Employee Benefit Plans and Other Postretirement Benefits

12 Months Ended

Dec. 31, 2024

Retirement Benefits [Abstract]

Employee Benefit Plans and Other Postretirement Benefits

12.Employee Benefit Plans and Other Postretirement Benefits

PCA has defined pension benefit plans for both salaried and hourly employees. The plans covering salaried employees are closed to new entrants with only certain current active participants still accruing benefits. The plans covering certain hourly employees are closed to new participants. We also have a Supplemental Executive Retirement Plan (SERP) and other nonqualified defined benefit pension plans that provide supplemental retirement benefits to certain of our current and former management employees. The SERP provides for incremental pension benefits in excess of those offered in our principal pension plans.

Other Postretirement Benefits

PCA provides postretirement medical and life insurance benefits for certain retired employees.

Obligations and Funded Status of Defined Benefit Pension and Other Postretirement Benefits Plans

The funded status of PCA’s plans change from year to year based on the plan asset investment return, contributions, benefit payments, the discount rate used to measure the liability, and expected participant longevity. The following table, which includes only company-sponsored defined benefit and other postretirement benefit plans, reconciles the beginning and ending balances of the projected benefit obligation and the fair value of plan assets. We recognize the funded status of these plans on the Consolidated Balance Sheets, and we recognize changes in funded status in the year changes occur through the Consolidated Statements of Comprehensive Income (dollars in millions):

	Pension Plans						Postretirement Plans
	Year Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Change in Benefit Obligation:
Benefit obligation at beginning of period	$	1,202.1		$	1,167.1		$	10.5		$	9.5
Service cost		12.3			14.1			0.2			0.2
Interest cost		55.3			55.8			0.5			0.5
Plan amendments		2.7			2.9			—			—
Actuarial (gain) loss (a)		(89.8	)		23.3			0.2			1.5
Participant contributions		—			—			0.4			0.4
Benefits paid		(63.9	)		(61.1	)		(1.7	)		(1.6	)
Benefit obligation at plan year end	$	1,118.7		$	1,202.1		$	10.1		$	10.5
Accumulated benefit obligation portion of above	$	1,098.7		$	1,173.3
Change in Fair Value of Plan Assets:
Plan assets at fair value at beginning of period	$	1,161.6		$	1,055.3		$	—		$	—
Actual return on plan assets		9.5			115.9			—			—
Company contributions		26.2			51.5			1.3			1.2
Participant contributions		—			—			0.4			0.4
Benefits paid		(63.9	)		(61.1	)		(1.7	)		(1.6	)
Fair value of plan assets at plan year end	$	1,133.4		$	1,161.6		$	—		$	—
Overfunded (underfunded) status	$	14.7		$	(40.5	)	$	(10.1	)	$	(10.5	)
Amounts Recognized on Consolidated Balance Sheets:
Noncurrent assets	$	63.3		$	26.5		$	—		$	—
Current liabilities		(2.7	)		(1.7	)		(0.5	)		(0.5	)
Noncurrent liabilities		(45.9	)		(65.3	)		(9.6	)		(10.0	)
Accrued asset (obligation) recognized at December 31	$	14.7		$	(40.5	)	$	(10.1	)	$	(10.5	)
Amounts Recognized in Accumulated Other Comprehensive Loss (Pre-Tax)
Prior service cost	$	26.4		$	29.2		$	(3.4	)	$	(3.8	)
Actuarial loss		81.8			116.0			(4.3	)		(4.7	)
Total	$	108.2		$	145.2		$	(7.7	)	$	(8.5	)

(a)For the year ended December 31, 2024, the most significant driver of the decrease in the aggregate benefit obligations for the pension and OPEB plans was the actuarial gain due to an increase in the discount rate assumption. Additional gains due to participant experience and the decrease in the salary scale were offset by actuarial losses due to increases in the PCA Hourly Pension Plan benefit multipliers and updated medical assumptions to better reflect anticipated future experience. For the year ended December 31, 2023, the most significant driver of the increase in aggregate benefit obligations for the pension and OPEB plans was the actuarial losses due to a decrease in the discount rate assumption, PCA Hourly Pension Plan benefit multiplier increases, and changes in salary scale and medical claims assumptions to better reflect anticipated future experience.

Components of Net Periodic Benefit Cost and Other Comprehensive Loss (Income)

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

	Pension Plans									Postretirement Plans
	Year Ended December 31,									Year Ended December 31,
	2024			2023			2022			2024			2023			2022
Service cost	$	12.3		$	14.1		$	19.3		$	0.2		$	0.2		$	0.2
Interest cost		55.3			55.8			34.7			0.5			0.5			0.3
Expected return on plan assets		(65.8	)		(57.1	)		(55.7	)		—			—			—
Net amortization of unrecognized amounts:
Prior service cost (credit)		5.6			5.2			3.6			(0.5	)		(0.4	)		(0.4	)
Actuarial loss (gain)		0.7			4.1			3.4			(0.3	)		(0.4	)		(0.4	)
Net periodic benefit cost	$	8.1		$	22.1		$	5.3		$	(0.1	)	$	(0.1	)	$	(0.3	)
Changes in plan assets and benefit obligations   recognized in other comprehensive   loss (income):
Actuarial net (gain) loss	$	(33.6	)	$	(35.5	)	$	28.6		$	0.2		$	1.5		$	(3.4	)
Prior service cost		2.7			2.9			15.1			—			—			—
Amortization of prior service cost (credit)		(5.6	)		(5.2	)		(3.6	)		0.5			0.4			0.4
Amortization of actuarial loss (gain)		(0.7	)		(4.1	)		(3.4	)		0.3			0.4			0.4
Total recognized in other comprehensive    loss (income) (b)	$	(37.2	)	$	(41.9	)	$	36.7		$	1.0		$	2.3		$	(2.6	)
Total recognized in net periodic benefit   cost and other comprehensive loss (income) (pre-tax)	$	(29.1	)	$	(19.8	)	$	42.0		$	0.9		$	2.2		$	(2.9	)

(a)Accumulated losses in excess of 10% of the greater of the projected benefit obligation or the market-related value of assets will be recognized on a straight-line basis over the average remaining service period of active employees in PCA plans (which is between five and nine years) and over the average remaining lifetime of inactive participants in the Boise plan (which is approximately 22 years), to the extent that losses are not offset by gains in subsequent years.

For the years ended December 31, 2024 and 2023, the accumulated benefit obligations for the plans with obligations in excess of plan assets is $44.7 million and $42.9 million, respectively, the pension benefit obligations for the plans with obligations in excess of plan assets is $48.6 million and $334.3 million, respectively, and the fair value of the plan assets for the plans with obligations in excess of plan assets is $0.0 million and $267.2 million, respectively. Additionally, for the years ended December 31, 2024 and 2023, the accumulated benefit obligations for the OPEB plans with obligations in excess of plan assets is $10.1 million and $10.5 million, respectively.

Assumptions

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

	Pension Plans			Postretirement Plans
	December 31,			December 31,
	2024	2023	2022	2024	2023	2022
Weighted-Average Assumptions Used to    Determine Benefit Obligations at    December 31:
Discount rate	5.56 %	4.86 %	5.06 %	5.62 %	4.90 %	5.07 %
Rate of compensation increase	4.75 %	4.75 %	4.00 %	N/A	N/A	N/A
Weighted-Average Assumptions Used to    Determine Net Periodic Benefit Cost for the    Years Ended December 31:
Discount rate	4.86 %	5.06 %	2.89 %	4.90 %	5.07 %	2.92 %
Expected return on plan assets	5.80 %	5.52 %	4.08 %	N/A	N/A	N/A
Rate of compensation increase	4.75 %	4.75 %	4.00 %	N/A	N/A	N/A

Discount Rate Assumption. The discount rate reflects the current rate at which the pension obligations could be settled on the measurement date: December 31. The discount rate assumption used to calculate the present value of pension and postretirement benefit obligations reflects the rates available on high-quality, fixed-income debt instruments at December 31. In all periods, the bonds included in the models reflect anticipated investments that would be made to match the expected monthly benefit payments over time. The plans’ projected cash flows were duration-matched to these models to develop an appropriate discount rate.

Asset Return Assumption. The expected return on plan assets reflects the expected long-term rates of return for the categories of investments currently held in the plans as well as anticipated returns for additional contributions made in the future. The expected long-term rate of return is adjusted when there are fundamental changes in expected returns on the plan investments. The weighted-average expected return on plan assets we will use in our calculation of 2025 net periodic pension benefit cost is 5.71%.

Rate of Compensation Increase. The rate of compensation increase is determined by PCA based upon annual reviews. The compensation increase assumption is not applicable for all plans as many of our pension plans are frozen and not accruing benefits.

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

	2024	2023	2022
Health care cost trend rate assumed for next year	8.09 %	7.13 %	7.24 %
Rate to which the cost trend rate is assumed to decline    (the ultimate trend rate)	4.45 %	4.44 %	4.42 %
Year that the rate reaches the ultimate trend rate	2035	2033	2033

Postretirement Health Care Plan Assumptions. For postretirement health care plan accounting, PCA reviews external data and its own historical trends for health care costs to determine the health care cost trend rate assumption.

Investment Policies and Strategies

PCA has retained the services of professional advisors to oversee pension investments and provide recommendations regarding investment strategy. PCA’s overall strategy and related apportionments between equity and debt securities may change from time to time based on market conditions, external economic factors, and the funded status of the plans. The general investment objective for all of our plan assets is to optimize growth of the pension plan trust assets, while minimizing the risk of significant losses to enable the plans to satisfy their benefit payment obligations over time. The objectives take into account the long-term nature of the benefit obligations, the liquidity needs of the plans, and the expected risk/return trade-offs of the asset classes in which the plans may choose to invest. Assets of our pension plans were invested in the following classes of securities at December 31, 2024 and 2023:

	Percentage of Fair Value at December 31,
	2024			2023
Fixed income securities		87	%		72	%
Domestic equity securities		7	%		11	%
International equity securities		3	%		15	%
Other		3	%		2	%

At December 31, 2024, the targeted investment allocations differed between the plans based on funded status. For our pension plans, the weighted average target allocation of plan assets was 91% in fixed income, 8% in equities, and 1% in other. Our retirement committee reviews the investment allocations for reasonableness at a minimum, semi-annually.

Investment securities, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility risk, all of which are subject to change. Due to the level of risk associated with some investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term, and such changes could materially affect the reported amounts.

Fair Value Measurements of Plan Assets

The following tables set forth, by level within the fair value hierarchy, discussed in Note 2, Summary of Significant Accounting Policies, the pension plan assets, by major asset category, at fair value at December 31, 2024 and 2023 (dollars in millions):

	Fair Value Measurements at December 31, 2024
Asset Category	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value (NAV) (a)		Total
Short-term investments	$	—	$	29.7	$	—	$	—	$	29.7
Common/collective trust funds:
Domestic equities		—		76.7		—		—		76.7
International equities		25.0		—		—		14.2		39.2
Corporate and government bonds:
Corporate bonds		—		407.9		—		—		407.9
Fixed income		—		321.7		—		—		321.7
Government bonds and agencies		—		239.6		—		—		239.6
Municipal bonds		—		12.0		—		—		12.0
Private equity securities		—		—		—		0.5		0.5
Total securities at fair value	$	25.0	$	1,087.6	$	—	$	14.7	$	1,127.3
Accrued income										6.1
Total fair value of plan assets									$	1,133.4

	Fair Value Measurements at December 31, 2023
Asset Category	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value (NAV) (a)		Total
Short-term investments	$	—	$	12.2	$	—	$	—	$	12.2
Common/collective trust funds:
International equities		96.4		53.7		—		29.7		179.8
Domestic equities		—		130.4		—		—		130.4
Corporate and government bonds:
Corporate bonds		—		362.2		—		—		362.2
Government bonds and agencies		—		297.5		—		—		297.5
Fixed income		—		160.7		—		—		160.7
Municipal bonds		—		12.7		—		—		12.7
Private equity securities		—		—		—		0.8		0.8
Total securities at fair value	$	96.4	$	1,029.4	$	—	$	30.5	$	1,156.3
Accrued income										5.3
Total fair value of plan assets									$	1,161.6

(a)In accordance with ASC 820, Fair Value Measurement, certain investments that do not have readily determinable fair values are measured at fair value using the net asset value (NAV) per share practical expedient and are not classified within the fair value hierarchy.

Funding and Cash Flows

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 discretionary contributions based on the funded status of the plans, tax deductibility, income from operations, and other factors. In 2024, we made contributions of $25.0 million to our qualified pension plans, and for both 2023 and 2022, we made contributions of $50.0 million to our qualified pension plans. We do not have a required minimum contribution amount established for 2025.

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

	Pension Plans		Postretirement Plans
2025	$	70.3	$	0.5
2026		73.8		0.6
2027		76.5		0.6
2028		78.8		0.6
2029-2034		500.7		4.0

Defined Contribution Plans

Some of our employees participate in defined contribution savings plans, available to most of our salaried and hourly employees. The defined contribution plans permit participants to make contributions by salary reduction pursuant to Section 401(k) of the Code. PCA made employer-matching contributions of $48.8 million, $45.2 million, and $44.3 million in 2024, 2023, and 2022, respectively. All company-matching contributions to all employees were made in cash. We expense employer matching contributions and charge dividends on shares held by the ESOP to retained earnings. Shares of company stock held by the ESOP are included in basic shares for earnings-per-share computations. At both December 31, 2024 and 2023, the ESOP held 1.1 million shares of Company stock.

Certain salaried and hourly employees that are not participating in a PCA sponsored defined benefit pension plan receive a service-related company retirement contribution to their defined contribution plan account in addition to any employer matching contribution. This contribution increases with years of service and ranges from 3% to 5% of base pay. We contributed $49.5 million, $45.4 million, and $43.7 million for this retirement contribution during the years ended December 31, 2024, 2023, and 2022, respectively.

Deferred Compensation Plans

Key managers can elect to participate in a deferred compensation plan. The deferred compensation plan is unfunded; therefore, benefits are paid from our general assets. At December 31, 2024 and 2023, we had $40.5 million and $31.0 million, respectively, of liabilities attributable to participation in our deferred compensation plan on our Consolidated Balance Sheets.