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Debt | 12 Months Ended
--- | ---
Dec. 31, 2023
Debt Disclosure [Abstract] |
Debt | 10. Debt At December 31, 2023 and 2022, our long-term debt and interest rates on that debt were as follows (dollars in millions):
|  | December 31, 2023 |  |  | December 31, 2022 |  |
|  | Amount |  |  | Amount |  |
Revolving Credit Facility |  | $ | — |  |  | $ | — |  |
3.65% Senior Notes, net of discount of $0.1 million and $0.2 million as of December 31, 2023 and 2022, respectively, due September 2024 |  |  | 399.9 |  |  |  | 399.8 |  |
3.40% Senior Notes, net of discount of $0.7 million and $0.9 million as of December 31, 2023 and 2022, respectively, due December 2027 |  |  | 499.3 |  |  |  | 499.1 |  |
3.00% Senior Notes, net of discount of $0.4 million and $0.5 million as of December 31, 2023 and 2022, respectively, due December 2029 |  |  | 499.6 |  |  |  | 499.5 |  |
5.70% Senior Notes, net of discount of $0.3 million as of December 31, 2023, due December 2033 |  |  | 399.7 |  |  |  | — |  |
4.05% Senior Notes, net of discount of $3.3 million as of both December 31, 2023 and 2022, due December 2049 |  |  | 396.7 |  |  |  | 396.7 |  |
3.05% Senior Notes, net of discount of $3.5 million and $3.6 million as of December 31, 2023 and 2022, respectively, due October 2051 |  |  | 696.5 |  |  |  | 696.4 |  |
Total |  |  | 2,891.7 |  |  |  | 2,491.5 |  |
Less current portion (a) |  |  | 399.6 |  |  |  | — |  |
Less unamortized debt issuance costs |  |  | 19.9 |  |  |  | 17.9 |  |
Total long-term debt |  | $ | 2,472.2 |  |  | $ | 2,473.6 |  |
(a) The current portion of long-term debt excludes unamortized debt issuance costs of $0.3 million as of December 31, 2023. On November 30, 2023, the Company issued $400.0 million of 5.70% senior notes due 2033 through a registered public offering and invested the net proceeds in time deposits. The Company intends to use the net proceeds from this issuance, together with a portion of cash on hand, to repay its outstanding 3.65% senior notes due 2024 at maturity on September 15, 2024. The $3.7 million of debt issuance costs associated with the new notes will be amortized to interest expense using the effective interest method over the term of the notes. As of December 31, 2023, the details of our borrowings were as follows: • Senior Unsecured Credit Agreement. On June 8, 2021, we entered into a revolving credit agreement with various financial institutions (the “Revolving Credit Agreement”). Loans under the Revolving Credit Agreement bear interest at the term SOFR rate plus an applicable margin based upon the public ratings of PCA's senior long-term unsecured debt or PCA's gross leverage ratio. The Revolving Credit Agreement is a $350 million unsecured revolving credit facility, which has a five-year term and is available for borrowings on a revolving basis for general corporate purposes. At December 31, 2023, unused borrowing capacity was $323.0 million, which includes various outstanding letters of credit. 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. • 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. We intend to repay these notes at maturity with cash on hand and the net proceeds of the 5.70% Senior Notes we issued in November 2023. • 3.40% Senior Notes. On December 13, 2017, we issued $500.0 million of 3.40% senior notes due December 15, 2027, through a registered public offering. • 3.00% Senior Notes. On November 21, 2019, we issued $500.0 million of 3.00% senior notes due December 15, 2029, through a registered public offering. • 4.05% Senior Notes. On November 21, 2019, we issued $400.0 million of 4.05% senior notes due December 15, 2049, through a registered public offering. • 3.05% Senior Notes. On September 21, 2021, we issued $700.0 million of 3.05% senior notes due October 1, 2051, through a registered public offering. • 5.70% Senior Notes. On November 30, 2023, we issued $400.0 million of 5.70% senior notes due December 1, 2033, 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. The Revolving Credit Agreement 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. An acceleration under the revolving credit facility may also constitute an event of default under the senior notes indenture. At December 31, 2023, we were in compliance with these covenants. At December 31, 2023, we have $2,891.7 million of fixed-rate senior notes outstanding. At December 31, 2023, the fair value of our fixed-rate debt was estimated to be $2,568.2 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. Repayments, Interest, and Other In 2023 and 2022, we did not repay any outstanding debt, as we did not have any maturities of our senior notes during 2023 and 2022. In October 2021, we used the net proceeds from the September 2021 offering of the new 3.05% notes and cash on hand to redeem an old series of 4.50% notes, which were scheduled to mature in 2023. We completed the redemption of the old 4.50% notes for $769.8 million, which included a redemption premium and accrued and unpaid interest. As of December 31, 2023, annual principal maturities for debt, excluding unamortized debt discount, are: $400.0 million for 2024; none for 2025; none for 2026; $500.0 million for 2027; and $2.0 billion for 2028 and thereafter. Interest payments paid in connection with the Company’s debt obligations for the years ended December 31, 2023, 2022, and 2021 were $84.8 million, $85.6 million, and $149.6 million (including redemption premiums of $56.1 million), respectively. As of December 31, 2023, the estimated future interest payments for the Company's debt obligations are: $107.0 million for 2024; $92.4 million for 2025, 2026, and 2027; and $1,035.6 million, in aggregate, for 2028 and thereafter. Included in interest expense, net, are amortization of financing costs, which includes the amortization of debt issuance costs and amortization of bond discount. For both 2023 and 2022, amortization of debt issuance costs was $1.6 million, and for 2021, amortization of debt issuance costs was $3.4 million (including a $1.4 million write-off of deferred debt issuance costs related to the October 2021 debt refinancing). For both 2023 and 2022, amortization of bond discount was $0.5 million, and for 2021, amortization of bond discount was $1.0 million (including a $0.5 million write-off of unamortized bond discount related to the October 2021 debt refinancing).

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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/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I + Details
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