XML 30 R14.htm IDEA: XBRL DOCUMENT
v3.20.4

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes |
7. | Income Taxes
The following is an analysis of the components of the consolidated income tax provision (dollars in millions):
|  | Year Ended December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
Current income tax provision - |  |  |  |  |  |  |  |  |  |  |  |
U.S. federal |  | $ | 109.4 |  |  | $ | 123.2 |  |  | $ | 150.7 |
State and local |  |  | 27.5 |  |  |  | 37.0 |  |  |  | 42.9 |
Foreign |  |  | 0.1 |  |  |  | 0.1 |  |  |  | 0.2 |
Total current provision for taxes |  |  | 137.0 |  |  |  | 160.3 |  |  |  | 193.8 |
Deferred income tax provision (benefit) - |  |  |  |  |  |  |  |  |  |  |  |
U.S. federal |  |  | 26.8 |  |  |  | 55.3 |  |  |  | 34.7 |
State and local |  |  | 8.0 |  |  |  | 5.0 |  |  |  | 4.0 |
Foreign |  |  | (0.1 | ) |  |  | — |  |  |  | — |
Total deferred provision (benefit) for taxes |  |  | 34.7 |  |  |  | 60.3 |  |  |  | 38.7 |
Total provision for taxes |  | $ | 171.7 |  |  | $ | 220.6 |  |  | $ | 232.5 |
The effective tax rate varies from the U.S. federal statutory tax rate principally due to the following (dollars in millions):
|  | 2020 |  |  | 2019 |  |  | 2018 |
Provision computed at U.S. federal statutory rate of 21% |  | $ | 132.9 |  |  | $ | 192.6 |  |  | $ | 203.8 |
Federal tax reform |  |  | — |  |  |  | — |  |  |  | (2.0 | )
State and local taxes, net of federal benefit |  |  | 28.4 |  |  |  | 35.7 |  |  |  | 36.9 |
Goodwill impairment (a) |  |  | 11.6 |  |  |  | — |  |  |  | — |
Other |  |  | (1.2 | ) |  |  | (7.7 | ) |  |  | (6.2 | )
Total |  | $ | 171.7 |  |  | $ | 220.6 |  |  | $ | 232.5 |
(a) | For additional information regarding the impairment of goodwill within our Paper reporting unit, see Note 8, Goodwill and Intangible Assets.
The following details the scheduled expiration dates of our tax effected net operating loss (NOL) and other tax carryforwards at December 31, 2020 (dollars in millions):
|  | 2021 Through 2030 |  |  | 2031 Through 2040 |  |  | Indefinite |  |  | Total |
U.S. federal NOLs |  | $ | 25.6 |  |  | $ | — |  |  | $ | — |  |  | $ | 25.6 |
State taxing jurisdiction NOLs |  |  | 1.3 |  |  |  | 0.2 |  |  |  | — |  |  |  | 1.5 |
Non-U.S. taxing jurisdiction NOLs |  |  | — |  |  |  | 0.1 |  |  |  | — |  |  |  | 0.1 |
U.S. federal tax credit carryforwards |  |  | 0.1 |  |  |  | — |  |  |  | — |  |  |  | 0.1 |
U.S. federal and non-U.S. capital loss carryforwards |  |  | 0.4 |  |  |  | — |  |  |  | 0.1 |  |  |  | 0.5 |
Total |  | $ | 27.4 |  |  | $ | 0.3 |  |  | $ | 0.1 |  |  | $ | 27.8 |
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, |
|  | 2020 |  |  | 2019 |
Deferred tax assets: |  |  |  |  |  |  |  |
Pension and postretirement benefits |  | $ | 70.1 |  |  | $ | 90.7 |
Lease obligations |  |  | 60.6 |  |  |  | 59.2 |
Employee benefits and compensation |  |  | 39.3 |  |  |  | 35.5 |
Net operating loss carryforwards |  |  | 27.2 |  |  |  | 30.8 |
Restricted stock and performance units |  |  | 9.6 |  |  |  | 11.2 |
Inventories |  |  | 5.9 |  |  |  | 14.1 |
Accrued liabilities |  |  | 5.3 |  |  |  | 6.1 |
Capital loss and general business credit carryforwards |  |  | 0.6 |  |  |  | 3.2 |
Derivatives |  |  | 0.1 |  |  |  | 0.1 |
Gross deferred tax assets |  |  | 218.7 |  |  |  | 250.9 |
Valuation allowance (b) |  |  | (0.5 | ) |  |  | (3.0 | )
Net deferred tax assets |  | $ | 218.2 |  |  | $ | 247.9 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property, plant and equipment |  | $ | (465.6 | ) |  | $ | (459.1 | )
Goodwill and intangible assets |  |  | (72.7 | ) |  |  | (70.8 | )
Right-of-use assets |  |  | (59.3 | ) |  |  | (58.1 | )
Total deferred tax liabilities |  | $ | (597.6 | ) |  | $ | (588.0 | )
Net deferred tax liabilities (c) |  | $ | (379.4 | ) |  | $ | (340.1 | )
(b) | 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. Both the 2020 and 2019 valuation allowance 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 or all of the valuation allowance would be recognized as a benefit to income tax expense.
(c) | As of December 31, 2020, we did not recognize U.S. deferred income taxes on our cumulative total of undistributed foreign earnings for our foreign 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.
Cash payments for federal, state, and foreign income taxes were $115.6 million, $172.7 million, and $140.8 million for the years ended December 31, 2020, 2019, and 2018, respectively. The following table summarizes the changes related to PCA’s gross unrecognized tax benefits excluding interest and penalties (dollars in millions):
|  | 2020 |  |  | 2019 |  |  |  | 2018 |
Balance as of January 1 |  | $ | (4.8 | ) |  | $ | (4.6 | ) |  | $ | (4.8 | )
Increases related to prior years’ tax positions |  |  | — |  |  |  | (0.1 | ) |  |  | (0.1 | )
Increases related to current year tax positions |  |  | (0.4 | ) |  |  | (0.4 | ) |  |  | (0.3 | )
Expiration of the statute of limitations |  |  | — |  |  |  | 0.3 |  |  |  | 0.6 |
Balance at December 31 |  | $ | (5.2 | ) |  | $ | (4.8 | ) |  | $ | (4.6 | )
At December 31, 2020, PCA had recorded a $5.2 million gross reserve for unrecognized tax benefits, excluding interest and penalties. Of the total, $4.6 million (net of the federal benefit for state taxes) would impact the effective tax rate if recognized. PCA recognizes interest accrued related to unrecognized tax benefits and penalties as income tax expense. For both years ended December 31, 2020 and 2019, we had $1.2 million of interest and penalties recorded for unrecognized tax benefits. During the next 12 months, it is possible that PCA's unrecognized tax benefits related to state apportionment issues could decrease by approximately $3.1 million due to settlements with state taxing authorities. PCA is subject to income taxation in the United States, various state and local jurisdictions, Canada and Hong Kong. A federal examination of the 2016 tax year commenced in April 2019. The tax years 2016 - 2020 remain open to federal examination. The tax years 2016 - 2020 remain open to state examinations. Some foreign tax jurisdictions are open to examination for the 2009 tax year forward. Through the Boise acquisition, PCA recorded net operating losses and credit carryforwards from 2008 through 2011 and 2013 that are subject to examinations and adjustments for at least three years following the year in which utilized.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration