$	—	$	(0.4	)	$	764.8	$	618.7	$	86.1	$	60.0

(a)Valuations based on quoted prices for identical assets or liabilities in active markets.

(b)Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

For both the three months ended March 31, 2022 and 2021, net realized gains and losses on the sales and maturities of certain marketable debt securities were insignificant.

The Company invests in highly rated securities, with the primary objective of minimizing the potential risk of principal loss. The Company’s investment policy requires securities to be investment grade and limits the amount of credit exposure to any one issuer. The maturities of the Company’s long-term marketable debt securities generally range from one to two years.

Fair values were determined for each individual marketable debt security in the investment portfolio. When evaluating a marketable debt security for impairment, PCA reviews factors such as the duration and extent to which the fair value of the marketable debt security is less than its cost, the financial condition of the issuer and any changes thereto, the general market condition in which the issuer operates, and PCA’s intent to sell, or whether it will be more likely than not be required to sell, the marketable debt security before recovery of its amortized cost basis.

As of March 31, 2022 and December 31, 2021, we do not consider any of the impairments related to our marketable debt securities to be the result of credit losses. Therefore, we have not recorded an allowance for credit losses related to our marketable debt securities. All unrealized gains and losses were recorded in other comprehensive income (OCI).

The following table provides information about the Company’s marketable debt securities that have been in a continuous loss position as of March 31, 2022 and December 31, 2021 (in millions, except number of marketable debt securities in a loss position):

	March 31, 2022						December 31, 2021
	Fair Value of Marketable Debt Securities		Number of Marketable Debt Securities in a Loss Position		Unrealized Losses		Fair Value of Marketable Debt Securities		Number of Marketable Debt Securities in a Loss Position		Unrealized Losses
Corporate debt securities (c)	$	113.7		160	$	1.6	$	106.9		153	$	0.3
U.S. Treasury securities		22.6		25		0.1		22.4		27		0.1
U.S. government agency securities		5.5		7		0.3		4.8		6		—
Certificates of deposit		1.0		2		—		0.5		1		—
	$	142.8		194	$	2.0	$	134.6		187	$	0.4

(c)For 2022, includes one marketable debt security in a continuous loss position greater than 12 months with a fair value of $0.3 million and an insignificant amount of unrealized loss.

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Employee Benefit Plans and Other Postretirement Benefits

3 Months Ended

Mar. 31, 2022

Retirement Benefits [Abstract]

Employee Benefit Plans and Other Postretirement Benefits

14. Employee Benefit Plans and Other Postretirement Benefits

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

	Pension Plans
	Three Months Ended March 31,
	2022			2021
Service cost	$	4.9		$	5.4
Interest cost		8.7			7.4
Expected return on plan assets		(13.9	)		(15.8	)
Net amortization of unrecognized amounts
Prior service cost		0.9			1.0
Actuarial loss		0.8			2.5
Net periodic benefit cost	$	1.4		$	0.5

PCA makes pension plan contributions that are sufficient to fund its actuarially determined costs, generally equal to the minimum amounts required by the Employee Retirement Income Security Act (ERISA). From time to time, PCA may make additional discretionary contributions based on the funded status of the plans, tax deductibility, income from operations, and other factors. During the three months ended March 31, 2022 and 2021, payments to our nonqualified pension plans were insignificant. During both the three months ended March 31, 2022 and 2021, we did not make any contributions to our qualified pension plans. We do not have a required minimum contribution amount for 2022, but we expect to make discretionary contributions to our plans.

For both the three months ended March 31, 2022 and 2021, the net periodic benefit cost for our postretirement plans was insignificant.

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Share-Based Compensation

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement, Noncash Expense [Abstract]

Share-Based Compensation

15. Share-Based Compensation

The Company has a long-term equity incentive plan, which allows for grants of restricted stock, performance awards, stock appreciation rights, and stock options to directors, officers, and employees, as well as others who engage in services for PCA. On February 25, 2020, our board of directors approved and, on May 5, 2020, our stockholders approved, the amendment and restatement of the plan. The amendment extended the plan’s term to May 5, 2030 and increased the number of shares of common stock available for issuance under the plan by 1.4 million shares. The total number of shares authorized for past and future awards is 12.0 million shares.

As of March 31, 2022, assuming performance units are paid out at the target level of performance, 1.1 million shares were available for future grants under the current plan. Forfeitures are added back to the pool of shares of common stock available to be granted at a future date.

The following table presents restricted stock and performance unit award activity for the three months ended March 31, 2022:

	Restricted Stock					Performance Units
	Shares			Weighted Average Grant- Date Fair Value		Shares		Weighted Average Grant- Date Fair Value
Outstanding at January 1, 2022		651,448		$	109.16		358,092	$	105.38
Granted		170,232			145.26		96,309		154.21
Vested		(4,113	)		106.50		—		—
Forfeitures		(3,926	)		107.95		—		—
Outstanding at March 31, 2022		813,641		$	116.73		454,401	$	115.73

Compensation Expense

Our share-based compensation expense is primarily recorded in "Selling, general, and administrative expenses." Compensation expense for share-based awards recognized in the Consolidated Statements of Income, net of forfeitures, was as follows (dollars in millions):

	Three Months Ended March 31,
	2022			2021
Restricted stock	$	9.2		$	8.6
Performance units		3.1			3.0
Total share-based compensation expense		12.3			11.6
Income tax benefit		(3.1	)		(2.9	)
Share-based compensation expense, net of tax benefit	$	9.2		$	8.7

The fair value of restricted stock is determined based on the closing price of the Company’s stock on the grant date. Compensation expense, net of estimated forfeitures, is recorded over the requisite service period. As PCA’s Board of Directors has the ability to accelerate the vesting of these awards upon an employee’s retirement, the Company accelerates the recognition of compensation expense for certain employees approaching normal retirement age.

Performance unit awards granted to certain key employees are earned based on the achievement of defined performance rankings of Return on Invested Capital (ROIC) or Total Shareholder Return (TSR) compared to ROIC and TSR for peer companies. For performance unit awards made in 2022 and 2021, in terms of grant date value, 50% used TSR as the performance measure and 50% used ROIC as the performance measure. The ROIC component of performance unit awards is valued based on the closing price of the stock on the grant date. As the ROIC component contains a performance condition, compensation expense, net of estimated forfeitures, is recorded over the requisite service period based on the most probable number of awards expected to vest. The TSR component of performance unit awards is valued using a Monte Carlo simulation as the TSR component contains a market condition. The Monte Carlo simulation estimates the fair value of the TSR component based on the expected term of the award, a risk-free interest rate, expected dividends, and expected volatility of the Company’s common stock and the common stock of the peer companies. Compensation expense is recorded ratably over the expected term of the award.

The unrecognized compensation expense for all share-based awards at March 31, 2022 was as follows (dollars in millions):

	March 31, 2022
	Unrecognized Compensation Expense		Remaining Weighted Average Recognition Period (in years)
Restricted stock	$	41.2		2.9
Performance units		29.7		2.7
Total unrecognized share-based compensation expense	$	70.9		2.8

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Stockholders' Equity

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Stockholders' Equity

16. Stockholders' Equity

Dividends

During the three months ended March 31, 2022, we paid $93.6 million of dividends to shareholders. On February 23, 2022, PCA’s Board of Directors declared a regular quarterly cash dividend of $1.00 per share of common stock, which was paid on April 15, 2022 to shareholders of record as of March 15, 2022. The dividend payment was $93.7 million.

Repurchases of Common Stock

On January 26, 2022, PCA announced that its Board of Directors authorized the repurchase of an additional $1 billion of the Company’s outstanding common stock. Repurchases may be made from time to time in open market or privately negotiated transactions in accordance with applicable securities regulations. The timing and amount of repurchases will be determined by the Company in its discretion based on factors such as PCA’s stock price and market and business conditions.

The Company did not repurchase any shares of its common stock under this authority during the three months ended March 31, 2022. At March 31, 2022, $1 billion of the authorized amount remained available for repurchase of the Company’s common stock.

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) (AOCI) by component were as follows (dollars in millions). Amounts in parentheses indicate losses:

	Unrealized Loss On Foreign Exchange Contracts			Unrealized Loss on Marketable Debt Securities			Unfunded Employee Benefit Obligations			Total
Balance at January 1, 2022	$	(0.2	)	$	(0.2	)	$	(74.8	)	$	(75.2	)
Other comprehensive income before reclassifications,    net of tax		—			(1.2	)		—			(1.2	)
Amounts reclassified from AOCI, net of tax		—			—			1.2			1.2
Balance at March 31, 2022	$	(0.2	)	$	(1.4	)	$	(73.6	)	$	(75.2	)

Reclassifications out of AOCI were as follows (dollars in millions). Amounts in parentheses indicate expenses in the Consolidated Statements of Income:

	Amounts Reclassified from AOCI
	Three Months Ended March 31,
Details about AOCI Components	2022			2021
Unfunded employee benefit obligations (a)
Amortization of prior service costs	$	(0.8	)	$	(0.8	)	See (a) below
Amortization of actuarial losses		(0.7	)		(2.5	)	See (a) below
		(1.5	)		(3.3	)	Total before tax
		0.3			0.8		Tax benefit
	$	(1.2	)	$	(2.5	)	Net of tax

(a)These AOCI components are included in the computation of net pension and postretirement benefit costs. See Note 14, Employee Benefit Plans and Other Postretirement Benefits, for additional information.

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Concentrations of Risk

3 Months Ended

Mar. 31, 2022

Risks and Uncertainties [Abstract]

Concentration of Risk

17. Concentrations of Risk

Our Paper segment has a long-standing commercial and contractual relationship with Office Depot, our largest customer in the paper business. This relationship exposes us to a significant concentration of business and financial risk. Our sales to Office Depot represent approximately 4% of our total Company sales revenue for both the three month periods ended March 31, 2022 and 2021 and approximately 58% and 45% of our Paper segment sales revenue for both of those periods, respectively. For the full year 2021, sales to Office Depot represented 51% of our Paper segment sales. At March 31, 2022 and December 31, 2021, we had $54.8 million and $49.8 million of accounts receivable due from Office Depot, respectively, which represents approximately 5% and 4% of our total Company accounts receivable, respectively.

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Transactions With Related Parties

3 Months Ended

Mar. 31, 2022

Related Party Transactions [Abstract]

Transactions With Related Parties

18. Transactions With Related Parties

Louisiana Timber Procurement Company, L.L.C. ("LTP") is a variable-interest entity that is 50% owned by PCA and 50% owned by Boise Cascade Company ("Boise Cascade"). LTP procures sawtimber, pulpwood, residual chips, and other residual wood fiber to meet the wood and fiber requirements of PCA and Boise Cascade in Louisiana. PCA is the primary beneficiary of LTP and has the power to direct the activities that most significantly affect the economic performance of LTP. Therefore, we consolidate 100% of LTP in our financial statements in our Corporate and Other segment. The carrying amounts of LTP's assets and liabilities (which relate primarily to non-inventory working capital items) on our Consolidated Balance Sheets were $3.0 million at March 31, 2022 and $3.5 million at December 31, 2021. During the three months ended March 31, 2022 and 2021, we recorded $20.8 million and $20.3 million, respectively, of LTP sales to Boise Cascade in "Net Sales" in the Consolidated Statements of Income and approximately the same amount of expenses in "Cost of Sales".

During the three months ended March 31, 2022 and 2021, fiber purchases from related parties were $3.8 million and $3.3 million, respectively. Most of these purchases related to chip and log purchases by LTP from Boise Cascade's wood products business. These purchases are recorded in "Cost of Sales" in the Consolidated Statements of Income.

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Segment Information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Information

19. Segment Information

We report our business in three reportable segments: Packaging, Paper, and Corporate and Other. These segments represent distinct businesses that are managed separately because of differing products and services. Each of these businesses requires distinct operating and marketing strategies.

Our Jackson, Alabama mill had historically operated as a UFS mill, with its results of operations reported in our Paper segment. During the fourth quarter of 2020, in order to meet strong packaging demand and maintain appropriate inventory levels, we temporarily began producing linerboard on the No. 3 machine at our Jackson, Alabama mill. In the first quarter of 2021, we announced the discontinuation of production of UFS paper grades on the machine and the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities. In the third quarter of 2021, we began producing corrugating medium on the No. 1 machine at the Jackson mill (which had produced UFS paper in the past) to help satisfy our demand for containerboard, build necessary inventories, and evaluate the capability of the machine to produce containerboard on a cost-effective basis. For the periods presented, operating results for the Jackson mill are included in both the Packaging and Paper segments, as appropriate.

Each segment’s profits and losses are measured on operating profits before interest expense, net, non-operating pension income, and income taxes. For certain allocated expenses, the related assets and liabilities remain in the Corporate and Other segment.

Selected financial information by reportable segment was as follows (dollars in millions):

	Sales, net
Three Months Ended March 31, 2022	Trade		Intersegment			Total			Operating Income (Loss)
Packaging	$	1,960.0	$	4.5		$	1,964.5		$	362.2		(a)
Paper		153.5		—			153.5			22.4		(a)
Corporate and Other		22.9		35.4			58.3			(28.1	)
Intersegment eliminations		—		(39.9	)		(39.9	)		—
	$	2,136.4	$	—		$	2,136.4			356.5
Non-operating pension income										3.6
Interest expense, net										(19.8	)
Income before taxes									$	340.3

	Sales, net
Three Months Ended March 31, 2021	Trade		Intersegment			Total			Operating Income (Loss)
Packaging	$	1,619.8	$	3.8		$	1,623.6		$	257.9		(b)
Paper		164.4		0.2			164.6			8.7		(b)
Corporate and Other		23.0		32.4			55.4			(28.3	)
Intersegment eliminations		—		(36.4	)		(36.4	)		—
	$	1,807.2	$	—		$	1,807.2			238.3
Non-operating pension income										4.8
Interest expense, net										(23.5	)
Income before taxes									$	219.6

(a)	The three months ended March 31, 2022 include the following:
	1.	$1.5 million of charges related to the announced discontinuation of production of UFS paper grades on the No. 3 machine at the Jackson, Alabama mill associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.
	2.	$0.6 million of charges consisting of closure costs related to corrugated products facilities and acquisition and integration costs related to the December 2021 Advance Packaging Corporation acquisition.
(b)	The three months ended March 31, 2021 include the following:
	1.	$2.1 million of charges consisting of closure costs related to corrugated products facilities.
	2.	$1.1 million of charges related to the announced discontinuation of UFS paper grades on the No. 3 machine at the Jackson, Alabama mill in the first quarter of 2021 associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.

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Commitments, Guarantees, Indemnifications and Legal Proceedings

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments, Guarantees, Indemnifications and Legal Proceedings

. Commitments, Guarantees, Indemnifications and Legal Proceedings

We have financial commitments and obligations that arise in the ordinary course of our business. These include long-term debt, capital commitments, lease obligations, and purchase commitments for goods and services, and legal proceedings, all of which are discussed in Note 11, Debt, and Note 21, Commitments, Guarantees, Indemnifications, and Legal Proceedings, of the Notes to Consolidated Financial Statements in "Part II, Item 8. Financial Statements and Supplementary Data" of our 2021 Annual Report on Form 10-K.

Guarantees and Indemnifications

We provide guarantees, indemnifications, and other assurances to third parties in the normal course of our business. These include tort indemnifications, product guarantees, environmental assurances, and representations and warranties in commercial agreements. At March 31, 2022, we are not aware of any material liabilities arising from any guarantee, indemnification, or financial assurance we have provided. If we determined such a liability was probable and subject to reasonable determination, we would accrue for it at that time.

DeRidder Mill Incident

On February 8, 2017, a tank located in the pulp mill at the Company's DeRidder, Louisiana facility exploded, resulting in three contractor fatalities and other injuries. The Company has been served with multiple lawsuits involving the decedents and other allegedly injured parties, alleging negligence on the part of the Company and claiming compensatory and punitive damages. The Company is vigorously defending these lawsuits. The Company believes that these suits are covered by its liability insurance policies, subject to an aggregate $1.0 million deductible, which has been satisfied in full as a result of settlement of various lawsuits and fees and expenses incurred by the Company. Cases involving nine plaintiffs are pending in the U.S. District Court for the Middle District of Louisiana and one case remains pending in state court in Alabama. One case previously dismissed by the federal district court for the Western District of Louisiana has been appealed by the plaintiff to the United States Court of Appeals for the Fifth Circuit. The remaining lawsuits pending in federal district court and state court are in the early stages. Accordingly, the Company is unable to estimate a range of reasonable possible losses at this time.

The Company has cooperated with investigations from the U.S. Occupational Health and Safety Administration ("OSHA"), the U.S. Chemical Safety Board ("CSB") and the U.S. Environmental Protection Agency ("EPA"). The U.S. Chemical Safety Board completed its investigation and issued its report during the second quarter of 2018. The Company settled with OSHA during the second quarter of 2018 and paid approximately $40,000 in penalties for citations.

The EPA investigation is ongoing. In May 2017, the EPA conducted an on-site inspection of the facility to assess compliance with the Clean Air Act, Risk Management Program ("RMP"). The Company provided additional information to the EPA promptly after the inspection to address certain areas of concern ("AOCs") observed during the inspection. In January 2021, the EPA and U.S. Department of Justice ("DOJ") initiated civil judicial enforcement discussions with PCA. These discussions are ongoing. As of the date of filing of this report, no complaint has been filed. PCA continues to cooperate with the agencies. Since the inspection in 2017, PCA performed several voluntary activities to address the AOCs presented in the EPA’s inspection report and has removed the RMP covered process from the facility.

Legal Proceedings

We are also a party to various legal actions arising in the ordinary course of our business. These legal actions include commercial liability claims, premises liability claims, and employment-related claims, among others. As of the date of this filing, we believe it is not reasonably possible that any of the legal actions against us will, either individually or in the aggregate, have a material adverse effect on our financial condition, results of operations, or cash flows.

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Acquisitions (Tables)

3 Months Ended

Mar. 31, 2022

Asset Acquisition [Abstract]

Schedule of Tangible and Intangible Assets Acquired and Liabilities Assumed

The total purchase price has been preliminarily allocated to tangible and intangible assets acquired and liabilities assumed based on respective fair values, as follows (dollars in millions):

	12/31/2021 Allocation		Adjustments			Revised Allocation
Goodwill	$	60.0	$	(0.4	)	$	59.6
Other intangible assets		50.2		—			50.2
Property, plant and equipment		66.7		0.4			67.1
Other net assets		18.0		—			18.0
Net assets acquired	$	194.9	$	—		$	194.9

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Revenue (Tables)

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Summary of Revenues Disaggregated by Product Line

The following table presents our revenues disaggregated by product line (dollars in millions):

	Three Months Ended March 31,
	2022		2021
Packaging	$	1,964.5	$	1,623.6
Paper		153.5		164.6
Corporate and Other		18.4		19.0
Total revenue	$	2,136.4	$	1,807.2

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Computation of Basic and Diluted Income Per Common Share

The following table sets forth the computation of basic and diluted income per common share for the periods presented (dollars and shares in millions, except per share data):

	Three Months Ended
	March 31,
Numerator:	2022			2021
Net income	$	254.2		$	166.5
Less: Distributed and undistributed earnings allocated to participating    securities		(2.0	)		(1.3	)
Net income attributable to common shareholders	$	252.2		$	165.2
Denominator:
Weighted average basic common shares outstanding		92.9			94.2
Effect of dilutive securities		0.4			0.4
Weighted average diluted common shares outstanding		93.3			94.6
Basic income per common share	$	2.71		$	1.75
Diluted income per common share	$	2.70		$	1.75

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Other Expense, Net (Tables)

3 Months Ended

Mar. 31, 2022

Other Income and Expenses [Abstract]

Components of Other Income (Expense), Net

The components of other income (expense), net, were as follows (dollars in millions):

	Three Months Ended
	March 31,
	2022			2021
Asset disposals and write-offs	$	(12.7	)	$	(10.4	)
Jackson mill conversion-related activities (a)		(0.4	)		(0.5	)
Acquisition-related, facilities closure and other costs (b)		(0.4	)		(2.1	)
Other		(2.1	)		(7.4	)
Total	$	(15.6	)	$	(20.4	)

(a)Includes charges related to the announced discontinuation of production of uncoated freesheet paper grades on the No. 3 machine at the Jackson, Alabama mill in the first quarter of 2021 associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.

(b)For 2022, includes charges consisting of closure costs related to corrugated products facilities and acquisition and integration costs related to the December 2021 Advance Packaging Corporation acquisition. For 2021, includes charges consisting of closure costs related to corrugated products facilities.

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Inventories (Tables)

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Components of Inventories

The components of inventories were as follows (dollars in millions):

	March 31,		December 31,
	2022		2021
Raw materials	$	354.1	$	324.2
Work in process		16.7		16.2
Finished goods		201.1		201.0
Supplies and materials		369.3		361.1
Inventories	$	941.2	$	902.5

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Property, Plant, and Equipment (Tables)

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

Components of Property, Plant, and Equipment

The components of property, plant, and equipment were as follows (dollars in millions):

	March 31,			December 31,
	2022			2021
Land and land improvements	$	192.9		$	189.8
Buildings		949.1			938.7
Machinery and equipment		6,248.6			6,159.1
Construction in progress		581.4			481.0
Other		121.7			102.9
Property, plant and equipment, at cost		8,093.7			7,871.5
Less accumulated depreciation		(4,423.0	)		(4,342.5	)
Property, plant, and equipment, net	$	3,670.7		$	3,529.0

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Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Changes in the carrying amount of our goodwill are as follows (dollars in millions):

	Goodwill
Balance at January 1, 2022	$	923.5
Acquisitions (a)		(0.4	)
Balance at March 31, 2022	$	923.1

(a)During the three months ended March 31, 2022, the Company recorded a $0.4 million adjustment to decrease the goodwill balance for the Company's December 2021 acquisition of Advanced Packaging.

Components of Intangible Assets

The weighted average remaining useful life, gross carrying amount, and accumulated amortization of our intangible assets were as follows (dollars in millions):

	March 31, 2022						December 31, 2021
	Weighted Average Remaining Useful Life (in Years)		Gross Carrying Amount		Accumulated Amortization		Weighted Average Remaining Useful Life (in Years)		Gross Carrying Amount		Accumulated Amortization
Customer relationships		8.3	$	551.1	$	264.5		8.5	$	551.1	$	254.9
Trademarks and trade names		8.3		37.6		26.1		8.4		37.6		25.5
Other		2.2		4.4		4.3		2.2		4.4		4.3
Total intangible assets (excluding goodwill)		8.3	$	593.1	$	294.9		8.5	$	593.1	$	284.7

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Accrued Liabilities (Tables)

3 Months Ended

Mar. 31, 2022

Accrued Liabilities [Abstract]

Components of Accrued Liabilities

The components of accrued liabilities were as follows (dollars in millions):

	March 31,		December 31,
	2022		2021
Compensation and benefits	$	87.9	$	157.1
Customer rebates and other credits		33.7		36.9
Medical insurance and workers’ compensation		25.7		26.9
Franchise, property, sales and use taxes		22.9		17.6
Environmental liabilities and asset retirement obligations		4.3		4.0
Severance, retention, and relocation		2.6		2.7
Other		11.5		9.8
Total	$	188.6	$	255.0

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Cash, Cash Equivalents, and Marketable Debt Securities (Tables)

3 Months Ended

Mar. 31, 2022

Cash, Cash Equivalents, and Short-term Investments [Abstract]

Schedule of Cash and Available-For-Sale Debt Securities by Major Asset Category

The following table shows the Company’s cash and available-for-sale ("AFS") debt securities by major asset category at March 31, 2022 and December 31, 2021 (in millions):

	March 31, 2022
	Adjusted Cost Basis		Unrealized Gain		Unrealized Loss			Fair Value		Cash and Cash Equivalents		Short-Term Marketable Debt Securities		Long-Term Marketable Debt Securities
Cash and cash equivalents	$	627.4	$	—	$	—		$	627.4	$	627.4	$	—	$	—
Level 1 (a):
U.S. Treasury securities		22.9		—		(0.3	)		22.6		—		12.7		9.9
Money market funds		1.2		—		—			1.2		1.2		—		—
Subtotal		24.1		—		(0.3	)		23.8		1.2		12.7		9.9
Level 2 (b):
Corporate debt securities		122.3		—		(1.6	)		120.7		—		63.6		57.1
U.S. government agency securities		5.6		—		(0.1	)		5.5		—		4.0		1.5
Certificates of deposit		1.0		—		—			1.0		—		1.0		—
Subtotal		128.9		—		(1.7	)		127.2		—		68.6		58.6
Total	$	780.4	$	—	$	(2.0	)	$	778.4	$	628.6	$	81.3	$	68.5

	December 31, 2021
	Adjusted Cost Basis		Unrealized Gain		Unrealized Loss			Fair Value		Cash and Cash Equivalents		Short-Term Marketable Debt Securities		Long-Term Marketable Debt Securities
Cash and cash equivalents	$	612.3	$	—	$	—		$	612.3	$	612.3	$	—	$	—
Level 1 (a):
U.S. Treasury securities		26.4		—		(0.1	)		26.3		2.0		14.7		9.6
Money market funds		0.9		—		—			0.9		0.9		—		—
Subtotal		27.3		—		(0.1	)		27.2		2.9		14.7		9.6
Level 2 (b):
Corporate debt securities		118.9		—		(0.3	)		118.6		3.5		66.0		49.1
U.S. government agency securities		4.8		—		—			4.8		—		3.5		1.3
Certificates of deposit		1.9		—		—			1.9		—		1.9		—
Subtotal		125.6		—		(0.3	)		125.3		3.5		71.4		50.4
Total	$	765.2	$	—	$	(0.4	)	$	764.8	$	618.7	$	86.1	$	60.0

(a)Valuations based on quoted prices for identical assets or liabilities in active markets.

(b)Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Schedule of Marketable Debt Securities in Continuous Loss Position

The following table provides information about the Company’s marketable debt securities that have been in a continuous loss position as of March 31, 2022 and December 31, 2021 (in millions, except number of marketable debt securities in a loss position):

	March 31, 2022						December 31, 2021
	Fair Value of Marketable Debt Securities		Number of Marketable Debt Securities in a Loss Position		Unrealized Losses		Fair Value of Marketable Debt Securities		Number of Marketable Debt Securities in a Loss Position		Unrealized Losses
Corporate debt securities (c)	$	113.7		160	$	1.6	$	106.9		153	$	0.3
U.S. Treasury securities		22.6		25		0.1		22.4		27		0.1
U.S. government agency securities		5.5		7		0.3		4.8		6		—
Certificates of deposit		1.0		2		—		0.5		1		—
	$	142.8		194	$	2.0	$	134.6		187	$	0.4

(c)For 2022, includes one marketable debt security in a continuous loss position greater than 12 months with a fair value of $0.3 million and an insignificant amount of unrealized loss.

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Employee Benefit Plans and Other Postretirement Benefits (Tables)

3 Months Ended

Mar. 31, 2022

Retirement Benefits [Abstract]

Components of Net Periodic Benefit Costs

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

	Pension Plans
	Three Months Ended March 31,
	2022			2021
Service cost	$	4.9		$	5.4
Interest cost		8.7			7.4
Expected return on plan assets		(13.9	)		(15.8	)
Net amortization of unrecognized amounts
Prior service cost		0.9			1.0
Actuarial loss		0.8			2.5
Net periodic benefit cost	$	1.4		$	0.5

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Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement, Noncash Expense [Abstract]

Summary of Restricted Stock and Performance Unit Award Activity

The following table presents restricted stock and performance unit award activity for the three months ended March 31, 2022:

	Restricted Stock					Performance Units
	Shares			Weighted Average Grant- Date Fair Value		Shares		Weighted Average Grant- Date Fair Value
Outstanding at January 1, 2022		651,448		$	109.16		358,092	$	105.38
Granted		170,232			145.26		96,309		154.21
Vested		(4,113	)		106.50		—		—
Forfeitures		(3,926	)		107.95		—		—
Outstanding at March 31, 2022		813,641		$	116.73		454,401	$	115.73

Compensation Expense for Share-Based Awards

Our share-based compensation expense is primarily recorded in "Selling, general, and administrative expenses." Compensation expense for share-based awards recognized in the Consolidated Statements of Income, net of forfeitures, was as follows (dollars in millions):

	Three Months Ended March 31,
	2022			2021
Restricted stock	$	9.2		$	8.6
Performance units		3.1			3.0
Total share-based compensation expense		12.3			11.6
Income tax benefit		(3.1	)		(2.9	)
Share-based compensation expense, net of tax benefit	$	9.2		$	8.7

Unrecognized Compensation Expense for Share-Based Awards

The unrecognized compensation expense for all share-based awards at March 31, 2022 was as follows (dollars in millions):

	March 31, 2022
	Unrecognized Compensation Expense		Remaining Weighted Average Recognition Period (in years)
Restricted stock	$	41.2		2.9
Performance units		29.7		2.7
Total unrecognized share-based compensation expense	$	70.9		2.8

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Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Components of Changes in Accumulated Other Comprehensive Income (AOCI)

Changes in accumulated other comprehensive income (loss) (AOCI) by component were as follows (dollars in millions). Amounts in parentheses indicate losses:

	Unrealized Loss On Foreign Exchange Contracts			Unrealized Loss on Marketable Debt Securities			Unfunded Employee Benefit Obligations			Total
Balance at January 1, 2022	$	(0.2	)	$	(0.2	)	$	(74.8	)	$	(75.2	)
Other comprehensive income before reclassifications,    net of tax		—			(1.2	)		—			(1.2	)
Amounts reclassified from AOCI, net of tax		—			—			1.2			1.2
Balance at March 31, 2022	$	(0.2	)	$	(1.4	)	$	(73.6	)	$	(75.2	)

Reclassifications Out of Accumulated Other Comprehensive Income (AOCI)

Reclassifications out of AOCI were as follows (dollars in millions). Amounts in parentheses indicate expenses in the Consolidated Statements of Income:

	Amounts Reclassified from AOCI
	Three Months Ended March 31,
Details about AOCI Components	2022			2021
Unfunded employee benefit obligations (a)
Amortization of prior service costs	$	(0.8	)	$	(0.8	)	See (a) below
Amortization of actuarial losses		(0.7	)		(2.5	)	See (a) below
		(1.5	)		(3.3	)	Total before tax
		0.3			0.8		Tax benefit
	$	(1.2	)	$	(2.5	)	Net of tax

(a)These AOCI components are included in the computation of net pension and postretirement benefit costs. See Note 14, Employee Benefit Plans and Other Postretirement Benefits, for additional information.

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information by Segment

Selected financial information by reportable segment was as follows (dollars in millions):

	Sales, net
Three Months Ended March 31, 2022	Trade		Intersegment			Total			Operating Income (Loss)
Packaging	$	1,960.0	$	4.5		$	1,964.5		$	362.2		(a)
Paper		153.5		—			153.5			22.4		(a)
Corporate and Other		22.9		35.4			58.3			(28.1	)
Intersegment eliminations		—		(39.9	)		(39.9	)		—
	$	2,136.4	$	—		$	2,136.4			356.5
Non-operating pension income										3.6
Interest expense, net										(19.8	)
Income before taxes									$	340.3

	Sales, net
Three Months Ended March 31, 2021	Trade		Intersegment			Total			Operating Income (Loss)
Packaging	$	1,619.8	$	3.8		$	1,623.6		$	257.9		(b)
Paper		164.4		0.2			164.6			8.7		(b)
Corporate and Other		23.0		32.4			55.4			(28.3	)
Intersegment eliminations		—		(36.4	)		(36.4	)		—
	$	1,807.2	$	—		$	1,807.2			238.3
Non-operating pension income										4.8
Interest expense, net										(23.5	)
Income before taxes									$	219.6

(a)	The three months ended March 31, 2022 include the following:
	1.	$1.5 million of charges related to the announced discontinuation of production of UFS paper grades on the No. 3 machine at the Jackson, Alabama mill associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.
	2.	$0.6 million of charges consisting of closure costs related to corrugated products facilities and acquisition and integration costs related to the December 2021 Advance Packaging Corporation acquisition.
(b)	The three months ended March 31, 2021 include the following:
	1.	$2.1 million of charges consisting of closure costs related to corrugated products facilities.
	2.	$1.1 million of charges related to the announced discontinuation of UFS paper grades on the No. 3 machine at the Jackson, Alabama mill in the first quarter of 2021 associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.

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Nature of Operations and Basis of Presentation - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022 Segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Date of incorporation	Jan. 25, 1999
Number of reportable segments	3

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Disclosure - Acquisitions (Additional Information) (Details) $ in Millions	Dec. 11, 2021 USD ($)
Maximum
Asset Acquisition [Line Items]
Estimated Useful Lives	P20Y
Minimum
Asset Acquisition [Line Items]
Estimated Useful Lives	P1Y
Advance Packaging Corporation [Member]
Asset Acquisition [Line Items]
Payments to acquire assets	$ 194.9
Weighted average useful life of intangible asset acquired	9 years 8 months 12 days
Series of Individually Immaterial Business Acquisitions [Member] | Advance Packaging Corporation [Member]
Asset Acquisition [Line Items]
Business acquisition, effective date of acquisition	Dec. 11, 2021

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Acquisitions - Schedule of Tangible and Intangible Assets Acquired and Liabilities Assumed (Details) - Advance Packaging Corporation [Member] - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Asset Acquisition [Line Items]
Goodwill	$ 59.6	$ 60.0
Other intangible assets	50.2	50.2
Property, plant and equipment	67.1	66.7
Other net assets	18.0	18.0
Net assets acquired	194.9	$ 194.9
Adjustment [Member]
Asset Acquisition [Line Items]
Goodwill	(0.4)
Other intangible assets	0.0
Property, plant and equipment	0.4
Other net assets	0.0
Net assets acquired	$ 0.0

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Revenue - Summary of Revenues Disaggregated by Product Line (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation Of Revenue [Line Items]
Revenue	$ 2,136.4	$ 1,807.2
Packaging
Disaggregation Of Revenue [Line Items]
Revenue	1,964.5	1,623.6
Paper
Disaggregation Of Revenue [Line Items]
Revenue	153.5	164.6
Corporate and Other
Disaggregation Of Revenue [Line Items]
Revenue	$ 18.4	$ 19.0

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Revenue - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022
Packaging Corporation of America
Revenue [Line Items]
Variable interest entity, ownership percentage	50.00%
Boise Cascade Co-Owner of LTP
Revenue [Line Items]
Variable interest entity, ownership percentage	50.00%

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Earnings Per Share - Computation of Basic and Diluted Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Numerator:
Net income	$ 254.2	$ 166.5
Less: Distributed and undistributed earnings allocated to participating securities	(2.0)	(1.3)
Net income attributable to common shareholders	$ 252.2	$ 165.2
Denominator:
Weighted average basic common shares outstanding (in shares)	92.9	94.2
Effect of dilutive securities (in shares)	0.4	0.4
Weighted average diluted common shares outstanding (in shares)	93.3	94.6
Basic income per common share (in dollars per share)	$ 2.71	$ 1.75
Diluted income per common share (in dollars per share)	$ 2.70	$ 1.75

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Other Expense, Net - Components of Other Income (Expense), Net (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2022	Mar. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Asset disposals and write-offs		$ (12.7)	$ (10.4)
Acquisition-related, facilities closure and other costs	[1]	(0.4)	(2.1)
Other		(2.1)	(7.4)
Total		(15.6)	(20.4)
Jackson, Alabama Mill
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Conversion-related activities	[2]	$ (0.4)	$ (0.5)

[1] For 2022, includes charges consisting of closure costs related to corrugated products facilities and acquisition and integration costs related to the December 2021 Advance Packaging Corporation acquisition. For 2021, includes charges consisting of closure costs related to corrugated products facilities.

[2] Includes charges related to the announced discontinuation of production of uncoated freesheet paper grades on the No. 3 machine at the Jackson, Alabama mill in the first quarter of 2021 associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities.

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Income Taxes - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income tax provision	$ 86.1	$ 53.1
Effective income tax rate, percent	25.30%	24.20%
Federal statutory income tax rate	21.00%
Cash paid for taxes, net of refunds received	$ 17.6	$ 13.3

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Inventories - Components of Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 354.1	$ 324.2
Work in process	16.7	16.2
Finished goods	201.1	201.0
Supplies and materials	369.3	361.1
Inventories	$ 941.2	$ 902.5

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Property, Plant, and Equipment - Components of Property, Plant, and Equipment (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Property, Plant, And Equipment [Line Items]
Property, plant and equipment, at cost	$ 8,093.7	$ 7,871.5
Less accumulated depreciation	(4,423.0)	(4,342.5)
Property, plant, and equipment, net	3,670.7	3,529.0
Land and Land Improvements
Property, Plant, And Equipment [Line Items]
Property, plant and equipment, at cost	192.9	189.8
Buildings
Property, Plant, And Equipment [Line Items]
Property, plant and equipment, at cost	949.1	938.7
Machinery and Equipment
Property, Plant, And Equipment [Line Items]
Property, plant and equipment, at cost	6,248.6	6,159.1
Construction in Progress
Property, Plant, And Equipment [Line Items]
Property, plant and equipment, at cost	581.4	481.0
Other
Property, Plant, And Equipment [Line Items]
Property, plant and equipment, at cost	$ 121.7	$ 102.9

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Property, Plant, and Equipment - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Depreciation [Abstract]
Depreciation expense	$ 98.5	$ 90.0
Incremental depreciation	1.1	$ 0.5
Purchases of property, plant, and equipment included in accounts payable	$ 103.1		$ 73.6

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Goodwill and Intangible Assets -Goodwill - (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)
Goodwill [Line Items]
Goodwill, Beginning Balance	$ 923.5
Goodwill, Ending Balance	923.1
Advance Packaging Corporation [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	923.5
Acquisitions	(0.4)	[1]
Goodwill, Ending Balance	$ 0.4

[1] During the three months ended March 31, 2022, the Company recorded a $0.4 million adjustment to decrease the goodwill balance for the Company's December 2021 acquisition of Advanced Packaging.

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Goodwill and Intangible Assets - Goodwill (Parenthetical) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Goodwill [Line Items]
Goodwill	$ 923.1	$ 923.5
Advance Packaging Corporation [Member]
Goodwill [Line Items]
Goodwill	$ 0.4	$ 923.5

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Goodwill and Intangible Assets - Components of Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Life (in Years)	8 years 3 months 18 days	8 years 6 months
Gross Carrying Amount	$ 593.1	$ 593.1
Accumulated Amortization	$ 294.9	$ 284.7
Customer Relationships
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Life (in Years)	8 years 3 months 18 days	8 years 6 months
Gross Carrying Amount	$ 551.1	$ 551.1
Accumulated Amortization	$ 264.5	$ 254.9
Trademarks and Trade Names
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Life (in Years)	8 years 3 months 18 days	8 years 4 months 24 days
Gross Carrying Amount	$ 37.6	$ 37.6
Accumulated Amortization	$ 26.1	$ 25.5
Other Intangible Assets
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Life (in Years)	2 years 2 months 12 days	2 years 2 months 12 days
Gross Carrying Amount	$ 4.4	$ 4.4
Accumulated Amortization	$ 4.3	$ 4.3

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Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 10.2	$ 9.6
Goodwill	$ 923.1		$ 923.5

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Accrued Liabilities - Components of Accrued Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Accrued Liabilities, Current [Abstract]
Compensation and benefits	$ 87.9	$ 157.1
Customer rebates and other credits	33.7	36.9
Medical insurance and workers’ compensation	25.7	26.9
Franchise, property, sales and use taxes	22.9	17.6
Environmental liabilities and asset retirement obligations	4.3	4.0
Severance, retention, and relocation	2.6	2.7
Other	11.5	9.8
Total	$ 188.6	$ 255.0

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Debt - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Debt Instrument [Line Items]
Cash payments paid for interest	$ 7.5	$ 7.5
Amortization of financing costs	0.4	$ 0.5
Senior Notes | Fixed-Rate Senior Notes
Debt Instrument [Line Items]
Book value of fixed rate debt	2,491.1
Long-term debt (fixed-rate debt), fair value	$ 2,395.3

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Cash, Cash Equivalents, and Marketable Debt Securities - Schedule of Company's Cash and Available-For-Sale (AFS) Debt Securities by Major Asset Category (Details) - USD ($) $ in Millions		3 Months Ended	12 Months Ended
		Mar. 31, 2022	Dec. 31, 2021
Financial Instruments [Line Items]
Adjusted Cost Basis		$ 780.4	$ 765.2
Unrealized Gain		0.0	0.0
Unrealized Loss		(2.0)	(0.4)
Fair Value		778.4	764.8
Cash and cash equivalents		628.6	618.7
Short-term marketable debt securities		81.3	86.1
Long-term marketable debt securities		68.5	60.0
Level 1
Financial Instruments [Line Items]
Adjusted Cost Basis	[1]	24.1	27.3
Unrealized Gain	[1]	0.0	0.0
Unrealized Loss	[1]	(0.3)	(0.1)
Fair Value	[1]	23.8	27.2
Cash and cash equivalents	[1]	1.2	2.9
Short-term marketable debt securities	[1]	12.7	14.7
Long-term marketable debt securities	[1]	9.9	9.6
Level 2
Financial Instruments [Line Items]
Adjusted Cost Basis	[2]	128.9	125.6
Unrealized Gain	[2]	0.0	0.0
Unrealized Loss	[2]	(1.7)	(0.3)
Fair Value	[2]	127.2	125.3
Cash and cash equivalents	[2]	0.0	3.5
Short-term marketable debt securities	[2]	68.6	71.4
Long-term marketable debt securities	[2]	58.6	50.4
Cash and Cash Equivalents
Financial Instruments [Line Items]
Adjusted Cost Basis		627.4	612.3
Unrealized Gain		0.0	0.0
Unrealized Loss		0.0	0.0
Fair Value		627.4	612.3
Cash and cash equivalents		627.4	612.3
Short-term marketable debt securities		0.0	0.0
Long-term marketable debt securities		0.0	0.0
Money Market Fund | Level 1
Financial Instruments [Line Items]
Adjusted Cost Basis	[1]	1.2	0.9
Unrealized Gain	[1]	0.0	0.0
Unrealized Loss	[1]	0.0	0.0
Fair Value	[1]	1.2	0.9
Cash and cash equivalents	[1]	1.2	0.9
Short-term marketable debt securities	[1]	0.0	0.0
Long-term marketable debt securities	[1]	0.0	0.0
U.S. Treasury Securities | Level 1
Financial Instruments [Line Items]
Adjusted Cost Basis	[1]	22.9	26.4
Unrealized Gain	[1]	0.0	0.0
Unrealized Loss	[1]	(0.3)	(0.1)
Fair Value	[1]	22.6	26.3
Cash and cash equivalents	[1]	0.0	2.0
Short-term marketable debt securities	[1]	12.7	14.7
Long-term marketable debt securities	[1]	9.9	9.6
Certificates of Deposit | Level 2
Financial Instruments [Line Items]
Adjusted Cost Basis	[2]	1.0	1.9
Unrealized Gain	[2]	0.0	0.0
Unrealized Loss	[2]	0.0	0.0
Fair Value	[2]	1.0	1.9
Cash and cash equivalents	[2]	0.0	0.0
Short-term marketable debt securities	[2]	1.0	1.9
Long-term marketable debt securities	[2]	0.0	0.0
U.S. Government Agency Securities | Level 2
Financial Instruments [Line Items]
Adjusted Cost Basis	[2]	5.6	4.8
Unrealized Gain	[2]	0.0	0.0
Unrealized Loss	[2]	(0.1)	0.0
Fair Value	[2]	5.5	4.8
Cash and cash equivalents	[2]	0.0	0.0
Short-term marketable debt securities	[2]	4.0	3.5
Long-term marketable debt securities	[2]	1.5	1.3
Corporate Debt Securities | Level 2
Financial Instruments [Line Items]
Adjusted Cost Basis	[2]	122.3	118.9
Unrealized Gain	[2]	0.0	0.0
Unrealized Loss	[2]	(1.6)	(0.3)
Fair Value	[2]	120.7	118.6
Cash and cash equivalents	[2]	0.0	3.5
Short-term marketable debt securities	[2]	63.6	66.0
Long-term marketable debt securities	[2]	$ 57.1	$ 49.1

[1] Valuations based on quoted prices for identical assets or liabilities in active markets.

[2] Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

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Cash, Cash Equivalents, and Marketable Debt Securities - Additional Information (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Financial Instruments [Line Items]
Impairment of marketable debt securities	$ 0	$ 0
Allowance for credit loss	$ 0	$ 0
Minimum
Financial Instruments [Line Items]
Long-term marketable debt securities maturity period	1 year
Maximum
Financial Instruments [Line Items]
Long-term marketable debt securities maturity period	2 years

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Cash, Cash Equivalents, and Marketable Debt Securities - Schedule of Marketable Debt Securities in Continuous Loss Position (Details) $ in Millions		Mar. 31, 2022 USD ($) Security	Dec. 31, 2021 USD ($) Security
Schedule Of Available For Sale Securities [Line Items]
Fair Value of Marketable Debt Securities		$ 142.8	$ 134.6
Number of Marketable Debt Securities in a Loss Position | Security		194	187
Unrealized Losses		$ 2.0	$ 0.4
Corporate Debt Securities
Schedule Of Available For Sale Securities [Line Items]
Fair Value of Marketable Debt Securities	[1]	$ 113.7	$ 106.9
Number of Marketable Debt Securities in a Loss Position | Security	[1]	160	153
Unrealized Losses	[1]	$ 1.6	$ 0.3
U.S. Government Agency Securities
Schedule Of Available For Sale Securities [Line Items]
Fair Value of Marketable Debt Securities		$ 5.5	$ 4.8
Number of Marketable Debt Securities in a Loss Position | Security		7	6
Unrealized Losses		$ 0.3	$ 0.0
U.S. Treasury Securities
Schedule Of Available For Sale Securities [Line Items]
Fair Value of Marketable Debt Securities		$ 22.6	$ 22.4
Number of Marketable Debt Securities in a Loss Position | Security		25	27
Unrealized Losses		$ 0.1	$ 0.1
Certificates of Deposit
Schedule Of Available For Sale Securities [Line Items]
Fair Value of Marketable Debt Securities		$ 1.0	$ 0.5
Number of Marketable Debt Securities in a Loss Position | Security		2	1
Unrealized Losses		$ 0.0	$ 0.0

[1] ncludes one marketable debt security in a continuous loss position greater than 12 months with a fair value of $0.3 million and an insignificant amount of unrealized loss.

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Cash, Cash Equivalents, and Marketable Debt Securities - Schedule of Marketable Debt Securities in Continuous Loss Position (Parenthetical) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)
Investments, Debt and Equity Securities [Abstract]
Marketable Debt Loss Position Fair Value	$ 0.3

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Employee Benefit Plans and Other Postretirement Benefits - Components of Net Periodic Benefit Costs (Details) - Pension Plans - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 4.9	$ 5.4
Interest cost	8.7	7.4
Expected return on plan assets	(13.9)	(15.8)
Net amortization of unrecognized amounts, Prior service cost	0.9	1.0
Net amortization of unrecognized amounts, Actuarial loss (income)	0.8	2.5
Net periodic benefit cost	$ 1.4	$ 0.5

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Employee Benefit Plans and Other Postretirement Benefits - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Pension Plans | Qualified Plan
Pension Contributions [Abstract]
Contributions to pension plan	$ 0	$ 0

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Share-Based Compensation - Additional Information (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2022	May 05, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Long-term equity incentive plan, termination date	May 05, 2030
Number of shares available for future issuance under share-based plan	1.1	1.4
Number of shares authorized under plan	12.0
Performance Unit Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of ROIC as performance measure	50.00%
Percentage of TSR as performance measure	50.00%

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Share-Based Compensation - Summary of Restricted Stock and Performance Unit Award Activity (Details)	3 Months Ended
	Mar. 31, 2022 $ / shares shares
Restricted Stock
Restricted Stock and Performance Units [Roll Forward]
Outstanding at January 1, 2022 | shares	651,448
Granted | shares	170,232
Vested | shares	(4,113)
Forfeitures | shares	(3,926)
Outstanding at March 31, 2022 | shares	813,641
Restricted Stock and Performance Units (Weighted Average Grant-date Fair Value) [Abstract]
Weighted Average Grant-Date Fair Value, Outstanding at January 1, 2022 | $ / shares	$ 109.16
Weighted Average Grant-Date Fair Value, Granted | $ / shares	145.26
Weighted Average Grant-Date Fair Value, Vested | $ / shares	106.50
Weighted Average Grant-Date Fair Value, Forfeitures | $ / shares	107.95
Weighted Average Grant-Date Fair Value, Outstanding at March 31, 2022 | $ / shares	$ 116.73
Performance Units
Restricted Stock and Performance Units [Roll Forward]
Outstanding at January 1, 2022 | shares	358,092
Granted | shares	96,309
Outstanding at March 31, 2022 | shares	454,401
Restricted Stock and Performance Units (Weighted Average Grant-date Fair Value) [Abstract]
Weighted Average Grant-Date Fair Value, Outstanding at January 1, 2022 | $ / shares	$ 105.38
Weighted Average Grant-Date Fair Value, Granted | $ / shares	154.21
Weighted Average Grant-Date Fair Value, Outstanding at March 31, 2022 | $ / shares	$ 115.73

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Share-Based Compensation - Compensation Expense for Share-Based Awards (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation expense	$ 12.3	$ 11.6
Income tax benefit	(3.1)	(2.9)
Share-based compensation expense, net of tax benefit	9.2	8.7
Restricted Stock
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation expense	9.2	8.6
Performance Units
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation expense	$ 3.1	$ 3.0

XML

Share-Based Compensation - Unrecognized Compensation Expense for Share-Based Awards (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 70.9
Remaining weighted-average recognition period	2 years 9 months 18 days
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 41.2
Remaining weighted-average recognition period	2 years 10 months 24 days
Performance Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 29.7
Remaining weighted-average recognition period	2 years 8 months 12 days

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Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions			3 Months Ended
	Apr. 15, 2022	Feb. 23, 2022	Mar. 31, 2022	Mar. 31, 2021	Jan. 26, 2022
Common stock dividends paid			$ 93.6	$ 94.8
Dividends paid per common share (in dollars per share)		$ 1.00
Stock repurchase program, authorized amount					$ 1,000.0
Repurchases of common stock under stock repurchase program			0
Common stock repurchase authorization amount available			$ 1,000.0
Subsequent Events
Common stock dividends paid	$ 93.7

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Stockholders' Equity - Changes in Accumulated Other Comprehensive Income by Component (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 3,607.2
Ending balance	3,779.3
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(0.2)
Other comprehensive income before reclassifications, net of tax	0.0
Amounts reclassified from AOCI, net of tax	0.0
Ending balance	0.2
Unfunded Employee Benefit Obligations
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(75.2)
Other comprehensive income before reclassifications, net of tax	1.2
Amounts reclassified from AOCI, net of tax	1.2
Ending balance	(75.2)
Foreign Exchange Contract | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(0.2)
Other comprehensive income before reclassifications, net of tax	1.2
Amounts reclassified from AOCI, net of tax	0.0
Ending balance	(1.4)
Marketable Debt Securities | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	74.8
Other comprehensive income before reclassifications, net of tax	(0.0)
Amounts reclassified from AOCI, net of tax	(1.2)
Ending balance	$ 73.6

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Stockholders' Equity - Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2022	Mar. 31, 2021
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Income before taxes		$ 340.3	$ 219.6
Income tax benefit		(86.1)	(53.1)
Net income		254.2	166.5
Unfunded Employee Benefit Obligations | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Amortization of prior service costs	[1]	(0.8)	(0.8)
Amortization of actuarial losses		0.7	(2.5)	[1]
Income before taxes		(1.5)	(3.3)
Income tax benefit		(0.3)	(0.8)
Net income			$ (2.5)

[1] These AOCI components are included in the computation of net pension and postretirement benefit costs. See Note 14, Employee Benefit Plans and Other Postretirement Benefits, for additional information.

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Concentrations of Risk - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Concentration Risk [Line Items]
Accounts receivable, net, current	$ 1,140.7		$ 1,071.0
Office Depot | Credit Concentration Risk
Concentration Risk [Line Items]
Accounts receivable, net, current	$ 54.8	$ 49.8
Office Depot | Total Company Sales Revenue | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage	4.00%	4.00%
Office Depot | Total Company Receivables | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage	5.00%	4.00%
Paper | Office Depot | Paper Segment Sales Revenue | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage	58.00%	45.00%	51.00%

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Transactions With Related Parties - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Related Party Transaction [Line Items]
Carrying amount of LTP's assets	$ 8,137.8		$ 7,836.8
Boise Cascade Co-Owner of LTP
Related Party Transaction [Line Items]
Variable interest entity, ownership percentage	50.00%
Boise Cascade Co-Owner of LTP | Fiber
Related Party Transaction [Line Items]
Revenue from related parties	$ 20.8	$ 20.3
Boise Cascade Co-Owner of LTP | Wood Products, Including Chips and Logs
Related Party Transaction [Line Items]
Fiber costs from related parties	$ 3.8	$ 3.3
Packaging Corporation of America
Related Party Transaction [Line Items]
Variable interest entity, ownership percentage	50.00%
Variable Interest Entity
Related Party Transaction [Line Items]
Carrying amount of LTP's assets	$ 3.0		$ 3.5

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Segment Information - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022 Segment
Segment Reporting [Abstract]
Number of reportable segments	3

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Segment Information - Selected Financial Information by Reportable Segment (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Net sales	$ 2,136.4	$ 1,807.2
Operating Income (Loss)	356.5	238.3
Non-operating pension income	3.6	4.8
Interest expense, net	(19.8)	(23.5)
Income before taxes	340.3	219.6
Trade
Segment Reporting Information [Line Items]
Net sales	2,136.4	1,807.2
Intersegment Eliminations
Segment Reporting Information [Line Items]
Net sales	(39.9)	(36.4)
Operating Segments
Segment Reporting Information [Line Items]
Net sales	2,136.4	1,807.2
Segment Reconciling Items
Segment Reporting Information [Line Items]
Net sales	(39.9)	(36.4)
Packaging
Segment Reporting Information [Line Items]
Net sales	1,964.5	1,623.6
Operating Income (Loss)	362.2	257.9
Packaging | Trade
Segment Reporting Information [Line Items]
Net sales	1,960.0	1,619.8
Packaging | Intersegment Eliminations
Segment Reporting Information [Line Items]
Net sales	4.5	3.8
Packaging | Operating Segments
Segment Reporting Information [Line Items]
Net sales	1,964.5	1,623.6
Paper
Segment Reporting Information [Line Items]
Net sales	153.5	164.6
Operating Income (Loss)	22.4	8.7
Paper | Trade
Segment Reporting Information [Line Items]
Net sales	153.5	164.4
Paper | Intersegment Eliminations
Segment Reporting Information [Line Items]
Net sales		0.2
Paper | Operating Segments
Segment Reporting Information [Line Items]
Net sales	153.5	164.6
Corporate and Other
Segment Reporting Information [Line Items]
Net sales	18.4	19.0
Operating Income (Loss)	(28.1)	(28.3)
Corporate and Other | Trade
Segment Reporting Information [Line Items]
Net sales	22.9	23.0
Corporate and Other | Intersegment Eliminations
Segment Reporting Information [Line Items]
Net sales	35.4	32.4
Corporate and Other | Operating Segments
Segment Reporting Information [Line Items]
Net sales	$ 58.3	$ 55.4

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Segment Information - Selected Financial Information by Reportable Segment (Parenthetical) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Packaging and Paper
Segment Reporting Information [Line Items]
Restructuring charges		$ 2.1
Packaging | Advance Packaging Corporation [Member]
Segment Reporting Information [Line Items]
Acquisition and integration related costs	$ 0.6
Jackson, Alabama Mill | Corrugated Products Facilities
Segment Reporting Information [Line Items]
Adjustment of asset retirement obligation	$ 1.5	$ 1.1

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Commitments, Guarantees, Indemnifications, and Legal Proceedings - Additional Information (Details) - DeRidder, Louisiana - USD ($)	3 Months Ended
	Mar. 31, 2022	Jun. 30, 2018	Feb. 08, 2017
Schedule Of Commitments And Contingencies [Line Items]
Loss contingency, period of occurrence	February 8, 2017
Liability insurance			$ 1,000,000.0
Payment of penalties		$ 40,000

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Subsequent Events - Additional Information (Details) $ in Millions	Dec. 11, 2021 USD ($)
Advance Packaging Corporation [Member]
Subsequent Event [Line Items]
Payments to acquire assets	$ 194.9