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Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	Sep. 30, 2011	Oct. 31, 2011
Document And Entity Information
Entity Registrant Name	PACKAGING CORP OF AMERICA
Entity Central Index Key	0000075677
Document Type	10-Q
Document Period End Date	Sep. 30, 2011
Amendment Flag	false
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		99,462,228

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 40,117	$ 196,556
Accounts receivable, net of allowance for doubtful accounts and customer deductions of $5,383 and $5,413 as of September 30, 2011 and December 31, 2010, respectively	338,516	293,159
Inventories	244,375	241,142
Prepaid expenses and other current assets	22,287	16,952
Deferred income taxes	24,616	50,232
Total current assets	669,911	798,041
Property, plant and equipment, net	1,434,362	1,337,986
Goodwill	51,106	38,854
Other intangible assets, net	20,555	10,975
Other long-term assets	50,515	38,418
Deferred income taxes	6,294
Total assets	2,232,743	2,224,274
Current liabilities:
Short-term debt and current maturities of long-term debt	109,000	109,000
Capital lease obligations	706	670
Accounts payable	176,677	154,130
Dividends payable	19,990	15,351
Accrued interest	4,353	12,598
Federal and state income taxes payable	464	2,601
Accrued liabilities	110,790	111,208
Total current liabilities	421,980	405,558
Long-term liabilities:
Long-term debt	549,361	549,099
Capital lease obligations	21,298	21,832
Deferred income taxes		9,190
Pension and postretirement benefit plans	94,957	97,914
Cellulosic biofuel tax reserve	102,051	102,051
Other long-term liabilities	69,545	29,629
Total long-term liabilities	837,212	809,715
Stockholders' equity:
Common stock, par value $0.01 per share, 300,000,000 shares authorized, 99,587,464 and 102,308,231 shares issued as of September 30, 2011 and December 31, 2010, respectively	996	1,023
Additional paid in capital	356,664	362,248
Retained earnings	678,011	690,111
Accumulated other comprehensive income (loss), net of tax:
Unrealized gain (loss) on treasury locks, net	(18,616)	2,164
Unrealized loss on foreign currency exchange contracts	(419)	(607)
Unfunded employee benefit obligations	(43,085)	(45,938)
Total accumulated other comprehensive loss	(62,120)	(44,381)
Total stockholders' equity	973,551	1,009,001
Total liabilities and stockholders' equity	$ 2,232,743	$ 2,224,274

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2011	Dec. 31, 2010
Condensed Consolidated Balance Sheets
Allowance for doubtful accounts receivable and customer deductions	$ 5,383	$ 5,413
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	99,587,464	102,308,231

Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Condensed Consolidated Statements Of Income
Net sales	$ 670,824	$ 642,764	$ 1,965,805	$ 1,808,955
Cost of sales	(533,077)	(476,312)	(1,558,016)	(1,424,039)
Gross profit	137,747	166,452	407,789	384,916
Selling and administrative expenses	(48,914)	(47,219)	(145,058)	(136,149)
Corporate overhead	(16,424)	(15,527)	(48,329)	(43,543)
Alternative fuel mixture tax credits		(111,869)		(102,634)
Other expense, net	(1,229)	(4,179)	(9,460)	(13,570)
Income (loss) from operations	71,180	(12,342)	204,942	89,020
Interest expense, net	(6,727)	(7,903)	(19,951)	(24,719)
Income (loss) before taxes	64,453	(20,245)	184,991	64,301
(Provision) benefit for income taxes	(22,676)	113,565	(66,429)	86,243
Net income	$ 41,777	$ 93,320	$ 118,562	$ 150,544
Weighted average common shares outstanding:
Basic	99,020	101,776	99,945	101,912
Diluted	100,030	102,687	101,030	102,822
Net income per common share:
Basic	$ 0.42	$ 0.92	$ 1.19	$ 1.48
Diluted	0.42	0.91	1.17	1.46
Dividends declared per common share	$ 0.20	$ 0.15	$ 0.60	$ 0.45

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Cash Flows from Operating Activities:
Net income	$ 118,562	$ 150,544
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	121,033	116,770
Amortization of financing costs	361	496
Amortization of net gain on treasury lock	(1,385)	(1,384)
Share-based compensation expense	7,191	5,403
Deferred income tax provision	(7,752)	(145,215)
Loss on disposals of property, plant and equipment	6,970	4,634
Alternative fuel mixture tax credits receivable		127,811
(Increase) decrease in assets -
Accounts receivable	(39,374)	(92,095)
Inventories	(1,346)	(13,335)
Prepaid expenses and other current assets	(5,269)	(8,053)
Increase (decrease) in liabilities -
Accounts payable	22,474	39,713
Accrued liabilities	16,485	15,616
Other, net	(1,133)	10,136
Net cash provided by operating activities	236,817	211,041
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(214,958)	(230,926)
Acquisitions of businesses	(35,643)
Additions to other long term assets	(10,973)	(2,119)
Proceeds from disposals of property, plant and equipment	427	1,353
Net cash used for investing activities	(261,147)	(231,692)
Cash Flows from Financing Activities:
Payments on long-term debt	(498)	(465)
Settlement of treasury lock	9,910
Common stock dividends paid	(56,053)	(46,366)
Repurchases of common stock	(93,425)	(24,801)
Proceeds from exercise of stock options	6,870	3,508
Excess tax benefits from share-based awards	1,087	868
Net cash used for financing activities	(132,109)	(67,256)
Net decrease in cash and cash equivalents	(156,439)	(87,907)
Cash and cash equivalents, beginning of period	196,556	260,727
Cash and cash equivalents, end of period	$ 40,117	$ 172,820

Basis Of Presentation	9 Months Ended
Basis Of Presentation	Sep. 30, 2011
Basis Of Presentation
Basis Of Presentation	1. Basis of Presentation The condensed consolidated financial statements as of September 30, 2011 and 2010 of Packaging Corporation of America ("PCA" or the "Company") and for the three- and nine-month periods then ended are unaudited but include all adjustments (consisting only of normal recurring adjustments) that management considers necessary for a fair presentation of such financial statements. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with Article 10 of SEC Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete audited financial statements. Operating results for the period ended September 30, 2011 are not necessarily indicative of the results that may be expected for the year ending December 31, 2011. These condensed consolidated financial statements should be read in conjunction with PCA's Annual Report on Form 10-K for the year ended December 31, 2010.

Summary Of Accounting Policies	9 Months Ended
Summary Of Accounting Policies	Sep. 30, 2011
Summary Of Accounting Policies
Summary Of Accounting Policies	2. Summary of Accounting Policies *Basis of Consolidation* The accompanying condensed consolidated financial statements of PCA include all majority-owned subsidiaries. All intercompany transactions have been eliminated. The Company has one joint venture that is accounted for under the equity method. *Use of Estimates* The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts in the financial statements and the accompanying notes. Actual results could differ from those estimates. *Revenue Recognition* The Company recognizes revenue as title to the products is transferred to customers. Shipping and handling billings to a customer are included in net sales. Shipping and handling costs are included in cost of sales. In addition, the Company offers volume rebates to certain of its customers. The total cost of these programs is estimated and accrued as a reduction to net sales at the time of the respective sale. *Segment Information* PCA is engaged in one line of business: the integrated manufacture and sale of packaging materials, boxes and containers for industrial and consumer markets. No single customer accounts for more than 10% of total net sales. *Recent Accounting Pronouncements* In September 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2011-09, "Compensation — Retirement Benefits — Multiemployer Plans (Subtopic 715-80) —Disclosures about an Employer's Participation in a Multiemployer Plan." The amendments in this update require that employers provide additional quantitative and qualitative disclosures which will provide users with more detailed information about an employer's involvement in multiemployer pension plans and multiemployer other postretirement benefits plans. The provisions in this update are effective for fiscal years ending after December 15, 2011, with early adoption permitted. The Company will comply with the additional disclosure requirements of ASU 2011-09 upon its adoption on December 31, 2011. The FASB issued ASU 2011-08, "Intangibles — Goodwill and Other (Topic 350) — Testing Goodwill for Impairment," which simplifies how entities test goodwill for impairment. The amendments in this update provide an entity the option to make a qualitative evaluation about the likelihood of goodwill impairment to determine whether it should calculate the fair value of a reporting unit. ASU 2011-08 is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted. The Company will comply with the provisions of ASU 2011-08 upon its adoption on January 1, 2012. In June 2011, the FASB issued ASU 2011-05, "Comprehensive Income (Topic 220) — Presentation of Comprehensive Income." The amendments in this ASU require that all nonowner changes in stockholders' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The provisions in this update should be applied retrospectively and are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. Early adoption is permitted. The Company will comply with the additional provisions of ASU 2011-05 upon its adoption on January 1, 2012. In May 2011, the FASB issued ASU 2011-04, "Fair Value Measurement (Topic 820) — Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs." The amendments in this ASU clarify the application of existing fair value measurement and disclosure requirements, which will improve the comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with U.S. GAAP and IFRSs. ASU 2011-04 is effective for interim and annual periods beginning after December 15, 2011. Early application is not permitted. The Company does not expect the adoption of this guidance to have any impact on its financial position, results of operations or cash flows. In December 2010, the FASB issued ASU 2010-28, "Intangibles — Goodwill and Other (Topic 350) — When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts." This ASU modifies Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts. For such reporting units, an entity is required to perform Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists. ASU 2010-28 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2010. The adoption of this guidance on January 1, 2011 did not have any impact on the Company's financial position, results of operations or cash flows. In January 2010, the FASB issued ASU 2010-06, "Fair Value Measurements and Disclosures (Topic 820) — Improving Disclosures about Fair Value Measurements." This ASU requires new disclosures and clarifies existing disclosure requirements about fair value measurement as set forth in Accounting Standards Codification ("ASC") 820. ASU 2010-06 amends ASC 820 to now require: (1) a reporting entity should disclose separately the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasons for the transfers; and (2) in the reconciliation for fair value measurements using significant unobservable inputs, a reporting entity should present separately information about purchases, sales, issuances, and settlements. In addition, ASU 2010-06 clarifies the requirements of existing disclosures. ASU 2010-06 is effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. As of January 1, 2011, the Company has adopted all disclosure provisions of this guidance. See Note 12 for additional information. *Reclassifications* Certain reclassifications were made to prior year amounts related to the alternative energy tax credits on the condensed consolidated statement of cash flows. The reclassification did not have any impact on the Company's net cash provided by operating activities, net cash used for investing activities or net cash used for financing activities in the prior period.

Earnings Per Share

9 Months Ended

Sep. 30, 2011

Earnings Per Share

Earnings Per Share

3. Earnings Per Share

The following table sets forth the computation of basic and diluted income per common share for the periods presented.


	Three Months Ended September 30,
	2011		2010
(In thousands, except per share data)
Numerator:
Net income	$	41,777	$	93,320
Denominator:
Basic common shares outstanding		99,020		101,776
Effect of dilutive securities:
Stock options		214		222
Unvested restricted stock		796		689

Dilutive common shares outstanding		100,030		102,687

Basic income per common share	$	0.42	$	0.92
Diluted income per common share	$	0.42	$	0.91

	Nine Months Ended September 30,
	2011		2010
(In thousands, except per share data)
Numerator:
Net income	$	118,562	$	150,544
Denominator:
Basic common shares outstanding		99,945		101,912
Effect of dilutive securities:
Stock options		294		243
Unvested restricted stock		791		667

Dilutive common shares outstanding		101,030		102,822

Basic income per common share	$	1.19	$	1.48
Diluted income per common share	$	1.17	$	1.46

Options to purchase 0.2 million shares and 0.6 million shares for the three month periods ended September 30, 2011 and 2010, respectively, and options to purchase 0.6 million shares for the nine month period ended September 30, 2010, were not included in the computation of diluted common shares outstanding as their exercise price exceeded the average market price of the Company's common stock for each respective reporting period. All outstanding options to purchase shares for the nine month period ended September 30, 2011 were included in the computation of diluted common shares outstanding.

Comprehensive Income

9 Months Ended

Sep. 30, 2011

Comprehensive Income

Comprehensive Income

4. Comprehensive Income

Comprehensive income is as follows:


	Three Months Ended September 30,
	2011			2010
(In thousands)
Net income	$	41,777		$	93,320
Other comprehensive income, net of tax:
Amortization of unfunded employee benefit obligations		951			894
Amortization of net gain on treasury locks		(282	)		(282	)
Amortization of net loss on foreign currency exchange contracts		(1	)		—
Unrealized losses on treasury locks		(25,455	)		(11,101	)
Unrealized gains (losses) on foreign currency exchange contracts		(13	)		370

Comprehensive income	$	16,977		$	83,201


	Nine Months Ended September 30,
	2011			2010
(In thousands)
Net income	$	118,562		$	150,544
Other comprehensive income, net of tax:
Amortization of unfunded employee benefit obligations		2,853			2,683
Amortization of net gain on treasury locks		(845	)		(1,025	)
Amoritization of net loss on foreign currency exchange contracts		(1	)		—
Unrealized losses on treasury locks		(19,935	)		(19,374	)
Unrealized gains (losses) on foreign currency exchange contracts		189			(555	)

Comprehensive income	$	100,823		$	132,273

Stock-Based Compensation

9 Months Ended

Sep. 30, 2011

Stock-Based Compensation

Stock-Based Compensation

5. Stock-Based Compensation

In October 1999, the Company adopted a long-term equity incentive plan, which provides for grants of stock options, stock appreciation rights, restricted stock and performance awards to directors, officers and employees of PCA, as well as others who engage in services for PCA. The Company has not granted any option awards since 2007. Restricted stock awards granted to officers and employees generally vest at the end of a four-year period, and restricted stock awards granted to directors vest immediately. The plan, which will terminate on October 19, 2014, provides for the issuance of up to 8,550,000 shares of common stock over the life of the plan. As of September 30, 2011, options and restricted stock of 7,660,885 shares have been granted, net of forfeitures. Forfeitures are added back to the pool of shares of common stock available to be granted at a future date.

Compensation expense for both stock options, which were fully vested at June 30, 2010, and restricted stock recognized in the condensed consolidated statements of income for the three- and nine-month periods ended September 30, 2011 and 2010 was as follows:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
(In thousands)
Stock options	$	—		$	—		$	—		$	221
Restricted stock		2,487			1,615			7,191			5,182

Impact on income before income taxes		2,487			1,615			7,191			5,403
Income tax benefit		(968	)		(630	)		(2,798	)		(2,105	)

Impact on net income	$	1,519		$	985		$	4,393		$	3,298

The Company uses the Black-Scholes-Merton option-pricing model to estimate the fair value of each option grant as of the date of grant. Expected volatilities are based on historical volatility of the Company's common stock. The expected life of the option is estimated using historical data pertaining to option exercises and employee terminations. Separate groups of employees that have similar historical exercise behavior are considered separately for estimating the expected life. The risk-free interest rate is based on U.S. Treasury yields in effect at the time of grant. The fair value of restricted stock is determined based on the closing price of the Company's common stock on the grant date.

A summary of the Company's stock option activity and related information follows:


	Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
								(In thousands)
Outstanding at December 31, 2010		1,568,384		$	21.38
Exercised		(336,285	)		20.35

Outstanding and exercisable at September 30, 2011		1,232,099		$	21.64		1.8	$	2,604

The total intrinsic value of options exercised during the three months ended September 30, 2011 and 2010 was $0.1 million and $0.3 million, respectively, and during the nine months ended September 30, 2011 and 2010 was $2.7 million and $1.5 million, respectively. As of September 30, 2011, there is no unrecognized compensation cost related to stock option awards granted under the Company's equity incentive plan as all outstanding awards have vested.

A summary of the Company's restricted stock activity follows:


	2011						2010
	Shares			Fair Market Value at Date of Grant			Shares			Fair Market Value at Date of Grant
(Dollars in thousands)
Restricted stock at January 1		1,478,000		$	30,600			1,235,505		$	24,718
Granted		575,694			16,005			573,440			12,693
Vested		(219,469	)		(5,608	)		(318,350	)		(6,563	)
Cancellations		(4,340	)		(96	)		(12,595	)		(248	)

Restricted stock at September 30		1,829,885		$	40,901			1,478,000		$	30,600

The Company generally recognizes compensation expense associated with restricted stock awards ratably over their vesting periods. As PCA's Board of Directors has the ability to accelerate vesting of restricted stock upon an employee's retirement, the Company accelerates the recognition of compensation expense for certain employees approaching normal retirement age. As of September 30, 2011, there was $24.1 million of total unrecognized compensation costs related to the above restricted stock awards. The Company expects to recognize the cost of these stock awards over a weighted-average period of 2.8 years.

Inventories

9 Months Ended

Sep. 30, 2011

Inventories

Inventories

6. Inventories

The components of inventories are as follows:


	September 30, 2011			December 31, 2010
(In thousands)				(Audited)
Raw materials	$	123,393		$	126,401
Work in process		8,658			6,395
Finished goods		77,770			73,710
Supplies and materials		109,567			102,720

Inventories at FIFO or average cost		319,388			309,226
Excess of FIFO or average cost over LIFO cost		(75,013	)		(68,084	)

Inventories, net	$	244,375		$	241,142

An actual valuation of inventory under the LIFO method is made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations must necessarily be based on management's estimates of expected year-end inventory levels and costs. Because these are subject to many factors beyond management's control, interim results are subject to the final year-end LIFO inventory valuation.

Goodwill And Other Intangible Assets

9 Months Ended

Sep. 30, 2011

Goodwill And Other Intangible Assets

Goodwill And Other Intangible Assets

7. Goodwill and Other Intangible Assets

Goodwill

Changes in the carrying amount of goodwill for the period ended September 30, 2011 are as follows:


(In thousands)
Balance as of December 31, 2010	$	38,854
Acquisitions		12,252

Balance at September 30, 2011	$	51,106

The components of other intangible assets are as follows:


		As of September 30, 2011				As of December 31, 2010
	Weighted Average Remaining Life	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
(In thousands)						(Audited)
Customer relationships	20.8 years	$	27,811	$	7,409	$	17,441	$	6,466
Other	2.5 years		180		27		—		—

Total other intangible assets		$	27,991	$	7,436	$	17,441	$	6,466

See Note 17 for further discussion regarding the acquisition.

Employee Benefit Plans And Other Postretirement Benefits

9 Months Ended

Sep. 30, 2011

Employee Benefit Plans And Other Postretirement Benefits

Employee Benefit Plans And Other Postretirement Benefits

8. Employee Benefit Plans and Other Postretirement Benefits

For the three-and nine-months ended September 30, 2011 and 2010, net pension costs were comprised of the following:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
(In thousands)
Components of Net Pension Costs
Service cost for benefits earned during the year	$	4,952		$	4,579		$	14,856		$	13,737
Interest cost on accumulated benefit obligation		3,368			3,023			10,105			9,068
Expected return on assets		(3,386	)		(2,802	)		(10,158	)		(8,406	)
Net amortization of unrecognized amounts		1,549			1,483			4,645			4,449

Net pension costs	$	6,483		$	6,283		$	19,448		$	18,848

The Company makes pension plan contributions that are sufficient to fund its actuarially determined costs, generally equal to the minimum amounts required by the Employee Retirement Income Security Act (ERISA). However, from time to time the Company may make discretionary contributions in excess of the required minimum amounts. The Company expects to contribute $22.1 million to the pension plans in 2011, of which $18.2 million has been contributed through September 30, 2011.

For the three- and nine-months ended September 30, 2011 and 2010, net postretirement costs were comprised of the following:


	Three Months Ended September 30,					Nine Months Ended September 30,
	2011		2010			2011		2010
(In thousands)
Components of Net Postretirement Costs
Service cost for benefits earned during the year	$	400	$	350		$	1,199	$	1,049
Interest cost on accumulated benefit obligation		297		283			892		848
Net amortization of unrecognized amounts		8		(19	)		25		(56	)

Net postretirement costs	$	705	$	614		$	2,116	$	1,841

Transfers Of Financial Assets	9 Months Ended
Transfers Of Financial Assets	Sep. 30, 2011
Transfers Of Financial Assets
Transfers Of Financial Assets	9. Transfers of Financial Assets PCA has an on-balance sheet securitization program for its trade accounts receivable that is accounted for as a secured borrowing under ASC 860, "Transfers and Servicing." To effectuate this program, the Company formed a wholly owned, limited-purpose subsidiary, Packaging Credit Company, LLC ("PCC"), which in turn formed a wholly owned, bankruptcy-remote, special-purpose subsidiary, Packaging Receivables Company, LLC ("PRC"), for the purpose of acquiring receivables from PCC. Both of these entities are included in the consolidated financial statements of the Company. Under this program, PCC purchases on an ongoing basis substantially all of the receivables of the Company and sells such receivables to PRC. PRC and lenders established a $150.0 million receivables-backed revolving credit facility ("Receivables Credit Facility") through which PRC obtains funds to purchase receivables from PCC. The receivables purchased by PRC are solely the property of PRC. In the event of liquidation of PRC, the creditors of PRC would be entitled to satisfy their claims from PRC's assets prior to any distribution to PCC or the Company. Credit available under the receivables credit facility is on a borrowing-base formula. As a result, the full amount of the facility may not be available at all times. On March 1, 2011, PCA renewed the facility, which was scheduled to expire on March 1, 2011, to February 28, 2012. At September 30, 2011, $109.0 million was outstanding and included in "Short-term debt and current maturities of long-term debt" on the condensed consolidated balance sheet. Substantially all accounts receivable at September 30, 2011 have been sold to PRC and are included in "Accounts receivable, net of allowance for doubtful accounts and customer deductions" on the condensed consolidated balance sheet.

Derivative Instruments And Hedging Activities

9 Months Ended

Sep. 30, 2011

Derivative Instruments And Hedging Activities

Derivative Instruments And Hedging Activities

10. Derivative Instruments and Hedging Activities

The Company records its derivatives in accordance with ASC 815, "Derivatives and Hedging." The guidance requires the Company to recognize derivative instruments as either assets or liabilities in the balance sheet at fair value. The accounting for changes in the fair value of a derivative depends on the intended use and designation of the derivative instrument. For a derivative designated as a fair value hedge, the gain or loss on the derivative is recognized in earnings in the period of change in fair value together with the offsetting gain or loss on the hedged item. For a derivative instrument designated as a cash flow hedge, the effective portion of the derivative's gain or loss is initially reported as a component of accumulated other comprehensive income (loss) ("OCI") and is subsequently recognized in earnings when the hedged exposure affects earnings. The ineffective portion of the gain or loss is recognized in earnings.

Hedging Strategy

PCA is exposed to certain risks relating to its ongoing operations. When appropriate, the Company uses derivatives as a risk management tool to mitigate the potential impact of certain market risks. The primary risks managed by using derivative financial instruments are interest rate and foreign currency exchange rate risks. PCA does not enter into derivative financial instruments for trading or speculative purposes.

Interest Rate Risk

The Company has historically used treasury lock derivative instruments to manage interest costs and the risk associated with changing interest rates. On June 12, 2003 and January 17, 2008, in connection with contemplated issuances of ten-year debt securities, PCA entered into interest rate protection agreements with counterparties to protect against increases in the ten-year U.S. Treasury Note rate. These treasury rates served as references in determining the interest rates applicable to the debt securities the Company issued in July 2003 and March 2008, respectively. As a result of changes in the interest rates on those treasury securities between the time PCA entered into the agreements and the time PCA priced and issued the debt securities, the Company: (1) received a payment of $22.8 million from the counterparty upon settlement of the 2003 interest rate protection agreement on July 21, 2003; and (2) made a payment of $4.4 million to the counterparty upon settlement of the 2008 interest rate protection agreement on March 25, 2008. The Company recorded the settlements in accumulated other comprehensive income (loss), which are amortized over the terms of the respective notes.

On May 25, 2010, in connection with a contemplated issuance of ten-year debt securities to eventually refinance PCA's currently outstanding $400.0 million of senior notes that mature in 2013, PCA entered into interest rate protection agreements with counterparties to protect against increases in the ten-year U.S. Treasury Note rate. The treasury rate will serve as a reference in determining the interest rate applicable to the new debt securities the Company expects to issue in the future. The interest rate protection agreements were properly documented and designated as cash flow hedges at inception. On February 4, 2011, PCA settled the treasury locks and received a payment of $9.9 million. The settlement was recorded in accumulated other comprehensive income (loss) and will be amortized over the terms of the respective notes once issued.

On August 1, 2011, PCA entered into interest rate protection agreements with counterparties to protect against increases in the ten-year U.S. Treasury Note rate. The treasury rate will serve as a reference in determining the interest rate applicable to the new debt securities the Company expects to issue in the future to refinance PCA's currently outstanding $400.0 million of senior notes that mature in 2013. The interest rate protection agreements were properly documented and designated as cash flow hedges at inception. At September 30, 2011, the Company had a notional value of $400.0 million in interest rate protection agreements outstanding that are expected to settle by the end of 2012.

Foreign Currency Exchange Rate Risk

In connection with the energy optimization projects at its Valdosta, Georgia mill and Counce, Tennessee mill, the Company entered into foreign currency forward contracts in 2009 and 2010 to hedge its exposure to forecasted purchases of machinery and equipment denominated in foreign currencies. The foreign currency forward contracts were properly documented and designated as cash flow hedges at inception. At September 30, 2011, all contracts have been settled for a loss of $0.7 million. The loss was recorded in accumulated other comprehensive income (loss) and will be amortized over the lives of the respective machinery and equipment beginning in the fourth quarter of 2011. At September 30, 2011, the Company did not have any foreign currency forward contracts outstanding.

Counterparty Credit Risk

The Company is exposed to credit risk in the event of non-performance by counterparties to these derivative financial instruments. The amount of counterparty credit exposure is the unrealized gains, if any, on such derivative contracts. To minimize credit risk, the Company only enters into these types of transactions with investment grade counterparties. On a quarterly basis, the Company evaluates each hedge's net position relative to the counterparty's ability to cover its position. Although no assurances can be given, the Company does not expect any of the counterparties to these derivative financial instruments to fail to meet its obligations.

Derivative Instruments

The fair value of the Company's treasury locks at September 30, 2011 was $(41.7) million, which is included in "Other long-term liabilities" on the Company's condensed consolidated balance sheet at September 30, 2011.

The impact of derivative instruments on the condensed consolidated statements of income and accumulated OCI is as follows:


	Amount of Net Gain (Loss) Recognized in Accumulated OCI (Effective Portion)
	Sept. 30, 2011			Dec. 31, 2010
(In thousands)				Audited
Treasury locks, net of tax	$	(18,616	)	$	2,164
Foreign currency exchange contracts, net of tax		(419	)		(607	)

Total	$	(19,035	)	$	1,557


	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
	Three Months Ended September 30,				Nine Months Ended September 30,
Location	2011		2010		2011		2010
(In thousands)
Interest expense, net	$	461	$	461	$	1,385	$	1,384
Cost of sales		2		—		2		—

The net amount of settlement gains or losses on derivative instruments included in accumulated OCI to be realized during the next 12 months is a net gain of $1.8 million ($1.2 million after tax) at September 30, 2011. Mark to market gains and losses on derivative instruments included in accumulated OCI will be reclassified into earnings in the same periods during which the hedged transactions affect earnings. There were no ineffective portions of these contracts during the period.

Financial Instruments

9 Months Ended

Sep. 30, 2011

Financial Instruments

Financial Instruments

11. Financial Instruments

The carrying and estimated fair values of PCA's financial instruments at September 30, 2011 and December 31, 2010 were as follows:


	September 30, 2011						December 31, 2010
	Carrying Amount			Fair Value			Carrying Amount			Fair Value
(In thousands)							(Audited)
Cash and cash equivalents	$	40,117		$	40,117		$	196,556		$	196,556
Long-term debt —
5.75% senior notes		(399,400	)		(424,304	)		(399,143	)		(430,464	)
6.50% senior notes		(149,960	)		(165,717	)		(149,956	)		(158,800	)
Receivables credit facility		(109,000	)		(109,000	)		(109,000	)		(109,000	)
Capital lease obligations		(22,004	)		(22,004	)		(22,502	)		(22,502	)

The fair value of cash and cash equivalents approximates its carrying amounts due to the short-term nature of these financial instruments.

The fair value of the receivables credit facility approximates its carrying amount due to the variable interest-rate feature of the instrument. The fair values of the senior notes are based on quoted market prices. The fair value of the capital lease obligations was estimated to not be materially different from the carrying amount.

Fair Value Measurements

9 Months Ended

Sep. 30, 2011

Fair Value Measurements

Fair Value Measurements

12. Fair Value Measurements

The following presents information about PCA's assets and liabilities measured at fair value and the valuation techniques used to determine those fair values. The inputs used in the determination of fair values are categorized according to the fair value hierarchy as being Level 1, Level 2 or Level 3 in accordance with ASC 820, "Fair Value Measurements and Disclosures." The valuation techniques are as follows:

(a) Market approach — prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (b) Cost approach — amount that would be required to replace the service capacity of an asset (replacement cost)

(c) Income approach — techniques to convert future amounts to a single present amount based on market expectations (including present value techniques, option-pricing and excess earnings models)

Assets and liabilities measured at fair value on a recurring basis are as follows:


	As of September 30, 2011
	Carrying Value			Fair Value			Measurement Approach					As of December 31, 2010
	Carrying Value			Fair Value			Level		Valuation Technique			Carrying Value		Fair Value
(In thousands)												(Audited)
Current Assets
Money market funds	$	39,617		$	39,617			1		(a	)	$	196,058	$	196,058
Foreign currency exchange contracts		—			—			2		(a	)		12		12
Long-Term Assets
Treasury locks		—			—								872		872
Other Long-Term Liabilities
Treasury locks		(41,669	)		(41,669	)		2		(a	)		—		—

The money market funds PCA invests in include funds comprised of U.S. Treasury obligations or backed by U.S. Treasury obligations. The Company measures the fair value of money market funds based on quoted prices in active markets for identical assets.

The Company calculates the fair value of its treasury locks and foreign currency forward contracts using quoted treasury rates and currency spot rates, respectively, plus or minus forward points to calculate forward rates.

There were no changes in the Company's valuation techniques used to measure fair values on a recurring basis as a result of adopting ASC 820. PCA had no assets or liabilities that were measured on a nonrecurring basis.

Environmental Liabilities	9 Months Ended
Environmental Liabilities	Sep. 30, 2011
Environmental Liabilities
Environmental Liabilities	13. Environmental Liabilities The potential costs for various environmental matters are uncertain due to such factors as the unknown magnitude of possible cleanup costs, the complexity and evolving nature of governmental laws and regulations and their interpretations, and the timing, varying costs and effectiveness of alternative cleanup technologies. From 1994 through September 30, 2011, remediation costs at PCA's mills and corrugated plants totaled approximately $3.2 million. As of September 30, 2011, the Company maintained an environmental reserve of $10.2 million relating to on-site landfills and surface impoundments as well as ongoing and anticipated remedial projects. Liabilities recorded for environmental contingencies are estimates of the probable costs based upon available information and assumptions. Because of these uncertainties, PCA's estimates may change. As of the date of this filing, the Company believes that it is not reasonably possible that future environmental expenditures for remediation costs and asset retirement obligations above the $10.2 million accrued as of September 30, 2011, will have a material impact on its financial condition, results of operations, or cash flows.

Stock Repurchase Program	9 Months Ended
Stock Repurchase Program	Sep. 30, 2011
Stock Repurchase Program
Stock Repurchase Program	14. Stock Repurchase Program On October 17, 2007, PCA announced that its Board of Directors authorized a $150.0 million common stock repurchase program, which it completed in the second quarter of 2011. Through June 30, 2011, the Company repurchased 6,422,587 shares of common stock at $23.36 per share. All repurchased shares were retired prior to June 30, 2011. On February 22, 2011, PCA announced that its Board of Directors had authorized the repurchase of an additional $100.0 million of the Company's outstanding common stock. During the third quarter of 2011, the Company repurchased 2,000,000 shares of common stock for $48.0 million, or $24.02 per share, under this authorization. All repurchased shares were retired prior to September 30, 2011. As of September 30, 2011, $32.6 million of the $100.0 million authorization remained available for repurchase of the Company's common stock.

Alternative Energy Tax Credits	9 Months Ended
Alternative Energy Tax Credits	Sep. 30, 2011
Alternative Energy Tax Credits
Alternative Energy Tax Credits	15. Alternative Energy Tax Credits The Company generated black liquor as a by-product of its pulp manufacturing process and used it in a mixture with diesel fuel during 2009 to produce energy at its Counce, Tennessee, Valdosta, Georgia, and Tomahawk, Wisconsin mills. Through December 31, 2009, the U.S. Internal Revenue Code provided a $0.50 per gallon refundable tax credit for taxpayers who used alternative fuels in their trade or business. During the first quarter of 2010, the IRS released a memorandum which provided clarification about the calculation of the alternative fuel mixture credit for black liquor. As a result, during the first quarter of 2010 the Company released a reserve of $9.2 million that was established in 2009 due to the ambiguity in the calculation of the credit. This reserve release resulted in additional income of $9.2 million, which was recorded in alternative fuel mixture tax credits on the income statement in the first quarter of 2010. The laws governing the taxability of the alternative fuel mixture credit are not completely defined. The IRS has not issued definitive guidance regarding such taxability. PCA believes that the manner in which the credit was claimed will not subject the Company to federal or state income taxes on such benefits. If it is determined that any of the alternative fuel mixture credits are subject to taxation, PCA will be required to pay those taxes and take a corresponding charge to its income. In an IRS memorandum released during the second quarter of 2010, the IRS concluded that black liquor also qualifies for the taxable cellulosic biofuel producer credit of $1.01 per gallon of biofuel produced in 2009. In a subsequent memorandum, the IRS concluded that a black liquor producer may claim the alternative fuel mixture credit and the cellulosic biofuel producer credit in the same taxable year for different volumes of black liquor (the same gallon of fuel cannot receive both credits but can be claimed as either alternative fuel mixture credit or the cellulosic biofuel producer credit). PCA received the required cellulosic biofuel producer registration code in September 2010. Based upon both the IRS memoranda and guidance regarding the cellulosic biofuel producer credit, the Company analyzed the additional potential benefits from claiming the cellulosic biofuel producer credit for 2009 instead of the alternative fuel mixture credit, or claiming a combination of the two credits for 2009. For the gallons of alternative fuels produced in 2009, PCA claimed about two-thirds of the gallons as cellulosic biofuel producer credits and about one-third of the gallons as alternative fuel mixture credits, resulting in additional income of $33.4 million recorded during the third quarter of 2010. During the fourth quarter of 2010 the Company determined that its proprietary biofuel process at the Filer City, Michigan mill would likely qualify for the 2009 cellulosic biofuel producer credit. The Company amended the 2009 federal return in December 2010 to claim these gallons, resulting in $107.0 million of cellulosic biofuel producer credits. Due to the unique and proprietary nature of the Filer City mill process, IRS guidelines do not specifically address the process and uncertainty exists. As a result, the Company increased the reserve for uncertain tax positions under ASC 740 by $102.0 million, which resulted in a net benefit of $5.0 million recorded during the fourth quarter of 2010. During the first quarter of 2011, the Company received notification that the IRS will begin its review of the cellulosic biofuel producer tax credits claimed in the 2009 federal income tax return, and such review is under way. The amount of credits that the Company can apply against future federal taxes owed will be dependent upon the timing and amount of PCA's future taxable income. As of September 30, 2011, including the reserve for uncertain tax positions, PCA has as much as $175 million of tax credits to be used to offset future tax payments. The cellulosic biofuel producer credit carryforward must be utilized to offset federal taxes owed by December 31, 2015, at which time the credit carryforward expires. A valuation allowance was not recorded against the deferred tax asset for this credit carryforward since the Company believes the credit can be fully utilized before expiration. If it is determined that any of the credit carryforward will become subject to expiration, PCA will reduce the deferred tax asset and record a corresponding charge to income.

Legal Proceedings	9 Months Ended
Legal Proceedings	Sep. 30, 2011
Legal Proceedings
Legal Proceedings	16. Legal Proceedings During September and October 2010, PCA and eight other U.S. and Canadian containerboard producers were named as defendants in five purported class action lawsuits filed in the United States District Court for the Northern District of Illinois, alleging violations of the Sherman Act. The lawsuits have been consolidated in a single complaint under the caption Kleen Products LLC v Packaging Corp. of America et al. The consolidated complaint alleges that the defendants conspired to limit the supply of containerboard, and that the purpose and effect of the alleged conspiracy was to artificially increase prices of containerboard products during the period of August 2005 to the time of filing of the complaints. The complaint was filed as a purported class action suit on behalf of all purchasers of containerboard products during such period. The complaint seeks treble damages and costs, including attorney's fees. The defendants' motions to dismiss the complaint were denied by the court in April 2011. PCA believes the allegations are without merit and will defend this lawsuit vigorously. However, as the lawsuit is in the early stages of discovery, PCA is unable to predict the ultimate outcome or estimate a range of reasonably possible losses.

Acquisitions	9 Months Ended
Acquisitions	Sep. 30, 2011
Acquisitions
Acquisitions	17. Acquisitions On April 14, 2011, the Company acquired Field Packaging Group, a corrugated products manufacturer located in Chicago, Illinois, for $26.9 million. Sales and total assets of the acquisition were not material to the Company's overall sales and total assets prior to the acquisition. Operating results of the acquisition subsequent to April 14, 2011 are included in the Company's 2011 operating results. The Company has allocated the purchase price to the assets acquired and liabilities assumed, of which $10.6 million has been allocated to goodwill, $10.4 million to customer relationships (amortized over a life of ten years) and $0.2 million to other intangibles assets (amortized over a life of three years). On September 10, 2011, the Company acquired Packaging Materials Company, a corrugated products manufacturer located near Huntsville, Alabama, for $8.7 million. Sales and total assets of the acquisition were not material to the Company's overall sales and total assets prior to the acquisition. Operating results of the acquisition subsequent to September 10, 2011 are included in the Company's 2011 operating results. The Company is currently allocating the purchase price to the assets acquired and liabilities assumed.

Valdosta Mill Fire Insurance Recovery	9 Months Ended
Valdosta Mill Fire Insurance Recovery	Sep. 30, 2011
Valdosta Mill Fire Insurance Recovery
Valdosta Mill Fire Insurance Recovery	18. Valdosta Mill Fire Insurance Recovery On April 4, 2011, the Company's Valdosta, Georgia mill had a fire in the turbine generator room. The fire resulted in production and sales volume losses of 11,000 tons and significant repair and demolition expenses to affected buildings and equipment. PCA is insured for the lost production, replacement value of destroyed assets, and related expenses, subject to a $3.0 million deductible. The Company filed an insurance claim for the total cost of the fire and received $6.5 million, net of the $3.0 million deductible, for losses incurred and capital expenditures during the second quarter of 2011. During the third quarter of 2011, the Company received an additional $1.5 million in insurance proceeds for capital expenditures. The $8.0 million in insurance proceeds is included in net cash provided by operating activities ($5.5 million) and in net cash used for investing activities ($2.5 million) based on the nature of the reimbursement. PCA expects to receive additional insurance proceeds for capital expenditures as work is completed.

Subsequent Events

9 Months Ended

Sep. 30, 2011

Subsequent Events

Subsequent Events

19. Subsequent Events

The Company has disclosed the following subsequent events in accordance with ASC 855, "Subsequent Events." Subsequent events have been evaluated through the filing date of this Form 10-Q.

•

On October 11, 2011, the Company replaced its old senior revolving credit facility that was scheduled to terminate in April 2013 with a new senior credit facility that provides a $150 million term loan facility, which PCA fully borrowed, and a $250 million revolving credit facility, including a $50.0 million subfacility for letters of credit. Borrowings may be used for general corporate purposes and bear interest at LIBOR plus a margin that is determined based upon PCA's credit ratings. The new senior credit facility will terminate on October 11, 2016.

•

Also on October 11, 2011, PCA amended its receivables credit facility agreement described in Note 9 above, which extended the termination date to October 11, 2014 and increased the borrowing availability from $150.0 million to $200.0 million.

Summary Of Accounting Policies (Policy)	9 Months Ended
Summary Of Accounting Policies (Policy)	Sep. 30, 2011
Summary Of Accounting Policies
Basis Of Consolidation	*Basis of Consolidation* The accompanying condensed consolidated financial statements of PCA include all majority-owned subsidiaries. All intercompany transactions have been eliminated. The Company has one joint venture that is accounted for under the equity method.
Use Of Estimates	*Use of Estimates* The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts in the financial statements and the accompanying notes. Actual results could differ from those estimates.
Revenue Recognition	*Revenue Recognition* The Company recognizes revenue as title to the products is transferred to customers. Shipping and handling billings to a customer are included in net sales. Shipping and handling costs are included in cost of sales. In addition, the Company offers volume rebates to certain of its customers. The total cost of these programs is estimated and accrued as a reduction to net sales at the time of the respective sale.
Segment Information	*Segment Information* PCA is engaged in one line of business: the integrated manufacture and sale of packaging materials, boxes and containers for industrial and consumer markets. No single customer accounts for more than 10% of total net sales.
Reclassification	*Reclassifications* Certain reclassifications were made to prior year amounts related to the alternative energy tax credits on the condensed consolidated statement of cash flows. The reclassification did not have any impact on the Company's net cash provided by operating activities, net cash used for investing activities or net cash used for financing activities in the prior period.

Derivative Instruments And Hedging Activities (Policy)	9 Months Ended
Derivative Instruments And Hedging Activities (Policy)	Sep. 30, 2011
Derivative Instruments And Hedging Activities
ASC Topic 815	"Derivatives and Hedging." The guidance requires the Company to recognize derivative instruments as either assets or liabilities in the balance sheet at fair value. The accounting for changes in the fair value of a derivative depends on the intended use and designation of the derivative instrument. For a derivative designated as a fair value hedge, the gain or loss on the derivative is recognized in earnings in the period of change in fair value together with the offsetting gain or loss on the hedged item. For a derivative instrument designated as a cash flow hedge, the effective portion of the derivative's gain or loss is initially reported as a component of accumulated other comprehensive income (loss) ("OCI") and is subsequently recognized in earnings when the hedged exposure affects earnings. The ineffective portion of the gain or loss is recognized in earnings.

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2011

Earnings Per Share

Computation Of Basic And Diluted Income Per Common Share


	Three Months Ended September 30,
	2011		2010
(In thousands, except per share data)
Numerator:
Net income	$	41,777	$	93,320
Denominator:
Basic common shares outstanding		99,020		101,776
Effect of dilutive securities:
Stock options		214		222
Unvested restricted stock		796		689

Dilutive common shares outstanding		100,030		102,687

Basic income per common share	$	0.42	$	0.92
Diluted income per common share	$	0.42	$	0.91

	Nine Months Ended September 30,
	2011		2010
(In thousands, except per share data)
Numerator:
Net income	$	118,562	$	150,544
Denominator:
Basic common shares outstanding		99,945		101,912
Effect of dilutive securities:
Stock options		294		243
Unvested restricted stock		791		667

Dilutive common shares outstanding		101,030		102,822

Basic income per common share	$	1.19	$	1.48
Diluted income per common share	$	1.17	$	1.46

Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2011

Comprehensive Income

Components Of Comprehensive Income


	Three Months Ended September 30,
	2011			2010
(In thousands)
Net income	$	41,777		$	93,320
Other comprehensive income, net of tax:
Amortization of unfunded employee benefit obligations		951			894
Amortization of net gain on treasury locks		(282	)		(282	)
Amortization of net loss on foreign currency exchange contracts		(1	)		—
Unrealized losses on treasury locks		(25,455	)		(11,101	)
Unrealized gains (losses) on foreign currency exchange contracts		(13	)		370

Comprehensive income	$	16,977		$	83,201


	Nine Months Ended September 30,
	2011			2010
(In thousands)
Net income	$	118,562		$	150,544
Other comprehensive income, net of tax:
Amortization of unfunded employee benefit obligations		2,853			2,683
Amortization of net gain on treasury locks		(845	)		(1,025	)
Amoritization of net loss on foreign currency exchange contracts		(1	)		—
Unrealized losses on treasury locks		(19,935	)		(19,374	)
Unrealized gains (losses) on foreign currency exchange contracts		189			(555	)

Comprehensive income	$	100,823		$	132,273

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2011

Stock-Based Compensation

Compensation Expense For Stock Options And Restricted Stock


	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
(In thousands)
Stock options	$	—		$	—		$	—		$	221
Restricted stock		2,487			1,615			7,191			5,182

Impact on income before income taxes		2,487			1,615			7,191			5,403
Income tax benefit		(968	)		(630	)		(2,798	)		(2,105	)

Impact on net income	$	1,519		$	985		$	4,393		$	3,298

Summary Of Stock Option Activity


	Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
								(In thousands)
Outstanding at December 31, 2010		1,568,384		$	21.38
Exercised		(336,285	)		20.35

Outstanding and exercisable at September 30, 2011		1,232,099		$	21.64		1.8	$	2,604

Summary Of Restricted Stock Activity


	2011						2010
	Shares			Fair Market Value at Date of Grant			Shares			Fair Market Value at Date of Grant
(Dollars in thousands)
Restricted stock at January 1		1,478,000		$	30,600			1,235,505		$	24,718
Granted		575,694			16,005			573,440			12,693
Vested		(219,469	)		(5,608	)		(318,350	)		(6,563	)
Cancellations		(4,340	)		(96	)		(12,595	)		(248	)

Restricted stock at September 30		1,829,885		$	40,901			1,478,000		$	30,600

Inventories (Tables)

9 Months Ended

Sep. 30, 2011

Inventories

Components Of Inventories


	September 30, 2011			December 31, 2010
(In thousands)				(Audited)
Raw materials	$	123,393		$	126,401
Work in process		8,658			6,395
Finished goods		77,770			73,710
Supplies and materials		109,567			102,720

Inventories at FIFO or average cost		319,388			309,226
Excess of FIFO or average cost over LIFO cost		(75,013	)		(68,084	)

Inventories, net	$	244,375		$	241,142

Goodwill And Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2011

Goodwill And Other Intangible Assets

Changes In The Carrying Amount Of Goodwill


(In thousands)
Balance as of December 31, 2010	$	38,854
Acquisitions		12,252

Balance at September 30, 2011	$	51,106

Components Of Other Intangible Assets


		As of September 30, 2011				As of December 31, 2010
	Weighted Average Remaining Life	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
(In thousands)						(Audited)
Customer relationships	20.8 years	$	27,811	$	7,409	$	17,441	$	6,466
Other	2.5 years		180		27		—		—

Total other intangible assets		$	27,991	$	7,436	$	17,441	$	6,466

Employee Benefit Plans And Other Postretirement Benefits (Tables)

9 Months Ended

Sep. 30, 2011

Net Pension Costs [Member]

Statement [Line Items]

Components Of Net Periodic Benefit Costs


	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
(In thousands)
Components of Net Pension Costs
Service cost for benefits earned during the year	$	4,952		$	4,579		$	14,856		$	13,737
Interest cost on accumulated benefit obligation		3,368			3,023			10,105			9,068
Expected return on assets		(3,386	)		(2,802	)		(10,158	)		(8,406	)
Net amortization of unrecognized amounts		1,549			1,483			4,645			4,449

Net pension costs	$	6,483		$	6,283		$	19,448		$	18,848

Net Postretirement Costs [Member]

Statement [Line Items]

Components Of Net Periodic Benefit Costs


	Three Months Ended September 30,					Nine Months Ended September 30,
	2011		2010			2011		2010
(In thousands)
Components of Net Postretirement Costs
Service cost for benefits earned during the year	$	400	$	350		$	1,199	$	1,049
Interest cost on accumulated benefit obligation		297		283			892		848
Net amortization of unrecognized amounts		8		(19	)		25		(56	)

Net postretirement costs	$	705	$	614		$	2,116	$	1,841

Derivative Instruments And Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2011

Derivative Instruments And Hedging Activities

Impact Of Derivative Instruments On Statements Of Income And Accumulated OCI


	Amount of Net Gain (Loss) Recognized in Accumulated OCI (Effective Portion)
	Sept. 30, 2011			Dec. 31, 2010
(In thousands)				Audited
Treasury locks, net of tax	$	(18,616	)	$	2,164
Foreign currency exchange contracts, net of tax		(419	)		(607	)

Total	$	(19,035	)	$	1,557


	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
	Three Months Ended September 30,				Nine Months Ended September 30,
Location	2011		2010		2011		2010
(In thousands)
Interest expense, net	$	461	$	461	$	1,385	$	1,384
Cost of sales		2		—		2		—

Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2011

Financial Instruments

Carrying And Estimated Fair Values Of Financial Instruments


	September 30, 2011						December 31, 2010
	Carrying Amount			Fair Value			Carrying Amount			Fair Value
(In thousands)							(Audited)
Cash and cash equivalents	$	40,117		$	40,117		$	196,556		$	196,556
Long-term debt —
5.75% senior notes		(399,400	)		(424,304	)		(399,143	)		(430,464	)
6.50% senior notes		(149,960	)		(165,717	)		(149,956	)		(158,800	)
Receivables credit facility		(109,000	)		(109,000	)		(109,000	)		(109,000	)
Capital lease obligations		(22,004	)		(22,004	)		(22,502	)		(22,502	)

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2011

Fair Value Measurements

Assets And Liabilities Measured At Fair Value On A Recurring Basis


	As of September 30, 2011
	Carrying Value			Fair Value			Measurement Approach					As of December 31, 2010
	Carrying Value			Fair Value			Level		Valuation Technique			Carrying Value		Fair Value
(In thousands)												(Audited)
Current Assets
Money market funds	$	39,617		$	39,617			1		(a	)	$	196,058	$	196,058
Foreign currency exchange contracts		—			—			2		(a	)		12		12
Long-Term Assets
Treasury locks		—			—								872		872
Other Long-Term Liabilities
Treasury locks		(41,669	)		(41,669	)		2		(a	)		—		—

Summary Of Accounting Policies (Details)	9 Months Ended
Summary Of Accounting Policies (Details)	Sep. 30, 2011
Summary Of Accounting Policies
Number of joint ventures under equity method	1
Number of customers accountable for more than ten percent of net sales	0
Percent of net sales threshold used to determine major customers	10.00%

Earnings Per Share (Narrative) (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Earnings Per Share
Options to purchase shares outstanding not included in the computation of diluted common shares outstanding	0.2	0.6	0.0	0.6

Earnings Per Share (Computation Of Basic And Diluted Income Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Earnings Per Share
Net income	$ 41,777	$ 93,320	$ 118,562	$ 150,544
Basic common shares outstanding	99,020	101,776	99,945	101,912
Stock options	214	222	294	243
Unvested restricted stock	796	689	791	667
Dilutive common shares outstanding	100,030	102,687	101,030	102,822
Basic income per common share	$ 0.42	$ 0.92	$ 1.19	$ 1.48
Diluted income per common share	$ 0.42	$ 0.91	$ 1.17	$ 1.46

Comprehensive Income (Components Of Comprehensive Income) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Comprehensive Income
Net income	$ 41,777	$ 93,320	$ 118,562	$ 150,544
Amortization of unfunded employee benefit obligations	951	894	2,853	2,683
Amortization of net gain on treasury locks	(282)	(282)	(845)	(1,025)
Amortization of net loss on foreign currency exchange contracts	(1)		(1)
Unrealized losses on treasury locks	(25,455)	(11,101)	(19,935)	(19,374)
Unrealized gains (losses) on foreign currency exchange contracts	(13)	370	189	(555)
Comprehensive income	$ 16,977	$ 83,201	$ 100,823	$ 132,273

Stock-Based Compensation (Narrative) (Details) $ in Millions	3 Months Ended		9 Months Ended		45 Months Ended
	Sep. 30, 2011 USD ($) shares	Sep. 30, 2010 USD ($)	Sep. 30, 2011 USD ($) shares	Sep. 30, 2010 USD ($)	Sep. 30, 2011 USD ($) shares
Statement [Line Items]
Option awards granted \| shares					0
Long-term equity incentive plan, termination date			October 19, 2014
Number of shares authorized under plan \| shares	8,550,000		8,550,000		8,550,000
Options and restricted stock granted net of forfeitures \| shares			7,660,885
Total intrinsic value of options exercised \| $	$ 0.1	$ 0.3	$ 2.7	$ 1.5
Unrecognized compensation cost related to stock option awards granted under the equity incentive plan \| $	0.0		0.0		$ 0.0
Unrecognized compensation costs related to restricted stock awards \| $	$ 24.1		$ 24.1		$ 24.1
Expected weighted-average period to recognize the cost of stock awards (in years)			2.8
Restricted Stock [Member]
Statement [Line Items]
Vesting period of equity awards granted to officers and employees, years			four

Stock-Based Compensation (Compensation Expense For Stock Options And Restricted Stock) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Statement [Line Items]
Impact on income before income taxes	$ 2,487	$ 1,615	$ 7,191	$ 5,403
Income tax benefit	(968)	(630)	(2,798)	(2,105)
Impact on net income	1,519	985	4,393	3,298
Stock Options [Member]
Statement [Line Items]
Impact on income before income taxes				221
Restricted Stock [Member]
Statement [Line Items]
Impact on income before income taxes	$ 2,487	$ 1,615	$ 7,191	$ 5,182

Stock-Based Compensation (Summary Of Stock Option Activity) (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2011 USD ($) $ / shares shares
Stock-Based Compensation
Options, Outstanding, Beginning Balance \| shares	1,568,384
Options, Exercised \| shares	(336,285)
Options, Outstanding and exercisable, Ending Balance \| shares	1,232,099
Weighted-Average Exercise Price, Outstanding, Beginning Balance \| $ / shares	$ 21.38
Weighted-Average Exercise Price, Exercised \| $ / shares	20.35
Weighted-Average Exercise Price, Outstanding and exercisable, Ending Balance \| $ / shares	$ 21.64
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm	1.80
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableIntrinsicValue \| $	$ 2,604

Stock-Based Compensation (Summary Of Restricted Stock Activity) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Stock-Based Compensation
Restricted stock, Shares, Beginning Balance	1,478,000	1,235,505
Restricted stock, Fair Market Value at Date of Grant, Beginning Balance	$ 30,600	$ 24,718
Restricted stock, Shares, Granted	575,694	573,440
Restricted stock, Granted, Fair Market Value at Date of Grant	$ 16,005	$ 12,693
Restricted stock, Shares, Vested	(219,469)	(318,350)
Restricted stock, Vested, Fair Market Value at Date of Grant	$ (5,608)	$ (6,563)
Restricted stock, Shares, Cancellations	(4,340)	(12,595)
Restricted stock, Cancellations, Fair Market Value at Date of Grant	$ (96)	$ (248)
Restricted stock, Shares, Ending Balance	1,829,885	1,478,000
Restricted stock, Fair Market Value at Date of Grant, Ending Balance	$ 40,901	$ 30,600

Inventories (Components Of Inventories) (Details) - USD ($) $ in Thousands	Sep. 30, 2011	Dec. 31, 2010
Inventories
Raw materials	$ 123,393	$ 126,401
Work in process	8,658	6,395
Finished goods	77,770	73,710
Supplies and materials	109,567	102,720
Inventories at FIFO or average cost	319,388	309,226
Excess of FIFO or average cost over LIFO cost	(75,013)	(68,084)
Inventories, net	$ 244,375	$ 241,142

Goodwill And Other Intangible Assets (Changes In The Carrying Amount Of Goodwill) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2011 USD ($)
Goodwill And Other Intangible Assets
Balance as of December 31, 2010	$ 38,854
Acquisitions	12,252
Balance at September 30, 2011	$ 51,106

Goodwill And Other Intangible Assets (Components Of Other Intangible Assets) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2011 USD ($)	Dec. 31, 2010 USD ($)
Statement [Line Items]
Gross Carrying Amount	$ 27,991	$ 17,441
Accumulated Amortization	$ 7,436	6,466
Customer Relationships [Member]
Statement [Line Items]
Weighted Average Remaining Life (years)	20.8
Gross Carrying Amount	$ 27,811	17,441
Accumulated Amortization	$ 7,409	6,466
Other [Member]
Statement [Line Items]
Weighted Average Remaining Life (years)	2.5
Gross Carrying Amount	$ 180
Accumulated Amortization	$ 27

Employee Benefit Plans And Other Postretirement Benefits (Narrative) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2011 USD ($)
Employee Benefit Plans And Other Postretirement Benefits
Company's expected contribution to pension plan in fiscal year 2011	$ 22.1
Company's contribution to pension plan	$ 18.2

Employee Benefit Plans And Other Postretirement Benefits (Defined Benefit Plan Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Net Pension Costs [Member]
Statement [Line Items]
Service cost for benefits earned during the year	$ 4,952	$ 4,579	$ 14,856	$ 13,737
Interest cost on accumulated benefit obligation	3,368	3,023	10,105	9,068
Expected return on assets	(3,386)	(2,802)	(10,158)	(8,406)
Net amortization of unrecognized amounts	1,549	1,483	4,645	4,449
Net costs	6,483	6,283	19,448	18,848
Net Postretirement Costs [Member]
Statement [Line Items]
Service cost for benefits earned during the year	400	350	1,199	1,049
Interest cost on accumulated benefit obligation	297	283	892	848
Net amortization of unrecognized amounts	8	(19)	25	(56)
Net costs	$ 705	$ 614	$ 2,116	$ 1,841

Transfers Of Financial Assets (Details) - USD ($) $ in Millions		9 Months Ended
	Mar. 01, 2011	Sep. 30, 2011
Statement [Line Items]
Receivables-backed revolving credit facility		$ 150.0
Credit facility outstanding		$ 109.0
Accounts receivable sold		Substantially all
Receivables credit facility, expiration date	February 28, 2012
Previous Expiration [Member]
Statement [Line Items]
Receivables credit facility, expiration date	March 1, 2011

Derivative Instruments And Hedging Activities (Narrative) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2011 USD ($)
Statement [Line Items]
(Proceeds from) or payments to settlement of interest rate protection agreement	$ (9,910)
Outstanding senior notes	$ 400,000
Senior notes, maturity year	2013
Foreign currency forward contracts settled for a loss, amount	$ 700
Number of foreign currency forward contracts outstanding	0
Fair Value of treasury locks	$ (41,700)
Notional amount of interest rate protection agreement outstanding	$ 400,000
Interest rate contracts, expected year of maturity	2012
Amount of gain (loss) to be reclassified from accumulated OCI into income	$ 1,800
Amount of gain (loss) to be reclassified from accumulated OCI into income, net of tax	1,200
Ineffective portion of derivative instruments	0
2003 Interest Rate Protection Agreement [Member]
Statement [Line Items]
(Proceeds from) or payments to settlement of interest rate protection agreement	(22,800)
2008 Interest Rate Protection Agreement [Member]
Statement [Line Items]
(Proceeds from) or payments to settlement of interest rate protection agreement	4,400
2010 Interest Rate Protection Agreement [Member]
Statement [Line Items]
(Proceeds from) or payments to settlement of interest rate protection agreement	$ (9,900)

Derivative Instruments And Hedging Activities (Impact Of Derivative Instruments On Statements Of Income And Accumulated OCI) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010	Dec. 31, 2010
Statement [Line Items]
Amount of Net Gain (Loss) Recognized in Accumulated OCI (Effective Portion)			$ (19,035)		$ 1,557
Interest Expense, Net [Member]
Statement [Line Items]
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	$ 461	$ 461	1,385	$ 1,384
Cost Of Sales [Member]
Statement [Line Items]
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	$ 2		2
Treasury Locks, Net Of Tax [Member]
Statement [Line Items]
Amount of Net Gain (Loss) Recognized in Accumulated OCI (Effective Portion)			(18,616)		2,164
Foreign Currency Exchange Contracts, Net Of Tax [Member]
Statement [Line Items]
Amount of Net Gain (Loss) Recognized in Accumulated OCI (Effective Portion)			$ (419)		$ (607)

Financial Instruments (Carrying And Estimated Fair Values Of Financial Instruments) (Details) - USD ($) $ in Thousands	Sep. 30, 2011	Dec. 31, 2010	Sep. 30, 2010	Dec. 31, 2009
Statement [Line Items]
Cash and cash equivalents, Carrying Amount	$ 40,117	$ 196,556	$ 172,820	$ 260,727
Cash and cash equivalents, Fair Value	40,117	196,556
Receivables credit facility, Carrying Amount	(109,000)	(109,000)
Receivables credit facility, Fair Value	(109,000)	(109,000)
Capital lease obligations, Carrying Amount	(22,004)	(22,502)
Capital lease obligations, Fair Value	(22,004)	(22,502)
5.75% Senior Notes [Member]
Statement [Line Items]
Long-term debt, Carrying Amount	(399,400)	(399,143)
Long-term debt, Fair Value	$ (424,304)	$ (430,464)
Senior notes, stated percentage	5.75%	5.75%
6.50% Senior Notes [Member]
Statement [Line Items]
Long-term debt, Carrying Amount	$ (149,960)	$ (149,956)
Long-term debt, Fair Value	$ (165,717)	$ (158,800)
Senior notes, stated percentage	6.50%	6.50%

Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($)
$ in Thousands

Sep. 30, 2011

Dec. 31, 2010

Statement [Line Items]

Treasury locks, Carrying Value

$ 872

Treasury locks, Fair Value

872

Fair Value, Inputs, Level 1 [Member]

Statement [Line Items]

Money market funds, Carrying Value

^[1]

$ 39,617

196,058

Money market funds, Fair Value

^[1]

39,617

196,058

Fair Value, Inputs, Level 2 [Member]

Statement [Line Items]

Foreign currency exchange contracts, Carrying Value

^[1]

Foreign currency exchange contracts, Fair Value

^[1]

$ 12

Treasury locks, Carrying Value

^[1]

$ (41,669)

[1]	Market approach — prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities

Environmental Liabilities (Details) $ in Millions	9 Months Ended
Environmental Liabilities (Details) $ in Millions	Sep. 30, 2011 USD ($)
Environmental Liabilities
Remediation costs	$ 3.2
Environmental reserve	$ 10.2

Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2011	Jun. 30, 2011	Jun. 30, 2011	Sep. 30, 2011	Feb. 22, 2011	Oct. 17, 2007
Statement [Line Items]
Common stock repurchase authorized amount						$ 150.0
Total stock repurchased, shares			6,422,587
Common stock repurchase price per share		$ 23.36
Stock Repurchase Program Additional Authorization [Member]
Statement [Line Items]
Common stock repurchase authorized amount					$ 100.0
Common stock repurchase price per share	$ 24.02
Common stock repurchased and retired, shares	2,000,000
Common stock repurchased and retired, value	$ 48.0
Treasury stock repurchase authorization amount available				$ 32.6

Alternative Energy Tax Credits (Details) - USD ($)	3 Months Ended			9 Months Ended
Alternative Energy Tax Credits (Details) - USD ($)	Dec. 31, 2010	Sep. 30, 2010	Mar. 31, 2010	Sep. 30, 2011	Jun. 30, 2010	Dec. 31, 2009
Statement [Line Items]
Alternative fuel mixture tax credit reserve			$ 9,200,000
Uncertain tax positions	$ 102,000,000
Tax credits used to offset future cash tax payment				$ 175,000,000
Alternative Fuel Mixture Credits [Member]
Statement [Line Items]
Refundable tax credit per gallon						$ 0.50
Alternative fuels produced claimed for alternative energy tax credits				33.00%
Cellulosic Biofuel Tax Credits [Member]
Statement [Line Items]
Refundable tax credit per gallon					$ 1.01
Alternative fuels produced claimed for alternative energy tax credits				66.00%
Cellulosic biofuel producer credits before reserves for uncertain tax positions	107,000,000
Net income impact from the alternative energy tax credits	$ 5,000,000	$ 33,400,000

Legal Proceedings (Details)	9 Months Ended
Legal Proceedings (Details)	Sep. 30, 2011
Legal Proceedings
Number of lawsuits filed by the plaintiffs	5
Number of other U.S. and Canadian containerboard producers	PCA and eight other U.S. and Canadian containerboard producers were named as defendants

Acquisitions (Details) $ in Millions	9 Months Ended
Acquisitions (Details) $ in Millions	Sep. 30, 2011 USD ($)	Sep. 10, 2011 USD ($)	Apr. 14, 2011 USD ($)
Field Packaging Group [Member]
Statement [Line Items]
Business acquisition, cost of acquired entity			$ 26.9
Purchase price allocation to goodwill	$ 10.6
Packaging Materials Company [Member]
Statement [Line Items]
Business acquisition, cost of acquired entity		$ 8.7
Customer Relationships [Member] \| Field Packaging Group [Member]
Statement [Line Items]
Purchase price allocation to intangible assets	$ 10.4
Intangible asset, useful life, in years	10
Other [Member] \| Field Packaging Group [Member]
Statement [Line Items]
Purchase price allocation to intangible assets	$ 0.2
Intangible asset, useful life, in years	3

Valdosta Mill Fire Insurance Recovery (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2011 USD ($)	Jun. 30, 2011 USD ($)	Sep. 30, 2011 USD ($) T
Valdosta Mill Fire Insurance Recovery
Sale volume losses, in tons \| T			11,000
Insurance deductible			$ 3.0
Insurance claim, net of deductible	$ 1.5	$ 6.5	8.0
Insurance proceeds included in net cash provided by operating activities			5.5
Insurance proceeds included in net cash used for investing activities			$ 2.5

Subsequent Events (Details) - USD ($) $ in Millions	Oct. 11, 2011	Mar. 01, 2011	Sep. 30, 2011
Statement [Line Items]
Credit facility borrowing capacity			$ 150.0
Credit facility, expiration date		February 28, 2012
Old Senior Credit Facility [Member]
Statement [Line Items]
Credit facility, expiration date	April 2013
Receivables Credit Facility Agreement [Member]
Statement [Line Items]
Credit facility borrowing capacity	$ 150.0
New Senior Credit Facility [Member]
Statement [Line Items]
Credit facility, expiration date	October 11, 2016
New Senior Credit Facility [Member] \| Term Loan Facility [Member]
Statement [Line Items]
Term loan facility borrowing capacity	$ 150.0
New Senior Credit Facility [Member] \| Revolving Credit Facility [Member]
Statement [Line Items]
Credit facility borrowing capacity	250.0
New Senior Credit Facility [Member] \| Letters Of Credit [Member]
Statement [Line Items]
Credit facility borrowing capacity	50.0
Amended Receivables Credit Facility Agreement [Member]
Statement [Line Items]
Credit facility borrowing capacity	$ 200.0
Credit facility, expiration date	October 11, 2014

Label

Element

Value

Fair Value, Inputs, Level 2 [Member]

Interest Rate Cash Flow Hedge Liability at Fair Value

us-gaap_InterestRateCashFlowHedgeLiabilityAtFairValue

$ 41,669,000

^[1]

[1]	Market approach — prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities