We have financial commitments and obligations that arise in the ordinary course of our business. These include long-term debt (discussed in Note 10, Debt), lease obligations (discussed in Note 3, Leases), purchase commitments for goods and services, and legal proceedings (discussed below).

In the table below, we set forth our enforceable and legally binding purchase obligations as of December 31, 2024. These obligations relate to various purchase agreements for items such as minimum amounts of energy, fiber, and chemical purchases over periods ranging from one year to 27 years. Some of the amounts are based on management’s estimates and assumptions about these obligations, including their duration, anticipated actions by third parties, and other factors. Because these estimates and assumptions are necessarily subjective, our actual payments may vary from those reflected in the table. Total purchase commitments with obligations greater than one year were as follows (dollars in millions):


2025	$	100.9
2026		76.4
2027		44.5
2028		13.0
2029		10.6
Thereafter		64.3
Total	$	309.7

The Company purchased a total of $403.5 million, $432.6 million, and $520.5 million during the years ended December 31, 2024, 2023, and 2022, respectively, under these purchase agreements.

The potential costs for various environmental matters are uncertain due to such factors as the unknown magnitude of possible cleanup costs, the complexity and evolving nature of governmental laws and regulations and their interpretations, and the timing, varying costs and effectiveness of alternative cleanup technologies. From 2006 through 2024, there were no significant environmental remediation costs at PCA's mills and corrugated plants. At December 31, 2024, the Company had $25.8 million of environmental-related reserves recorded on its Consolidated Balance Sheet. Of the $25.8 million, approximately $19.5 million related to environmental-related asset retirement obligations discussed in Note 13, Asset Retirement Obligations, and $6.3 million related to our estimate of other environmental contingencies. The Company recorded $3.2 million in “Accrued liabilities” and $22.6 million in “Other long-term liabilities” on the Consolidated Balance Sheet. Liabilities recorded for environmental contingencies are estimates of the probable costs based upon available information and assumptions. Because of these uncertainties, PCA’s estimates may change. The Company believes that it is not reasonably possible that future environmental expenditures for remediation costs and asset retirement obligations above the $25.8 million accrued as of December 31, 2024 will have a material impact on its financial condition, results of operations, or cash flows.

We provide guarantees, indemnifications, and other assurances to third parties in the normal course of our business. These include tort indemnifications, environmental assurances, and representations and warranties in commercial agreements. At December 31, 2024, 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.

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 was 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 believes that these suits are covered by its liability insurance policies, subject to an aggregate $1.0 million deductible. The majority of these lawsuits were settled by the Company and its insurers. The Company has not paid any losses in excess of its insurance deductible in connection with these settlements, and its insurance deductible has been satisfied in full. To date, all settlements in excess of the deductible have been paid out by one of the Company’s insurers. The remaining lawsuit, which involves nine plaintiffs, was tried in the U.S. District Court for the Middle District of Louisiana in April 2024. On April 24, 2024, a jury awarded these plaintiffs approximately $91.8 million in compensatory damages plus interest. During the fourth quarter of 2024, the Company, certain of its insurers, and the plaintiffs executed memoranda of understanding to settle the matter for a minimum of $59.2 million. This amount may be increased to $68.2 million depending on the outcome of an insurance coverage action pending in Louisiana state court involving the Company, the settling insurers and certain other insurers, in which PCA has agreed to pursue an additional $9.0 million in coverage from the insurers. Upon the execution of definitive settlement documents, $59.2 million will be paid to the plaintiffs by the settling insurers. If and only if PCA recovers additional amounts in the coverage action up to $9.0 million, those amounts will be paid to plaintiff. The settling insurers may not recover any amount from PCA, and PCA believes that it has no liability for any uninsured losses in the matter.

The Company has recorded a liability of $59.2 million in “Other Accrued Liabilities” and a receivable for the insurance recovery of $59.2 million in “Prepaids and Other Assets” in the Consolidated Balance Sheet as of December 31, 2024.

In May 2017, the EPA conducted an on-site inspection of the DeRidder 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.

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.