Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Components of Consolidated Income Tax Provision

The following is an analysis of the components of the consolidated income tax provision (dollars in millions):

	Year Ended December 31,
	2023		2022			2021
Current income tax provision -
U.S. federal	$	199.4	$	187.3		$	158.0
State and local		44.3		61.7			50.1
Foreign		—		—			0.1
Total current provision for taxes		243.7		249.0			208.2
Deferred income tax provision (benefit) -
U.S. federal		3.6		86.9			62.1
State and local		1.6		(0.7	)		(2.6	)
Foreign		—		(0.2	)		(0.1	)
Total deferred provision for taxes		5.2		86.0			59.4
Total provision for taxes	$	248.9	$	335.0		$	267.6

Summary of Effective Tax Rate

The effective tax rate varies from the U.S. federal statutory tax rate principally due to the following (dollars in millions):

	2023			2022			2021
Provision computed at U.S. federal statutory rate of 21%	$	213.0		$	286.6		$	232.8
State and local taxes, net of federal benefit		38.6			51.6			42.6
Other		(2.7	)		(3.2	)		(7.8	)
Total	$	248.9		$	335.0		$	267.6

Details of Scheduled Expiration Dates of Tax Effected Net Operating Loss (NOL) and Other Tax Carryforwards

The following details the scheduled expiration dates of our tax effected net operating loss (NOL) and other tax carryforwards at December 31, 2023 (dollars in millions):

	2024 Through 2033		2034 Through 2043		Indefinite		Total
U.S. federal NOLs	$	15.5	$	—	$	—	$	15.5
State taxing jurisdiction NOLs		0.5		0.2		—		0.7
U.S. federal and non-U.S. capital loss carryforwards		0.3		—		—		0.3
U.S. federal tax credit carryforwards		0.1		—		—		0.1
Total	$	16.4	$	0.2	$	—	$	16.6

Deferred Income Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. Deferred income tax assets and liabilities at December 31 are summarized as follows (dollars in millions):

	December 31,
	2023			2022
Deferred tax assets:
Lease obligations	$	72.8		$	77.0
Employee benefits and compensation		44.8			44.0
Accrued liabilities		30.4			28.9
Net operating loss carryforwards		16.2			19.8
Inventories		13.4			7.9
Pension and postretirement benefits		12.7			30.4
Restricted stock and performance units		9.8			8.7
Capital loss and general business credit carryforwards		0.4			0.5
Derivatives		0.1			0.1
Gross deferred tax assets		200.6			217.3
Valuation allowance (a)		(0.3	)		(0.4	)
Net deferred tax assets	$	200.3		$	216.9
Deferred tax liabilities:
Property, plant and equipment	$	(609.2	)	$	(609.0	)
Goodwill and intangible assets		(79.0	)		(75.9	)
Right-of-use assets		(70.1	)		(75.0	)
Total deferred tax liabilities	$	(758.3	)	$	(759.9	)
Net deferred tax liabilities	$	(558.0	)	$	(543.0	)

(a)Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion of the deferred tax assets will not be realized. Both the 2023 and 2022 valuation allowances relate to capital losses. We do not expect to generate capital gains before the capital losses expire. If or when recognized, the tax benefits relating to the reversal of any or all of the valuation allowance would be recognized as a benefit to income tax expense.

Summary of Changes Related to PCA's Gross Unrecognized Tax Benefits Excluding Interest and Penalties

The following table summarizes the changes related to PCA’s gross unrecognized tax benefits excluding interest and penalties (dollars in millions):

	2023			2022			2021
Balance as of January 1	$	(1.7	)	$	(1.9	)	$	(5.2	)
Increases related to prior years’ tax positions		(0.4	)		(0.2	)		—
Increases related to current year tax positions		(0.7	)		(0.4	)		(0.3	)
Decreases related to prior years' tax positions		—			—			0.2
Settlements with taxing authorities		—			—			3.0
Expiration of the statute of limitations		0.4			0.8			0.4
Balance at December 31	$	(2.4	)	$	(1.7	)	$	(1.9	)