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Employee Benefit Plans and Other Postretirement Plans (Tables)
 12 Months Ended
Dec. 31, 2013
Schedule of Obligations and Funded Status of Defined Benefit Pension and Postretirement Benefit Plans
The following table, which includes only company-sponsored defined benefit and other postretirement benefit plans, reconciles the beginning and ending balances of the projected benefit obligation and the fair value of plan assets. We recognize the unfunded status of these plans on the Consolidated Balance Sheets, and we recognize changes in funded status in the year changes occur through the Consolidated Statements of Comprehensive Income (dollars in thousands):
 
Pension Plans
Postretirement Plans
 
Year Ended December 31
Year Ended December 31
 
2013
 
2012
 
2013
 
2012
Change in Benefit Obligation
 
 
 
 
 
 
 
Benefit obligation at beginning of period
$
378,714

 
$
314,155

 
$
31,806

 
$
25,937

Service cost
24,460

 
22,424

 
2,061

 
1,856

Interest cost
21,488

 
14,800

 
1,248

 
1,241

Plan amendments (a)
13,785

 
2,271

 
—

 
2,266

Actuarial (gain) loss (b)
(53,451
)
 
29,338

 
(7,797
)
 
1,698

Acquisitions
553,969

 
—

 
226

 
—

Participant contributions
—

 
—

 
1,239

 
1,055

Benefits paid
(9,149
)
 
(4,274
)
 
(2,528
)
 
(2,247
)
Benefit obligation at plan year end
$
929,816

 
$
378,714

 
$
26,255

 
$
31,806

Accumulated benefit obligation portion of above
$
884,016

 
$
341,729

 
 
 
 
 
 
 
 
 
 
 
 
Change in Fair Value of Plan Assets
 
 
 
 
 
 
 
Plan assets at fair value at beginning of period
$
238,359

 
$
185,122

 
$
—

 
$
—

Acquisitions
486,171

 
—

 
—

 
—

Actual return on plan assets
26,555

 
21,527

 
—

 
—

Company contributions
30,146

 
35,984

 
1,289

 
1,192

Participant contributions
—

 
—

 
1,239

 
1,055

Benefits paid
(9,149
)
 
(4,274
)
 
(2,528
)
 
(2,247
)
Fair value of plan assets at plan year end
$
772,082

 
$
238,359

 
$
—

 
$
—

 
 
 
 
 
 
 
 
Underfunded status
$
(157,734
)
 
$
(140,355
)
 
$
(26,255
)
 
$
(31,806
)
 
 
 
 
 
 
 
 
Amounts Recognized in Statement of Financial Position
 
 
 
 
 
 
 
Current liabilities
$
(832
)
 
$
(6,290
)
 
$
(1,231
)
 
$
(1,333
)
Noncurrent liabilities
(156,902
)
 
(134,065
)
 
(25,024
)
 
(30,473
)
Accrued benefit recognized at December 31
$
(157,734
)
 
$
(140,355
)
 
$
(26,255
)
 
$
(31,806
)
Amounts Recognized in Accumulated Other Comprehensive (Income) Loss (Pre-Tax)
 
 
 
 
 
 
 
Prior service cost
$
31,577

 
$
34,921

 
$
72

 
$
(353
)
Actuarial loss
26,742

 
90,057

 
1,472

 
9,759

Total
$
58,319

 
$
124,978

 
$
1,544

 
$
9,406

___________
(a)
In 2013, the United Steel Workers (USW) ratified a master labor agreement with PCA under which certain USW-represented employees will have their pension accruals frozen under PCA's hourly pension plan, resulting in most of the $13.8 million increase in benefit obligations.
(b)
The actuarial gain in 2013 is due primarily to an increase in the weighted average discount rate, while the discount rate decreased in 2012.
Components of Net Periodic Benefit Costs and Other Comprehensive (Income) Loss (Pretax)
The components of net periodic benefit cost and other comprehensive (income) loss (pretax) are as follows (dollars in thousands):
 
Pension Plans
 
Postretirement Plans
 
Year Ended December 31
 
Year Ended December 31
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Service cost
$
24,460

 
$
22,424

 
$
19,808

 
$
2,061

 
$
1,856

 
$
1,599

Interest cost
21,488

 
14,800

 
13,473

 
1,248

 
1,241

 
1,189

Expected return on plan assets
(21,345
)
 
(12,108
)
 
(13,544
)
 
—

 
—

 
—

Net amortization of unrecognized amounts
 
 
 
 
 
 
 
 
 
 
 
Prior service cost
6,222

 
5,993

 
5,782

 
(426
)
 
(419
)
 
(416
)
Actuarial loss
4,662

 
4,916

 
411

 
490

 
452

 
449

Curtailment loss (a)
10,908

 
—

 
—

 
—

 
—

 
—

Net periodic benefit cost
$
46,395

 
$
36,025

 
$
25,930

 
$
3,373

 
$
3,130

 
$
2,821

 
 
 
 
 
 
 
 
 
 
 
 
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss
 
 
 
 
 
 
 
 
 
 
 
Actuarial net (gain) loss
$
(58,652
)
 
$
19,919

 
$
49,675

 
$
(7,798
)
 
$
1,698

 
$
754

Prior service credit
13,785

 
2,270

 
1,827

 
—

 
17

 
—

Amortization of actuarial loss
(4,662
)
 
(4,916
)
 
(411
)
 
(490
)
 
(452
)
 
(449
)
Amortization of prior service cost
(17,130
)
 
(5,993
)
 
(5,782
)
 
426

 
419

 
416

Total recognized in other comprehensive (income) loss (b)
(66,659
)
 
11,280

 
45,309

 
(7,862
)
 
1,682

 
721

Total recognized in net periodic benefit cost and other comprehensive (income) loss
$
(20,264
)
 
$
47,305

 
$
71,239

 
$
(4,489
)
 
$
4,812

 
$
3,542

___________
(a)
PCA recognized curtailment losses in "Other expense, net" in the Consolidated Statements of Income for recent USW negotiations, resulting in the bifurcation of the active USW population between those grandfathered in the current formula (with continued accruals) and non-grandfathered in the current formula (frozen benefits at the contract date).
(b)
Accumulated losses in excess of 10% of the greater of the projected benefit obligation or the market-related value of assets will be recognized on a straight-line basis over the average remaining service period of active employees, which is between seven to ten years, to the extent that losses are not offset by gains in subsequent years. The estimated net loss and prior service cost that will be amortized from "Accumulated other comprehensive income (loss)" into pension expense in 2014 is $7.1 million.
Weighted-Average Assumptions Used To Determine Benefit Obligations and Net Periodic Benefit Cost
The following table presents the assumptions used in the measurement of our benefits obligations:
 
Pension Plans
 
Postretirement Plans
 
December 31
 
December 31
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31
 
 
 
 
 
 
 
 
 
 
 
Discount rate
5.00%
 
4.25%
 
4.75%
 
4.85%
 
4.00%
 
4.50%
Rate of compensation increase
4.00%
 
4.00%
 
4.00%
 
N/A
 
N/A
 
N/A
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for the Years Ended December 31
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.57%
 
4.75%
 
5.50%
 
4.00%
 
4.50%
 
5.25%
Expected return on plan assets
6.53%
 
6.15%
 
7.75%
 
N/A
 
N/A
 
N/A
Rate of compensation increase
4.00%
 
4.00%
 
4.00%
 
N/A
 
N/A
 
N/A
Assumed Health Care Cost Trend Rates For Postretirement Benefits
Health Care Cost Trend Rate Assumptions. PCA assumed health care cost trend rates for its postretirement benefits plans were as follows:
 
2013
 
2012
 
2011
Health care cost trend rate assumed for next year
7.75%
 
8.00%
 
8.00%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
5.00%
 
5.00%
 
5.50%
Year that the rate reaches the ultimate trend rate
2020
 
2020
 
2016
Schedule of Effects of One-Percentage Point Change In Assumed Health Care Cost Trend Rates on Postretirement Benefits
A one-percentage point change in assumed health care cost trend rates would have the following effects on the 2013 postretirement benefit obligation and the 2013 net post retirement benefit cost (in thousands):
 
1-Percentage
Point Increase
 
1-Percentage
Point Decrease
Effect on postretirement benefit obligation
$
540

 
$
(483
)
Effect on net postretirement benefit cost
52

 
(45
)
Schedule of Pension Plans' Assets Investment Policies and Strategies
Pension plans’ assets were invested in the following classes of securities at December 31, 2013 and 2012:
 
Percentage
of Fair Value
 
2013
 
2012
Debt securities
52
%
 
61
%
International equity securities
25

 
20

U.S. equity securities
21

 
16

Real estate securities
1

 
3

Other
1
%
 
—
%
Schedule of Pension Plans' Assets Fair Value Measured On a Recurring Basis
The following tables set forth, by level within the fair value hierarchy, discussed in Note 2, Summary of Significant Accounting Policies, the pension plan assets, by major asset category, at fair value at December 31, 2013 and 2012 (dollars in thousands):
 
Fair Value Measurements at December 31, 2013
Asset Category 
Quoted Prices in Active Markets for Identical
Assets (Level 1)
 
Significant Other Observable
Inputs (Level 2)  
 
Significant
Unobservable
Inputs (Level 3) 
 
Total
Short-term investments (a)
$
—

 
$
1,858

 
$
—

 
$
1,858

Mutual funds (b):
 

 
 

 
 

 
 

U.S. large value
19,453

 
—

 
—

 
19,453

U.S. large growth
17,217

 
—

 
—

 
17,217

U.S. mid-cap value
3,135

 
—

 
—

 
3,135

U.S. mid-cap growth
6,781

 
—

 
—

 
6,781

Foreign large blend
45,159

 
—

 
—

 
45,159

Diversified emerging markets
8,005

 
—

 
—

 
8,005

Real estate
7,469

 
—

 
—

 
7,469

Fixed income
54,366

 
—

 
—

 
54,366

Common/collective trust funds (a):
 
 
 
 
 
 
 
U.S. large-cap equity blend
—

 
87,862

 
—

 
87,862

U.S. small and mid-cap equity blend
—

 
19,577

 
—

 
19,577

Foreign large blend
—

 
126,653

 
—

 
126,653

Diversified emerging markets
—

 
9,211

 
—

 
9,211

Government bonds
—

 
35,603

 
—

 
35,603

Corporate bonds
—

 
77,256

 
—

 
77,256

U.S. small blend
—

 
6,777

 
—

 
6,777

Fixed income
—

 
234,445

 
—

 
234,445

Private equity securities (c)
—

 
—

 
9,904

 
9,904

Total securities at fair value
$
161,585

 
$
599,242

 
$
9,904

 
$
770,731

Receivables and accrued expenses
 
 
 
 
 
 
1,351

Total fair value of plan assets
 
 
 
 
 
 
$
772,082



 
Fair Value Measurements at December 31, 2012
Asset Category 
Quoted Prices in Active Markets for Identical
Assets (Level 1)
 
Significant Other Observable
Inputs (Level 2)  
 
Significant
Unobservable
Inputs (Level 3) 
 
Total
Short-term investments (a)
$
—

 
$
394

 
$
—

 
$
394

Mutual funds (b):
 
 
 
 
 
 
 
U.S. large value
15,021

 
—

 
—

 
15,021

U.S. large growth
12,029

 
—

 
—

 
12,029

U.S. mid-cap value
2,481

 
—

 
—

 
2,481

U.S. mid-cap growth
4,734

 
—

 
—

 
4,734

Foreign large blend
39,204

 
—

 
—

 
39,204

Diversified emerging markets
7,722

 
—

 
—

 
7,722

Real estate
6,881

 
—

 
—

 
6,881

Fixed income
48,699

 
—

 
—

 
48,699

Common/collective trust funds (a):
 
 
 
 
 
 
 
Government bonds
—

 
29,644

 
—

 
29,644

Corporate bonds
—

 
66,517

 
—

 
66,517

U.S. small blend
—

 
5,033

 
—

 
5,033

Total fair value of plan assets
$
136,771

 
$
101,588

 
$
—

 
$
238,359

 ____________
(a)
Investments in common/collective trust funds valued using NAV provided by the administrator of the funds. We use NAV as a practical expedient to fair value. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of units outstanding. While the underlying assets are actively traded on an exchange, the funds are not. There are currently no redemption restrictions on these investments. There are certain funds with one-day redeemable notice.
(b)
Investments in mutual funds valued at quoted market values on the last business day of the fiscal year.
(c)
Investments in this category are invested in the Pantheon Global Secondary Fund IV, LP. The fund specializes in investments in the private equity secondary market and occasionally directly in private companies to maximize capital growth. Fund investments are carried at fair value as determined quarterly using the market approach to estimate the fair value of private investments. The market approach utilizes prices and other relevant information generated by market transactions, type of security, size of the position, degree of liquidity, restrictions on the disposition, latest round of financing data, current financial position, and operating results, among other factors. In circumstances where fair values are not provided with respect to any of the company's fund investments, the investment advisor will seek to determine the fair value of such investments based on information provided by the general partners or managers of such funds or from other sources. Audited financial statements are provided by fund management annually. Notwithstanding the above, the variety of valuation bases adopted and quality of management data of the ultimate underlying investee companies means that there are inherent difficulties in determining the value of the investments. Amounts realized on the sale of these investments may differ from the calculated values. Boise had originally committed to a $15.0 million investment, with $6.2 million of the commitment unfunded at December 31, 2013.
Summary of Changes in Pension Plans' Level 3 Assets
The following table sets forth a summary of changes in the fair value of the pension plans' Level 3 assets for the year ended December 31, 2013 (dollars in thousands):
 
2013
Balance, beginning of year
$
—

Acquisitions
8,479

Purchases
975

Sales
—

Unrealized gain
450

Balance, end of year
$
9,904
Schedule of Estimated Benefit Payments
The following are estimated benefit payments to be paid to current plan participants by year (dollars in thousands). Qualified pension benefit payments are paid from plan assets, while nonqualified pension benefit payments are paid by the Company.
 
Pension Plans
 
Postretirement 
Plans
2014
$
30,551

 
$
1,231

2015
34,304

 
1,287

2016
38,027

 
1,369

2017
42,020

 
1,523

2018
45,759

 
1,665

2019 - 2023
281,889

 
10,150