XML 56 R44.htm IDEA: XBRL DOCUMENT v3.25.4
Employee Benefit Plans and Other Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Schedule of Obligations and Funded Status of Defined Benefit Pension and Postretirement Benefit Plans 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,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Change in Benefit Obligation:

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation at beginning of period

 

$

1,118.7

 

 

$

1,202.1

 

 

$

10.1

 

 

$

10.5

 

Service cost

 

 

10.3

 

 

 

12.3

 

 

 

0.2

 

 

 

0.2

 

Interest cost

 

 

57.0

 

 

 

55.3

 

 

 

0.5

 

 

 

0.5

 

Plan amendments

 

 

1.6

 

 

 

2.7

 

 

 

—

 

 

 

—

 

Actuarial loss (gain) (a)

 

 

24.9

 

 

 

(89.8

)

 

 

2.1

 

 

 

0.2

 

Participant contributions

 

 

—

 

 

 

—

 

 

 

0.4

 

 

 

0.4

 

Benefits paid

 

 

(68.0

)

 

 

(63.9

)

 

 

(1.6

)

 

 

(1.7

)

Benefit obligation at plan year end

 

$

1,144.5

 

 

$

1,118.7

 

 

$

11.7

 

 

$

10.1

 

Accumulated benefit obligation portion of above

 

$

1,130.8

 

 

$

1,098.7

 

 

 

 

 

 

 

Change in Fair Value of Plan Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Plan assets at fair value at beginning of period

 

$

1,133.4

 

 

$

1,161.6

 

 

$

—

 

 

$

—

 

Actual return on plan assets

 

 

88.4

 

 

 

9.5

 

 

 

—

 

 

 

—

 

Company contributions

 

 

1.3

 

 

 

26.2

 

 

 

1.2

 

 

 

1.3

 

Participant contributions

 

 

—

 

 

 

—

 

 

 

0.4

 

 

 

0.4

 

Benefits paid

 

 

(68.0

)

 

 

(63.9

)

 

 

(1.6

)

 

 

(1.7

)

Fair value of plan assets at plan year end

 

$

1,155.1

 

 

$

1,133.4

 

 

$

—

 

 

$

—

 

Overfunded (underfunded) status

 

$

10.6

 

 

$

14.7

 

 

$

(11.7

)

 

$

(10.1

)

Amounts Recognized on Consolidated Balance Sheets:

 

 

 

 

 

 

 

 

 

 

 

 

Noncurrent assets

 

$

62.2

 

 

$

63.3

 

 

$

—

 

 

$

—

 

Current liabilities

 

 

(3.5

)

 

 

(2.7

)

 

 

(0.9

)

 

 

(0.5

)

Noncurrent liabilities

 

 

(48.1

)

 

 

(45.9

)

 

 

(10.8

)

 

 

(9.6

)

Accrued asset recognized at December 31

 

$

10.6

 

 

$

14.7

 

 

$

(11.7

)

 

$

(10.1

)

Amounts Recognized in Accumulated Other
Comprehensive Loss (Pre-Tax)

 

 

 

 

 

 

 

 

 

 

 

 

Prior service cost

 

$

22.4

 

 

$

26.4

 

 

$

(3.0

)

 

$

(3.4

)

Actuarial loss

 

 

80.8

 

 

 

81.8

 

 

 

(2.0

)

 

 

(4.3

)

Total

 

$

103.2

 

 

$

108.2

 

 

$

(5.0

)

 

$

(7.7

)

 

(a)
For the year ended December 31, 2025, the most significant driver of the increase in the aggregate benefit obligations for the pension and OPEB plans was the actuarial loss due to a decrease in the discount rate assumption. Additional losses were experienced due to updated benefit multipliers in the PCA Hourly Pension Plan, assumption changes resulting from the 2025 experience study, and updated claims and trend assumptions for the Retiree Medical plan. 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.
Schedule of Net Benefit Costs

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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

2025

 

 

2024

 

 

2023

 

Service cost

 

$

10.3

 

 

$

12.3

 

 

$

14.1

 

 

$

0.2

 

 

$

0.2

 

 

$

0.2

 

Interest cost

 

 

57.0

 

 

 

55.3

 

 

 

55.8

 

 

 

0.5

 

 

 

0.5

 

 

 

0.5

 

Expected return on plan assets

 

 

(62.5

)

 

 

(65.8

)

 

 

(57.1

)

 

 

—

 

 

 

—

 

 

 

—

 

Net amortization of unrecognized amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service cost (credit)

 

 

5.7

 

 

 

5.6

 

 

 

5.2

 

 

 

(0.4

)

 

 

(0.5

)

 

 

(0.4

)

Actuarial gain

 

 

—

 

 

 

0.7

 

 

 

4.1

 

 

 

(0.2

)

 

 

(0.3

)

 

 

(0.4

)

Net periodic benefit cost

 

$

10.5

 

 

$

8.1

 

 

$

22.1

 

 

$

0.1

 

 

$

(0.1

)

 

$

(0.1

)

Changes in plan assets and benefit obligations
  recognized in other comprehensive
  loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial net (gain) loss

 

$

(0.9

)

 

$

(33.6

)

 

$

(35.5

)

 

$

2.1

 

 

$

0.2

 

 

$

1.5

 

Prior service cost

 

 

1.6

 

 

 

2.7

 

 

 

2.9

 

 

 

—

 

 

 

—

 

 

 

—

 

Amortization of prior service cost (credit)

 

 

(5.7

)

 

 

(5.6

)

 

 

(5.2

)

 

 

0.4

 

 

 

0.5

 

 

 

0.4

 

Amortization of actuarial loss

 

 

—

 

 

 

(0.7

)

 

 

(4.1

)

 

 

0.2

 

 

 

0.3

 

 

 

0.4

 

Total recognized in other comprehensive
   loss (income) (b)

 

$

(5.0

)

 

$

(37.2

)

 

$

(41.9

)

 

$

2.7

 

 

$

1.0

 

 

$

2.3

 

Total recognized in net periodic benefit
  cost and other comprehensive loss (pre-tax)

 

$

5.5

 

 

$

(29.1

)

 

$

(19.8

)

 

$

2.8

 

 

$

0.9

 

 

$

2.2

 

 

(b)
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 eight 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.
Weighted-Average Assumptions Used To Determine Benefit Obligations and Net Periodic Benefit Cost

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

 

 

 

Pension Plans

 

Postretirement Plans

 

 

December 31,

 

December 31,

 

 

2025

 

2024

 

2023

 

2025

 

2024

 

2023

Weighted-Average Assumptions Used to
   Determine Benefit Obligations at
   December 31:

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

5.35 %

 

5.56 %

 

4.86 %

 

5.45 %

 

5.62 %

 

4.90 %

Rate of compensation increase

 

2.50% - 4.50%

 

4.75 %

 

4.75 %

 

N/A

 

N/A

 

N/A

Weighted-Average Assumptions Used to
   Determine Net Periodic Benefit Cost for the
   Years Ended December 31:

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

5.56 %

 

4.86 %

 

5.06 %

 

5.62 %

 

4.90 %

 

5.07 %

Expected return on plan assets

 

5.71 %

 

5.80 %

 

5.52 %

 

N/A

 

N/A

 

N/A

Rate of compensation increase

 

2.50% - 4.50%

 

4.75 %

 

4.75 %

 

N/A

 

N/A

 

N/A
Assumed Health Care Cost Trend Rates For Postretirement Benefits

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

 

 

 

2025

 

2024

 

2023

Health care cost trend rate assumed for next year

 

7.67 %

 

8.09 %

 

7.13 %

Rate to which the cost trend rate is assumed to decline
   (the ultimate trend rate)

 

4.45 %

 

4.45 %

 

4.44 %

Year that the rate reaches the ultimate trend rate

 

2036

 

2035

 

2033
Schedule of Pension Plans' Assets Investment Policies and Strategies Assets of our pension plans were invested in the following classes of securities at December 31, 2025 and 2024:

 

 

 

Percentage
of Fair Value at December 31,

 

 

 

2025

 

 

2024

 

Fixed income securities

 

 

93

 %

 

 

87

 %

Domestic equity securities

 

 

3

 %

 

 

7

 %

International equity securities

 

 

2

 %

 

 

3

 %

Other

 

 

2

 %

 

 

3

 %
Schedule of Fair Value Measurements of Plan Assets by Major Asset Category

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, 2025 and 2024 (dollars in millions):

 

 

 

Fair Value Measurements at December 31, 2025

 

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) (c)

 

 

Total

 

Short-term investments

 

$

—

 

 

$

14.1

 

 

$

—

 

 

$

—

 

 

$

14.1

 

Common/collective trust funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic equities

 

 

—

 

 

 

37.9

 

 

 

—

 

 

 

—

 

 

 

37.9

 

International equities

 

 

3.9

 

 

 

18.1

 

 

 

—

 

 

 

—

 

 

 

22.0

 

Corporate and government bonds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

—

 

 

 

427.8

 

 

 

—

 

 

 

—

 

 

 

427.8

 

Fixed income

 

 

—

 

 

 

338.5

 

 

 

—

 

 

 

—

 

 

 

338.5

 

Government bonds and agencies

 

 

—

 

 

 

293.8

 

 

 

—

 

 

 

—

 

 

 

293.8

 

Municipal bonds

 

 

—

 

 

 

13.9

 

 

 

—

 

 

 

—

 

 

 

13.9

 

Private equity securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.3

 

 

 

0.3

 

Total securities at fair value

 

$

3.9

 

 

$

1,144.1

 

 

$

—

 

 

$

0.3

 

 

$

1,148.3

 

Accrued income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.8

 

Total fair value of plan assets

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,155.1

 

 

 

 

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) (c)

 

 

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

 

 

(c)
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.
Schedule of Estimated Benefit Payments

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

 

2026

 

$

74.7

 

 

$

0.8

 

2027

 

 

77.8

 

 

 

0.7

 

2028

 

 

79.9

 

 

 

0.8

 

2029

 

 

82.0

 

 

 

0.8

 

2030-2035

 

 

509.3

 

 

 

4.6