Employee Benefit Plans and Other Postretirement Plans (Tables)

12 Months Ended

Dec. 31, 2014

Compensation and Retirement Disclosure [Abstract]

Schedule of Obligations and Funded Status of Defined Benefit Pension and Postretirement Benefit Plans

The following table, which includes only company-sponsored defined benefit and other postretirement benefit plans, reconciles the beginning and ending balances of the projected benefit obligation and the fair value of plan assets. We recognize the 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 millions):



	Pension Plans						Postretirement Plans
	Year Ended December 31						Year Ended December 31
	2014			2013			2014			2013
Change in Benefit Obligation
Benefit obligation at beginning of period	$	929.8		$	378.7		$	26.3		$	31.8
Service cost	22.7			24.5			1.6			2.1
Interest cost	45.9			21.5			1.2			1.3
Plan amendments (a)	2.6			13.8			—			—
Actuarial (gain) loss (b)	159.2			(53.5		)	4.1			(7.8		)
Acquisitions	—			554.0			—			0.2
Special termination benefits	0.3			—			—			—
Participant contributions	—			—			1.2			1.2
Benefits paid	(30.9		)	(9.2		)	(2.5		)	(2.5		)
Benefit obligation at plan year end	$	1,129.6		$	929.8		$	31.9		$	26.3
Accumulated benefit obligation portion of above	$	1,078.6		$	884.0

Change in Fair Value of Plan Assets
Plan assets at fair value at beginning of period	$	772.1		$	238.4		$	—		$	—
Acquisitions	—			486.2			—			—
Actual return on plan assets	63.4			26.6			—			—
Company contributions	1.3			30.1			1.3			1.3
Participant contributions	—			—			1.2			1.2
Benefits paid	(30.9		)	(9.2		)	(2.5		)	(2.5		)
Fair value of plan assets at plan year end	$	805.9		$	772.1		$	—		$	—

Underfunded status	$	(323.7	)	$	(157.7	)	$	(31.9	)	$	(26.3	)

Amounts Recognized on Consolidated Balance Sheets
Current liabilities	$	(1.1	)	$	(0.8	)	$	(1.4	)	$	(1.2	)
Noncurrent liabilities	(322.6		)	(156.9		)	(30.5		)	(25.1		)
Accrued obligation recognized at December 31	$	(323.7	)	$	(157.7	)	$	(31.9	)	$	(26.3	)
Amounts Recognized in Accumulated Other Comprehensive (Income) Loss (Pre-Tax)
Prior service cost	$	27.6		$	31.6		$	0.3		$	0.1
Actuarial loss	172.6			26.7			5.5			1.4
Total	$	200.2		$	58.3		$	5.8		$	1.5

___________


(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 loss in 2014 is due primarily to a decrease in the weighted average discount rate and also our use of recently updated mortality assumptions from the Society of Actuaries which reflect longer expected participant longevity. In 2013, the discount rate increased resulting in an actuarial gain.

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) were as follows (dollars in millions):



	Pension Plans									Postretirement Plans
	Year Ended December 31									Year Ended December 31
	2014			2013			2012			2014			2013			2012
Service cost	$	22.7		$	24.5		$	22.4		$	1.6		$	2.1		$	1.9
Interest cost	45.9			21.5			14.8			1.2			1.3			1.2
Expected return on plan assets	(50.7		)	(21.4		)	(12.1		)	—			—			—
Special termination benefits	0.3			—			—			—			—			—
Net amortization of unrecognized amounts
Prior service cost	6.5			6.2			6.0			(0.2		)	(0.4		)	(0.4		)
Actuarial loss	0.6			4.7			4.9			0.1			0.5			0.5
Curtailment loss (a)	—			10.9			—			—			—			—
Net periodic benefit cost	$	25.3		$	46.4		$	36.0		$	2.7		$	3.5		$	3.2

Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss
Actuarial net (gain) loss	$	146.4		$	(58.7	)	$	19.9		$	4.2		$	(7.8	)	$	1.7
Prior service cost	2.6			13.8			2.3			—			—			—
Amortization of prior service cost	(6.5		)	(6.2		)	(6.0		)	0.2			0.4			0.4
Amortization of actuarial loss	(0.6		)	(4.7		)	(4.9		)	(0.1		)	(0.5		)	(0.5		)
Curtailment loss (a)	—			(10.9		)	—			—			—			—
Total recognized in other comprehensive (income) loss (b)	141.9			(66.7		)	11.3			4.3			(7.9		)	1.6
Total recognized in net periodic benefit cost and other comprehensive (income) loss - pretax	$	167.2		$	(20.3	)	$	47.3		$	7.0		$	(4.4	)	$	4.8

___________


(a)	We 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 loss" into pension expense in 2015 is $14.0 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
	2014	2013	2012	2014	2013	2012
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31
Discount rate	4.14%	5.00%	4.25%	3.95%	4.85%	4.00%
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	5.00%	4.57%	4.75%	4.85%	4.00%	4.50%
Expected return on plan assets	6.69%	6.53%	6.15%	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:



	2014	2013	2012
Health care cost trend rate assumed for next year	7.75%	7.75%	8.00%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	5.00%	5.00%	5.00%
Year that the rate reaches the ultimate trend rate	2023	2020	2020

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 2014 postretirement benefit obligation and the 2014 net post retirement benefit cost (in millions):



	1-Percentage Point Increase		1-Percentage Point Decrease
Effect on postretirement benefit obligation	$	1.3	$	(1.1	)
Effect on net postretirement benefit cost	0.1		(0.1		)

Schedule of Pension Plans' Assets Investment Policies and Strategies

Pension plans’ assets were invested in the following classes of securities at December 31, 2014 and 2013:



	Percentage of Fair Value
	2014		2013
Debt securities	54	%	52	%
International equity securities	23		25
U.S. equity securities	20		21
Real estate securities	1		1
Other	2		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, 2014 and 2013 (dollars in millions):



	Fair Value Measurements at December 31, 2014
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)	$	—	$	1.8	$	—	$	1.8
Mutual funds (b):
U.S. large value	14.8		—		—		14.8
U.S. large growth	11.6		—		—		11.6
U.S. mid-cap value	3.0		—		—		3.0
U.S. mid-cap growth	8.8		—		—		8.8
Foreign large blend	41.9		—		—		41.9
Diversified emerging markets	8.0		—		—		8.0
Real estate	8.9		—		—		8.9
Fixed income	178.2		—		—		178.2
Common/collective trust funds (a):
U.S. large-cap equity blend	—		92.9		—		92.9
U.S. small and mid-cap equity blend	—		20.5		—		20.5
Foreign large blend	—		128.4		—		128.4
Diversified emerging markets	—		9.4		—		9.4
U.S. small blend	—		8.9		—		8.9
Fixed income	—		259.3		—		259.3
Private equity securities (c)	—		—		8.1		8.1
Total securities at fair value	$	275.2	$	521.2	$	8.1	$	804.5
Receivables and accrued expenses							1.4
Total fair value of plan assets							$	805.9



	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)	$	—	$	1.9	$	—	$	1.9
Mutual funds (b):
U.S. large value	19.4		—		—		19.4
U.S. large growth	17.2		—		—		17.2
U.S. mid-cap value	3.1		—		—		3.1
U.S. mid-cap growth	6.8		—		—		6.8
Foreign large blend	45.2		—		—		45.2
Diversified emerging markets	8.0		—		—		8.0
Real estate	7.5		—		—		7.5
Fixed income	54.4		—		—		54.4
Common/collective trust funds (a):
U.S. large-cap equity blend	—		87.9		—		87.9
U.S. small and mid-cap equity blend	—		19.6		—		19.6
Foreign large blend	—		126.6		—		126.6
Diversified emerging markets	—		9.2		—		9.2
Government bonds	—		35.6		—		35.6
Corporate bonds	—		77.2		—		77.2
U.S. small blend	—		6.8		—		6.8
Fixed income	—		234.4		—		234.4
Private equity securities (c)	—		—		9.9		9.9
Total securities at fair value	$	161.6	$	599.2	$	9.9	$	770.7
Receivables and accrued expenses							1.4
Total fair value of plan assets							$	772.1

____________

(a)

Investments in common/collective trust funds valued using net asset values (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 $5.0 million of the commitment unfunded at December 31, 2014.

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, 2014 (dollars in millions):



	2014
Balance, beginning of year	$	9.9
Acquisitions	—
Purchases	—
Sales	(3.4		)
Unrealized gain	1.6
Balance, end of year	$	8.1

Schedule of Estimated Benefit Payments

The following are estimated benefit payments to be paid to current plan participants by year (dollars in millions). Qualified pension benefit payments are paid from plan assets, while nonqualified pension benefit payments are paid by the Company.



	Pension Plans		Postretirement Plans
2015	$	34.2	$	1.4
2016	37.6		1.6
2017	41.5		1.7
2018	45.2		1.9
2019	49.0		2.1
2020 - 2024	298.3		12.1