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Asset Retirement Obligations
 12 Months Ended
Dec. 31, 2011
Asset Retirement Obligations [Abstract]  
Asset Retirement Obligations
14. ASSET RETIREMENT OBLIGATIONS

Asset retirement obligations consist primarily of landfill capping and closure and post-closure costs. PCA is legally required to perform capping and closure and post-closure care on the landfills at each of the Company's mills. In accordance with ASC 410, "Asset Retirement and Environmental Obligations," PCA recognizes the fair value of these liabilities as an asset retirement obligation for each landfill and capitalizes that cost as part of the cost basis of the related asset. The liability is accreted to its estimated value of the asset retirement obligation over time, and the related assets are depreciated on a straight-line basis over their useful lives. Upon settlement of the liability, PCA will recognize a gain or loss for any difference between the settlement amount and the recorded liability.

The following table describes changes to PCA's asset retirement obligation liability:

 

                 
     2011      2010  
     (In thousands)  

Asset retirement obligation, January 1

    $ 4,884       $ 4,521   

Accretion expense

      211         363   

Payments

      —         —   
    

 

 

     

 

 

  

Asset retirement obligation, December 31

    $ 5,095       $ 4,884