XML 108 R34.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2014
Income Tax Disclosure [Abstract] |
Components of Consolidated Income Tax Provision | The following is an analysis of the components of the consolidated income tax provision (dollars in millions):
| 2014 |  | 2013 |  | 2012
Current income tax provision (benefit) - |  |  |  |  |
U.S. Federal | $ | 185.1 |  |  | $ | 129.6 |  |  | $ | 27.1 |
State and local | 33.1 |  |  | 12.7 |  |  | 6.4 |
Foreign | 0.9 |  |  | 0.3 |  |  | — |
Total current provision for taxes | 219.1 |  |  | 142.6 |  |  | 33.5 |
Deferred - |  |  |  |  |
U.S. Federal | (5.0 | ) |  | (160.5 | ) |  | 179.1 |
State and local | 7.6 |  |  | 0.3 |  |  | 1.9 |
Foreign | — |  |  | (0.1 | ) |  | — |
Total deferred provision (benefit) for taxes | 2.6 |  |  | (160.3 | ) |  | 181.0 |
Total provision (benefit) for taxes | $ | 221.7 |  |  | $ | (17.7 | ) |  | $ | 214.5 |
Summary of Effective Tax Rate | The effective tax rate varies from the U.S. Federal statutory tax rate principally due to the following (dollars in millions):
| 2014 |  | 2013 |  | 2012
Provision computed at U.S. Federal statutory rate of 35% | $ | 215.0 |  |  | $ | 148.3 |  |  | $ | 131.1 |
Alternative fuel mixture and cellulosic biofuel producer credits | — |  |  | (166.0 | ) |  | 81.7 |
State and local taxes, net of federal benefit | 20.5 |  |  | 13.6 |  |  | 8.9 |
Domestic manufacturers deduction | (16.5 | ) |  | (11.7 | ) |  | (7.2 | )
Other | 2.7 |  |  | (1.9 | ) |  | — |
Total | $ | 221.7 |  |  | $ | (17.7 | ) |  | $ | 214.5 |
Summary of Operating Loss Carryforwards | The following details the scheduled expiration dates of our tax effected net operating loss (NOL) and other tax carryforwards at December 31, 2014 (dollars in millions):
| 2015 Through 2024 |  | 2025 Through 2034 |  | Indefinite |  | Total
U.S. federal and non-U.S. NOLs | $ | 1.1 |  |  | $ | 76.6 |  |  | $ | 0.3 |  |  | $ | 78.0 |
State taxing jurisdiction NOLs | 3.6 |  |  | 3.6 |  |  | — |  |  | 7.2 |
U.S. federal, non-U.S., and state tax credit carryforwards | 0.2 |  |  | 0.4 |  |  | 0.6 |  |  | 1.2 |
U.S. federal capital loss carryforwards | 0.6 |  |  | — |  |  | — |  |  | 0.6 |
Total | $ | 5.5 |  |  | $ | 80.6 |  |  | $ | 0.9 |  |  | $ | 87.0 |
Deferred Income Tax Assets and Liabilities | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. Deferred income tax assets and liabilities at December 31 are summarized as follows (dollars in millions):
| December 31
| 2014 |  | 2013
Deferred tax assets: |  |  |  |  |
Accrued liabilities | $ | 19.0 |  |  | $ | 19.5 |
Employee benefits and compensation | 44.2 |  |  | 27.3 |
Net operating loss carryforwards | 85.2 |  |  | 126.8 |
Stock options and restricted stock | 8.9 |  |  | 8.9 |
Pension and postretirement benefits | 139.1 |  |  | 75.5 |
Derivatives | 16.0 |  |  | 18.2 |
Capital loss, general business, foreign, and AMT credit carryforwards | 1.8 |  |  | 2.6 |
Gross deferred tax assets | $ | 314.2 |  |  | $ | 278.8 |
Valuation allowance (a) | (1.7 | ) |  | (2.7 | )
Net deferred tax assets | $ | 312.5 |  |  | $ | 276.1 |
Deferred tax liabilities: |  |  |  |  |
Property, plant, and equipment | $ | (531.6 | ) |  | $ | (519.7 | )
Goodwill and intangible assets | (107.7 | ) |  | (111.9 | )
Inventories | (7.4 | ) |  | (28.5 | )
Investment in joint venture | — |  |  | (1.0 | )
Other | — |  |  | (2.2 | )
Total deferred tax liabilities | $ | (646.7 | ) |  | $ | (663.3 | )
Net deferred tax liabilities (b) | $ | (334.2 | ) |  | $ | (387.2 | )
___________
(a) | Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion of the deferred tax assets will not be realized. In 2014, of the $1.7 million valuation allowance, $1.1 million relates to foreign net operating loss carryforwards and credits and $0.6 million relates to capital losses. In 2013, of the $2.7 million valuation allowance, $1.6 million relates to foreign net operating loss carryforwards and credits and $1.1 million relates to capital losses. We do not expect to generate capital gains before the capital losses expire. If or when recognized, the tax benefits relating to the reversal of any of or all of the valuation allowance would be recognized as a benefit to income tax expense.
(b) | As of December 31, 2014, we did not recognize U.S. deferred income taxes on our cumulative total of undistributed foreign earnings for our non-U.S. subsidiaries. We indefinitely reinvest our earnings in operations outside the United States. It is not practicable to determine the amount of unrecognized deferred tax liability on these undistributed earnings because the actual tax liability, if any, is dependent on circumstances existing when the repatriation occurs.
Summary of Uncertain Tax Position | The following table summarizes the changes related to PCA’s gross unrecognized tax benefits excluding interest and penalties (dollars in millions):
| 2014 |  | 2013 |  | 2012
Balance as of January 1 | $ | (5.4 | ) |  | $ | (111.3 | ) |  | $ | (111.0 | )
Increase related to acquisition of Boise Inc. (a) | — |  |  | (65.2 | ) |  | — |
Increases related to prior years’ tax positions | (1.0 | ) |  | (0.1 | ) |  | (0.1 | )
Increases related to current year tax positions | (0.3 | ) |  | (1.5 | ) |  | (1.3 | )
Decreases related to prior years' tax positions (b) | 0.9 |  |  | 64.8 |  |  | — |
Settlements with taxing authorities (c) | 0.5 |  |  | 106.2 |  |  | — |
Expiration of the statute of limitations (d) | 0.9 |  |  | 1.7 |  |  | 1.1 |
Balance at December 31 | $ | (4.4 | ) |  | $ | (5.4 | ) |  | $ | (111.3 | )
___________
(a) | In 2013, PCA acquired $65.2 million of gross unrecognized tax benefits from Boise Inc. that relate primarily to the taxability of the alternative energy tax credits.
(b) | The 2013 amount includes a $64.3 million gross decrease related to the taxability of the alternative energy tax credits claimed in 2009 excise tax returns by Boise Inc. For further discussion regarding these credits, see Note 7, Alternative Energy Tax Credits.
(c) | The 2013 amount includes a $104.7 million gross decrease related to the conclusion of the Internal Revenue Service audit of PCA’s alternative energy tax credits. For further discussion regarding these credits, see Note 7, Alternative Energy Tax Credits.
(d) | In 2014, 2013, and 2012, various state statutes of limitations expired. As a result, the reserve for unrecognized tax benefits decreased by $0.9 million gross, $1.7 million gross, and $1.1 million gross, respectively.

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information, such as tax authority, amounts, and expiration dates, of net operating loss carryforwards, including an assessment of the likelihood of utilization. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
Name: | us-gaap_SummaryOfOperatingLossCarryforwardsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration