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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2021
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):
|  | Year Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Current income tax provision - |  |  |  |  |  |  |  |  |
U.S. federal |  | $ | 158.0 |  |  | $ | 109.4 |  |  | $ | 123.2 |
State and local |  |  | 50.1 |  |  |  | 27.5 |  |  |  | 37.0 |
Foreign |  |  | 0.1 |  |  |  | 0.1 |  |  |  | 0.1 |
Total current provision for taxes |  |  | 208.2 |  |  |  | 137.0 |  |  |  | 160.3 |
Deferred income tax provision (benefit) - |  |  |  |  |  |  |  |  |
U.S. federal |  |  | 62.1 |  |  |  | 26.8 |  |  |  | 55.3 |
State and local |  |  | (2.6 | ) |  |  | 8.0 |  |  |  | 5.0 |
Foreign |  |  | (0.1 | ) |  |  | (0.1 | ) |  |  | — |
Total deferred provision (benefit) for taxes |  |  | 59.4 |  |  |  | 34.7 |  |  |  | 60.3 |
Total provision for taxes |  | $ | 267.6 |  |  | $ | 171.7 |  |  | $ | 220.6 |
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):
|  | 2021 |  |  | 2020 |  |  | 2019 |
Provision computed at U.S. federal statutory rate of 21% |  | $ | 232.8 |  |  | $ | 132.9 |  |  | $ | 192.6 |
State and local taxes, net of federal benefit |  |  | 42.6 |  |  |  | 28.4 |  |  |  | 35.7 |
Goodwill impairment (a) |  |  | — |  |  |  | 11.6 |  |  |  | — |
Other |  |  | (7.8 | ) |  |  | (1.2 | ) |  |  | (7.7 | )
Total |  | $ | 267.6 |  |  | $ | 171.7 |  |  | $ | 220.6 |
(a) For additional information regarding the impairment of goodwill within our Paper reporting unit, see Note 9, Goodwill and Intangible Assets.
Details of Scheduled Expiration Dates of Tax Effected Net Operating Loss (NOL) and Other Tax Carryforwards | The following details the scheduled expiration dates of our tax effected net operating loss (NOL) and other tax carryforwards at December 31, 2021 (dollars in millions):
|  | 2022 Through 2031 |  |  | 2032 Through 2041 |  |  | Indefinite |  |  | Total |
U.S. federal NOLs |  | $ | 22.2 |  |  | $ | — |  |  | $ | — |  |  | $ | 22.2 |
State taxing jurisdiction NOLs |  |  | 1.1 |  |  |  | 0.1 |  |  |  | — |  |  |  | 1.2 |
U.S. federal tax credit carryforwards |  |  | 0.1 |  |  |  | — |  |  |  | — |  |  |  | 0.1 |
U.S. federal and non-U.S. capital loss carryforwards |  |  | 0.6 |  |  |  | — |  |  |  | 0.1 |  |  |  | 0.7 |
Total |  | $ | 24.0 |  |  | $ | 0.1 |  |  | $ | 0.1 |  |  | $ | 24.2 |
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, |
|  | 2021 |  |  | 2020 |
Deferred tax assets: |  |  |  |  |  |
Lease obligations |  | $ | 61.4 |  |  | $ | 60.6 |
Employee benefits and compensation |  |  | 44.7 |  |  |  | 39.3 |
Pension and postretirement benefits |  |  | 33.8 |  |  |  | 70.1 |
Net operating loss carryforwards |  |  | 23.4 |  |  |  | 27.2 |
Restricted stock and performance units |  |  | 8.5 |  |  |  | 9.6 |
Inventories |  |  | 6.8 |  |  |  | 5.9 |
Accrued liabilities |  |  | 6.3 |  |  |  | 5.3 |
Capital loss and general business credit carryforwards |  |  | 0.7 |  |  |  | 0.6 |
Derivatives |  |  | 0.1 |  |  |  | 0.1 |
Gross deferred tax assets |  |  | 185.7 |  |  |  | 218.7 |
Valuation allowance (b) |  |  | (0.6 | ) |  |  | (0.5 | )
Net deferred tax assets |  | $ | 185.1 |  |  | $ | 218.2 |
Deferred tax liabilities: |  |  |  |  |  |
Property, plant and equipment |  | $ | (518.0 | ) |  | $ | (465.6 | )
Goodwill and intangible assets |  |  | (73.3 | ) |  |  | (72.7 | )
Right-of-use assets |  |  | (59.7 | ) |  |  | (59.3 | )
Total deferred tax liabilities |  | $ | (651.0 | ) |  | $ | (597.6 | )
Net deferred tax liabilities (c) |  | $ | (465.9 | ) |  | $ | (379.4 | )
(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 2021 and 2020 valuation allowance relate 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, 2021, 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.
Summary of Changes Related to PCA's Gross Unrecognized Tax Benefits Excluding Interest and Penalties | The following table summarizes the changes related to PCA’s gross unrecognized tax benefits excluding interest and penalties (dollars in millions):
|  | 2021 |  |  | 2020 |  |  | 2019 |
Balance as of January 1 |  | $ | (5.2 | ) |  | $ | (4.8 | ) |  | $ | (4.6 | )
Increases related to prior years’ tax positions |  |  | — |  |  |  | — |  |  |  | (0.1 | )
Increases related to current year tax positions |  |  | (0.3 | ) |  |  | (0.4 | ) |  |  | (0.4 | )
Decreases related to prior years' tax positions |  |  | 0.2 |  |  |  | — |  |  |  | — |
Settlements with taxing authorities |  |  | 3.0 |  |  |  | — |  |  |  | — |
Expiration of the statute of limitations |  |  | 0.4 |  |  |  | — |  |  |  | 0.3 |
Balance at December 31 |  | $ | (1.9 | ) |  | $ | (5.2 | ) |  | $ | (4.8 | )

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