Debt

12 Months Ended

Dec. 31, 2024

Debt Disclosure [Abstract]

Debt

10.Debt

At December 31, 2024 and 2023, our long-term debt and interest rates on that debt were as follows (dollars in millions):

	December 31, 2024		December 31, 2023
	Amount		Amount
Revolving Credit Facility	$	—	$	—
3.65% Senior Notes, net of discount of $0.1 million    as of December 31 2023, due September 2024		—		399.9
3.40% Senior Notes, net of discount of $0.6 million    and $0.7 million as of December 31, 2024 and 2023,    respectively, due December 2027		499.4		499.3
3.00% Senior Notes, net of discount of $0.3 million    and $0.4 million as of December 31, 2024 and 2023,    respectively, due December 2029		499.7		499.6
5.70% Senior Notes, net of discount of $0.3 million    as of both December 31, 2024 and 2023,    due December 2033		399.7		399.7
4.05% Senior Notes, net of discount of $3.2 million    and $3.3 million as of December 31, 2024 and 2023,    respectively, due December 2049		396.8		396.7
3.05% Senior Notes, net of discount of $3.4 million    and $3.5 million as of December 31, 2024 and 2023,    respectively, due October 2051		696.6		696.5
Total		2,492.2		2,891.7
Less current portion (a)		—		399.6
Less unamortized debt issuance costs		18.0		19.9
Total long-term debt	$	2,474.2	$	2,472.2

(a)As of December 31, 2024, there are no unamortized debt issuance costs associated with the current portion of long-term debt, as the 2024 senior notes due September 2024 were repaid on September 15, 2024. As of December 31, 2023, the current portion of long-term debt excludes unamortized debt issuance costs of $0.3 million.

On November 30, 2023, the Company issued $400.0 million of 5.70% senior notes due 2033 through a registered public offering and invested the net proceeds in time deposits. The $3.7 million of debt issuance costs associated with the new notes will be amortized to interest expense using the effective interest method over the term of the notes. On September 15, 2024, the Company used the net proceeds from this issuance, together with a portion of cash on hand, to repay its outstanding 3.65% senior notes due 2024 at maturity. The repayment of these notes was $407.3 million, which included principal and accrued interest.

As of December 31, 2024, the details of our borrowings were as follows:

•Senior Unsecured Credit Agreement. On June 8, 2021, we entered into a revolving credit agreement with various financial institutions (the “Revolving Credit Agreement”). Loans under the Revolving Credit Agreement bear interest at the term SOFR rate plus an applicable margin based upon the public ratings of PCA’s senior long-term unsecured debt or PCA’s gross leverage ratio. The Revolving Credit Agreement is a $350 million unsecured revolving credit facility, which has a five-year term and is available for borrowings on a revolving basis for general corporate purposes. At December 31, 2024, unused borrowing capacity was $323.3 million, which includes various outstanding letters of credit. The outstanding letters of credit were primarily for workers compensation. We are required to pay commitment fees on the unused portions of the credit facility.

•3.65% Senior Notes. On September 5, 2014, we issued $400.0 million of 3.65% senior notes due September 15, 2024, through a registered public offering. The senior notes were paid off on September 15, 2024 with the proceeds received from the November 2023 offering discussed above and cash on hand.

•3.40% Senior Notes. On December 13, 2017, we issued $500.0 million of 3.40% senior notes due December 15, 2027, through a registered public offering.

•3.00% Senior Notes. On November 21, 2019, we issued $500.0 million of 3.00% senior notes due December 15, 2029, through a registered public offering.

•4.05% Senior Notes. On November 21, 2019, we issued $400.0 million of 4.05% senior notes due December 15, 2049, through a registered public offering.

•3.05% Senior Notes. On September 21, 2021, we issued $700.0 million of 3.05% senior notes due October 1, 2051, through a registered public offering.

•5.70% Senior Notes. On November 30, 2023, we issued $400.0 million of 5.70% senior notes due December 1, 2033, through a registered public offering.

The instruments governing our indebtedness contain financial and other covenants that limit the ability of PCA and its subsidiaries to enter into sale and leaseback transactions, incur liens, incur indebtedness at the subsidiary level, enter into certain transactions with affiliates, merge or consolidate with any other person or sell or otherwise dispose of all or substantially all of our assets. The Revolving Credit Agreement also requires us to comply with certain financial covenants, including maintaining a minimum interest coverage ratio and a maximum leverage ratio. A failure to comply with these restrictions could lead to an event of default, which could result in an acceleration of any outstanding indebtedness and/or prohibit us from drawing on the revolving credit facility. An acceleration under the revolving credit facility may also constitute an event of default under the senior notes indenture. At December 31, 2024, we were in compliance with these covenants.

At December 31, 2024, we have $2,492.2 million of fixed-rate senior notes outstanding. At December 31, 2024, the fair value of our fixed-rate debt was estimated to be $2,104.2 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), discussed further in Note 2, Summary of Significant Accounting Policies.

Repayments, Interest, and Other

On September 15, 2024, we used the net proceeds from the November 2023 offering of the 5.70% senior notes due 2033 and cash on hand to repay our outstanding 3.65% senior notes due 2024. The repayment of the old 3.65% notes was $407.3 million, which included principal and accrued interest.

In 2023 and 2022, we did not repay any outstanding debt, as we did not have any maturities of our senior notes during 2023 and 2022.

As of December 31, 2024, annual principal maturities for debt, excluding unamortized debt discount, are: none for 2025; none for 2026; $500.0 million for 2027; none for 2028; and $2.0 billion for 2029 and thereafter.

Interest payments paid in connection with the Company’s debt obligations for the years ended December 31, 2024, 2023, and 2022 were $107.7 million, $84.8 million, and $85.6 million, respectively. As of December 31, 2024, the estimated future interest payments for the Company's debt obligations are: $92.4 million for 2025, 2026, and 2027; $75.4 million for 2028; and $960.3 million, in aggregate, for 2029 and thereafter.

Included in interest expense, net, are amortization of financing costs, which includes the amortization of debt issuance costs and amortization of bond discount. For 2024, amortization of debt issuance costs was $1.8 million, and for both 2023 and 2022, amortization of debt issuance costs was $1.6 million. For 2024, 2023, and 2022, amortization of bond discount was $0.5 million.