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, 2023

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 28, 2023, the Registrant had outstanding 89,932,185 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,
	2023			2022
Statements of Income:
Net sales	$	1,976.3		$	2,136.4
Cost of sales		(1,544.9	)		(1,603.2	)
Gross profit		431.4			533.2
Selling, general and administrative expenses		(148.2	)		(161.1	)
Other expense, net		(12.5	)		(15.6	)
Income from operations		270.7			356.5
Non-operating pension (expense) income		(2.0	)		3.6
Interest expense, net		(15.4	)		(19.8	)
Income before taxes		253.3			340.3
Provision for income taxes		(63.2	)		(86.1	)
Net income	$	190.1		$	254.2
Net income per common share:
Basic	$	2.12		$	2.71
Diluted	$	2.11		$	2.70
Dividends declared per common share	$	1.25		$	1.00
Statements of Comprehensive Income:
Net income	$	190.1		$	254.2
Other comprehensive income, net of tax:
Changes in unrealized gains (losses) on marketable debt securities,    net of tax of ($0.2) million and $0.4 million for 2023 and 2022,    respectively		0.5			(1.2	)
Amortization of pension and postretirement plans actuarial loss and    prior service cost, net of tax of ($0.6) million and ($0.3) million for    2023 and 2022, respectively		1.6			1.2
Other comprehensive income		2.1			—
Comprehensive income	$	192.2		$	254.2

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,
	2023			2022
ASSETS
Current assets:
Cash and cash equivalents	$	367.7		$	320.0
Short-term marketable debt securities		95.6			85.2
Accounts receivable, net of allowance for credit losses and customer deductions    of $13.8 million and $19.6 million as of March 31, 2023 and December 31, 2022,    respectively		1,031.4			1,031.8
Inventories		1,003.4			977.3
Prepaid expenses and other current assets		87.3			58.3
Federal and state income taxes receivable		—			35.7
Total current assets		2,585.4			2,508.3
Property, plant, and equipment, net		3,896.6			3,900.0
Goodwill		922.4			922.4
Other intangible assets, net		258.3			267.9
Operating lease right-of-use assets		288.6			298.3
Long-term marketable debt securities		56.9			64.9
Other long-term assets		40.8			42.0
Total assets	$	8,049.0		$	8,003.8
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Operating lease obligations	$	72.7		$	72.2
Finance lease obligations		1.9			1.9
Accounts payable		410.5			410.4
Dividends payable		115.7			115.5
Accrued liabilities		184.7			263.7
Accrued interest		25.5			11.8
Federal and state income taxes payable		17.9			—
Total current liabilities		828.9			875.5
Long-term liabilities:
Long-term debt		2,474.1			2,473.6
Operating lease obligations		225.1			234.6
Finance lease obligations		10.3			10.8
Deferred income taxes		546.2			543.0
Compensation and benefits		148.5			141.8
Other long-term liabilities		58.2			57.4
Total long-term liabilities		3,462.4			3,461.2
Commitments and contingent liabilities (Note 19)
Stockholders' equity:
Common stock, par value $0.01 per share, 300.0 million shares authorized, 89.9 million    and 89.7 million shares issued as of March 31, 2023 and December 31, 2022,    respectively		0.9			0.9
Additional paid in capital		597.8			581.8
Retained earnings		3,259.3			3,186.8
Accumulated other comprehensive loss		(100.3	)		(102.4	)
Total stockholders' equity		3,757.7			3,667.1
Total liabilities and stockholders' equity	$	8,049.0		$	8,003.8

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,
	2023			2022
Cash Flows from Operating Activities:
Net income	$	190.1		$	254.2
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion, and amortization of intangibles		129.5			109.7
Amortization of deferred financing costs		0.5			0.5
Share-based compensation expense		15.3			12.3
Deferred income tax provision		2.7			22.9
Net loss on asset disposals		1.8			2.8
Pension and post-retirement benefits expense, net of contributions		5.0			0.8
Other, net		6.8			3.8
Changes in operating assets and liabilities:
(Increase) decrease in assets —
Accounts receivable		0.4			(69.6	)
Inventories		(26.1	)		(38.8	)
Prepaid expenses and other current assets		(29.3	)		(30.1	)
Increase (decrease) in liabilities —
Accounts payable		(5.0	)		63.6
Accrued liabilities		(65.0	)		(52.4	)
Federal and state income taxes receivable		53.7			45.6
Net cash provided by operating activities		280.4			325.3
Cash Flows from Investing Activities:
Additions to property, plant, and equipment		(112.4	)		(213.2	)
Additions to other long-term assets		(1.6	)		(2.4	)
Proceeds from asset disposals		0.3			0.2
Purchases of marketable debt securities		(29.6	)		(36.4	)
Proceeds from sales of marketable debt securities		—			7.8
Proceeds from maturities of marketable debt securities		27.9			22.8
Net cash used for investing activities		(115.4	)		(221.2	)
Cash Flows from Financing Activities:
Repayments of debt and finance lease obligations		(0.5	)		(0.4	)
Common stock dividends paid		(112.1	)		(93.6	)
Shares withheld to cover employee restricted stock taxes		(4.7	)		(0.2	)
Net cash used for financing activities		(117.3	)		(94.2	)
Net increase in cash and cash equivalents		47.7			9.9
Cash and cash equivalents, beginning of period		320.0			618.7
Cash and cash equivalents, end of period	$	367.7		$	628.6

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, 2023		89,695		$	0.9	$	581.8		$	3,186.8		$	(102.4	)	$	3,667.1
Common stock withheld and retired    to cover taxes on vested stock awards		(36	)		—		(0.3	)		(4.4	)		—			(4.7	)
Common stock dividends declared		—			—		—			(113.2	)		—			(113.2	)
Share-based compensation and other		273			—		16.3			—			—			16.3
Comprehensive income		—			—		—			190.1			2.1			192.2
Balance at March 31, 2023		89,932		$	0.9	$	597.8		$	3,259.3		$	(100.3	)	$	3,757.7
	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

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 18, Segment Information.

The consolidated financial statements of PCA as of March 31, 2023 and for the three months ended March 31, 2023 and 2022 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, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. These consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2022.

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

2. New and Recently Adopted Accounting Standards

Recently Adopted Accounting Standards

Effective January 1, 2023, we adopted Accounting Standards Update ("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 prior business combination guidance in ASC 805, Business Combinations, such assets and liabilities were 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 Company will apply the amended guidance on a prospective basis to any future business combinations.

New Accounting Standards Not Yet Adopted

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. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which further extends the relief offered in this series of ASUs through December 31, 2024. Companies can apply these ASUs immediately. The ASUs 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 Company's fixed-rate outstanding debt will not be impacted by the reference rate reform. In April 2023, we amended our Senior Unsecured Credit Agreement to formally replace the LIBOR benchmark rate with the Term SOFR rate. The amendment of this agreement and the reference rate reform will not have a significant impact on the Company's 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.

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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,
	2023		2022
Packaging	$	1,808.6	$	1,964.5
Paper		150.9		153.5
Corporate and Other		16.8		18.4
Total revenue	$	1,976.3	$	2,136.4

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 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 17, 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. 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:	2023			2022
Net income	$	190.1		$	254.2
Less: Distributed and undistributed earnings allocated to participating    securities		(1.6	)		(2.0	)
Net income attributable to common shareholders	$	188.5		$	252.2
Denominator:
Weighted average basic common shares outstanding		89.0			92.9
Effect of dilutive securities		0.4			0.4
Weighted average diluted common shares outstanding		89.4			93.3
Basic income per common share	$	2.12		$	2.71
Diluted income per common share	$	2.11		$	2.70

5. Other Income (Expense), Net

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

	Three Months Ended
	March 31,
	2023			2022
Asset disposals and write-offs	$	(6.6	)	$	(12.7	)
Facilities closure and other costs (a)		(4.7	)		(0.4	)
Jackson mill conversion-related activities (b)		0.3			(0.4	)
Other		(1.5	)		(2.1	)
Total	$	(12.5	)	$	(15.6	)

(a)For 2023, includes charges consisting of closure costs related to corrugated products facilities and design centers. 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 acquisition.

(b)Includes items related to the announced discontinuation of production of uncoated freesheet 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.

6. Income Taxes

For the three months ended March 31, 2023 and 2022, we recorded $63.2 million and $86.1 million of income tax expense and had an effective tax rate of 24.9% and 25.3%, respectively. The decrease in our effective tax rate for the three months ended March 31, 2023 compared to the same period in 2022 was primarily due to favorable employee performance unit vests with higher excess tax benefits partially offset by higher nondeductible employee remuneration paid to covered employees.

Our current effective tax rate is higher than 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, 2023 and 2022, cash paid for taxes, net of refunds received, was $6.9 million and $17.6 million, respectively. The decrease in cash tax payments between the periods is primarily due to lower 2023 forecasted taxable income.

During the three months ended March 31, 2023, 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 2022 Annual Report on Form 10-K.

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7. 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,
	2023		2022
Raw materials	$	358.8	$	341.2
Work in process		15.8		16.0
Finished goods		201.1		198.4
Supplies and materials		427.7		421.7
Inventories	$	1,003.4	$	977.3

8. Property, Plant, and Equipment

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

	March 31,			December 31,
	2023			2022
Land and land improvements	$	196.6		$	192.4
Buildings		1,043.6			1,023.6
Machinery and equipment		6,825.8			6,709.3
Construction in progress		378.4			440.2
Other		149.3			146.9
Property, plant and equipment, at cost		8,593.7			8,512.4
Less accumulated depreciation		(4,697.1	)		(4,612.4	)
Property, plant, and equipment, net	$	3,896.6		$	3,900.0

Depreciation expense for the three months ended March 31, 2023 and 2022 was $118.8 million and $98.5 million, respectively. During the three months ended March 31, 2023, we recognized $6.3 million of incremental depreciation expense as a result of corrugated products facilities and design center closures, and Jackson mill conversion-related activities. We recognized $1.1 million of incremental depreciation expense during the three months ended March 31, 2022 as a result of Jackson mill conversion-related activities.

At March 31, 2023 and December 31, 2022, purchases of property, plant, and equipment included in accounts payable were $48.8 million and $43.7 million, respectively.

9. 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 both March 31, 2023 and December 31, 2022, we had $922.4 million of goodwill recorded in our Packaging segment, which represents the entire goodwill balance reported on our Consolidated Balance Sheets.

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, 2023						December 31, 2022
	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		8.0	$	546.0	$	299.9		8.2	$	546.0	$	290.9
Trademarks and trade names		7.0		41.3		29.1		7.2		41.3		28.6
Other		3.3		4.4		4.4		3.4		4.4		4.3
Total intangible assets (excluding goodwill)		7.9	$	591.7	$	333.4		8.1	$	591.7	$	323.8

During the three months ended March 31, 2023 and 2022, amortization expense was $9.6 million and $10.2 million, respectively.

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10. Accrued Liabilities

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

	March 31,		December 31,
	2023		2022
Compensation and benefits	$	84.9	$	159.7
Customer rebates and other credits		34.0		43.8
Medical insurance and workers’ compensation		25.6		26.1
Franchise, property, sales and use taxes		21.1		17.4
Severance, retention, and relocation		4.9		1.8
Environmental liabilities and asset retirement obligations		4.3		4.1
Other		9.9		10.8
Total	$	184.7	$	263.7

11. Debt

For both the three months ended March 31, 2023 and 2022, cash payments for interest were $7.5 million.

Included in interest expense, net is the amortization of financing costs. For both the three months ended March 31, 2023 and 2022, amortization of financing costs was $0.4 million.

At March 31, 2023, we had $2,491.6 million of fixed-rate senior notes outstanding. The fair value of our fixed-rate debt was estimated to be $2,127.6 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 2022 Annual Report on Form 10-K.

On April 27, 2023, we amended our Senior Unsecured Credit Agreement to formally replace the LIBOR benchmark rate with the Term SOFR rate.

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 2022 Annual Report on Form 10-K.

12. 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, 2023 and December 31, 2022 (in millions):

	March 31, 2023
	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	$	366.7	$	—	$	—		$	366.7	$	366.7	$	—	$	—
Level 1 (a):
U.S. Treasury securities		24.0		—		(0.3	)		23.7		—		14.7		9.0
Money market funds		1.0		—		—			1.0		1.0		—		—
Subtotal		25.0		—		(0.3	)		24.7		1.0		14.7		9.0
Level 2 (b):
Corporate debt securities		116.5		—		(1.6	)		114.9		—		73.9		41.0
U.S. government agency securities		12.4		—		—			12.4		—		5.5		6.9
Certificates of deposit		1.5		—		—			1.5		—		1.5		—
Subtotal		130.4		—		(1.6	)		128.8		—		80.9		47.9
Total	$	522.1	$	—	$	(1.9	)	$	520.2	$	367.7	$	95.6	$	56.9

9

	December 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	$	318.3	$	—	$	—		$	318.3	$	318.3	$	—	$	—
Level 1 (a):
U.S. Treasury securities		24.3		—		(0.4	)		23.9		—		16.7		7.2
Money market funds		0.1		—		—			0.1		0.1		—		—
Subtotal		24.4		—		(0.4	)		24.0		0.1		16.7		7.2
Level 2 (b):
Corporate debt securities		123.9		—		(2.1	)		121.8		1.6		65.7		54.5
U.S. government agency securities		4.5		—		(0.1	)		4.4		—		1.2		3.2
Certificates of deposit		1.6		—		—			1.6		—		1.6		—
Subtotal		130.0		—		(2.2	)		127.8		1.6		68.5		57.7
Total	$	472.7	$	—	$	(2.6	)	$	470.1	$	320.0	$	85.2	$	64.9

(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, 2023 and 2022, 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, 2023 and December 31, 2022, 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 tables provide information about the Company’s marketable debt securities that have been in a continuous loss position as of March 31, 2023 and December 31, 2022 (in millions, except number of marketable debt securities in a loss position):

	March 31, 2023
	Fair Value of Marketable Debt Securities in a Loss Position < 12 Months		Number of Marketable Debt Securities in a Loss Position < 12 Months		Unrealized Losses < 12 Months		Fair Value of Marketable Debt Securities in a Loss Position ≥ 12 Months		Number of Marketable Debt Securities in a Loss Position ≥ 12 Months		Unrealized Losses ≥ 12 Months
Corporate debt securities	$	50.3		72	$	0.4	$	45.1		60	$	1.2
U.S. government agency securities		6.3		10		—		1.5		3		—
U.S. Treasury securities		5.7		8		0.1		9.9		14		0.3
Certificates of deposit		0.8		1		—		—		—		—
	$	63.1		91	$	0.5	$	56.5		77	$	1.5

	December 31, 2022
	Fair Value of Marketable Debt Securities in a Loss Position < 12 Months		Number of Marketable Debt Securities in a Loss Position < 12 Months		Unrealized Losses < 12 Months		Fair Value of Marketable Debt Securities in a Loss Position ≥ 12 Months		Number of Marketable Debt Securities in a Loss Position ≥ 12 Months		Unrealized Losses ≥ 12 Months
Corporate debt securities	$	77.0		113	$	1.0	$	37.9		50	$	1.1
U.S. Treasury securities		14.5		14		0.2		9.3		13		0.3
U.S. government agency securities		3.2		5		—		1.3		3		—
	$	94.7		132	$	1.2	$	48.5		66	$	1.4

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13. 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,
	2023			2022
Service cost	$	3.6		$	4.9
Interest cost		14.0			8.7
Expected return on plan assets		(14.3	)		(13.9	)
Net amortization of unrecognized amounts
Prior service cost		1.3			0.9
Actuarial loss		1.1			0.8
Net periodic benefit cost	$	5.7		$	1.4

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, 2023 and 2022, payments to our nonqualified pension plans were insignificant. During both the three months ended March 31, 2023 and 2022, we did not make any contributions to our qualified pension plans. We do not have a required minimum contribution amount for 2023, but we expect to make discretionary contributions to our plans.

For both the three months ended March 31, 2023 and 2022, the net periodic benefit cost for our postretirement plans was insignificant.

14. 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, 2023, assuming performance units are paid out at the target level of performance, 0.7 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, 2023:

	Restricted Stock					Performance Units
	Shares			Weighted Average Grant- Date Fair Value		Shares			Weighted Average Grant- Date Fair Value
Outstanding at January 1, 2023		655,914		$	117.14		358,449		$	109.89
Granted		191,097			134.72		146,331			140.09
Vested (a)		(3,077	)		109.71		(76,130	)		132.96
Forfeitures		(1,337	)		120.13		—			—
Outstanding at March 31, 2023		842,597		$	121.15		428,650		$	116.10

(a)Upon payout of the performance unit awards that vested during the period, PCA issued 83,769 shares, which included 7,639 shares for dividends accrued during the performance period.

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,
	2023			2022
Restricted stock	$	11.9		$	9.2
Performance units		3.4			3.1
Total share-based compensation expense		15.3			12.3
Income tax benefit		(3.8	)		(3.1	)
Share-based compensation expense, net of tax benefit	$	11.5		$	9.2

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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 2023 and 2022, 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, 2023 was as follows (dollars in millions):

	March 31, 2023
	Unrecognized Compensation Expense		Remaining Weighted Average Recognition Period (in years)
Restricted stock	$	41.1		2.9
Performance units		33.7		2.7
Total unrecognized share-based compensation expense	$	74.8		2.8

15. Stockholders' Equity

Dividends

During the three months ended March 31, 2023, we paid $112.1 million of dividends to shareholders. On February 22, 2023, PCA’s Board of Directors declared a regular quarterly cash dividend of $1.25 per share of common stock, which was paid on April 14, 2023 to shareholders of record as of March 15, 2023. The dividend payment was $112.4 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, 2023. At March 31, 2023, $477.5 million 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, 2023	$	(0.2	)	$	(1.9	)	$	(100.3	)	$	(102.4	)
Other comprehensive income before reclassifications, net of tax		—			0.5			—			0.5
Amounts reclassified from AOCI, net of tax		—			—			1.6			1.6
Balance at March 31, 2023	$	(0.2	)	$	(1.4	)	$	(98.7	)	$	(100.3	)

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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	2023			2022
Unfunded employee benefit obligations (a)
Amortization of prior service costs	$	(1.2	)	$	(0.8	)	See (a) below
Amortization of actuarial losses		(1.0	)		(0.7	)	See (a) below
		(2.2	)		(1.5	)	Total before tax
		0.6			0.3		Tax benefit
	$	(1.6	)	$	(1.2	)	Net of tax

(a)These AOCI components are included in the computation of net pension and postretirement benefit costs. See Note 13, Employee Benefit Plans and Other Postretirement Benefits, for additional information.

16. Concentrations of Risk

ODP Corporation ("ODP"), formerly Office Depot Inc., along with its subsidiaries and affiliates, is our largest customer in the Paper segment. Our Paper segment has had a long-standing commercial and contractual relationship with ODP. This relationship exposes us to a significant concentration of business and financial risk. Our sales to ODP represented approximately 5% and 4% of our total Company sales for the three month periods ended March 31, 2023 and 2022, respectively, and approximately 64% and 58% of our Paper segment sales revenue for those periods, respectively. At March 31, 2023 and December 31, 2022, we had $58.8 million and $52.4 million of accounts receivable due from ODP, respectively, which represents approximately 6% and 5% of our total Company receivables, respectively.

17. 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 $3.3 million at March 31, 2023 and $2.2 million at December 31, 2022. During the three months ended March 31, 2023 and 2022, we recorded $20.1 million and $20.8 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, 2023 and 2022, fiber purchases from related parties were $2.9 million and $3.8 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.

18. 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.

Each segment’s profits and losses are measured on operating profits before interest expense, net, non-operating pension (expense) 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, 2023	Trade		Intersegment			Total			Operating Income (Loss)
Packaging	$	1,803.5	$	5.1		$	1,808.6		$	268.0		(a)
Paper		150.9		—			150.9			34.1		(a)
Corporate and Other		21.9		38.6			60.5			(31.4	)
Intersegment eliminations		—		(43.7	)		(43.7	)		—
	$	1,976.3	$	—		$	1,976.3			270.7
Non-operating pension expense										(2.0	)
Interest expense, net										(15.4	)
Income before taxes									$	253.3

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	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		(b)
Paper		153.5		—			153.5			22.4		(b)
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

(a)	The three months ended March 31, 2023 include the following:
	1.	$9.7 million of charges consisting of closure costs related to corrugated products facilities and design centers.
	2.	$1.2 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.
(b)	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 acquisition.

19. Commitments, Guarantees, Indemnifications and Legal Proceedings

We have financial commitments and obligations that arise in the ordinary course of our business. These include lease obligations, long-term debt, capital additions, purchase commitments for goods and services, and legal proceedings, all of which are discussed in Note 3, Leases; Note 11, Debt; and Note 20, 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 2022 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, 2023, 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 was appealed by the plaintiff to the United States Court of Appeals for the Fifth Circuit, which affirmed such dismissal. 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.

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. 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. In January 2021, the EPA and U.S. Department of Justice ("DOJ") initiated civil judicial enforcement discussions with PCA. During the third quarter of 2022, we reached a settlement with the agencies, resulting in an agreed civil penalty of $2.5 million. The Company did not admit liability for violation of the Clean Air Act in connection with the settlement. The settlement was approved by the federal district court for the Western District of Louisiana in December 2022, and the agreed civil penalty was paid out in January 2023.

14

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 2022 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 87 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 2022 Annual Report on Form 10-K.

Executive Summary

First quarter net sales were $1.98 billion in 2023 and $2.14 billion in 2022. We reported $190 million of net income, or $2.11 per diluted share, during the first quarter of 2023, compared to $254 million, or $2.70 per diluted share, during the same period in 2022. Net income included $8 million of expense for special items in the first quarter of 2023, compared to $2 million of expense for special items in 2022 (discussed below). Excluding special items, net income was $198 million, or $2.20 per diluted share, during the first quarter of 2023, compared to $256 million, or $2.72 per diluted share, in the first quarter of 2022. The decrease in net income was driven primarily by lower volumes in our Packaging and Paper segments and higher operating costs, depreciation expense, freight and logistics expenses, converting costs, and non-operating pension expense. These items were partially offset by higher prices and mix in our Packaging and Paper segments, lower scheduled maintenance outage expenses, a lower tax rate, and lower interest and other expenses. 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 $268 million in the first quarter of 2023, compared to $362 million in the first quarter of 2022. Packaging segment EBITDA excluding special items was $392 million in the first quarter of 2023 compared to $464 million in the first quarter of 2022. Higher prices and mix were offset by lower sales and production volumes, higher operating and converting costs, and higher freight and logistics expenses. Lower sales and production volumes were driven by lower demand, as economic conditions present during the second half of 2022 continued into the first quarter of 2023. We believe that demand was further affected by lower consumer spending resulting from higher interest rates and persistent inflation, along with consumer preferences shifting towards services rather than goods. Published containerboard prices declined in January and February, and our product prices were lower than in the fourth quarter of 2022. We continued to lower our containerboard production to levels appropriate for our demand, and we achieved our targeted weeks-of-inventory supply at the end of the quarter. We continue to focus on management of our operating costs in an effort to mitigate these unfavorable market conditions.

Paper segment income from operations was $34 million in the first quarter of 2023, compared to $22 million in the first quarter of 2022. Paper segment EBITDA excluding special items was $41 million in the first quarter of 2023, compared to $29 million in the first quarter of 2022. The increase was due to higher prices and mix and lower freight and logistic expenses, partially offset by higher operating costs and lower sales and production volumes. Paper prices increased throughout 2022, and sales volumes were lower primarily due to sales of products from the Jackson mill in 2022.

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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, 2023 and 2022 are as follows:

	Three Months Ended
	March 31,
	2023		2022
Earnings per diluted share, as reported	$	2.11	$	2.70
Special items:
Facilities closure and other costs (a)		0.08		0.01
Jackson mill conversion-related activities (b)		0.01		0.01
Total special items		0.09		0.02
Earnings per diluted share, excluding special items	$	2.20	$	2.72

(a)For the three months ended March 31, 2023, includes $9.7 million of closure costs related to corrugated products facilities and design centers. 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.

(b)For the three months ended March 31, 2023 and 2022, includes $1.2 million and $1.5 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.

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 in total and per work day were down 8.5% during the first quarter of 2023 compared to the same quarter of 2022. Reported industry containerboard production decreased 10.0% compared to the first quarter of 2022. Reported industry containerboard inventories at the end of the first quarter of 2023 were approximately 2.7 million tons, down 1.1% compared to the same period in 2022. Reported containerboard export shipments were down 23.5% compared to the first quarter of 2022. In January 2023, prices decreased $10 per ton for linerboard and $30 per ton for corrugating medium, followed by an additional decrease in February of $20 per ton, each.

The market for communication papers competes heavily with electronic data transmission and document storage alternatives. Increasing shifts to these alternatives have reduced usage of traditional print media and communication papers. Trade publications reported North American UFS paper shipments were down 8.4% in the first quarter of 2023 compared to the same quarter of 2022. Average prices reported by a trade publication for cut size office papers were flat in the first quarter of 2023, compared to the fourth quarter of 2022, and higher by $195 per ton, or 15.0%, compared to the first quarter of 2022.

Outlook

Looking ahead to the second quarter, we expect improved volume in our Packaging segment, despite having one less shipping day. However, prices will be lower as a result of the previously published domestic containerboard price decreases along with lower export prices. In the Paper segment, sales volume as well as prices and mix are expected to be slightly lower based on lower demand. Although we anticipate most operating costs to trend lower, our converting costs, scheduled maintenance outage expense and depreciation expense will be higher. Primarily due to increases in contract rail rates at most of our mills, we expect higher freight and logistics expenses compared to the first quarter. Considering these items, we expect second quarter earnings to be lower than the first quarter.

17

Results of Operations

Three Months Ended March 31, 2023, compared to Three Months Ended March 31, 2022

The historical results of operations of PCA for the three months ended March 31, 2023 and 2022 are set forth below (dollars in millions):

	Three Months Ended
	March 31,
	2023			2022			Change
Packaging	$	1,808.6		$	1,964.5		$	(155.9	)
Paper		150.9			153.5			(2.6	)
Corporate and Other		60.5			58.3			2.2
Intersegment eliminations		(43.7	)		(39.9	)		(3.8	)
Net sales	$	1,976.3		$	2,136.4		$	(160.1	)
Packaging	$	268.0		$	362.2		$	(94.2	)
Paper		34.1			22.4			11.7
Corporate and Other		(31.4	)		(28.1	)		(3.3	)
Income from operations	$	270.7		$	356.5		$	(85.8	)
Non-operating pension (expense) income		(2.0	)		3.6			(5.6	)
Interest expense, net		(15.4	)		(19.8	)		4.4
Income before taxes		253.3			340.3			(87.0	)
Income tax provision		(63.2	)		(86.1	)		22.9
Net income	$	190.1		$	254.2		$	(64.1	)
Non-GAAP Measures (a)
Net income excluding special items	$	198.3		$	255.7		$	(57.4	)
Consolidated EBITDA		400.3			466.2			(65.9	)
Consolidated EBITDA excluding special items		404.9			467.2			(62.3	)
Packaging EBITDA		387.0			463.1			(76.1	)
Packaging EBITDA excluding special items		391.6			463.9			(72.3	)
Paper EBITDA		41.0			28.8			12.2
Paper EBITDA excluding special items		41.0			29.0			12.0

(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 decreased $160 million, or 7.5%, to $1,976 million during the three months ended March 31, 2023, compared to $2,136 million during the same period in 2022.

Packaging. Net sales decreased $156 million, or 7.9%, to $1,809 million, compared to $1,965 million in the first quarter of 2022 due to lower containerboard and corrugated products volume ($229 million), partially offset by higher prices and mix ($73 million). In the first quarter of 2023, export and domestic containerboard outside shipments decreased 27.5% compared to the first quarter of 2022. Our total corrugated products shipments were down 12.7% in total and per workday, compared to the same period in 2022. Packaging prices and mix were favorable due to higher corrugated products prices, partially offset by lower outside containerboard prices. In the first quarter of 2023, our domestic containerboard prices were 2.9% lower, while export prices were 15.4% lower, than the same period in 2022.

Paper. Net sales decreased $3 million, or 1.7%, to $151 million, compared to $154 million in the first quarter of 2022, due to lower volume ($25 million), partially offset by higher prices and mix ($22 million).

Gross Profit

Gross profit decreased $102 million during the three months ended March 31, 2023, compared to the same period in 2022. The decrease was driven primarily by lower volumes in our Packaging and Paper segments, higher operating costs, higher depreciation expense, higher freight and logistics expenses, and higher converting costs, partially offset by higher prices and mix in our Packaging and Paper segments, lower scheduled maintenance outage expenses, and other expenses. In the three months ended March 31, 2023, gross profit included $6 million of special items primarily related to closure costs related to corrugated products facilities and Jackson mill conversion-related activities. In the three months ended March 31, 2022, gross profit included $1 million of special items for charges related to Jackson mill conversion-related activities.

Selling, General, and Administrative Expenses

Selling, general, and administrative expenses (“SG&A”) decreased $13 million during the three months ended March 31, 2023, compared to the same period in 2022. The decrease was primarily due to lower bad debt expense, fringe benefits, and outside services.

18

Other Expense, Net

Other income (expense), net, for the three months ended March 31, 2023 and 2022 are set forth below (dollars in millions):

	Three Months Ended
	March 31,
	2023			2022
Asset disposals and write-offs	$	(6.6	)	$	(12.7	)
Facilities closure and other costs		(4.7	)		(0.4	)
Jackson mill conversion-related activities		0.3			(0.4	)
Other		(1.5	)		(2.1	)
Total	$	(12.5	)	$	(15.6	)

We discuss these items in more detail in Note 5, 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 decreased $86 million, or 24.1%, during the three months ended March 31, 2023, compared to the same period in 2022. The first quarter of 2023 included $11 million of special items expense primarily related to closure costs related to corrugated products facilities and Jackson mill conversion-related activities, compared to $2 million of special items expense primarily related to costs from Jackson mill conversion-related activities, closure costs related to corrugated products facilities, and expenses related to the acquisition of Advance Packaging Corporation in the first quarter of 2022.

Packaging. Packaging segment income from operations decreased $94 million to $268 million, compared to $362 million during the three months ended March 31, 2022. The decrease related primarily to lower sales and production volumes ($119 million), higher operating and converting costs ($25 million), higher freight expenses ($9 million), and higher depreciation expense ($13 million), partially offset by higher containerboard and corrugated products prices and mix ($73 million), lower annual outage expenses ($1 million), and other costs ($7 million). Special items during the first quarter of 2023 included $9 million of expense primarily related to closure costs related to corrugated products facilities, compared to $1 million of expense for corrugated facility closures and acquisition and integration-related costs in the first quarter of 2022.

Paper. Paper segment income from operations increased $12 million to $34 million, compared to $22 million during the three months ended March 31, 2022. The increase primarily related to higher prices and mix ($23 million) and lower freight expenses ($5 million), partially offset by higher operating costs ($11 million), and lower sales and production volumes ($5 million). Special items during the first quarter of 2023 and 2022 included $1 million of expense for Jackson mill conversion-related activities.

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

Non-operating pension expense increased $6 million during the three months ended March 31, 2023, compared to the same period in 2022. The increase in non-operating pension expense was primarily related to unfavorable 2022 asset performance, partially offset by assumption changes.

Interest expense, net for the three months ended March 31, 2023 decreased $4 million when compared to the same period in 2022. The decrease in interest expense, net was primarily due to higher interest income due to higher rates on invested cash balances compared to the same period in 2022.

During the three months ended March 31, 2023, we recorded $63 million of income tax expense, compared to $86 million of expense during the three months ended March 31, 2022. The effective tax rate for the three months ended March 31, 2023 and 2022 was 24.9% and 25.3%, respectively. The decrease in our effective tax rate for the three months ended March 31, 2023 compared to the same period in 2022 was primarily due to favorable employee performance unit vests with higher excess tax benefits partially offset by higher nondeductible employee remuneration paid to covered employees.

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, 2023, we had $368 million of cash and cash equivalents, $152 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.

19

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,
	2023			2022			Change
Net cash provided by (used for):
Operating activities	$	280.4		$	325.3		$	(44.9	)
Investing activities		(115.4	)		(221.2	)		105.8
Financing activities		(117.3	)		(94.2	)		(23.1	)
Net increase in cash and cash equivalents	$	47.7		$	9.9		$	37.8

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, 2023, net cash provided by operating activities was $280 million, compared to $325 million in the same period in 2022, a decrease of $45 million. Cash from operations excluding changes in cash used for operating assets and liabilities decreased $55 million primarily due to lower income from operations in 2023 as discussed above. Cash from operations increased by $10 million due to changes in operating assets and liabilities, primarily due to a favorable change in accounts receivable levels in the first quarter of 2023 compared to the same period in 2022 primarily due to lower sales volumes in the Packaging and Paper segments, partially offset by higher pricing in the Packaging and Paper segments in the first quarter of 2023. This favorable change was partially offset by an unfavorable change in accounts payable in the first quarter of 2023 compared to the same period in 2022 primarily due to lower production and sales volumes, which resulted in lower purchasing and manufacturing activities.

Investing Activities

We used $115 million for investing activities during the three months ended March 31, 2023 compared to $221 million during the same period in 2022. We spent $112 million for internal capital investments during the three months ended March 31, 2023, compared to $213 million during the same period in 2022.

We expect capital investments in 2023 to be approximately $475 million. 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 $20 million in 2023. 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 2022 Annual Report on Form 10-K.

Financing Activities

During the three months ended March 31, 2023, net cash used for financing activities was $117 million, compared to $94 million of net cash used for financing activities during the same period in 2022. We paid $112 million of dividends during the first three months of 2023, compared to $94 million of dividends paid during the comparable period in 2022.

In addition to the items discussed in Note 11, 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 2022 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 2022 Annual Report on Form 10-K.

20

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, 2023 and 2022 follow (dollars in millions):

	Three Months Ended March 31,
	2023							2022
	Income before Taxes		Income Taxes			Net Income		Income before Taxes		Income Taxes			Net Income
As reported in accordance with GAAP	$	253.3	$	(63.2	)	$	190.1	$	340.3	$	(86.1	)	$	254.2
Special items:
Facilities closure and other costs (a)		9.7		(2.4	)		7.3		0.6		(0.2	)		0.4
Jackson mill conversion-related activities (b)		1.2		(0.3	)		0.9		1.5		(0.4	)		1.1
Total special items		10.9		(2.7	)		8.2		2.1		(0.6	)		1.5
Excluding special items	$	264.2	$	(65.9	)	$	198.3	$	342.4	$	(86.7	)	$	255.7

(a)For 2023, includes charges consisting of closure costs related to corrugated products facilities and design centers. 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 acquisition.

(b)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.

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,
	2023			2022
Net income	$	190.1		$	254.2
Non-operating pension expense (income)		2.0			(3.6	)
Interest expense, net		15.4			19.8
Income tax provision		63.2			86.1
Depreciation, amortization, and depletion		129.6			109.7
EBITDA	$	400.3		$	466.2
Special items:
Facilities closure and other costs		4.9			0.6
Jackson mill conversion-related activities		(0.3	)		0.4
Total special items		4.6			1.0
EBITDA excluding special items	$	404.9		$	467.2

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,
	2023			2022
Packaging
Segment income	$	268.0		$	362.2
Depreciation, amortization, and depletion		119.0			100.9
EBITDA		387.0			463.1
Facilities closure and other costs		4.9			0.6
Jackson mill conversion-related activities		(0.3	)		0.2
EBITDA excluding special items	$	391.6		$	463.9
Paper
Segment income	$	34.1		$	22.4
Depreciation, amortization, and depletion		6.9			6.4
EBITDA		41.0			28.8
Jackson mill conversion-related activities		—			0.2
EBITDA excluding special items	$	41.0		$	29.0
Corporate and Other
Segment loss	$	(31.4	)	$	(28.1	)
Depreciation, amortization, and depletion		3.7			2.4
EBITDA		(27.7	)		(25.7	)
EBITDA excluding special items	$	(27.7	)	$	(25.7	)
EBITDA	$	400.3		$	466.2
EBITDA excluding special items	$	404.9		$	467.2

Market Risk and Risk Management Policies

PCA is exposed to the impact of commodity price changes, interest rate changes, and changes in the market value of its financial instruments. To manage these risks, we may from time to time enter into transactions, including certain physical commodity transactions, that are determined to be derivatives. As of March 31, 2023, we are party to certain physical commodity transactions related to natural gas supply contracts. These contracts qualify for the normal purchase normal sale ("NPNS") exception, and we have elected that exception. For a discussion of derivatives and hedging activities, see Note 2, Summary of Significant Account Policies, of the Notes to Consolidated Financial Statements in “Part II, Item 8. Financial Statements and Supplementary Data” of our 2022 Annual Report on Form 10-K.

At March 31, 2023, 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, 2023.

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 2022 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 2022 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 2023.

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 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; and

•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, 2022.

23

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, 2023. 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, 2023.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rule13a-15(f) under the Exchange Act) that occurred during the most recent fiscal quarter ended March 31, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

24

PART II

OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

The disclosure set forth under the caption "Legal Proceedings" in Note 19, 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, 2022.

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, 2023:

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, 2023		—	$	—		—	$	477.5
February 1-28, 2023		245		142.99		—		477.5
March 1-31, 2023		35,495		133.08		—		477.5
Total		35,740	$	133.14		—	$	477.5

(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 3, 2023

27

EX-31

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 3, 2023

EX-31

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 3, 2023

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, 2023 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 3, 2023

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, 2023 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 3, 2023

XML

Document and Entity Information - shares shares in Thousands	3 Months Ended
	Mar. 31, 2023	Apr. 28, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Year Focus	2023
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		89,932,185
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, 2023	Mar. 31, 2022
Income Statement [Abstract]
Net sales	$ 1,976.3	$ 2,136.4
Cost of sales	(1,544.9)	(1,603.2)
Gross profit	431.4	533.2
Selling, general and administrative expenses	(148.2)	(161.1)
Other expense, net	(12.5)	(15.6)
Income from operations	270.7	356.5
Non-operating pension (expense) income	(2.0)	3.6
Interest expense, net	(15.4)	(19.8)
Income before taxes	253.3	340.3
Provision for income taxes	(63.2)	(86.1)
Net income	$ 190.1	$ 254.2
Net income per common share:
Basic	$ 2.12	$ 2.71
Diluted	2.11	2.70
Dividends declared per common share	$ 1.25	$ 1.00
Statements of Comprehensive Income:
Net income	$ 190.1	$ 254.2
Changes in unrealized gains (losses) on marketable debt securities,net of tax of ($0.2) million and $0.4 million for 2023 and 2022 respectively	0.5	(1.2)
Amortization of pension and postretirement plans actuarial loss and prior service cost, net of tax of ($0.6) million and ($0.3) million for 2023 and 2022, respectively	1.6	1.2
Other comprehensive income	2.1	0.0
Comprehensive income	$ 192.2	$ 254.2

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Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Changes in unrealized losses on marketable debt securities, tax	$ (0.2)	$ 0.4
Amortization of pension and postretirement plans actuarial loss and prior service cost, tax	$ (0.6)	$ (0.3)

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Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 367.7	$ 320.0
Short-term marketable debt securities	95.6	85.2
Accounts receivable, net of allowance for credit losses and customer deductions of $20.2 million and $14.3 million as of September 30, 2022 and December 31, 2021, respectively	1,031.4	1,031.8
Inventories	1,003.4	977.3
Prepaid expenses and other current assets	87.3	58.3
Federal and state income taxes receivable	0.0	35.7
Total current assets	2,585.4	2,508.3
Property, plant, and equipment, net	3,896.6	3,900.0
Goodwill	922.4	922.4
Other intangible assets, net	258.3	267.9
Operating lease right-of-use assets	288.6	298.3
Long-term marketable debt securities	56.9	64.9
Other long-term assets	40.8	42.0
Total assets	8,049.0	8,003.8
Current liabilities:
Operating lease obligations	72.7	72.2
Finance lease obligations	1.9	1.9
Accounts payable	410.5	410.4
Dividends payable	115.7	115.5
Accrued liabilities	184.7	263.7
Accrued interest	25.5	11.8
Federal and state income taxes payable	17.9	0.0
Total current liabilities	828.9	875.5
Long-term liabilities:
Long-term debt	2,474.1	2,473.6
Operating lease obligations	225.1	234.6
Finance lease obligations	10.3	10.8
Deferred income taxes	546.2	543.0
Compensation and benefits	148.5	141.8
Other long-term liabilities	58.2	57.4
Total long-term liabilities	3,462.4	3,461.2
Commitments and contingent liabilities
Stockholders' equity:
Common stock, par value $0.01 per share, 300.0 million shares authorized, 89.9 million and 89.7 million shares issued as of March 31, 2023 and December 31, 2022, respectively	0.9	0.9
Additional paid in capital	597.8	581.8
Retained earnings	3,259.3	3,186.8
Accumulated other comprehensive loss	(100.3)	(102.4)
Total stockholders' equity	3,757.7	3,667.1
Total liabilities and stockholders' equity	$ 8,049.0	$ 8,003.8

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for credit losses and customer deductions	$ 13.8	$ 19.6
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000.0	300,000,000.0
Common stock, shares issued	89,900,000	89,700,000

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Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash Flows from Operating Activities:
Net income	$ 190.1	$ 254.2
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion, and amortization of intangibles	129.5	109.7
Amortization of deferred financing costs	0.5	0.5
Share-based compensation expense	15.3	12.3
Deferred income tax provision	2.7	22.9
Loss on asset disposals	1.8	2.8
Pension and post-retirement benefits expense, net of contributions	5.0	0.8
Other, net	6.8	3.8
(Increase) decrease in assets -
Accounts receivable	0.4	(69.6)
Inventories	(26.1)	(38.8)
Prepaid expenses and other current assets	(29.3)	(30.1)
Increase (decrease) in liabilities -
Accounts payable	(5.0)	63.6
Accrued liabilities	(65.0)	(52.4)
Federal and state income taxes receivable	53.7	45.6
Net cash provided by operating activities	280.4	325.3
Cash Flows from Investing Activities:
Additions to property, plant, and equipment	(112.4)	(213.2)
Additions to other long term assets	(1.6)	(2.4)
Proceeds from asset disposals	0.3	0.2
Purchases of marketable debt securities	(29.6)	(36.4)
Proceeds from sales of marketable debt securities	0.0	7.8
Proceeds from maturities of marketable debt securities	27.9	22.8
Net cash used for investing activities	(115.4)	(221.2)
Cash Flows from Financing Activities:
Repayments of debt and finance lease obligations	(0.5)	(0.4)
Common stock dividends paid	(112.1)	(93.6)
Shares withheld to cover employee restricted stock taxes	(4.7)	(0.2)
Net cash used for financing activities	(117.3)	(94.2)
Net increase in cash and cash equivalents	47.7	9.9
Cash and cash equivalents, beginning of period	320.0	618.7
Cash and cash equivalents, end of period	$ 367.7	$ 628.6

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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, 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)			(0.2)
Common stock withheld and retired to cover taxes on vested stock awards (in shares)		(1,000)
Common stock dividends declared	(94.2)			(94.2)
Share-based compensation and other	12.3		12.3
Share-based compensation expense (in shares)		166,000
Comprehensive income	254.2			254.2
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
Beginning Balance at Dec. 31, 2022	3,667.1	$ 0.9	581.8	3,186.8	(102.4)
Beginning Balance (in shares) at Dec. 31, 2022		89,695,000
Common stock withheld and retired to cover taxes on vested stock awards	(4.7)		(0.3)	(4.4)
Common stock withheld and retired to cover taxes on vested stock awards (in shares)		(36,000)
Common stock dividends declared	(113.2)			(113.2)
Share-based compensation and other	16.3		16.3
Share-based compensation expense (in shares)		273,000
Comprehensive income	192.2			190.1	2.1
Ending Balance at Mar. 31, 2023	$ 3,757.7	$ 0.9	$ 597.8	$ 3,259.3	$ (100.3)
Ending Balance (in shares) at Mar. 31, 2023		89,932,000

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Nature of Operations and Basis of Presentation

3 Months Ended

Mar. 31, 2023

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 18, Segment Information.

The consolidated financial statements of PCA as of March 31, 2023 and for the three months ended March 31, 2023 and 2022 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, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. These consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2022.

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

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New and Recently Adopted Accounting Standards

3 Months Ended

Mar. 31, 2023

Accounting Standards Update and Change in Accounting Principle [Abstract]

New and Recently Adopted Accounting Standards

2. New and Recently Adopted Accounting Standards

Recently Adopted Accounting Standards

Effective January 1, 2023, we adopted Accounting Standards Update ("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 prior business combination guidance in ASC 805, Business Combinations, such assets and liabilities were 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 Company will apply the amended guidance on a prospective basis to any future business combinations.

New Accounting Standards Not Yet Adopted

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. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which further extends the relief offered in this series of ASUs through December 31, 2024. Companies can apply these ASUs immediately. The ASUs 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 Company's fixed-rate outstanding debt will not be impacted by the reference rate reform. In April 2023, we amended our Senior Unsecured Credit Agreement to formally replace the LIBOR benchmark rate with the Term SOFR rate. The amendment of this agreement and the reference rate reform will not have a significant impact on the Company's 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.

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Revenue

3 Months Ended

Mar. 31, 2023

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,
	2023		2022
Packaging	$	1,808.6	$	1,964.5
Paper		150.9		153.5
Corporate and Other		16.8		18.4
Total revenue	$	1,976.3	$	2,136.4

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 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 17, 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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Earnings Per Share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Earnings Per Share

4. 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:	2023			2022
Net income	$	190.1		$	254.2
Less: Distributed and undistributed earnings allocated to participating    securities		(1.6	)		(2.0	)
Net income attributable to common shareholders	$	188.5		$	252.2
Denominator:
Weighted average basic common shares outstanding		89.0			92.9
Effect of dilutive securities		0.4			0.4
Weighted average diluted common shares outstanding		89.4			93.3
Basic income per common share	$	2.12		$	2.71
Diluted income per common share	$	2.11		$	2.70

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Other Income (Expense), Net

3 Months Ended

Mar. 31, 2023

Other Income and Expenses [Abstract]

Other Income (Expense), Net

5. Other Income (Expense), Net

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

	Three Months Ended
	March 31,
	2023			2022
Asset disposals and write-offs	$	(6.6	)	$	(12.7	)
Facilities closure and other costs (a)		(4.7	)		(0.4	)
Jackson mill conversion-related activities (b)		0.3			(0.4	)
Other		(1.5	)		(2.1	)
Total	$	(12.5	)	$	(15.6	)

(a)For 2023, includes charges consisting of closure costs related to corrugated products facilities and design centers. 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 acquisition.

(b)Includes items related to the announced discontinuation of production of uncoated freesheet 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.

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Income Taxes

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

6. Income Taxes

For the three months ended March 31, 2023 and 2022, we recorded $63.2 million and $86.1 million of income tax expense and had an effective tax rate of 24.9% and 25.3%, respectively. The decrease in our effective tax rate for the three months ended March 31, 2023 compared to the same period in 2022 was primarily due to favorable employee performance unit vests with higher excess tax benefits partially offset by higher nondeductible employee remuneration paid to covered employees.

Our current effective tax rate is higher than 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, 2023 and 2022, cash paid for taxes, net of refunds received, was $6.9 million and $17.6 million, respectively. The decrease in cash tax payments between the periods is primarily due to lower 2023 forecasted taxable income.

During the three months ended March 31, 2023, 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 2022 Annual Report on Form 10-K.

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Inventories

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

Inventories

7. 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,
	2023		2022
Raw materials	$	358.8	$	341.2
Work in process		15.8		16.0
Finished goods		201.1		198.4
Supplies and materials		427.7		421.7
Inventories	$	1,003.4	$	977.3

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Property, Plant, and Equipment

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

Property, Plant, and Equipment

8. Property, Plant, and Equipment

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

	March 31,			December 31,
	2023			2022
Land and land improvements	$	196.6		$	192.4
Buildings		1,043.6			1,023.6
Machinery and equipment		6,825.8			6,709.3
Construction in progress		378.4			440.2
Other		149.3			146.9
Property, plant and equipment, at cost		8,593.7			8,512.4
Less accumulated depreciation		(4,697.1	)		(4,612.4	)
Property, plant, and equipment, net	$	3,896.6		$	3,900.0

Depreciation expense for the three months ended March 31, 2023 and 2022 was $118.8 million and $98.5 million, respectively. During the three months ended March 31, 2023, we recognized $6.3 million of incremental depreciation expense as a result of corrugated products facilities and design center closures, and Jackson mill conversion-related activities. We recognized $1.1 million of incremental depreciation expense during the three months ended March 31, 2022 as a result of Jackson mill conversion-related activities.

At March 31, 2023 and December 31, 2022, purchases of property, plant, and equipment included in accounts payable were $48.8 million and $43.7 million, respectively.

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Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

9. 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 both March 31, 2023 and December 31, 2022, we had $922.4 million of goodwill recorded in our Packaging segment, which represents the entire goodwill balance reported on our Consolidated Balance Sheets.

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, 2023						December 31, 2022
	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		8.0	$	546.0	$	299.9		8.2	$	546.0	$	290.9
Trademarks and trade names		7.0		41.3		29.1		7.2		41.3		28.6
Other		3.3		4.4		4.4		3.4		4.4		4.3
Total intangible assets (excluding goodwill)		7.9	$	591.7	$	333.4		8.1	$	591.7	$	323.8

During the three months ended March 31, 2023 and 2022, amortization expense was $9.6 million and $10.2 million, respectively.

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Accrued Liabilities

3 Months Ended

Mar. 31, 2023

Accrued Liabilities [Abstract]

Accrued Liabilities

10. Accrued Liabilities

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

	March 31,		December 31,
	2023		2022
Compensation and benefits	$	84.9	$	159.7
Customer rebates and other credits		34.0		43.8
Medical insurance and workers’ compensation		25.6		26.1
Franchise, property, sales and use taxes		21.1		17.4
Severance, retention, and relocation		4.9		1.8
Environmental liabilities and asset retirement obligations		4.3		4.1
Other		9.9		10.8
Total	$	184.7	$	263.7

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Debt

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Debt

11. Debt

For both the three months ended March 31, 2023 and 2022, cash payments for interest were $7.5 million.

Included in interest expense, net is the amortization of financing costs. For both the three months ended March 31, 2023 and 2022, amortization of financing costs was $0.4 million.

At March 31, 2023, we had $2,491.6 million of fixed-rate senior notes outstanding. The fair value of our fixed-rate debt was estimated to be $2,127.6 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 2022 Annual Report on Form 10-K.

On April 27, 2023, we amended our Senior Unsecured Credit Agreement to formally replace the LIBOR benchmark rate with the Term SOFR rate.

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 2022 Annual Report on Form 10-K.

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Cash, Cash Equivalents, and Marketable Debt Securities

3 Months Ended

Mar. 31, 2023

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

Cash, Cash Equivalents, and Marketable Debt Securities

12. 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, 2023 and December 31, 2022 (in millions):

	March 31, 2023
	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	$	366.7	$	—	$	—		$	366.7	$	366.7	$	—	$	—
Level 1 (a):
U.S. Treasury securities		24.0		—		(0.3	)		23.7		—		14.7		9.0
Money market funds		1.0		—		—			1.0		1.0		—		—
Subtotal		25.0		—		(0.3	)		24.7		1.0		14.7		9.0
Level 2 (b):
Corporate debt securities		116.5		—		(1.6	)		114.9		—		73.9		41.0
U.S. government agency securities		12.4		—		—			12.4		—		5.5		6.9
Certificates of deposit		1.5		—		—			1.5		—		1.5		—
Subtotal		130.4		—		(1.6	)		128.8		—		80.9		47.9
Total	$	522.1	$	—	$	(1.9	)	$	520.2	$	367.7	$	95.6	$	56.9

	December 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	$	318.3	$	—	$	—		$	318.3	$	318.3	$	—	$	—
Level 1 (a):
U.S. Treasury securities		24.3		—		(0.4	)		23.9		—		16.7		7.2
Money market funds		0.1		—		—			0.1		0.1		—		—
Subtotal		24.4		—		(0.4	)		24.0		0.1		16.7		7.2
Level 2 (b):
Corporate debt securities		123.9		—		(2.1	)		121.8		1.6		65.7		54.5
U.S. government agency securities		4.5		—		(0.1	)		4.4		—		1.2		3.2
Certificates of deposit		1.6		—		—			1.6		—		1.6		—
Subtotal		130.0		—		(2.2	)		127.8		1.6		68.5		57.7
Total	$	472.7	$	—	$	(2.6	)	$	470.1	$	320.0	$	85.2	$	64.9

(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, 2023 and 2022, 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, 2023 and December 31, 2022, 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 tables provide information about the Company’s marketable debt securities that have been in a continuous loss position as of March 31, 2023 and December 31, 2022 (in millions, except number of marketable debt securities in a loss position):

	March 31, 2023
	Fair Value of Marketable Debt Securities in a Loss Position < 12 Months		Number of Marketable Debt Securities in a Loss Position < 12 Months		Unrealized Losses < 12 Months		Fair Value of Marketable Debt Securities in a Loss Position ≥ 12 Months		Number of Marketable Debt Securities in a Loss Position ≥ 12 Months		Unrealized Losses ≥ 12 Months
Corporate debt securities	$	50.3		72	$	0.4	$	45.1		60	$	1.2
U.S. government agency securities		6.3		10		—		1.5		3		—
U.S. Treasury securities		5.7		8		0.1		9.9		14		0.3
Certificates of deposit		0.8		1		—		—		—		—
	$	63.1		91	$	0.5	$	56.5		77	$	1.5

	December 31, 2022
	Fair Value of Marketable Debt Securities in a Loss Position < 12 Months		Number of Marketable Debt Securities in a Loss Position < 12 Months		Unrealized Losses < 12 Months		Fair Value of Marketable Debt Securities in a Loss Position ≥ 12 Months		Number of Marketable Debt Securities in a Loss Position ≥ 12 Months		Unrealized Losses ≥ 12 Months
Corporate debt securities	$	77.0		113	$	1.0	$	37.9		50	$	1.1
U.S. Treasury securities		14.5		14		0.2		9.3		13		0.3
U.S. government agency securities		3.2		5		—		1.3		3		—
	$	94.7		132	$	1.2	$	48.5		66	$	1.4

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Employee Benefit Plans and Other Postretirement Benefits

3 Months Ended

Mar. 31, 2023

Retirement Benefits [Abstract]

Employee Benefit Plans and Other Postretirement Benefits

13. 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,
	2023			2022
Service cost	$	3.6		$	4.9
Interest cost		14.0			8.7
Expected return on plan assets		(14.3	)		(13.9	)
Net amortization of unrecognized amounts
Prior service cost		1.3			0.9
Actuarial loss		1.1			0.8
Net periodic benefit cost	$	5.7		$	1.4

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, 2023 and 2022, payments to our nonqualified pension plans were insignificant. During both the three months ended March 31, 2023 and 2022, we did not make any contributions to our qualified pension plans. We do not have a required minimum contribution amount for 2023, but we expect to make discretionary contributions to our plans.

For both the three months ended March 31, 2023 and 2022, the net periodic benefit cost for our postretirement plans was insignificant.

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Share-Based Compensation

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Share-Based Compensation

14. 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, 2023, assuming performance units are paid out at the target level of performance, 0.7 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, 2023:

	Restricted Stock					Performance Units
	Shares			Weighted Average Grant- Date Fair Value		Shares			Weighted Average Grant- Date Fair Value
Outstanding at January 1, 2023		655,914		$	117.14		358,449		$	109.89
Granted		191,097			134.72		146,331			140.09
Vested (a)		(3,077	)		109.71		(76,130	)		132.96
Forfeitures		(1,337	)		120.13		—			—
Outstanding at March 31, 2023		842,597		$	121.15		428,650		$	116.10

(a)Upon payout of the performance unit awards that vested during the period, PCA issued 83,769 shares, which included 7,639 shares for dividends accrued during the performance period.

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,
	2023			2022
Restricted stock	$	11.9		$	9.2
Performance units		3.4			3.1
Total share-based compensation expense		15.3			12.3
Income tax benefit		(3.8	)		(3.1	)
Share-based compensation expense, net of tax benefit	$	11.5		$	9.2

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 2023 and 2022, 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, 2023 was as follows (dollars in millions):

	March 31, 2023
	Unrecognized Compensation Expense		Remaining Weighted Average Recognition Period (in years)
Restricted stock	$	41.1		2.9
Performance units		33.7		2.7
Total unrecognized share-based compensation expense	$	74.8		2.8

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Stockholders' Equity

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Stockholders' Equity

15. Stockholders' Equity

Dividends

During the three months ended March 31, 2023, we paid $112.1 million of dividends to shareholders. On February 22, 2023, PCA’s Board of Directors declared a regular quarterly cash dividend of $1.25 per share of common stock, which was paid on April 14, 2023 to shareholders of record as of March 15, 2023. The dividend payment was $112.4 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, 2023. At March 31, 2023, $477.5 million 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, 2023	$	(0.2	)	$	(1.9	)	$	(100.3	)	$	(102.4	)
Other comprehensive income before reclassifications, net of tax		—			0.5			—			0.5
Amounts reclassified from AOCI, net of tax		—			—			1.6			1.6
Balance at March 31, 2023	$	(0.2	)	$	(1.4	)	$	(98.7	)	$	(100.3	)

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	2023			2022
Unfunded employee benefit obligations (a)
Amortization of prior service costs	$	(1.2	)	$	(0.8	)	See (a) below
Amortization of actuarial losses		(1.0	)		(0.7	)	See (a) below
		(2.2	)		(1.5	)	Total before tax
		0.6			0.3		Tax benefit
	$	(1.6	)	$	(1.2	)	Net of tax

(a)These AOCI components are included in the computation of net pension and postretirement benefit costs. See Note 13, Employee Benefit Plans and Other Postretirement Benefits, for additional information.

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Concentrations of Risk

3 Months Ended

Mar. 31, 2023

Risks and Uncertainties [Abstract]

Concentration of Risk

16. Concentrations of Risk

ODP Corporation ("ODP"), formerly Office Depot Inc., along with its subsidiaries and affiliates, is our largest customer in the Paper segment. Our Paper segment has had a long-standing commercial and contractual relationship with ODP. This relationship exposes us to a significant concentration of business and financial risk. Our sales to ODP represented approximately 5% and 4% of our total Company sales for the three month periods ended March 31, 2023 and 2022, respectively, and approximately 64% and 58% of our Paper segment sales revenue for those periods, respectively. At March 31, 2023 and December 31, 2022, we had $58.8 million and $52.4 million of accounts receivable due from ODP, respectively, which represents approximately 6% and 5% of our total Company receivables, respectively.

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Transactions With Related Parties

3 Months Ended

Mar. 31, 2023

Related Party Transactions [Abstract]

Transactions With Related Parties

17. 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 $3.3 million at March 31, 2023 and $2.2 million at December 31, 2022. During the three months ended March 31, 2023 and 2022, we recorded $20.1 million and $20.8 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, 2023 and 2022, fiber purchases from related parties were $2.9 million and $3.8 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, 2023

Segment Reporting [Abstract]

Segment Information

18. 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.

Each segment’s profits and losses are measured on operating profits before interest expense, net, non-operating pension (expense) 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, 2023	Trade		Intersegment			Total			Operating Income (Loss)
Packaging	$	1,803.5	$	5.1		$	1,808.6		$	268.0		(a)
Paper		150.9		—			150.9			34.1		(a)
Corporate and Other		21.9		38.6			60.5			(31.4	)
Intersegment eliminations		—		(43.7	)		(43.7	)		—
	$	1,976.3	$	—		$	1,976.3			270.7
Non-operating pension expense										(2.0	)
Interest expense, net										(15.4	)
Income before taxes									$	253.3

	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		(b)
Paper		153.5		—			153.5			22.4		(b)
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

(a)	The three months ended March 31, 2023 include the following:
	1.	$9.7 million of charges consisting of closure costs related to corrugated products facilities and design centers.
	2.	$1.2 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.
(b)	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 acquisition.

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Commitments, Guarantees, Indemnifications and Legal Proceedings

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments, Guarantees, Indemnifications and Legal Proceedings

19. Commitments, Guarantees, Indemnifications and Legal Proceedings

We have financial commitments and obligations that arise in the ordinary course of our business. These include lease obligations, long-term debt, capital additions, purchase commitments for goods and services, and legal proceedings, all of which are discussed in Note 3, Leases; Note 11, Debt; and Note 20, 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 2022 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, 2023, 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 was appealed by the plaintiff to the United States Court of Appeals for the Fifth Circuit, which affirmed such dismissal. 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.

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. 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. In January 2021, the EPA and U.S. Department of Justice ("DOJ") initiated civil judicial enforcement discussions with PCA. During the third quarter of 2022, we reached a settlement with the agencies, resulting in an agreed civil penalty of $2.5 million. The Company did not admit liability for violation of the Clean Air Act in connection with the settlement. The settlement was approved by the federal district court for the Western District of Louisiana in December 2022, and the agreed civil penalty was paid out in January 2023.

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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New and Recently Adopted Accounting Standards (Policies)

3 Months Ended

Mar. 31, 2023

Accounting Standards Update and Change in Accounting Principle [Abstract]

Recently Adopted Accounting Standards

Recently Adopted Accounting Standards

Effective January 1, 2023, we adopted Accounting Standards Update ("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 prior business combination guidance in ASC 805, Business Combinations, such assets and liabilities were 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 Company will apply the amended guidance on a prospective basis to any future business combinations.

New Accounting Standards Not Yet Adopted

New Accounting Standards Not Yet Adopted

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. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which further extends the relief offered in this series of ASUs through December 31, 2024. Companies can apply these ASUs immediately. The ASUs 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 Company's fixed-rate outstanding debt will not be impacted by the reference rate reform. In April 2023, we amended our Senior Unsecured Credit Agreement to formally replace the LIBOR benchmark rate with the Term SOFR rate. The amendment of this agreement and the reference rate reform will not have a significant impact on the Company's 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.

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Revenue (Tables)

3 Months Ended

Mar. 31, 2023

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,
	2023		2022
Packaging	$	1,808.6	$	1,964.5
Paper		150.9		153.5
Corporate and Other		16.8		18.4
Total revenue	$	1,976.3	$	2,136.4

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2023

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:	2023			2022
Net income	$	190.1		$	254.2
Less: Distributed and undistributed earnings allocated to participating    securities		(1.6	)		(2.0	)
Net income attributable to common shareholders	$	188.5		$	252.2
Denominator:
Weighted average basic common shares outstanding		89.0			92.9
Effect of dilutive securities		0.4			0.4
Weighted average diluted common shares outstanding		89.4			93.3
Basic income per common share	$	2.12		$	2.71
Diluted income per common share	$	2.11		$	2.70

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Other Income (Expense), Net (Tables)

3 Months Ended

Mar. 31, 2023

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,
	2023			2022
Asset disposals and write-offs	$	(6.6	)	$	(12.7	)
Facilities closure and other costs (a)		(4.7	)		(0.4	)
Jackson mill conversion-related activities (b)		0.3			(0.4	)
Other		(1.5	)		(2.1	)
Total	$	(12.5	)	$	(15.6	)

(a)For 2023, includes charges consisting of closure costs related to corrugated products facilities and design centers. 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 acquisition.

(b)Includes items related to the announced discontinuation of production of uncoated freesheet 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.

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Inventories (Tables)

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

Components of Inventories

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

	March 31,		December 31,
	2023		2022
Raw materials	$	358.8	$	341.2
Work in process		15.8		16.0
Finished goods		201.1		198.4
Supplies and materials		427.7		421.7
Inventories	$	1,003.4	$	977.3

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Property, Plant, and Equipment (Tables)

3 Months Ended

Mar. 31, 2023

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,
	2023			2022
Land and land improvements	$	196.6		$	192.4
Buildings		1,043.6			1,023.6
Machinery and equipment		6,825.8			6,709.3
Construction in progress		378.4			440.2
Other		149.3			146.9
Property, plant and equipment, at cost		8,593.7			8,512.4
Less accumulated depreciation		(4,697.1	)		(4,612.4	)
Property, plant, and equipment, net	$	3,896.6		$	3,900.0

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Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

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, 2023						December 31, 2022
	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		8.0	$	546.0	$	299.9		8.2	$	546.0	$	290.9
Trademarks and trade names		7.0		41.3		29.1		7.2		41.3		28.6
Other		3.3		4.4		4.4		3.4		4.4		4.3
Total intangible assets (excluding goodwill)		7.9	$	591.7	$	333.4		8.1	$	591.7	$	323.8

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Accrued Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

Accrued Liabilities [Abstract]

Components of Accrued Liabilities

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

	March 31,		December 31,
	2023		2022
Compensation and benefits	$	84.9	$	159.7
Customer rebates and other credits		34.0		43.8
Medical insurance and workers’ compensation		25.6		26.1
Franchise, property, sales and use taxes		21.1		17.4
Severance, retention, and relocation		4.9		1.8
Environmental liabilities and asset retirement obligations		4.3		4.1
Other		9.9		10.8
Total	$	184.7	$	263.7

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

3 Months Ended

Mar. 31, 2023

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, 2023 and December 31, 2022 (in millions):

	March 31, 2023
	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	$	366.7	$	—	$	—		$	366.7	$	366.7	$	—	$	—
Level 1 (a):
U.S. Treasury securities		24.0		—		(0.3	)		23.7		—		14.7		9.0
Money market funds		1.0		—		—			1.0		1.0		—		—
Subtotal		25.0		—		(0.3	)		24.7		1.0		14.7		9.0
Level 2 (b):
Corporate debt securities		116.5		—		(1.6	)		114.9		—		73.9		41.0
U.S. government agency securities		12.4		—		—			12.4		—		5.5		6.9
Certificates of deposit		1.5		—		—			1.5		—		1.5		—
Subtotal		130.4		—		(1.6	)		128.8		—		80.9		47.9
Total	$	522.1	$	—	$	(1.9	)	$	520.2	$	367.7	$	95.6	$	56.9

	December 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	$	318.3	$	—	$	—		$	318.3	$	318.3	$	—	$	—
Level 1 (a):
U.S. Treasury securities		24.3		—		(0.4	)		23.9		—		16.7		7.2
Money market funds		0.1		—		—			0.1		0.1		—		—
Subtotal		24.4		—		(0.4	)		24.0		0.1		16.7		7.2
Level 2 (b):
Corporate debt securities		123.9		—		(2.1	)		121.8		1.6		65.7		54.5
U.S. government agency securities		4.5		—		(0.1	)		4.4		—		1.2		3.2
Certificates of deposit		1.6		—		—			1.6		—		1.6		—
Subtotal		130.0		—		(2.2	)		127.8		1.6		68.5		57.7
Total	$	472.7	$	—	$	(2.6	)	$	470.1	$	320.0	$	85.2	$	64.9

(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 tables provide information about the Company’s marketable debt securities that have been in a continuous loss position as of March 31, 2023 and December 31, 2022 (in millions, except number of marketable debt securities in a loss position):

	March 31, 2023
	Fair Value of Marketable Debt Securities in a Loss Position < 12 Months		Number of Marketable Debt Securities in a Loss Position < 12 Months		Unrealized Losses < 12 Months		Fair Value of Marketable Debt Securities in a Loss Position ≥ 12 Months		Number of Marketable Debt Securities in a Loss Position ≥ 12 Months		Unrealized Losses ≥ 12 Months
Corporate debt securities	$	50.3		72	$	0.4	$	45.1		60	$	1.2
U.S. government agency securities		6.3		10		—		1.5		3		—
U.S. Treasury securities		5.7		8		0.1		9.9		14		0.3
Certificates of deposit		0.8		1		—		—		—		—
	$	63.1		91	$	0.5	$	56.5		77	$	1.5

	December 31, 2022
	Fair Value of Marketable Debt Securities in a Loss Position < 12 Months		Number of Marketable Debt Securities in a Loss Position < 12 Months		Unrealized Losses < 12 Months		Fair Value of Marketable Debt Securities in a Loss Position ≥ 12 Months		Number of Marketable Debt Securities in a Loss Position ≥ 12 Months		Unrealized Losses ≥ 12 Months
Corporate debt securities	$	77.0		113	$	1.0	$	37.9		50	$	1.1
U.S. Treasury securities		14.5		14		0.2		9.3		13		0.3
U.S. government agency securities		3.2		5		—		1.3		3		—
	$	94.7		132	$	1.2	$	48.5		66	$	1.4

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Employee Benefit Plans and Other Postretirement Benefits (Tables)

3 Months Ended

Mar. 31, 2023

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,
	2023			2022
Service cost	$	3.6		$	4.9
Interest cost		14.0			8.7
Expected return on plan assets		(14.3	)		(13.9	)
Net amortization of unrecognized amounts
Prior service cost		1.3			0.9
Actuarial loss		1.1			0.8
Net periodic benefit cost	$	5.7		$	1.4

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Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2023

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, 2023:

	Restricted Stock					Performance Units
	Shares			Weighted Average Grant- Date Fair Value		Shares			Weighted Average Grant- Date Fair Value
Outstanding at January 1, 2023		655,914		$	117.14		358,449		$	109.89
Granted		191,097			134.72		146,331			140.09
Vested (a)		(3,077	)		109.71		(76,130	)		132.96
Forfeitures		(1,337	)		120.13		—			—
Outstanding at March 31, 2023		842,597		$	121.15		428,650		$	116.10

(a)Upon payout of the performance unit awards that vested during the period, PCA issued 83,769 shares, which included 7,639 shares for dividends accrued during the performance period.

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,
	2023			2022
Restricted stock	$	11.9		$	9.2
Performance units		3.4			3.1
Total share-based compensation expense		15.3			12.3
Income tax benefit		(3.8	)		(3.1	)
Share-based compensation expense, net of tax benefit	$	11.5		$	9.2

Unrecognized Compensation Expense for Share-Based Awards

The unrecognized compensation expense for all share-based awards at March 31, 2023 was as follows (dollars in millions):

	March 31, 2023
	Unrecognized Compensation Expense		Remaining Weighted Average Recognition Period (in years)
Restricted stock	$	41.1		2.9
Performance units		33.7		2.7
Total unrecognized share-based compensation expense	$	74.8		2.8

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Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2023

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, 2023	$	(0.2	)	$	(1.9	)	$	(100.3	)	$	(102.4	)
Other comprehensive income before reclassifications, net of tax		—			0.5			—			0.5
Amounts reclassified from AOCI, net of tax		—			—			1.6			1.6
Balance at March 31, 2023	$	(0.2	)	$	(1.4	)	$	(98.7	)	$	(100.3	)

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	2023			2022
Unfunded employee benefit obligations (a)
Amortization of prior service costs	$	(1.2	)	$	(0.8	)	See (a) below
Amortization of actuarial losses		(1.0	)		(0.7	)	See (a) below
		(2.2	)		(1.5	)	Total before tax
		0.6			0.3		Tax benefit
	$	(1.6	)	$	(1.2	)	Net of tax

(a)These AOCI components are included in the computation of net pension and postretirement benefit costs. See Note 13, Employee Benefit Plans and Other Postretirement Benefits, for additional information.

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2023

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, 2023	Trade		Intersegment			Total			Operating Income (Loss)
Packaging	$	1,803.5	$	5.1		$	1,808.6		$	268.0		(a)
Paper		150.9		—			150.9			34.1		(a)
Corporate and Other		21.9		38.6			60.5			(31.4	)
Intersegment eliminations		—		(43.7	)		(43.7	)		—
	$	1,976.3	$	—		$	1,976.3			270.7
Non-operating pension expense										(2.0	)
Interest expense, net										(15.4	)
Income before taxes									$	253.3

	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		(b)
Paper		153.5		—			153.5			22.4		(b)
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

(a)	The three months ended March 31, 2023 include the following:
	1.	$9.7 million of charges consisting of closure costs related to corrugated products facilities and design centers.
	2.	$1.2 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.
(b)	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 acquisition.

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Nature of Operations and Basis of Presentation - Additional Information (Details)	3 Months Ended
	Mar. 31, 2023 Segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Date of incorporation	Jan. 25, 1999
Number of reportable segments	3

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Revenue - Summary of Revenues Disaggregated by Product Line (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation Of Revenue [Line Items]
Revenue	$ 1,976.3	$ 2,136.4
Packaging
Disaggregation Of Revenue [Line Items]
Revenue	1,808.6	1,964.5
Paper
Disaggregation Of Revenue [Line Items]
Revenue	150.9	153.5
Corporate and Other
Disaggregation Of Revenue [Line Items]
Revenue	$ 16.8	$ 18.4

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Revenue - Additional Information (Details)	3 Months Ended
	Mar. 31, 2023
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, 2023	Mar. 31, 2022
Numerator:
Net income	$ 190.1	$ 254.2
Less: Distributed and undistributed earnings allocated to participating securities	(1.6)	(2.0)
Net income attributable to common shareholders	$ 188.5	$ 252.2
Denominator:
Weighted average basic common shares outstanding (in shares)	89.0	92.9
Effect of dilutive securities (in shares)	0.4	0.4
Weighted average diluted common shares outstanding (in shares)	89.4	93.3
Basic income per common share (in dollars per share)	$ 2.12	$ 2.71
Diluted income per common share (in dollars per share)	$ 2.11	$ 2.70

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Other Income (Expense), Net - Components of Other Income (Expense), Net (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Asset disposals and write-offs		$ (6.6)	$ (12.7)
Facilities closure and other costs	[1]	(4.7)	(0.4)
Other		(1.5)	(2.1)
Total		(12.5)	(15.6)
Jackson, Alabama Mill
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Conversion-related activities	[2]	$ 0.3	$ (0.4)

[1] For 2023, includes charges consisting of closure costs related to corrugated products facilities and design centers. 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 acquisition.

[2] ncludes items related to the announced discontinuation of production of uncoated freesheet 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.

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Income Taxes - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income tax provision	$ 63.2	$ 86.1
Effective income tax rate, percent	24.90%	25.30%
Federal statutory income tax rate	21.00%
Cash paid for taxes, net of refunds received	$ 6.9	$ 17.6

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Inventories - Components of Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 358.8	$ 341.2
Work in process	15.8	16.0
Finished goods	201.1	198.4
Supplies and materials	427.7	421.7
Inventories	$ 1,003.4	$ 977.3

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Property, Plant, and Equipment - Components of Property, Plant, and Equipment (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Property, Plant, And Equipment [Line Items]
Property, plant and equipment, at cost	$ 8,593.7	$ 8,512.4
Less accumulated depreciation	(4,697.1)	(4,612.4)
Property, plant, and equipment, net	3,896.6	3,900.0
Land and Land Improvements
Property, Plant, And Equipment [Line Items]
Property, plant and equipment, at cost	196.6	192.4
Buildings
Property, Plant, And Equipment [Line Items]
Property, plant and equipment, at cost	1,043.6	1,023.6
Machinery and Equipment
Property, Plant, And Equipment [Line Items]
Property, plant and equipment, at cost	6,825.8	6,709.3
Construction in Progress
Property, Plant, And Equipment [Line Items]
Property, plant and equipment, at cost	378.4	440.2
Other
Property, Plant, And Equipment [Line Items]
Property, plant and equipment, at cost	$ 149.3	$ 146.9

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Property, Plant, and Equipment - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Depreciation [Abstract]
Depreciation expense	$ 118.8	$ 98.5
Incremental depreciation	6.3	1.1
Purchases of property, plant, and equipment included in accounts payable	$ 48.8	$ 43.7

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Goodwill and Intangible Assets -Goodwill - (Details) $ in Millions	Mar. 31, 2023 USD ($)
Goodwill [Line Items]
Goodwill, Beginning Balance	$ 922.4
Goodwill, Ending Balance	$ 922.4

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Goodwill and Intangible Assets - Components of Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Life (in Years)	7 years 10 months 24 days	8 years 1 month 6 days
Gross Carrying Amount	$ 591.7	$ 591.7
Accumulated Amortization	$ 333.4	$ 323.8
Customer Relationships
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Life (in Years)	8 years	8 years 2 months 12 days
Gross Carrying Amount	$ 546.0	$ 546.0
Accumulated Amortization	$ 299.9	$ 290.9
Trademarks and Trade Names
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Life (in Years)	7 years	7 years 2 months 12 days
Gross Carrying Amount	$ 41.3	$ 41.3
Accumulated Amortization	$ 29.1	$ 28.6
Other Intangible Assets
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Life (in Years)	3 years 3 months 18 days	3 years 4 months 24 days
Gross Carrying Amount	$ 4.4	$ 4.4
Accumulated Amortization	$ 4.4	$ 4.3

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Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 9.6	$ 10.2
Goodwill	$ 922.4		$ 922.4

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Accrued Liabilities - Components of Accrued Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Accrued Liabilities, Current [Abstract]
Compensation and benefits	$ 84.9	$ 159.7
Customer rebates and other credits	34.0	43.8
Medical insurance and workers’ compensation	25.6	26.1
Franchise, property, sales and use taxes	21.1	17.4
Severance, retention, and relocation	4.9	1.8
Environmental liabilities and asset retirement obligations	4.3	4.1
Other	9.9	10.8
Total	$ 184.7	$ 263.7

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Debt - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Debt Instrument [Line Items]
Cash payments paid for interest	$ 7.5	$ 7.5
Amortization of financing costs	0.4	$ 0.4
Senior Notes | Fixed-Rate Senior Notes
Debt Instrument [Line Items]
Book value of fixed rate debt	2,491.6
Long-term debt (fixed-rate debt), fair value	$ 2,127.6

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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, 2023	Dec. 31, 2022
Financial Instruments [Line Items]
Adjusted Cost Basis		$ 522.1	$ 472.7
Unrealized Gain		0.0	0.0
Unrealized Loss		(1.9)	(2.6)
Fair Value		520.2	470.1
Cash and cash equivalents		367.7	320.0
Short-term marketable debt securities		95.6	85.2
Long-term marketable debt securities		56.9	64.9
Level 1
Financial Instruments [Line Items]
Adjusted Cost Basis	[1]	25.0	24.4
Unrealized Gain	[1]	0.0	0.0
Unrealized Loss	[1]	(0.3)	(0.4)
Fair Value	[1]	24.7	24.0
Cash and cash equivalents	[1]	1.0	0.1
Short-term marketable debt securities	[1]	14.7	16.7
Long-term marketable debt securities	[1]	9.0	7.2
Level 2
Financial Instruments [Line Items]
Adjusted Cost Basis	[2]	130.4	130.0
Unrealized Gain	[2]	0.0	0.0
Unrealized Loss	[2]	(1.6)	(2.2)
Fair Value	[2]	128.8	127.8
Cash and cash equivalents	[2]	0.0	1.6
Short-term marketable debt securities	[2]	80.9	68.5
Long-term marketable debt securities	[2]	47.9	57.7
Cash and Cash Equivalents
Financial Instruments [Line Items]
Adjusted Cost Basis		366.7	318.3
Unrealized Gain		0.0	0.0
Unrealized Loss		0.0	0.0
Fair Value		366.7	318.3
Cash and cash equivalents		366.7	318.3
Short-term marketable debt securities		0.0	0.0
Long-term marketable debt securities		0.0	0.0
U.S. Treasury Securities | Level 1
Financial Instruments [Line Items]
Adjusted Cost Basis	[1]	24.0	24.3
Unrealized Gain	[1]	0.0	0.0
Unrealized Loss	[1]	(0.3)	(0.4)
Fair Value	[1]	23.7	23.9
Cash and cash equivalents	[1]	0.0	0.0
Short-term marketable debt securities	[1]	14.7	16.7
Long-term marketable debt securities	[1]	9.0	7.2
Money Market Fund | Level 1
Financial Instruments [Line Items]
Adjusted Cost Basis	[1]	1.0	0.1
Unrealized Gain	[1]	0.0	0.0
Unrealized Loss	[1]	0.0	0.0
Fair Value	[1]	1.0	0.1
Cash and cash equivalents	[1]	1.0	0.1
Short-term marketable debt securities	[1]	0.0	0.0
Long-term marketable debt securities	[1]	0.0	0.0
Corporate Debt Securities | Level 2
Financial Instruments [Line Items]
Adjusted Cost Basis	[2]	116.5	123.9
Unrealized Gain	[2]	0.0	0.0
Unrealized Loss	[2]	(1.6)	(2.1)
Fair Value	[2]	114.9	121.8
Cash and cash equivalents	[2]	0.0	1.6
Short-term marketable debt securities	[2]	73.9	65.7
Long-term marketable debt securities	[2]	41.0	54.5
U.S. Government Agency Securities | Level 2
Financial Instruments [Line Items]
Adjusted Cost Basis	[2]	12.4	4.5
Unrealized Gain	[2]	0.0	0.0
Unrealized Loss	[2]	0.0	(0.1)
Fair Value	[2]	12.4	4.4
Cash and cash equivalents	[2]	0.0	0.0
Short-term marketable debt securities	[2]	5.5	1.2
Long-term marketable debt securities	[2]	6.9	3.2
Certificates of Deposit | Level 2
Financial Instruments [Line Items]
Adjusted Cost Basis	[2]	1.5	1.6
Unrealized Gain	[2]	0.0	0.0
Unrealized Loss	[2]	0.0	0.0
Fair Value	[2]	1.5	1.6
Cash and cash equivalents	[2]	0.0	0.0
Short-term marketable debt securities	[2]	1.5	1.6
Long-term marketable debt securities	[2]	$ 0.0	$ 0.0

[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 ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
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, 2023 USD ($) Security	Dec. 31, 2022 USD ($) Security
Schedule Of Available For Sale Securities [Line Items]
Fair Value of Marketable Debt Securities in a Loss Position Less Than 12 Months	$ 63.1	$ 94.7
Number of Marketable Debt Securities in a Loss Position Less Than 12 Months | Security	91	132
Unrealized Losses Less Than 12 Months	$ 0.5	$ 1.2
Fair Value of Marketable Debt Securities in a Loss Position 12 Months Or Longer	$ 56.5	$ 48.5
Number of Marketable Debt Securities in a Loss Position 12 Months Or Longer | Security	77	66
Unrealized Losses 12 Months Or Longer	$ 1.5	$ 1.4
Corporate Debt Securities
Schedule Of Available For Sale Securities [Line Items]
Fair Value of Marketable Debt Securities in a Loss Position Less Than 12 Months	$ 50.3	$ 77.0
Number of Marketable Debt Securities in a Loss Position Less Than 12 Months | Security	72	113
Unrealized Losses Less Than 12 Months	$ 0.4	$ 1.0
Fair Value of Marketable Debt Securities in a Loss Position 12 Months Or Longer	$ 45.1	$ 37.9
Number of Marketable Debt Securities in a Loss Position 12 Months Or Longer | Security	60	50
Unrealized Losses 12 Months Or Longer	$ 1.2	$ 1.1
U.S. Treasury Securities
Schedule Of Available For Sale Securities [Line Items]
Fair Value of Marketable Debt Securities in a Loss Position Less Than 12 Months	$ 5.7	$ 14.5
Number of Marketable Debt Securities in a Loss Position Less Than 12 Months | Security	8	14
Unrealized Losses Less Than 12 Months	$ 0.1	$ 0.2
Fair Value of Marketable Debt Securities in a Loss Position 12 Months Or Longer	$ 9.9	$ 9.3
Number of Marketable Debt Securities in a Loss Position 12 Months Or Longer | Security	14	13
Unrealized Losses 12 Months Or Longer	$ 0.3	$ 0.3
U.S. Government Agency Securities
Schedule Of Available For Sale Securities [Line Items]
Fair Value of Marketable Debt Securities in a Loss Position Less Than 12 Months	$ 6.3	$ 3.2
Number of Marketable Debt Securities in a Loss Position Less Than 12 Months | Security	10	5
Unrealized Losses Less Than 12 Months	$ 0.0	$ 0.0
Fair Value of Marketable Debt Securities in a Loss Position 12 Months Or Longer	$ 1.5	$ 1.3
Number of Marketable Debt Securities in a Loss Position 12 Months Or Longer | Security	3	3
Unrealized Losses 12 Months Or Longer	$ 0.0	$ 0.0
Certificates of Deposit
Schedule Of Available For Sale Securities [Line Items]
Fair Value of Marketable Debt Securities in a Loss Position Less Than 12 Months	$ 0.8
Number of Marketable Debt Securities in a Loss Position Less Than 12 Months | Security	1
Unrealized Losses Less Than 12 Months	$ 0.0
Fair Value of Marketable Debt Securities in a Loss Position 12 Months Or Longer	$ 0.0
Number of Marketable Debt Securities in a Loss Position 12 Months Or Longer | Security	0
Unrealized Losses 12 Months Or Longer	$ 0.0

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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, 2023	Mar. 31, 2022
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 3.6	$ 4.9
Interest cost	14.0	8.7
Expected return on plan assets	(14.3)	(13.9)
Net amortization of unrecognized amounts, Prior service cost	1.3	0.9
Net amortization of unrecognized amounts, Actuarial loss	(1.1)	0.8
Net periodic benefit cost	$ 5.7	$ 1.4

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Employee Benefit Plans and Other Postretirement Benefits - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Pension Contributions [Abstract]
Contributions to pension plan	$ 0	$ 0
Pension Plans | Qualified Plan
Pension Contributions [Abstract]
Contributions to pension plan	$ 0

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Share-Based Compensation - Additional Information (Details) - shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2023	Dec. 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	700,000			1,400,000
Number of shares authorized under plan	12,000,000.0
Performance Unit Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of ROIC as performance measure		50.00%	50.00%
Percentage of TSR as performance measure		50.00%	50.00%

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Share-Based Compensation - Summary of Restricted Stock and Performance Unit Award Activity (Details)	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Restricted Stock
Restricted Stock and Performance Units [Roll Forward]
Outstanding at January 1, 2023 | shares	655,914
Granted | shares	191,097
Vested | shares	(3,077)	[1]
Forfeitures | shares	(1,337)
Outstanding at March 31, 2023 | shares	842,597
Restricted Stock and Performance Units (Weighted Average Grant-date Fair Value) [Abstract]
Weighted Average Grant-Date Fair Value, Outstanding at January 1, 2023 | $ / shares	$ 117.14
Weighted Average Grant-Date Fair Value, Granted | $ / shares	134.72
Weighted Average Grant-Date Fair Value, Vested | $ / shares	109.71	[1]
Weighted Average Grant-Date Fair Value, Forfeitures | $ / shares	120.13
Weighted Average Grant-Date Fair Value, Outstanding at March 31, 2023 | $ / shares	$ 121.15
Performance Units
Restricted Stock and Performance Units [Roll Forward]
Outstanding at January 1, 2023 | shares	358,449
Granted | shares	146,331
Vested | shares	(76,130)	[1]
Forfeitures | shares	0
Outstanding at March 31, 2023 | shares	428,650
Restricted Stock and Performance Units (Weighted Average Grant-date Fair Value) [Abstract]
Weighted Average Grant-Date Fair Value, Outstanding at January 1, 2023 | $ / shares	$ 109.89
Weighted Average Grant-Date Fair Value, Granted | $ / shares	140.09
Weighted Average Grant-Date Fair Value, Vested | $ / shares	132.96	[1]
Weighted Average Grant-Date Fair Value, Forfeitures | $ / shares	0
Weighted Average Grant-Date Fair Value, Outstanding at March 31, 2023 | $ / shares	$ 116.10

[1] Upon payout of the performance unit awards that vested during the period, PCA issued 83,769 shares, which included 7,639 shares for dividends accrued during the performance period.

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Share-Based Compensation - Summary of Restricted Stock and Performance Unit Award Activity (Parenthetical) (Details) - Performance Units	3 Months Ended
	Mar. 31, 2023 shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	83,769,000
Shares issued on accrued dividends	7,639,000

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Share-Based Compensation - Compensation Expense for Share-Based Awards (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Impact on income before income taxes	$ 15.3	$ 12.3
Income tax benefit	(3.8)	(3.1)
Share-based compensation expense, net of tax benefit	11.5	9.2
Restricted Stock
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Impact on income before income taxes	11.9	9.2
Performance Units
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Impact on income before income taxes	$ 3.4	$ 3.1

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Share-Based Compensation - Unrecognized Compensation Expense for Share-Based Awards (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 74.8
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	$ 41.1
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	$ 33.7
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. 14, 2023	Mar. 31, 2023	Mar. 31, 2022	Jan. 26, 2022
Common stock dividends paid		$ 112.1	$ 93.6
Dividends paid per common share (in dollars per share)		$ 1.25
Stock repurchase program, authorized amount				$ 1,000.0
Repurchases of common stock under stock repurchase program		0
Common stock repurchase authorization amount available		$ 477.5
Subsequent Events
Common stock dividends paid	$ 112.4

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Stockholders' Equity - Changes in Accumulated Other Comprehensive Income by Component (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 3,667.1
Ending balance	3,757.7
Unfunded Employee Benefit Obligations
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(100.3)
Other comprehensive income before reclassifications, net of tax	0.0
Amounts reclassified from AOCI, net of tax	1.6
Ending balance	(98.7)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(102.4)
Other comprehensive income before reclassifications, net of tax	0.5
Amounts reclassified from AOCI, net of tax	1.6
Ending balance	(100.3)
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	0.0
Amounts reclassified from AOCI, net of tax	0.0
Ending balance	(0.2)
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	(1.9)
Other comprehensive income before reclassifications, net of tax	0.5
Amounts reclassified from AOCI, net of tax	0.0
Ending balance	$ (1.4)

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Stockholders' Equity - Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Income before taxes		$ 253.3	$ 340.3
Income tax benefit		(63.2)	(86.1)
Net income		190.1	254.2
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]	(1.2)	(0.8)
Amortization of actuarial losses	[1]	(1.0)	(0.7)
Income before taxes		(2.2)	(1.5)
Income tax benefit		0.6	0.3
Net income		$ (1.6)	$ (1.2)

[1] These AOCI components are included in the computation of net pension and postretirement benefit costs. See Note 13, 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, 2023	Mar. 31, 2022	Dec. 31, 2022
Concentration Risk [Line Items]
Accounts receivable, net, current	$ 1,031.4		$ 1,031.8
Office Depot | Credit Concentration Risk
Concentration Risk [Line Items]
Accounts receivable, net, current	$ 58.8		$ 52.4
Office Depot | Total Company Sales Revenue | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage	5.00%	4.00%
Office Depot | Accounts Receivable | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage	6.00%		5.00%
Paper | Office Depot | Revenue, Segment Benchmark [Member] | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage	64.00%	58.00%

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Transactions With Related Parties - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Related Party Transaction [Line Items]
Carrying amount of LTP's assets	$ 8,049.0		$ 8,003.8
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	$ 20.1	$ 20.8
Boise Cascade Co-Owner of LTP | Wood Products, Including Chips and Logs
Related Party Transaction [Line Items]
Fiber costs from related parties	$ 2.9	$ 3.8
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 liabilities	$ 3.3		$ 2.2

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Segment Information - Additional Information (Details)	3 Months Ended
	Mar. 31, 2023 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, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Net sales	$ 1,976.3	$ 2,136.4
Operating Income (Loss)	270.7	356.5
Non-operating pension expense	(2.0)	3.6
Interest expense, net	(15.4)	(19.8)
Income before taxes	253.3	340.3
Trade
Segment Reporting Information [Line Items]
Net sales	1,976.3	2,136.4
Intersegment Eliminations
Segment Reporting Information [Line Items]
Net sales	(43.7)	(39.9)
Operating Segments
Segment Reporting Information [Line Items]
Net sales	1,976.3	2,136.4
Segment Reconciling Items
Segment Reporting Information [Line Items]
Net sales	(43.7)	(39.9)
Segment Reconciling Items | Trade
Segment Reporting Information [Line Items]
Net sales	0.0
Packaging
Segment Reporting Information [Line Items]
Net sales	1,808.6	1,964.5
Operating Income (Loss)	268.0	362.2
Packaging | Trade
Segment Reporting Information [Line Items]
Net sales	1,803.5	1,960.0
Packaging | Intersegment Eliminations
Segment Reporting Information [Line Items]
Net sales	5.1	4.5
Packaging | Operating Segments
Segment Reporting Information [Line Items]
Net sales	1,808.6	1,964.5
Paper
Segment Reporting Information [Line Items]
Net sales	150.9	153.5
Operating Income (Loss)	34.1	22.4
Paper | Trade
Segment Reporting Information [Line Items]
Net sales	150.9	153.5
Paper | Intersegment Eliminations
Segment Reporting Information [Line Items]
Net sales	0.0
Paper | Operating Segments
Segment Reporting Information [Line Items]
Net sales	150.9	153.5
Corporate and Other
Segment Reporting Information [Line Items]
Net sales	16.8	18.4
Operating Income (Loss)	(31.4)	(28.1)
Corporate and Other | Trade
Segment Reporting Information [Line Items]
Net sales	21.9	22.9
Corporate and Other | Intersegment Eliminations
Segment Reporting Information [Line Items]
Net sales	38.6	35.4
Corporate and Other | Operating Segments
Segment Reporting Information [Line Items]
Net sales	$ 60.5	$ 58.3

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Segment Information - Selected Financial Information by Reportable Segment (Parenthetical) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Packaging
Segment Reporting Information [Line Items]
Restructuring charges		$ 0.6
Corrugated Products Facilities And Design Centres
Segment Reporting Information [Line Items]
Restructuring charges	$ 9.7
Jackson, Alabama Mill | Corrugated Products Facilities
Segment Reporting Information [Line Items]
Adjustment of asset retirement obligation	$ 1.2	$ 1.5

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Commitments, Guarantees, Indemnifications, and Legal Proceedings - Additional Information (Details) - DeRidder, Louisiana - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Jun. 30, 2018	Sep. 30, 2022	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
Payment of civil penalty			$ 2,500,000