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PKG Packaging Corp Of America

Document and Entity Information

Document and Entity Information - shares3 Months Ended
Mar. 31, 2021Apr. 30, 2021
Cover [Abstract]
Document Type10-Q
Amendment Flagfalse
Document Period End DateMar. 31,
2021
Document Fiscal Year Focus2021
Document Fiscal Period FocusQ1
Entity Registrant NamePACKAGING CORP OF AMERICA
Entity Central Index Key0000075677
Current Fiscal Year End Date--12-31
Entity Filer CategoryLarge Accelerated Filer
Entity Small Businessfalse
Entity Emerging Growth Companyfalse
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Shell Companyfalse
Entity Common Stock, Shares Outstanding94,994,066
Entity File Number1-15399
Entity Tax Identification Number36-4277050
Entity Address, Address Line One1 North Field Court
Entity Address, City or TownLake Forest
Entity Address, State or ProvinceIL
Entity Address, Postal Zip Code60045
City Area Code847
Local Phone Number482-3000
Document Quarterly Reporttrue
Entity Incorporation, State or Country CodeDE
Document Transition Reportfalse
Title of 12(b) SecurityCommon Stock, par value $0.01 per share
Trading SymbolPKG
Security Exchange NameNYSE

Consolidated Statements of Inco

Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Income Statement [Abstract]
Net sales $ 1,807.2 $ 1,708.7
Cost of sales(1,403.5)(1,343.7)
Gross profit403.7 365
Selling, general and administrative expenses(145)(145.9)
Other expense, net(20.4)(10)
Income from operations238.3 209.1
Non-operating pension income4.8 0.6
Interest expense, net(23.5)(19.6)
Income before taxes219.6 190.1
Provision for income taxes(53.1)(48.4)
Net income $ 166.5 $ 141.7
Net income per common share:
Basic $ 1.75 $ 1.50
Diluted1.751.49
Dividends declared per common share $ 1 $ 0.79
Statements of Comprehensive Income:
Net income $ 166.5 $ 141.7
Changes in unrealized losses on marketable debt securities, net of tax of $0.0 million and $0.1 million, for 2021 and 2020, respectively(0.1)(0.2)
Amortization of pension and postretirement plans actuarial loss and prior service cost, net of tax of $0.8 million and $0.9 million, for 2021 and 2020, respectively2.5 2.7
Other comprehensive income2.4 2.5
Comprehensive income $ 168.9 $ 144.2

Consolidated Statements of In_2

Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Income Statement [Abstract]
Changes in unrealized losses on marketable debt securities, tax $ 0 $ 0.1
Amortization of pension and postretirement plans actuarial loss and prior service cost, tax $ 0.8 $ 0.9

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Current assets:
Cash and cash equivalents $ 983.4 $ 974.6
Short-term marketable debt securities102.5 105.6
Accounts receivable, net of allowance for credit losses and customer deductions of $12.8 million as of March 31, 2021 and $10.6 million December 31, 2020, respectively908.6 832.4
Inventories799.6 787.9
Prepaid expenses and other current assets62.8 44.7
Federal and state income taxes receivable5.1
Total current assets2,856.9 2,750.3
Property, plant, and equipment, net3,212.5 3,193.4
Goodwill863.5 863.5
Other intangible assets, net286.3 295.9
Operating lease right-of-use assets231.5 234.2
Long-term marketable debt securities47 42.7
Other long-term assets51.3 53.2
Total assets7,549 7,433.2
Current liabilities:
Operating lease obligations69.3 68.9
Finance lease obligations1.7 1.6
Accounts payable402.5 387
Dividends payable97.6 97
Accrued liabilities184 216.2
Accrued interest28.1 11.9
Federal and state income taxes payable22.6
Total current liabilities805.8 782.6
Long-term liabilities:
Long-term debt2,480 2,479.4
Operating lease obligations170 173.6
Finance lease obligations14 14.4
Deferred income taxes392.6 379.4
Compensation and benefits295.8 298.3
Other long-term liabilities59.6 59.2
Total long-term liabilities3,412 3,404.3
Commitments and contingent liabilities
Stockholders' equity:
Common stock, par value $0.01 per share, 300.0 million shares authorized, 95.0 million and 94.8 million shares issued as of March 31, 2021 and December 31, 2020, respectively1 0.9
Additional paid in capital566 554.4
Retained earnings2,906.3 2,835.5
Accumulated other comprehensive loss(142.1)(144.5)
Total stockholders' equity3,331.2 3,246.3
Total liabilities and stockholders' equity $ 7,549 $ 7,433.2

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Statement Of Financial Position [Abstract]
Allowance for credit losses and customer deductions $ 12.8 $ 10.6
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized300,000,000 300,000,000
Common stock, shares issued95,000,000 94,800,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Cash Flows from Operating Activities:
Net income $ 166.5 $ 141.7
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion, and amortization of intangibles100.8 100.3
Amortization of deferred financing costs0.7 0.6
Share-based compensation expense11.6 10.1
Deferred income tax provision12 13.5
Loss on asset disposals3.7 2.3
Pension and post-retirement benefits expense, net of contributions(0.2)1
Other, net3.7 3.2
Increase in assets —
Accounts receivable(76.2)(34)
Inventories(11.7)(15.7)
Prepaid expenses and other current assets(19)(23)
Increase (decrease) in liabilities —
Accounts payable(12.3)28.5
Accrued liabilities(15.8)(22)
Federal and state income taxes payable / receivable27.8 30.2
Net cash provided by operating activities191.6 236.7
Cash Flows from Investing Activities:
Additions to property, plant, and equipment(85.1)(70.5)
Additions to other long term assets(1.3)(2.7)
Proceeds from asset disposals0.7 0.1
Purchases of marketable debt securities(31.4)(20.5)
Proceeds from sales of marketable debt securities11.4 6.3
Proceeds from maturities of marketable debt securities18.2 10.3
Net cash used for investing activities(87.5)(77)
Cash Flows from Financing Activities:
Repayments of debt and finance lease obligations(0.4)(0.4)
Common stock dividends paid(94.8)(74.8)
Shares withheld to cover employee restricted stock taxes(0.1)
Net cash used for financing activities(95.3)(75.2)
Net increase in cash and cash equivalents8.8 84.5
Cash and cash equivalents, beginning of period974.6 679.5
Cash and cash equivalents, end of period $ 983.4 $ 764

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in MillionsTotalCommon StockAdditional Paid in CapitalRetained EarningsAccumulated Other Comprehensive Loss
Beginning Balance at Dec. 31, 2019 $ 3,071 $ 0.9 $ 524.8 $ 2,704.8 $ (159.5)
Beginning Balance (in shares) at Dec. 31, 201994,655
Common stock withheld and retired to cover taxes on vested stock awards0 $ 0 0 0 0
Common stock withheld and retired to cover taxes on vested stock awards (in shares)(1)
Common stock dividends declared(75.3) $ 0 0 (75.3)0
Share-based compensation10.1 $ 0 10.1 0 0
Share-based compensation expense (in shares)194
Other(0.1) $ 0 0 (0.1)0
Comprehensive income144.2 0 0 141.7 2.5
Ending Balance at Mar. 31, 20203,149.9 $ 0.9 534.9 2,771.1 (157)
Ending Balance (in shares) at Mar. 31, 202094,848
Beginning Balance at Dec. 31, 20203,246.3 $ 0.9 554.4 2,835.5 (144.5)
Beginning Balance (in shares) at Dec. 31, 202094,830
Common stock withheld and retired to cover taxes on vested stock awards(0.1) $ 0 0 (0.1)0
Common stock withheld and retired to cover taxes on vested stock awards (in shares)(1)
Common stock dividends declared(95.5) $ 0 0 (95.5)0
Share-based compensation11.7 $ 0.1 11.6 0 0
Share-based compensation expense (in shares)165
Other(0.1) $ 0 0 (0.1)0
Comprehensive income168.9 0 0 166.5 2.4
Ending Balance at Mar. 31, 2021 $ 3,331.2 $ 1 $ 566 $ 2,906.3 $ (142.1)
Ending Balance (in shares) at Mar. 31, 202194,994

Nature of Operations and Basis

Nature of Operations and Basis of Presentation3 Months Ended
Mar. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Nature of Operations and Basis of Presentation1.
Nature of Operations and Basis of Presentation Packaging Corporation of America ("we," "us," "our," PCA," or the "Company") was incorporated on January 25, 1999. In April 1999, PCA acquired the containerboard and corrugated packaging products business of Pactiv Corporation (Pactiv), formerly known as Tenneco Packaging, Inc. We are a large diverse manufacturer of both packaging and paper products. We are headquartered in Lake Forest, Illinois and we operate primarily in the United States. We report our business in three reportable segments: Packaging, Paper, and Corporate and Other. Our Packaging segment produces a wide variety of containerboard and corrugated packaging products. The Paper segment manufactures and sells a range of communication-based papers. Corporate and Other includes support staff services and related assets and liabilities, transportation assets, and activity related to other ancillary support operations. For more information about our segments, see Note 18, Segment Information. During the fourth quarter of 2020, in order to meet strong packaging demand and maintain appropriate inventory levels, we temporarily began producing linerboard on the No. 3 machine at our Jackson, Alabama mill. In the first quarter of 2021, we announced the discontinuation of production of uncoated freesheet paper grades on the machine and the permanent conversion of the machine to produce linerboard. Before October 2020, operating results for the Jackson mill were included in the Paper segment. Beginning in October 2020, operating results for the Jackson mill are included in both the Packaging and Paper segments. In these consolidated financial statements, certain amounts in prior periods’ consolidated financial statements have been reclassified to conform with the current period presentation. The consolidated financial statements of PCA as of March 31, 2021 and for the three months ended March 31, 2021 and 2020 are unaudited but include all adjustments (consisting only of normal recurring adjustments) that management considers necessary for a fair presentation of such financial statements. The preparation of the consolidated financial statements involves the use of estimates and accruals. Actual results may vary from those estimates. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with Article 10 of Regulation S-X of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete audited financial statements. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. These consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2020. The consolidated financial statements include the accounts of PCA and its majority-owned subsidiaries after elimination of intercompany balances and transactions.

New Accounting Standards

New Accounting Standards3 Months Ended
Mar. 31, 2021
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
New Accounting Standards2.
New Accounting Standards In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. The amendments in this Update are elective and apply to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Companies can apply the ASU immediately, but the guidance will only be available until December 31, 2022. While the Company’s fixed-rate outstanding debt will not be impacted by the reference rate reform, the Company is still evaluating the impact of this guidance on its revolving credit facility, as the interest rate associated with any future borrowings against the revolving credit facility is based on LIBOR. Overall, the Company does not expect the guidance to have a significant impact on its financial position or related disclosures. There were no other accounting standards recently issued that had or are expected to have a material impact on our financial position or results of operations.

Revenue

Revenue3 Months Ended
Mar. 31, 2021
Revenue From Contract With Customer [Abstract]
Revenue3 .
Revenue Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to customers in an amount that reflects the consideration expected to be received in exchange for those goods or services. Sales, value added, and other taxes collected concurrently with revenue-producing activities are excluded from revenue. The following table presents our revenues disaggregated by product line (dollars in millions):
Three Months Ended March 31,
2021
2020
Packaging
$
1,623.6
$
1,467.5
Paper
164.6
217.4
Corporate and Other
19.0
23.8
Total revenue
$
1,807.2
$
1,708.7
Packaging Revenue Our containerboard mills produce linerboard and corrugating medium which are papers primarily used in the production of corrugated products. The majority of our containerboard production is used internally by our corrugated products manufacturing facilities. The remaining containerboard is sold to outside domestic and export customers. Our corrugated products manufacturing plants produce a wide variety of corrugated packaging products and retail merchandise displays. We sell corrugated products to national, regional and local accounts, which are broadly diversified across industries and geographic locations. The Company recognizes revenue for its packaging products when performance obligations under the terms of a contract with a customer are satisfied. This occurs with the transfer of control of our products at a specific point in time. Based on our express terms and conditions of the sale of products to our customers, as well as terms included in contractual arrangements with our customers, we do not have an enforceable right of payment that includes a reasonable profit throughout the duration of the contract for products that do not have an alternative use. Revenue is recognized when the product is shipped from the mill or from our manufacturing facility to our customer. Certain customers may receive volume-based incentives, which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenue recognized. Certain customers receive a portion of their packaging products as consigned inventory with billing triggered once the customer uses or consumes the designated product. Prior to invoicing, these amounts are handled as unbilled receivables. Total unbilled receivables, which are immaterial in amount, are included in the accounts receivable financial statement caption. Paper Revenue We manufacture and sell a range of communication-based papers. Communication papers consist of cut-size office papers, and printing and converting papers. The Company recognizes revenue for its paper products when performance obligations under the terms of a contract with a customer are satisfied. This occurs with the transfer of control of our products at a specific point in time. Revenue is recognized when the product is shipped from the mill or from our manufacturing facility or distribution center to our customer. Certain customers may receive volume-based incentives, which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenue recognized. Corporate and Other Revenue Revenue in this segment primarily relates to Louisiana Timber Procurement Company, L.L.C. (LTP), a variable-interest entity that is 50% owned by PCA and 50% owned by Boise Cascade Company (Boise Cascade). PCA is the primary beneficiary of LTP and has the power to direct the activities that most significantly affect the economic performance of LTP. Therefore, we consolidate 100% of LTP in our financial statements. See Note 17, Transactions With Related Parties, for more information related to LTP. The Company recognizes revenue within this segment when performance obligations under the terms of a contract with a customer are satisfied. This occurs with the transfer of control of our products at a specific point in time. Practical Expedients and Exemption Shipping and handling fees billed to a customer are recorded on a gross basis in "Net sales" with the corresponding shipping and handling costs included in "Cost of sales" in the concurrent period as the revenue is recorded. We expense sales commissions when incurred because the amortization period is one year or less. Sales commissions are recorded in "Selling, general, and administrative expenses". We do not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less.

Earnings Per Share

Earnings Per Share3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]
Earnings Per Share4 .
Earnings Per Share The following table sets forth the computation of basic and diluted income per common share for the periods presented (dollars and shares in millions, except per share data):
Three Months Ended
March 31,
Numerator:
2021
2020
Net income
$
166.5
$
141.7
Less: Distributed and undistributed earnings allocated to participating securities
(1.3
)
(1.2
)
Net income attributable to common shareholders
$
165.2
$
140.5
Denominator:
Weighted average basic common shares outstanding
94.2
93.9
Effect of dilutive securities
0.4
0.4
Weighted average diluted common shares outstanding
94.6
94.3
Basic income per common share
$
1.75
$
1.50
Diluted income per common share
$
1.75
$
1.49

Other Expense, Net

Other Expense, Net3 Months Ended
Mar. 31, 2021
Other Income And Expenses [Abstract]
Other Expense, Net5 .
Other Expense, Net The components of other expense, net, were as follows (dollars in millions):
Three Months Ended
March 31,
2021
2020
Asset disposals and write-offs
$
(14.7
)
$
(6.0
)
Facilities closure and other costs (a)
(2.1
)
(0.4
)
Jackson mill conversion (b)
(0.5
)

Other
(3.1
)
(3.6
)
Total
$
(20.4
)
$
(10.0
) ________________
(a)
Includes charges consisting of closure costs related to corrugated products facilities.
(b)
Includes charges related to the announced discontinuation of production of uncoated freesheet paper grades on the No. 3 machine at the Jackson, Alabama mill in the first quarter of 2021 associated with the permanent conversion of the machine to produce linerboard.

Income Taxes

Income Taxes3 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income Taxes6 .
Income Taxes For the three months ended March 31, 2021 and 2020, we recorded $53.1 million and $48.4 million of income tax expense and had an effective tax rate of 24.2% and 25.5%, respectively. The decrease in our effective tax rate for the three months ended March 31, 2021 compared with the same period in 2020 was primarily due to a favorable state law change during the three months ended March 31, 2021 with no corresponding favorable state law change during the three months ended March 31, 2020. Our effective tax rate may differ from the federal statutory income tax rate of 21.0% due primarily to the effect of state and local income taxes. During the three months ended March 31, 2021, there were no significant changes to our uncertain tax positions. For more information, see Note 7, Income Taxes, of the Notes to Consolidated Financial Statements in “Part II, Item 8. Financial Statements and Supplementary Data” of our 2020 Annual Report on Form 10-K.

Inventories

Inventories3 Months Ended
Mar. 31, 2021
Inventory Disclosure [Abstract]
Inventories7 .
Inventories We value our raw materials, work in process, and finished goods inventories using lower of cost, as determined by the average cost method, or net realizable value. Supplies and materials are valued at the first-in, first-out (FIFO) or average cost methods. The components of inventories were as follows (dollars in millions):
March 31,
December 31,
2021
2020
Raw materials
$
281.6
$
263.5
Work in process
11.6
11.6
Finished goods
174.1
183.6
Supplies and materials
332.3
329.2
Inventories
$
799.6
$
787.9

Property, Plant, and Equipment

Property, Plant, and Equipment3 Months Ended
Mar. 31, 2021
Property Plant And Equipment [Abstract]
Property, Plant, and Equipment8 .
Property, Plant, and Equipment The components of property, plant, and equipment were as follows (dollars in millions):
March 31,
December 31,
2021
2020
Land and land improvements
$
185.5
$
179.6
Buildings
874.8
858.5
Machinery and equipment
5,879.9
5,826.6
Construction in progress
354.3
360.0
Other
88.6
88.8
Property, plant and equipment, at cost
7,383.1
7,313.5
Less accumulated depreciation
(4,170.6
)
(4,120.1
)
Property, plant, and equipment, net
$
3,212.5
$
3,193.4
During the second quarter of 2020, with the exacerbated deterioration in uncoated freesheet market conditions arising from the COVID-19 pandemic and the estimated impact on our Paper segment and its projected future results of operations, we identified a triggering event indicating possible impairment of our long lived assets within our Paper segment, including property, plant, and equipment, and performed a recoverability test on the Paper reporting unit long lived assets as of May 31, 2020. The recoverability test was based on forecasts of undiscounted cash flows. The results of the recoverability test indicated that the long lived assets within our Paper segment, inclusive of property, plant, and equipment, were 100% recoverable. Depreciation expense for the three months ended March 31, 2021 and 2020 was $90.0 million and $89.8 million, respectively. We recognized $0.5 million of incremental depreciation expense during the three months ended March 31, 2021 as a result of the Jackson, Alabama mill conversion. We did not recognize any incremental depreciation expense during the three months ended March 31, 2020. At March 31, 2021 and December 31, 2020, purchases of property, plant, and equipment included in accounts payable were $47.8 million and $20.4 million, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets3 Months Ended
Mar. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets9 .
Goodwill and Intangible Assets During the second quarter of 2020, with the exacerbated deterioration in uncoated freesheet market conditions arising from the COVID-19 pandemic and the estimated impact on our Paper segment and its projected future results of operations, we identified a triggering event indicating possible impairment of goodwill and our long lived assets within our Paper reporting unit. Goodwill Due to the triggering event identified above an interim quantitative impairment analysis was performed as of May 31, 2020 for the Paper reporting unit, which is the same as our Paper reportable segment. We estimated the fair value of the Paper reporting unit using a combination of the income approach and the market approach, as further described below. Based on the evaluation performed, we determined that the carrying value of the Paper reporting unit exceeded its fair value, which resulted in a goodwill impairment charge totaling $55.2 million in the second quarter of 2020. For purposes of our goodwill impairment analysis, we estimated the fair value of the Paper reporting unit using a combination of the income approach and the market approach applying an equal weighting. The income approach incorporated the estimated future cash flows and a terminal value discounted to their present value using an appropriate risk-adjusted discount rate. The estimated future cash flows and terminal value were based on internal forecasts and industry trends, including the long-term outlook for the paper industry. Our expected cash flows include assumptions about industry pricing, expected paper demand, and anticipated input and conversion costs. The discount rate utilized in the income approach was 9%, which was derived using a capital asset pricing model based on relevant industry data to estimate the cost of equity financing. The discount rate is commensurate with the risks and uncertainties inherent in the business and the cash flow forecasts, updated for recent events. The market approach estimated the fair value of the Paper reporting unit by using valuation metrics of publicly traded companies or historically completed transactions of comparable businesses. The valuation of our Paper reporting unit requires significant judgment in evaluating recent indicators of market activity and estimated future cash flows, discount rates, and other factors. Our impairment analysis contains inherent uncertainties due to uncontrollable events that could positively or negatively impact anticipated future economic and operating conditions. In making these estimates, the weighted-average cost of capital is utilized to calculate the present value of future cash flows and terminal value. Many variables go into estimating future cash flows, including estimates of our future revenue growth and operating results. When estimating our projected revenue growth and future operating results, we considered industry trends, economic data, and our competitive situation. Goodwill represents the excess of the cost of an acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. At both March 31, 2021 and December 31, 2020, we had $863.5 million of goodwill recorded in our Packaging segment, which represents the entire goodwill balance reported on our Consolidated Balance Sheets. Intangible Assets Intangible assets are primarily comprised of customer relationships and trademarks and trade names. As a result of the triggering event described above, we also performed a recoverability test on our long-lived assets within the Paper segment, including long lived intangible assets, as of May 31, 2020. The recoverability test was based on forecasts of undiscounted cash flows. The results of the recoverability test indicated that the long lived assets within our Paper segment, inclusive of the long lived intangible assets, were 100% recoverable. The weighted average remaining useful life, gross carrying amount, and accumulated amortization of our intangible assets were as follows (dollars in millions):
March 31, 2021
December 31, 2019
Weighted Average Remaining Useful Life (in Years)
Gross Carrying Amount
Accumulated Amortization
Weighted Average Remaining Useful Life (in Years)
Gross Carrying Amount
Accumulated Amortization
Customer relationships
9.3
$
503.8
$
211.4
10.0
$
503.8
$
180.2
Trademarks and trade names
9.3
34.8
22.4
9.5
34.8
20.6
Other
1.4
4.3
3.7
2.1
4.3
3.3
Total intangible assets (excluding goodwill)
9.3
$
542.9
$
237.5
9.9
$
542.9
$
204.1
During both the three months ended March 31, 2021 and 2020, amortization expense was $9.6 million.

Accrued Liabilities

Accrued Liabilities3 Months Ended
Mar. 31, 2021
Accrued Liabilities Current And Noncurrent [Abstract]
Accrued Liabilities1 0 .
Accrued Liabilities The components of accrued liabilities were as follows (dollars in millions):
March 31,
December 31,
2021
2020
Compensation and benefits
$
91.8
$
126.5
Medical insurance and workers’ compensation
26.2
25.5
Customer rebates and other credits
26.1
27.1
Franchise, property, sales and use taxes
20.6
16.5
Environmental liabilities and asset retirement obligations
4.8
4.6
Severance, retention, and relocation
3.0
4.1
Other
11.5
11.9
Total
$
184.0
$
216.2

Debt

Debt3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]
Debt1 1 .
Debt For the three months ended March 31, 2021 and 2020, cash payments for interest were $7.5 million and $7.3 million, respectively. Included in interest expense, net is the amortization of financing costs. For both the three months ended March 31, 2021 and 2020, amortization of financing costs was $0.5 million. At March 31, 2021, we had $2,493.8 million of fixed-rate senior notes outstanding. The fair value of our fixed-rate debt was estimated to be $2,719.0 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) within the fair value hierarchy, which is further defined in Note 2, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements in "Part II, Item 8. Financial Statements and Supplementary Data" of our 2020 Annual Report on Form 10-K. For more information on our long-term debt and interest rates on that debt, see Note 10, Debt, of the Notes to Consolidated Financial Statements in "Part II, Item 8. Financial Statements and Supplementary Data" of our 2020 Annual Report on Form 10-K.

Cash, Cash Equivalents, and Mar

Cash, Cash Equivalents, and Marketable Debt Securities3 Months Ended
Mar. 31, 2021
Cash Cash Equivalents And Short Term Investments [Abstract]
Cash, Cash Equivalents, and Marketable Debt Securities12.
Cash, Cash Equivalents, and Marketable Debt Securities The following table shows the Company’s cash and available-for-sale (AFS) debt securities by major asset category at March 31, 2021 and December 31, 2020 (in millions):
March 31, 2021
Adjusted Cost Basis
Unrealized Gain
Unrealized Loss
Fair Value
Cash and Cash Equivalents
Short-Term Marketable Debt Securities
Long-Term Marketable Debt Securities
Cash and cash equivalents
$
980.4
$

$

$
980.4
$
980.4
$

$

Level 1 (a)
Money market funds
1.8


1.8
1.8


U.S. Treasury securities
28.9
0.1

29.0

22.5
6.5
Subtotal
30.7
0.1

30.8
1.8
22.5
6.5
Level 2 (b)
Certificates of deposit
7.3


7.3
1.2
6.1

Commercial paper
2.3


2.3

2.3

U.S. government agency securities
7.1


7.1

2.6
4.5
Corporate debt securities
104.8
0.2

105.0

69.0
36.0
Subtotal
121.5
0.2

121.7
1.2
80.0
40.5
Total
$
1,132.6
$
0.3
$

$
1,132.9
$
983.4
$
102.5
$
47.0
December 31, 2020
Adjusted Cost Basis
Unrealized Gain
Unrealized Loss
Fair Value
Cash and Cash Equivalents
Short-Term Marketable Debt Securities
Long-Term Marketable Debt Securities
Cash and cash equivalents
$
970.5
$

$

$
970.5
$
970.5
$

$

Level 1 (a)
Money market funds
0.6


0.6
0.6


U.S. Treasury securities
28.1
0.2

28.3

18.9
9.4
Subtotal
28.7
0.2

28.9
0.6
18.9
9.4
Level 2 (b)
Certificates of deposit
5.9


5.9
1.1
4.8

Commercial paper
3.2


3.2
1.0
2.2

U.S. government agency securities
6.6


6.6

2.6
4.0
Corporate debt securities
107.5
0.3

107.8
1.4
77.1
29.3
Subtotal
123.2
0.3

123.5
3.5
86.7
33.3
Total
$
1,122.4
$
0.5
$

$
1,122.9
$
974.6
$
105.6
$
42.7
(a)
Valuations based on quoted prices for identical assets or liabilities in active markets.
( b )
Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. For the three months ended March 31, 2021 and 2020, net realized gains and losses on the sales and maturities of certain marketable debt securities were insignificant. The Company invests in highly rated securities, with the primary objective of minimizing the potential risk of principal loss. The Company’s investment policy requires securities to be investment grade and limits the amount of credit exposure to any one issuer. The maturities of the Company’s long-term marketable debt securities generally range from one to two years. Fair values were determined for each individual marketable debt security in the investment portfolio. When evaluating a marketable debt security for impairment, PCA reviews factors such as the duration and extent to which the fair value of the marketable debt security is less than its cost, the financial condition of the issuer and any changes thereto, the general market condition in which the issuer operates, and PCA’s intent to sell, or whether it will be more likely than not be required to sell, the marketable debt security before recovery of its amortized cost basis. As of March 31 , 202 1 and December 31, 20 20 , we do no t consider any of the impairments related to our marketable debt securities to be the result of credit losses . Therefore, we have no t recorded an allowance for credit losses related to our marketable debt securities. All unrealized gains and losses were recorded in other comprehensive income (OCI). The following table provides information about the Company’s marketable debt securities that have been in a continuous loss position as of March 31, 2021 and December 31, 2020 (in millions, except number of marketable debt securities in a loss position):
March 31, 2021
December 31, 2020
Fair Value of Marketable Debt Securities
Number of Marketable Debt Securities in a Loss Position
Unrealized Losses (c)
Fair Value of Marketable Debt Securities
Number of Marketable Debt Securities in a Loss Position
Unrealized Losses (c)
Corporate debt securities
$
60.4
79
$

$
42.9
56
$

U.S. Treasury securities
2.5
5

1.7
3

Certificates of deposit
1.2
2

1.3
2

U.S. government agency securities
0.5
1




Commercial paper



2.2
1

$
64.6
87
$

$
48.1
62
$

( c )
Unrealized losses were insignificant for the periods ended March 31, 2021 and December 31, 2020

Employee Benefit Plans and Othe

Employee Benefit Plans and Other Postretirement Benefits3 Months Ended
Mar. 31, 2021
Compensation And Retirement Disclosure [Abstract]
Employee Benefit Plans and Other Postretirement Benefits1 3 .
Employee Benefit Plans and Other Postretirement Benefits The components of net periodic benefit cost for our pension plans were as follows (dollars in millions):
Pension Plans
Three Months Ended March 31,
2021
2020
Service cost
$
5.4
$
5.9
Interest cost
7.4
10.0
Expected return on plan assets
(15.8
)
(14.2
)
Net amortization of unrecognized amounts
Prior service cost
1.0
1.1
Actuarial loss
2.5
2.7
Net periodic benefit cost
$
0.5
$
5.5
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 additional discretionary contributions based on the funded status of the plans, tax deductibility, income from operations, and other factors. During the three months ended March 31, 2021 and 2020, payments to our nonqualified pension plans were insignificant. During the three months ended March 31, 2021, we did not make any contributions to our qualified pension plans, and for the three months ended March 31, 2020, we made contributions of $3.9 million to our qualified pension plans. We do not have a required minimum contribution amount established for 2021, but we expect to make discretionary contributions to our plans. For the three months ended March 31, 2021 and 2020, the net periodic benefit cost for our postretirement plans was insignificant.

Share-Based Compensation

Share-Based Compensation3 Months Ended
Mar. 31, 2021
Share Based Compensation [Abstract]
Share-Based Compensation1 4 .
Share-Based Compensation The Company has a long-term equity incentive plan, which allows for grants of restricted stock, performance awards, stock appreciation rights, and stock options to directors, officers, and employees, as well as others who engage in services for PCA. On February 25, 2020, our board of directors approved and, on May 5, 2020, our stockholders approved, the amendment and restatement of the plan. The amendment extended the plan’s term to May 5, 2030 and increased the number of shares of common stock available for issuance under the plan by 1.4 million shares. The total number of shares authorized for past and future awards is 12.0 million shares. As of March 31, 2021, assuming performance units are paid out at the target level of performance, 1.2 million shares were available for future grants under the current plan . The following table presents restricted stock and performance unit award activity for the three months ended March 31, 2021:
Restricted Stock
Performance Units
Shares
Weighted Average Grant- Date Fair Value
Shares
Weighted Average Grant- Date Fair Value
Outstanding at January 1, 2021
669,102
$
102.55
357,417
$
103.63
Granted
168,700
133.54
95,236
140.47
Vested
(3,508
)
102.72


Forfeitures
(3,284
)
101.05


Outstanding at March 31, 2021
831,010
$
108.85
452,653
$
111.38
Compensation Expense Our share-based compensation expense is recorded in "Selling, general, and administrative expenses." Compensation expense for share-based awards recognized in the Consolidated Statements of Income, net of forfeitures, was as follows (dollars in millions):
Three Months Ended March 31,
2021
2020
Restricted stock
$
8.6
$
8.0
Performance units
3.0
2.1
Total share-based compensation expense
11.6
10.1
Income tax benefit
(2.9
)
(2.5
)
Share-based compensation expense, net of tax benefit
$
8.7
$
7.6
The fair value of restricted stock is determined based on the closing price of the Company’s stock on the grant date. Compensation expense, net of estimated forfeitures, is recorded over the requisite service period. As PCA’s Board of Directors has the ability to accelerate the vesting of these awards upon an employee’s retirement, the Company accelerates the recognition of compensation expense for certain employees approaching normal retirement age. Performance unit awards granted to certain key employees are earned based on the achievement of defined performance rankings of Return on Invested Capital (ROIC) or Total Shareholder Return (TSR) compared to ROIC and TSR for peer companies. For performance unit awards made in 2021 and 2020, in terms of grant date value, 50% used TSR as the performance measure and 50% used ROIC as the performance measure. The ROIC component of performance unit awards is valued based on the closing price of the stock on the grant date. As the ROIC component contains a performance condition, compensation expense, net of estimated forfeitures, is recorded over the requisite service period based on the most probable number of awards expected to vest. The TSR component of performance unit awards is valued using a Monte Carlo simulation as the TSR component contains a market condition. The Monte Carlo simulation estimates the fair value of the TSR component based on the expected term of the award, a risk-free interest rate, expected dividends, and expected volatility of the Company’s common stock and the common stock of the peer companies. Compensation expense is recorded ratably over the expected term of the award. The unrecognized compensation expense for all share-based awards at March 31, 2021 was as follows (dollars in millions):
March 31, 2021
Unrecognized Compensation Expense
Remaining Weighted Average Recognition Period (in years)
Restricted stock
$
39.4
2.9
Performance units
28.0
2.7
Total unrecognized share-based compensation expense
$
67.4
2.8

Stockholders' Equity

Stockholders' Equity3 Months Ended
Mar. 31, 2021
Equity [Abstract]
Stockholders' Equity1 5 .
Stockholders' Equity Dividends During the three months ended March 31, 2021, we paid $94.8 million of dividends to shareholders. On February 23, 2021, PCA’s Board of Directors declared a regular quarterly cash dividend of $1.00 per share of common stock, which was paid on April 15, 2021 to shareholders of record as of March 15, 2021. The dividend payment was $95.0 million. Repurchases of Common Stock On February 25, 2016, PCA announced that its Board of Directors authorized the repurchase of $200.0 million of the Company’s outstanding common stock. Repurchases may be made from time to time in open market or privately negotiated transactions in accordance with applicable securities regulations. The timing and amount of repurchases will be determined by the Company in its discretion based on factors such as PCA’s stock price and market and business conditions. The Company did not repurchase any shares of its common stock under this authority during the three months ended March 31, 2021. At March 31, 2021, $193.0 million of the authorized amount remained available for repurchase of the Company’s common stock. Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) (AOCI) by component were as follows (dollars in millions). Amounts in parentheses indicate losses:
Foreign Currency Translation Adjustments
Unrealized Loss on Foreign Exchange Contracts
Unrealized Loss on Marketable Debt Securities
Unfunded Employee Benefit Obligations
Total
Balance at January 1, 2021
$
(0.4
)
$
(0.2
)
$
0.3
$
(144.2
)
$
(144.5
)
Other comprehensive income before reclassifications, net of tax


(0.1
)

(0.1
)
Amounts reclassified from AOCI, net of tax



2.5
2.5
Balance at March 31, 2021
$
(0.4
)
$
(0.2
)
$
0.2
$
(141.7
)
$
(142.1
) Reclassifications out of AOCI were as follows (dollars in millions). Amounts in parentheses indicate expenses in the Consolidated Statements of Income:
Amounts Reclassified from AOCI
Three Months Ended March 31,
Details about AOCI Components
2021
2020
Unfunded employee benefit obligations (a)
Amortization of prior service costs
$
(0.8
)
$
(1.0
)
See (a) below
Amortization of actuarial losses
(2.5
)
(2.6
)
See (a) below
(3.3
)
(3.6
)
Total before tax
0.8
0.9
Tax benefit
$
(2.5
)
$
(2.7
)
Net of tax
(a)
These AOCI components are included in the computation of net pension and postretirement benefit costs. See Note 13, Employee Benefit Plans and Other Postretirement Benefits, for additional information.

Concentrations of Risk

Concentrations of Risk3 Months Ended
Mar. 31, 2021
Risks And Uncertainties [Abstract]
Concentration of Risk1 6 .
Concentrations of Risk Our Paper segment has a long-standing commercial and contractual relationship with Office Depot, our largest customer in the paper business. This relationship exposes us to a significant concentration of business and financial risk. Our sales to Office Depot represent approximately 4% and 5% of our total Company sales revenue for the three month periods ended March 31, 2021 and 2020, respectively, and approximately

Transactions With Related Parti

Transactions With Related Parties3 Months Ended
Mar. 31, 2021
Related Party Transactions [Abstract]
Transactions With Related Parties17 .
Transactions With Related Parties Louisiana Timber Procurement Company, L.L.C. (LTP) is a variable-interest entity that is 50% owned by PCA and 50% owned by Boise Cascade Company (Boise Cascade). LTP procures sawtimber, pulpwood, residual chips, and other residual wood fiber to meet the wood and fiber requirements of PCA and Boise Cascade in Louisiana. PCA is the primary beneficiary of LTP and has the power to direct the activities that most significantly affect the economic performance of LTP. Therefore, we consolidate 100% of LTP in our financial statements in our Corporate and Other segment. The carrying amounts of LTP's assets and liabilities (which relate primarily to non-inventory working capital items) on our Consolidated Balance Sheets were $2.1 million at March 31, 2021 and $2.5 million at December 31, 2020. During the three months ended March 31, 2021 and 2020, we recorded $20.3 million and $22.6 million, respectively, of LTP sales to Boise Cascade in "Net Sales" in the Consolidated Statements of Income and approximately the same amount of expenses in "Cost of Sales". During the three months ended March 31, 2021 and 2020, fiber purchases from related parties were $3.3 million and $4.2 million ,

Segment Information

Segment Information3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]
Segment Information1 8 .
Segment Information We report our business in three reportable segments: Packaging, Paper, and Corporate and Other. These segments represent distinct businesses that are managed separately because of differing products and services. Each of these businesses requires distinct operating and marketing strategies. During the fourth quarter of 2020, in order to meet strong packaging demand and maintain appropriate inventory levels, we temporarily began producing linerboard on the No. 3 machine at our Jackson, Alabama mill. In the first quarter of 2021, we announced the discontinuation of production of uncoated freesheet paper grades on the machine and the permanent conversion of the machine to produce linerboard. Before October 2020, operating results for the Jackson mill were included in the Paper segment. Beginning in October 2020, operating results for the Jackson mill are included in both the Packaging and Paper segments. Each segment’s profits and losses are measured on operating profits before interest expense, net, non-operating pension income, and income taxes. For certain allocated expenses, the related assets and liabilities remain in the Corporate and Other segment. Selected financial information by reportable segment was as follows (dollars in millions):
Sales, net
Three Months Ended March 31, 2021
Trade
Intersegment
Total
Operating Income (Loss)
Packaging
$
1,619.8
$
3.8
$
1,623.6
$
257.9
(a)
Paper
164.4
0.2
164.6
8.7
(a)
Corporate and Other
23.0
32.4
55.4
(28.3
)
Intersegment eliminations

(36.4
)
(36.4
)

$
1,807.2
$

$
1,807.2
238.3
Non-operating pension income
4.8
Interest expense, net
(23.5
)
Income before taxes
$
219.6
Sales, net
Three Months Ended March 31, 2020
Trade
Intersegment
Total
Operating Income (Loss)
Packaging
$
1,465.4
$
2.1
$
1,467.5
$
199.8
(b)
Paper
217.4

217.4
32.5
(b)
Corporate and Other
25.9
34.3
60.2
(23.2
)
Intersegment eliminations

(36.4
)
(36.4
)

$
1,708.7
$

$
1,708.7
209.1
Non-operating pension expense
0.6
Interest expense, net
(19.6
)
Income before taxes
$
190.1
(a)
The three months ended March 31, 2021 include the following: 1. $2.1 million of charges consisting of closure costs related to corrugated products facilities. 2. $1.1 million of charges related to the announced discontinuation of production of uncoated freesheet paper grades on the No. 3 machine at the Jackson, Alabama mill in the first quarter of 2021 associated with the permanent conversion of the machine to produce linerboard.
(b)
The three months ended March 31, 2020 include the following: 1.$0.8 million of incremental, out-of-pocket costs related to COVID-19, including supplies, cleaning and sick pay. Beginning in July 2020, all corresponding COVID-19 related expenses were included in normalized costs. 2.$0.4 million of charges consisting of closure costs related to corrugated products facilities.

Commitments, Guarantees, Indemn

Commitments, Guarantees, Indemnifications and Legal Proceedings3 Months Ended
Mar. 31, 2021
Commitments And Contingencies Disclosure [Abstract]
Commitments, Guarantees, Indemnifications and Legal Proceedings19 .
Commitments, Guarantees, Indemnifications and Legal Proceedings We have financial commitments and obligations that arise in the ordinary course of our business. These include long-term debt, capital commitments, lease obligations, and purchase commitments for goods and services, and legal proceedings, all of which are discussed in Note 10, Debt, and Note 20, Commitments, Guarantees, Indemnifications, and Legal Proceedings, of the Notes to Consolidated Financial Statements in "Part II, Item 8. Financial Statements and Supplementary Data" of our 2020 Annual Report on Form 10-K. Guarantees and Indemnifications We provide guarantees, indemnifications, and other assurances to third parties in the normal course of our business. These include tort indemnifications, product guarantees, environmental assurances, and representations and warranties in commercial agreements. At March 31, 2021, 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. DeRidder Mill Incident 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 has been 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 is vigorously defending these lawsuits. The Company believes that these suits are covered by its liability insurance policies, subject to an aggregate $1.0 million deductible, which has been satisfied in full as a result of settlement of various lawsuits and fees and expenses incurred by the Company. All pending lawsuits are in the early stages. Accordingly, the Company is unable to estimate a range of reasonable possible losses at this time. The The EPA investigation is ongoing. In May 2017, the EPA conducted an on-site inspection of the 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. In January 2021, the EPA and U.S. Department of Justice (DOJ) initiated civil judicial enforcement discussions with PCA. These discussions are ongoing. As of the date of filing of this report, no complaint has been filed. PCA continues to cooperate with the agencies. 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. Environmental Matters On August 8, 2019, the EPA issued a notice of violation (NOV) alleging violations of the Clean Air Act, resulting from an inspection of our Wallula, Washington mill in September 2018. PCA denies the violations set forth in the NOV and has requested that the EPA’s Office of Air Quality Planning and Standards provide an applicability determination to clarify that the relevant operations of PCA have not violated the regulations at issue in the NOV. The EPA denied our request in 2020. We intend to vigorously defend any enforcement action and, on July 27, 2020, filed a petition with the EPA to reconsider its denial of our applicability determination and filed petitions in U.S. federal court to review the agency’s denial of our applicability determination as well as the rule at issue. While we cannot predict with certainty the ultimate resolution of this matter, we believe that we have a meritorious position that our operations have not violated the Clean Air Act, that we have taken appropriate action to address the matters raised by the EPA in the NOV, and that this matter will not result in a material adverse effect on our financial condition, results of operations, or cash flows. Legal Proceedings 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.

Nature of Operations and Basi_2

Nature of Operations and Basis of Presentation (Policies)3 Months Ended
Mar. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Accounting and PresentationThe consolidated financial statements of PCA as of March 31, 2021 and for the three months ended March 31, 2021 and 2020 are unaudited but include all adjustments (consisting only of normal recurring adjustments) that management considers necessary for a fair presentation of such financial statementsThese financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with Article 10 of Regulation S-X of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete audited financial statements. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. These consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2020.
Use of EstimatesThe preparation of the consolidated financial statements involves the use of estimates and accruals. Actual results may vary from those estimates.
Revenue RecognitionRevenue Recognition Revenue is recognized when control of the promised goods or services is transferred to customers in an amount that reflects the consideration expected to be received in exchange for those goods or services. Sales, value added, and other taxes collected concurrently with revenue-producing activities are excluded from revenue. The following table presents our revenues disaggregated by product line (dollars in millions):
Three Months Ended March 31,
2021
2020
Packaging
$
1,623.6
$
1,467.5
Paper
164.6
217.4
Corporate and Other
19.0
23.8
Total revenue
$
1,807.2
$
1,708.7
Inventory ValuationWe value our raw materials, work in process, and finished goods inventories using lower of cost, as determined by the average cost method, or net realizable value. Supplies and materials are valued at the first-in, first-out (FIFO) or average cost methods.

Revenue (Tables)

Revenue (Tables)3 Months Ended
Mar. 31, 2021
Revenue From Contract With Customer [Abstract]
Summary of Revenues Disaggregated by Product LineThe following table presents our revenues disaggregated by product line (dollars in millions):
Three Months Ended March 31,
2021
2020
Packaging
$
1,623.6
$
1,467.5
Paper
164.6
217.4
Corporate and Other
19.0
23.8
Total revenue
$
1,807.2
$
1,708.7

Earnings Per Share (Tables)

Earnings Per Share (Tables)3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]
Computation of Basic and Diluted Income Per Common ShareThe following table sets forth the computation of basic and diluted income per common share for the periods presented (dollars and shares in millions, except per share data):
Three Months Ended
March 31,
Numerator:
2021
2020
Net income
$
166.5
$
141.7
Less: Distributed and undistributed earnings allocated to participating securities
(1.3
)
(1.2
)
Net income attributable to common shareholders
$
165.2
$
140.5
Denominator:
Weighted average basic common shares outstanding
94.2
93.9
Effect of dilutive securities
0.4
0.4
Weighted average diluted common shares outstanding
94.6
94.3
Basic income per common share
$
1.75
$
1.50
Diluted income per common share
$
1.75
$
1.49

Other Expense, Net (Tables)

Other Expense, Net (Tables)3 Months Ended
Mar. 31, 2021
Other Income And Expenses [Abstract]
Components of Other Expense, NetThe components of other expense, net, were as follows (dollars in millions):
Three Months Ended
March 31,
2021
2020
Asset disposals and write-offs
$
(14.7
)
$
(6.0
)
Facilities closure and other costs (a)
(2.1
)
(0.4
)
Jackson mill conversion (b)
(0.5
)

Other
(3.1
)
(3.6
)
Total
$
(20.4
)
$
(10.0
) ________________
(a)
Includes charges consisting of closure costs related to corrugated products facilities.
(b)
Includes charges related to the announced discontinuation of production of uncoated freesheet paper grades on the No. 3 machine at the Jackson, Alabama mill in the first quarter of 2021 associated with the permanent conversion of the machine to produce linerboard.

Inventories (Tables)

Inventories (Tables)3 Months Ended
Mar. 31, 2021
Inventory Disclosure [Abstract]
Components of InventoriesThe components of inventories were as follows (dollars in millions):
March 31,
December 31,
2021
2020
Raw materials
$
281.6
$
263.5
Work in process
11.6
11.6
Finished goods
174.1
183.6
Supplies and materials
332.3
329.2
Inventories
$
799.6
$
787.9

Property, Plant, and Equipment

Property, Plant, and Equipment (Tables)3 Months Ended
Mar. 31, 2021
Property Plant And Equipment [Abstract]
Components of Property, Plant, and EquipmentThe components of property, plant, and equipment were as follows (dollars in millions):
March 31,
December 31,
2021
2020
Land and land improvements
$
185.5
$
179.6
Buildings
874.8
858.5
Machinery and equipment
5,879.9
5,826.6
Construction in progress
354.3
360.0
Other
88.6
88.8
Property, plant and equipment, at cost
7,383.1
7,313.5
Less accumulated depreciation
(4,170.6
)
(4,120.1
)
Property, plant, and equipment, net
$
3,212.5
$
3,193.4

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)3 Months Ended
Mar. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Components of Intangible AssetsThe weighted average remaining useful life, gross carrying amount, and accumulated amortization of our intangible assets were as follows (dollars in millions):
March 31, 2021
December 31, 2019
Weighted Average Remaining Useful Life (in Years)
Gross Carrying Amount
Accumulated Amortization
Weighted Average Remaining Useful Life (in Years)
Gross Carrying Amount
Accumulated Amortization
Customer relationships
9.3
$
503.8
$
211.4
10.0
$
503.8
$
180.2
Trademarks and trade names
9.3
34.8
22.4
9.5
34.8
20.6
Other
1.4
4.3
3.7
2.1
4.3
3.3
Total intangible assets (excluding goodwill)
9.3
$
542.9
$
237.5
9.9
$
542.9
$
204.1

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)3 Months Ended
Mar. 31, 2021
Accrued Liabilities Current And Noncurrent [Abstract]
Components of Accrued LiabilitiesThe components of accrued liabilities were as follows (dollars in millions):
March 31,
December 31,
2021
2020
Compensation and benefits
$
91.8
$
126.5
Medical insurance and workers’ compensation
26.2
25.5
Customer rebates and other credits
26.1
27.1
Franchise, property, sales and use taxes
20.6
16.5
Environmental liabilities and asset retirement obligations
4.8
4.6
Severance, retention, and relocation
3.0
4.1
Other
11.5
11.9
Total
$
184.0
$
216.2

Cash, Cash Equivalents, and M_2

Cash, Cash Equivalents, and Marketable Debt Securities (Tables)3 Months Ended
Mar. 31, 2021
Cash Cash Equivalents And Short Term Investments [Abstract]
Schedule of Cash and Available-For-Sale Debt Securities by Major Asset CategoryThe following table shows the Company’s cash and available-for-sale (AFS) debt securities by major asset category at March 31, 2021 and December 31, 2020 (in millions):
March 31, 2021
Adjusted Cost Basis
Unrealized Gain
Unrealized Loss
Fair Value
Cash and Cash Equivalents
Short-Term Marketable Debt Securities
Long-Term Marketable Debt Securities
Cash and cash equivalents
$
980.4
$

$

$
980.4
$
980.4
$

$

Level 1 (a)
Money market funds
1.8


1.8
1.8


U.S. Treasury securities
28.9
0.1

29.0

22.5
6.5
Subtotal
30.7
0.1

30.8
1.8
22.5
6.5
Level 2 (b)
Certificates of deposit
7.3


7.3
1.2
6.1

Commercial paper
2.3


2.3

2.3

U.S. government agency securities
7.1


7.1

2.6
4.5
Corporate debt securities
104.8
0.2

105.0

69.0
36.0
Subtotal
121.5
0.2

121.7
1.2
80.0
40.5
Total
$
1,132.6
$
0.3
$

$
1,132.9
$
983.4
$
102.5
$
47.0
December 31, 2020
Adjusted Cost Basis
Unrealized Gain
Unrealized Loss
Fair Value
Cash and Cash Equivalents
Short-Term Marketable Debt Securities
Long-Term Marketable Debt Securities
Cash and cash equivalents
$
970.5
$

$

$
970.5
$
970.5
$

$

Level 1 (a)
Money market funds
0.6


0.6
0.6


U.S. Treasury securities
28.1
0.2

28.3

18.9
9.4
Subtotal
28.7
0.2

28.9
0.6
18.9
9.4
Level 2 (b)
Certificates of deposit
5.9


5.9
1.1
4.8

Commercial paper
3.2


3.2
1.0
2.2

U.S. government agency securities
6.6


6.6

2.6
4.0
Corporate debt securities
107.5
0.3

107.8
1.4
77.1
29.3
Subtotal
123.2
0.3

123.5
3.5
86.7
33.3
Total
$
1,122.4
$
0.5
$

$
1,122.9
$
974.6
$
105.6
$
42.7
(a)
Valuations based on quoted prices for identical assets or liabilities in active markets.
( b )
Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.
Schedule of Marketable Debt Securities in Continuous Loss PositionThe following table provides information about the Company’s marketable debt securities that have been in a continuous loss position as of March 31, 2021 and December 31, 2020 (in millions, except number of marketable debt securities in a loss position):
March 31, 2021
December 31, 2020
Fair Value of Marketable Debt Securities
Number of Marketable Debt Securities in a Loss Position
Unrealized Losses (c)
Fair Value of Marketable Debt Securities
Number of Marketable Debt Securities in a Loss Position
Unrealized Losses (c)
Corporate debt securities
$
60.4
79
$

$
42.9
56
$

U.S. Treasury securities
2.5
5

1.7
3

Certificates of deposit
1.2
2

1.3
2

U.S. government agency securities
0.5
1




Commercial paper



2.2
1

$
64.6
87
$

$
48.1
62
$

( c )
Unrealized losses were insignificant for the periods ended March 31, 2021 and December 31, 2020

Employee Benefit Plans and Ot_2

Employee Benefit Plans and Other Postretirement Benefits (Tables)3 Months Ended
Mar. 31, 2021
Compensation And Retirement Disclosure [Abstract]
Components of Net Periodic Benefit CostsThe components of net periodic benefit cost for our pension plans were as follows (dollars in millions):
Pension Plans
Three Months Ended March 31,
2021
2020
Service cost
$
5.4
$
5.9
Interest cost
7.4
10.0
Expected return on plan assets
(15.8
)
(14.2
)
Net amortization of unrecognized amounts
Prior service cost
1.0
1.1
Actuarial loss
2.5
2.7
Net periodic benefit cost
$
0.5
$
5.5

Share-Based Compensation (Table

Share-Based Compensation (Tables)3 Months Ended
Mar. 31, 2021
Share Based Compensation [Abstract]
Summary of Restricted Stock and Performance Unit Award ActivityThe following table presents restricted stock and performance unit award activity for the three months ended March 31, 2021:
Restricted Stock
Performance Units
Shares
Weighted Average Grant- Date Fair Value
Shares
Weighted Average Grant- Date Fair Value
Outstanding at January 1, 2021
669,102
$
102.55
357,417
$
103.63
Granted
168,700
133.54
95,236
140.47
Vested
(3,508
)
102.72


Forfeitures
(3,284
)
101.05


Outstanding at March 31, 2021
831,010
$
108.85
452,653
$
111.38
Compensation Expense for Share-Based AwardsOur share-based compensation expense is recorded in "Selling, general, and administrative expenses." Compensation expense for share-based awards recognized in the Consolidated Statements of Income, net of forfeitures, was as follows (dollars in millions):
Three Months Ended March 31,
2021
2020
Restricted stock
$
8.6
$
8.0
Performance units
3.0
2.1
Total share-based compensation expense
11.6
10.1
Income tax benefit
(2.9
)
(2.5
)
Share-based compensation expense, net of tax benefit
$
8.7
$
7.6
Unrecognized Compensation Expense for Share-Based AwardsThe unrecognized compensation expense for all share-based awards at March 31, 2021 was as follows (dollars in millions):
March 31, 2021
Unrecognized Compensation Expense
Remaining Weighted Average Recognition Period (in years)
Restricted stock
$
39.4
2.9
Performance units
28.0
2.7
Total unrecognized share-based compensation expense
$
67.4
2.8

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)3 Months Ended
Mar. 31, 2021
Equity [Abstract]
Components of Changes in Accumulated Other Comprehensive Income (AOCI)Changes in accumulated other comprehensive income (loss) (AOCI) by component were as follows (dollars in millions). Amounts in parentheses indicate losses:
Foreign Currency Translation Adjustments
Unrealized Loss on Foreign Exchange Contracts
Unrealized Loss on Marketable Debt Securities
Unfunded Employee Benefit Obligations
Total
Balance at January 1, 2021
$
(0.4
)
$
(0.2
)
$
0.3
$
(144.2
)
$
(144.5
)
Other comprehensive income before reclassifications, net of tax


(0.1
)

(0.1
)
Amounts reclassified from AOCI, net of tax



2.5
2.5
Balance at March 31, 2021
$
(0.4
)
$
(0.2
)
$
0.2
$
(141.7
)
$
(142.1
)
Reclassifications Out of Accumulated Other Comprehensive Income (AOCI)Reclassifications out of AOCI were as follows (dollars in millions). Amounts in parentheses indicate expenses in the Consolidated Statements of Income:
Amounts Reclassified from AOCI
Three Months Ended March 31,
Details about AOCI Components
2021
2020
Unfunded employee benefit obligations (a)
Amortization of prior service costs
$
(0.8
)
$
(1.0
)
See (a) below
Amortization of actuarial losses
(2.5
)
(2.6
)
See (a) below
(3.3
)
(3.6
)
Total before tax
0.8
0.9
Tax benefit
$
(2.5
)
$
(2.7
)
Net of tax
(a)
These AOCI components are included in the computation of net pension and postretirement benefit costs. See Note 13, Employee Benefit Plans and Other Postretirement Benefits, for additional information.

Segment Information (Tables)

Segment Information (Tables)3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]
Selected Financial Information by Reportable SegmentSelected financial information by reportable segment was as follows (dollars in millions):
Sales, net
Three Months Ended March 31, 2021
Trade
Intersegment
Total
Operating Income (Loss)
Packaging
$
1,619.8
$
3.8
$
1,623.6
$
257.9
(a)
Paper
164.4
0.2
164.6
8.7
(a)
Corporate and Other
23.0
32.4
55.4
(28.3
)
Intersegment eliminations

(36.4
)
(36.4
)

$
1,807.2
$

$
1,807.2
238.3
Non-operating pension income
4.8
Interest expense, net
(23.5
)
Income before taxes
$
219.6
Sales, net
Three Months Ended March 31, 2020
Trade
Intersegment
Total
Operating Income (Loss)
Packaging
$
1,465.4
$
2.1
$
1,467.5
$
199.8
(b)
Paper
217.4

217.4
32.5
(b)
Corporate and Other
25.9
34.3
60.2
(23.2
)
Intersegment eliminations

(36.4
)
(36.4
)

$
1,708.7
$

$
1,708.7
209.1
Non-operating pension expense
0.6
Interest expense, net
(19.6
)
Income before taxes
$
190.1
(a)
The three months ended March 31, 2021 include the following: 1. $2.1 million of charges consisting of closure costs related to corrugated products facilities. 2. $1.1 million of charges related to the announced discontinuation of production of uncoated freesheet paper grades on the No. 3 machine at the Jackson, Alabama mill in the first quarter of 2021 associated with the permanent conversion of the machine to produce linerboard.
(b)
The three months ended March 31, 2020 include the following: 1.$0.8 million of incremental, out-of-pocket costs related to COVID-19, including supplies, cleaning and sick pay. Beginning in July 2020, all corresponding COVID-19 related expenses were included in normalized costs. 2.$0.4 million of charges consisting of closure costs related to corrugated products facilities.

Nature of Operations and Basi_3

Nature of Operations and Basis of Presentation - Additional Information (Details)3 Months Ended
Mar. 31, 2021Segment
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Date of incorporationJan. 25,
1999
Number of reportable segments3

Revenue - Summary of Revenues D

Revenue - Summary of Revenues Disaggregated by Product Line (Details) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Disaggregation Of Revenue [Line Items]
Revenue $ 1,807.2 $ 1,708.7
Packaging
Disaggregation Of Revenue [Line Items]
Revenue1,623.6 1,467.5
Paper
Disaggregation Of Revenue [Line Items]
Revenue164.6 217.4
Corporate and Other
Disaggregation Of Revenue [Line Items]
Revenue $ 19 $ 23.8

Revenue - Additional Informatio

Revenue - Additional Information (Details)3 Months Ended
Mar. 31, 2021
Packaging Corporation of America
Revenue [Line Items]
Variable interest entity, ownership percentage50.00%
Boise Cascade Co-Owner of LTP
Revenue [Line Items]
Variable interest entity, ownership percentage50.00%

Earnings Per Share - Computatio

Earnings Per Share - Computation of Basic and Diluted Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Numerator:
Net income $ 166.5 $ 141.7
Less: Distributed and undistributed earnings allocated to participating securities(1.3)(1.2)
Net income attributable to common shareholders $ 165.2 $ 140.5
Denominator:
Weighted average basic common shares outstanding (in shares)94.2 93.9
Effect of dilutive securities (in shares)0.4 0.4
Weighted average diluted common shares outstanding (in shares)94.6 94.3
Basic income per common share (in dollars per share) $ 1.75 $ 1.50
Diluted income per common share (in dollars per share) $ 1.75 $ 1.49

Other Expense, Net - Components

Other Expense, Net - Components of Other Expense, Net (Details) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Asset disposals and write-offs $ (14.7) $ (6)
Facilities closure and other costs[1](2.1)(0.4)
Other(3.1)(3.6)
Total(20.4) $ (10)
Jackson, Alabama Mill
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Conversion[2] $ (0.5)
[1]Includes charges consisting of closure costs related to corrugated products facilities.
[2]Includes charges related to the announced discontinuation of production of uncoated freesheet paper grades on the No. 3 machine at the Jackson, Alabama mill in the first quarter of 2021 associated with the permanent conversion of the machine to produce linerboard.

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income tax provision $ 53.1 $ 48.4
Effective income tax rate, percent24.20%25.50%
Federal statutory income tax rate21.00%
Cash paid for taxes, net of refunds received $ 13.3 $ 4.7

Inventories - Components of Inv

Inventories - Components of Inventories (Details) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials $ 281.6 $ 263.5
Work in process11.6 11.6
Finished goods174.1 183.6
Supplies and materials332.3 329.2
Inventories $ 799.6 $ 787.9

Property, Plant, and Equipmen_2

Property, Plant, and Equipment - Components of Property, Plant, and Equipment (Details) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Property, Plant, And Equipment [Line Items]
Property, plant and equipment, at cost $ 7,383.1 $ 7,313.5
Less accumulated depreciation(4,170.6)(4,120.1)
Property, plant, and equipment, net3,212.5 3,193.4
Land and Land Improvements
Property, Plant, And Equipment [Line Items]
Property, plant and equipment, at cost185.5 179.6
Buildings
Property, Plant, And Equipment [Line Items]
Property, plant and equipment, at cost874.8 858.5
Machinery and Equipment
Property, Plant, And Equipment [Line Items]
Property, plant and equipment, at cost5,879.9 5,826.6
Construction in Progress
Property, Plant, And Equipment [Line Items]
Property, plant and equipment, at cost354.3 360
Other
Property, Plant, And Equipment [Line Items]
Property, plant and equipment, at cost $ 88.6 $ 88.8

Property, Plant, and Equipmen_3

Property, Plant, and Equipment - Additional Information (Details) - USD ($)3 Months Ended12 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020May 31, 2020
Depreciation [Abstract]
Depreciation expense $ 90,000,000 $ 89,800,000
Incremental depreciation500,000 $ 0
Purchases of property, plant, and equipment included in accounts payable $ 47,800,000 $ 20,400,000
Paper
Property, Plant, And Equipment [Line Items]
Recoverability test results recoverable percentage100.00%

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets -Goodwill - Additional Information (Details) - USD ($) $ in Millions3 Months Ended
Jun. 30, 2020Mar. 31, 2021Dec. 31, 2020May 31, 2020
Goodwill [Line Items]
Discount rate utilized0.09
Alternative Investment, Valuation Technique [Extensible List]us-gaap:IncomeApproachValuationTechniqueMember
Alternative Investment, Measurement Input [Extensible List]us-gaap:MeasurementInputDiscountRateMember
Goodwill $ 863.5 $ 863.5
Packaging
Goodwill [Line Items]
Goodwill $ 863.5 $ 863.5
Paper
Goodwill [Line Items]
Recoverability test results recoverable percentage100.00%
Paper Reporting Unit
Goodwill [Line Items]
Goodwill impairment charge $ 55.2

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Components of Intangible Assets (Details) - USD ($) $ in Millions3 Months Ended12 Months Ended
Mar. 31, 2021Dec. 31, 2019
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Life (in Years)9 years 3 months 18 days9 years 10 months 24 days
Gross Carrying Amount $ 542.9 $ 542.9
Accumulated Amortization $ 237.5 $ 204.1
Customer Relationships
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Life (in Years)9 years 3 months 18 days10 years
Gross Carrying Amount $ 503.8 $ 503.8
Accumulated Amortization $ 211.4 $ 180.2
Trademarks and Trade Names
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Life (in Years)9 years 3 months 18 days9 years 6 months
Gross Carrying Amount $ 34.8 $ 34.8
Accumulated Amortization $ 22.4 $ 20.6
Other Intangible Assets
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Life (in Years)1 year 4 months 24 days2 years 1 month 6 days
Gross Carrying Amount $ 4.3 $ 4.3
Accumulated Amortization $ 3.7 $ 3.3

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Intangible Assets - Additional Information (Details) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible assets amortization expense $ 9.6 $ 9.6

Accrued Liabilities - Component

Accrued Liabilities - Components of Accrued Liabilities (Details) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Accrued Liabilities Current [Abstract]
Compensation and benefits $ 91.8 $ 126.5
Medical insurance and workers’ compensation26.2 25.5
Customer rebates and other credits26.1 27.1
Franchise, property, sales and use taxes20.6 16.5
Environmental liabilities and asset retirement obligations4.8 4.6
Severance, retention, and relocation3 4.1
Other11.5 11.9
Total $ 184 $ 216.2

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Debt Instrument [Line Items]
Cash payments paid for interest $ 7.5 $ 7.3
Amortization of financing costs0.5 $ 0.5
Senior Notes | Fixed-Rate Senior Notes
Debt Instrument [Line Items]
Book value of fixed rate debt2,493.8
Long-term debt (fixed-rate debt), fair value $ 2,719

Cash, Cash Equivalents, and M_3

Cash, Cash Equivalents, and Marketable Debt Securities - Schedule of Company's Cash and Available-For-Sale (AFS) Debt Securities by Major Asset Category (Details) - USD ($) $ in Millions3 Months Ended12 Months Ended
Mar. 31, 2021Dec. 31, 2020
Financial Instruments [Line Items]
Adjusted Cost Basis $ 1,132.6 $ 1,122.4
Unrealized Gain0.3 0.5
Fair Value1,132.9 1,122.9
Cash and cash equivalents983.4 974.6
Short-term marketable debt securities102.5 105.6
Long-term marketable debt securities47 42.7
Level 1
Financial Instruments [Line Items]
Adjusted Cost Basis[1]30.7 28.7
Unrealized Gain[1]0.1 0.2
Fair Value[1]30.8 28.9
Cash and cash equivalents[1]1.8 0.6
Short-term marketable debt securities[1]22.5 18.9
Long-term marketable debt securities[1]6.5 9.4
Level 2
Financial Instruments [Line Items]
Adjusted Cost Basis[2]121.5 123.2
Unrealized Gain[2]0.2 0.3
Fair Value[2]121.7 123.5
Cash and cash equivalents[2]1.2 3.5
Short-term marketable debt securities[2]80 86.7
Long-term marketable debt securities[2]40.5 33.3
Cash and Cash Equivalents
Financial Instruments [Line Items]
Adjusted Cost Basis980.4 970.5
Fair Value980.4 970.5
Cash and cash equivalents980.4 970.5
Money Market Fund | Level 1
Financial Instruments [Line Items]
Adjusted Cost Basis[1]1.8 0.6
Fair Value[1]1.8 0.6
Cash and cash equivalents[1]1.8 0.6
U.S. Treasury Securities | Level 1
Financial Instruments [Line Items]
Adjusted Cost Basis[1]28.9 28.1
Unrealized Gain[1]0.1 0.2
Fair Value[1]29 28.3
Short-term marketable debt securities[1]22.5 18.9
Long-term marketable debt securities[1]6.5 9.4
Certificates of Deposit | Level 2
Financial Instruments [Line Items]
Adjusted Cost Basis[2]7.3 5.9
Fair Value[2]7.3 5.9
Cash and cash equivalents[2]1.2 1.1
Short-term marketable debt securities[2]6.1 4.8
Commercial Paper | Level 2
Financial Instruments [Line Items]
Adjusted Cost Basis[2]2.3 3.2
Fair Value[2]2.3 3.2
Cash and cash equivalents[2]1
Short-term marketable debt securities[2]2.3 2.2
U.S. Government Agency Securities | Level 2
Financial Instruments [Line Items]
Adjusted Cost Basis[2]7.1 6.6
Fair Value[2]7.1 6.6
Short-term marketable debt securities[2]2.6 2.6
Long-term marketable debt securities[2]4.5 4
Corporate Debt Securities | Level 2
Financial Instruments [Line Items]
Adjusted Cost Basis[2]104.8 107.5
Unrealized Gain[2]0.2 0.3
Fair Value[2]105 107.8
Cash and cash equivalents[2]1.4
Short-term marketable debt securities[2]69 77.1
Long-term marketable debt securities[2] $ 36 $ 29.3
[1]Valuations based on quoted prices for identical assets or liabilities in active markets.
[2]Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Cash, Cash Equivalents, and M_4

Cash, Cash Equivalents, and Marketable Debt Securities - Additional Information (Details) - USD ($)3 Months Ended12 Months Ended
Mar. 31, 2021Dec. 31, 2020
Financial Instruments [Line Items]
Impairment of marketable debt securities $ 0 $ 0
Allowance for credit loss $ 0 $ 0
Minimum
Financial Instruments [Line Items]
Long-term marketable debt securities maturity period1 year
Maximum
Financial Instruments [Line Items]
Long-term marketable debt securities maturity period2 years

Cash, Cash Equivalents, and M_5

Cash, Cash Equivalents, and Marketable Debt Securities - Schedule of Marketable Debt Securities in Continuous Loss Position (Details) $ in MillionsMar. 31, 2021USD ($)securityDec. 31, 2020USD ($)security
Schedule Of Available For Sale Securities [Line Items]
Fair Value of Marketable Debt Securities | $ $ 64.6 $ 48.1
Number of Marketable Debt Securities in a Loss Position | security87 62
Corporate Debt Securities
Schedule Of Available For Sale Securities [Line Items]
Fair Value of Marketable Debt Securities | $ $ 60.4 $ 42.9
Number of Marketable Debt Securities in a Loss Position | security79 56
U.S. Government Agency Securities
Schedule Of Available For Sale Securities [Line Items]
Fair Value of Marketable Debt Securities | $ $ 0.5
Number of Marketable Debt Securities in a Loss Position | security1
U.S. Treasury Securities
Schedule Of Available For Sale Securities [Line Items]
Fair Value of Marketable Debt Securities | $ $ 2.5 $ 1.7
Number of Marketable Debt Securities in a Loss Position | security5 3
Certificates of Deposit
Schedule Of Available For Sale Securities [Line Items]
Fair Value of Marketable Debt Securities | $ $ 1.2 $ 1.3
Number of Marketable Debt Securities in a Loss Position | security2 2
Commercial Paper
Schedule Of Available For Sale Securities [Line Items]
Fair Value of Marketable Debt Securities | $ $ 2.2
Number of Marketable Debt Securities in a Loss Position | security1

Employee Benefit Plans and Ot_3

Employee Benefit Plans and Other Postretirement Benefits - Components of Net Periodic Benefit Costs (Details) - Pension Plans - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Service cost $ 5.4 $ 5.9
Interest cost7.4 10
Expected return on plan assets(15.8)(14.2)
Net amortization of unrecognized amounts, Prior service cost1 1.1
Net amortization of unrecognized amounts, Actuarial loss (income)2.5 2.7
Net periodic benefit cost $ 0.5 $ 5.5

Employee Benefit Plans and Ot_4

Employee Benefit Plans and Other Postretirement Benefits - Additional Information (Details) - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Pension Plans | Qualified Plan
Pension Contributions [Abstract]
Contributions to pension plan $ 0 $ 3,900,000

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Details) - shares3 Months Ended
Mar. 31, 2021May 05, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Long-term equity incentive plan, termination dateMay 5,
2030
Number of shares available for future issuance under share-based plan1,200,000 1,400,000
Number of shares authorized under plan12,000,000
Performance Unit Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of ROIC as performance measure50.00%
Percentage of TSR as performance measure50.00%

Share-Based Compensation - Summ

Share-Based Compensation - Summary of Restricted Stock and Performance Unit Award Activity (Details)3 Months Ended
Mar. 31, 2021$ / sharesshares
Restricted Stock
Restricted Stock and Performance Units [Roll Forward]
Outstanding at January 1, 2021 | shares669,102
Granted | shares168,700
Vested | shares(3,508)
Forfeitures | shares(3,284)
Outstanding at March 31, 2021 | shares831,010
Restricted Stock and Performance Units (Weighted Average Grant-date Fair Value) [Abstract]
Weighted Average Grant-Date Fair Value, Outstanding at January 1, 2021 | $ / shares $ 102.55
Weighted Average Grant-Date Fair Value, Granted | $ / shares133.54
Weighted Average Grant-Date Fair Value, Vested | $ / shares102.72
Weighted Average Grant-Date Fair Value, Forfeitures | $ / shares101.05
Weighted Average Grant-Date Fair Value, Outstanding at March 31, 2021 | $ / shares $ 108.85
Performance Units
Restricted Stock and Performance Units [Roll Forward]
Outstanding at January 1, 2021 | shares357,417
Granted | shares95,236
Outstanding at March 31, 2021 | shares452,653
Restricted Stock and Performance Units (Weighted Average Grant-date Fair Value) [Abstract]
Weighted Average Grant-Date Fair Value, Outstanding at January 1, 2021 | $ / shares $ 103.63
Weighted Average Grant-Date Fair Value, Granted | $ / shares140.47
Weighted Average Grant-Date Fair Value, Outstanding at March 31, 2021 | $ / shares $ 111.38

Share-Based Compensation - Comp

Share-Based Compensation - Compensation Expense for Share-Based Awards (Details) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation expense $ 11.6 $ 10.1
Income tax benefit(2.9)(2.5)
Share-based compensation expense, net of tax benefit8.7 7.6
Restricted Stock
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation expense8.6 8
Performance Units
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation expense $ 3 $ 2.1

Share-Based Compensation - Unre

Share-Based Compensation - Unrecognized Compensation Expense for Share-Based Awards (Details) $ in Millions3 Months Ended
Mar. 31, 2021USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense $ 67.4
Remaining weighted-average recognition period2 years 9 months 18 days
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense $ 39.4
Remaining weighted-average recognition period2 years 10 months 24 days
Performance Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense $ 28
Remaining weighted-average recognition period2 years 8 months 12 days

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, shares in MillionsApr. 15, 2021Feb. 23, 2021Mar. 31, 2021Mar. 31, 2020Feb. 25, 2016
Common stock dividends paid $ 94,800,000 $ 74,800,000
Dividends paid per common share (in dollars per share) $ 1
Stock repurchase program, authorized amount $ 200,000,000
Repurchases of common stock under stock repurchase program0
Common stock repurchase authorization amount available $ 193,000,000
Subsequent Event
Common stock dividends paid $ 95,000,000

Stockholders' Equity - Changes

Stockholders' Equity - Changes in Accumulated Other Comprehensive Income by Component (Details) $ in Millions3 Months Ended
Mar. 31, 2021USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance $ 3,246.3
Other comprehensive income before reclassifications, net of tax(0.1)
Amounts reclassified from AOCI, net of tax2.5
Ending balance3,331.2
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance(0.4)
Ending balance(0.4)
Unfunded Employee Benefit Obligations
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance(144.2)
Amounts reclassified from AOCI, net of tax2.5
Ending balance(141.7)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance(144.5)
Ending balance(142.1)
Foreign Exchange Contract | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance(0.2)
Ending balance(0.2)
Marketable Debt Securities | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance0.3
Other comprehensive income before reclassifications, net of tax(0.1)
Ending balance $ 0.2

Stockholders' Equity - Reclassi

Stockholders' Equity - Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Income before taxes $ 219.6 $ 190.1
Income tax benefit(53.1)(48.4)
Net income166.5 141.7
Unfunded Employee Benefit Obligations | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Amortization of prior service costs[1](0.8)(1)
Amortization of actuarial losses[1](2.5)(2.6)
Income before taxes(3.3)(3.6)
Income tax benefit0.8 0.9
Net income $ (2.5) $ (2.7)
[1]These AOCI components are included in the computation of net pension and postretirement benefit costs. See Note 13, Employee Benefit Plans and Other Postretirement Benefits, for additional information.

Concentrations of Risk - Additi

Concentrations of Risk - Additional Information (Details) - USD ($) $ in Millions3 Months Ended12 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Concentration Risk [Line Items]
Accounts receivable, net, current $ 908.6 $ 832.4
Office Depot | Credit Concentration Risk
Concentration Risk [Line Items]
Accounts receivable, net, current $ 38.8 $ 39.6
Office Depot | Total Company Sales Revenue | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage4.00%5.00%
Office Depot | Total Company Receivables | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage4.00%5.00%
Paper | Office Depot | Paper Segment Sales Revenue | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage45.00%43.00%45.00%

Transactions With Related Par_2

Transactions With Related Parties - Additional Information (Details) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Related Party Transaction [Line Items]
Carrying amount of LTP's assets $ 7,549 $ 7,433.2
Boise Cascade Co-Owner of LTP
Related Party Transaction [Line Items]
Variable interest entity, ownership percentage50.00%
Boise Cascade Co-Owner of LTP | Fiber
Related Party Transaction [Line Items]
Revenue from related parties $ 20.3 $ 22.6
Fiber costs from related parties20.3 22.6
Boise Cascade Co-Owner of LTP | Wood Products, Including Chips and Logs
Related Party Transaction [Line Items]
Fiber costs from related parties $ 3.3 $ 4.2
Packaging Corporation of America
Related Party Transaction [Line Items]
Variable interest entity, ownership percentage50.00%
Variable Interest Entity
Related Party Transaction [Line Items]
Carrying amount of LTP's assets $ 2.1 2.5
Carrying amount of LTP's liabilities $ 2.1 $ 2.5

Segment Information - Additiona

Segment Information - Additional Information (Details)3 Months Ended
Mar. 31, 2021Segment
Segment Reporting [Abstract]
Number of reportable segments3

Segment Information - Selected

Segment Information - Selected Financial Information by Reportable Segment (Details) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Segment Reporting Information [Line Items]
Net sales $ 1,807.2 $ 1,708.7
Operating Income (Loss)238.3 209.1
Non-operating pension income and expense4.8 0.6
Interest expense, net(23.5)(19.6)
Income before taxes219.6 190.1
Trade
Segment Reporting Information [Line Items]
Net sales1,807.2 1,708.7
Intersegment Eliminations
Segment Reporting Information [Line Items]
Net sales(36.4)(36.4)
Operating Segments
Segment Reporting Information [Line Items]
Net sales1,807.2 1,708.7
Segment Reconciling Items
Segment Reporting Information [Line Items]
Net sales(36.4)(36.4)
Packaging
Segment Reporting Information [Line Items]
Net sales1,623.6 1,467.5
Operating Income (Loss)257.9 [1]199.8 [2]
Packaging | Trade
Segment Reporting Information [Line Items]
Net sales1,619.8 1,465.4
Packaging | Intersegment Eliminations
Segment Reporting Information [Line Items]
Net sales3.8 2.1
Packaging | Operating Segments
Segment Reporting Information [Line Items]
Net sales1,623.6 1,467.5
Paper
Segment Reporting Information [Line Items]
Net sales164.6 217.4
Operating Income (Loss)8.7 [1]32.5 [2]
Paper | Trade
Segment Reporting Information [Line Items]
Net sales164.4 217.4
Paper | Intersegment Eliminations
Segment Reporting Information [Line Items]
Net sales0.2
Paper | Operating Segments
Segment Reporting Information [Line Items]
Net sales164.6 217.4
Corporate and Other
Segment Reporting Information [Line Items]
Net sales19 23.8
Operating Income (Loss)(28.3)(23.2)
Corporate and Other | Trade
Segment Reporting Information [Line Items]
Net sales23 25.9
Corporate and Other | Intersegment Eliminations
Segment Reporting Information [Line Items]
Net sales32.4 34.3
Corporate and Other | Operating Segments
Segment Reporting Information [Line Items]
Net sales $ 55.4 $ 60.2
[1]The three months ended March 31, 2021 include the following: 1. $2.1 million of charges consisting of closure costs related to corrugated products facilities. 2. $1.1 million of charges related to the announced discontinuation of production of uncoated freesheet paper grades on the No. 3 machine at the Jackson, Alabama mill in the first quarter of 2021 associated with the permanent conversion of the machine to produce linerboard.
[2]The three months ended March 31, 2020 include the following: 1.$0.8 million of incremental, out-of-pocket costs related to COVID-19, including supplies, cleaning and sick pay. Beginning in July 2020, all corresponding COVID-19 related expenses were included in normalized costs. 2.$0.4 million of charges consisting of closure costs related to corrugated products facilities.

Segment Information - Selecte_2

Segment Information - Selected Financial Information by Reportable Segment (Parenthetical) (Details) - Packaging and Paper - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Segment Reporting Information [Line Items]
Restructuring charges $ 2.1 $ 0.4
Jackson, Alabama Mill
Segment Reporting Information [Line Items]
Restructuring charges $ 1.1
COVID-19
Segment Reporting Information [Line Items]
Incremental out-of-pocket costs $ 0.8

Commitments, Guarantees, Inde_2

Commitments, Guarantees, Indemnifications, and Legal Proceedings - Additional Information (Details) - DeRidder, Louisiana - USD ($)3 Months Ended
Mar. 31, 2021Jun. 30, 2018Feb. 08, 2017
Schedule Of Commitments And Contingencies [Line Items]
Loss contingency, period of occurrenceFebruary 8, 2017
Liability insurance $ 1,000,000
Payment of penalties $ 40,000