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Debt | 12 Months Ended
--- | ---
Dec. 31, 2016
Debt Disclosure [Abstract] |
Debt | Debt At December 31, 2016 and 2015, our long-term debt and interest rates on that debt were as follows (dollars in millions):
| December 31, 2016 |  | December 31, 2015
| Amount |  | Interest Rate |  | Amount |  | Interest Rate
Revolving Credit Facility, due August 2021 | $ | — |  |  | — | % |  | $ | — |  |  | — | %
Five-Year Term Loan, due October 2018 | — |  |  | — |  |  | 25.0 |  |  | 1.80 |
Five-Year Term Loan, due August 2021 | 380.2 |  |  | 2.02 |  |  | — |  |  | — |
Seven-Year Term Loan, due October 2020 | 630.5 |  |  | 2.40 |  |  | 637.0 |  |  | 2.05 |
6.50% Senior Notes due March 2018 | 150.0 |  |  | 6.50 |  |  | 150.0 |  |  | 6.50 |
3.90% Senior Notes, net of discounts of $0.2 million and $0.3 million as of December 31, 2016 and 2015, respectively, due June 2022 | 399.8 |  |  | 3.90 |  |  | 399.7 |  |  | 3.90 |
4.50% Senior Notes, net of discount of $1.4 million and $1.5 million as of December 31, 2016 and 2015, respectively, due November 2023 | 698.6 |  |  | 4.50 |  |  | 698.5 |  |  | 4.50 |
3.65% Senior Notes, net of discount of $0.9 million and $1.0 million as of December 31, 2016 and 2015, due September 2024 | 399.1 |  |  | 3.65 |  |  | 399.0 |  |  | 3.65 |
Total | 2,658.2 |  |  | 3.54 |  |  | 2,309.2 |  |  | 3.67 |
Less current portion | 25.8 |  |  | 2.11 |  |  | 6.5 |  |  | 2.05 |
Less unamortized debt issuance costs | 12.4 |  |  |  |  | 12.3 |  |  |
Total long-term debt | $ | 2,620.0 |  |  | 3.57 | % |  | $ | 2,290.4 |  |  | 3.69 | %
As of December 31, 2016, the details of our borrowings were as follows:
• | Senior Unsecured Credit Agreement. On October 18, 2013, we entered into a $1.65 billion senior unsecured credit facility. Loans bear interest at LIBOR plus a margin that is determined based upon our credit ratings. On August 29, 2016, we amended and restated our five-year credit agreement dated October 18, 2013, to finance the acquisition of TimBar Corporation. The financing consisted of:
◦ | Revolving Credit Facility: An extended $350.0 million unsecured revolving credit facility with variable interest (LIBOR plus a margin) due August 2021. During 2016, we did not borrow under the Revolving Credit Facility. At December 31, 2016, we had $25.1 million of outstanding letters of credit that were considered outstanding on the revolving credit facility, resulting in $324.9 million of unused borrowing capacity. The outstanding letters of credit were primarily for workers compensation. We are required to pay commitment fees on the unused portions of the credit facility.
◦ | Five-Year Term Loan: A new $385.0 million unsecured five-year term loan with variable interest (LIBOR plus 1.250%), payable quarterly, due August 2021. The balance outstanding at December 31, 2016 was $380.2 million.
◦ | Seven-Year Term Loan: A $650.0 million unsecured term loan with variable interest (LIBOR plus 1.625%), payable quarterly, due October 2020. The balance outstanding at December 31, 2016 was $630.5 million.
• | 6.50% Senior Notes. On March 25, 2008, we issued $150.0 million of 6.50% senior notes due March 15, 2018, through a registered public offering.
• | 3.90% Senior Notes. On June 26, 2012, we issued $400.0 million of 3.90% senior notes due June 15, 2022, through a registered public offering.
• | 4.50% Senior Notes. On October 22, 2013, we issued $700.0 million of 4.50% senior notes due November 1, 2023, through a registered public offering.
• | 3.65% Senior Notes. On September 5, 2014, we issued $400.0 million of 3.65% senior notes due September 15, 2024, through a registered public offering.
The instruments governing our indebtedness contain financial and other covenants that limit the ability of PCA and its subsidiaries to enter into sale and leaseback transactions, incur liens, incur indebtedness at the subsidiary level, enter into certain transactions with affiliates, merge or consolidate with any other person or sell or otherwise dispose of all or substantially all of our assets. Our credit facility also requires us to comply with certain financial covenants, including maintaining a minimum interest coverage ratio and a maximum leverage ratio. A failure to comply with these restrictions could lead to an event of default, which could result in an acceleration of any outstanding indebtedness and/or prohibit us from drawing on the revolving credit facility. Such an acceleration may also constitute an event of default under the senior notes indenture. At December 31, 2016, we were in compliance with these covenants. At December 31, 2016, we have $1,647.5 million of fixed-rate senior notes and $1,010.7 million of variable-rate term loans outstanding. At December 31, 2016, the fair value of our fixed-rate debt was estimated to be $1,717.6 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), discussed further in Note 2, Summary of Significant Accounting Policies. The fair value of our variable-rate term debt approximates the carrying amount as our cost of borrowing is variable and approximates current market rates. Repayments, Interest, and Other In 2016, we used cash on hand to make principal payments of $25.0 million under the Five-Year Term Loan, due October 2018 (which is no longer outstanding), $4.8 million under the Five-Year Term Loan, due August 2021, and $6.5 million under the Seven-Year Term Loan, due October 2020. In 2015, we used cash on hand to repay $40.0 million of debt outstanding under the Five-Year Term Loan, due October 2018 and $6.5 million under the Seven-Year Term Loan, due October 2020. In 2014, we used the proceeds of our $400.0 million of 3.65% fixed-rate senior notes offering and other cash on hand to repay $591.5 million of debt outstanding under the Five-Year Term Loan, due October 2018 and Seven-Year Term Loan, due October 2020. As of December 31, 2016, annual principal maturities for debt, excluding unamortized debt discount, are: $25.8 million for 2017; $175.8 million for 2018; $25.8 million for 2019; $630.3 million for 2020; $303.2 million for 2021; and $1.5 billion for 2022 and thereafter. At December 31, 2016, the reference interest rate (LIBOR) for our Five-Year Term Loan, due August 2021, was 0.77% and the applicable margin was 1.250%. At December 31, 2015, the reference interest rate (LIBOR) for our Five-Year Term Loan, due October 2018, was 0.42% and the applicable margin was 1.375%. At December 31, 2016 and 2015, the reference interest rate (LIBOR) for our Seven-Year Term Loan, due October 2020, was 0.77% and 0.42%, respectively. At both December 31, 2016 and 2015, the applicable margin on our Seven-Year Term Loan, due October 2020, was 1.625%. Interest payments and redemption premium payments paid in connection with the Company’s debt obligations for the years ended December 31, 2016, 2015, and 2014, were $88.3 million, $85.5 million, and $77.0 million, respectively. Included in interest expense, net, are amortization of financing costs and amortization of treasury lock settlements. Amortization of treasury lock settlements was a $5.7 million net loss in 2016, 2015, and 2014. Amortization of financing costs in 2016, 2015, and 2014 was $1.9 million, $1.8 million, and $3.3 million (including $1.5 million write-off of deferred financing costs related to the September 2014 debt refinancing), respectively.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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