PACKAGING CORP OF AMERICA (PKG): restructuring charge — PCA to shut down Wallula kraft pulping and No.2 machine; $205M restructuring charges

PACKAGING CORP OF AMERICA

Pre-tax restructuring charges of $205M: $165M non-cash impairment/depreciation, $40M cash for severance and contract termination.
Headcount reduction of ~200 positions at the Wallula mill.
Mill capacity reduced by 250,000 tons/year to 285,000 tons/year on recycled linerboard.
Company expects to lower production cost by ~$125/ton from 2025 levels.
Remaining capacity to be replaced by production enhancements at other mills starting Q4 2026.

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 1.0

PACKAGING CORP OF AMERICA announced a impairment with charges of Non-cash impairment and accelerated depreciation charges of $165 million affecting Wallula, Washington containerboard mill (approximately 200 positions).

Type: impairment
Charge: Non-cash impairment and accelerated depreciation charges of $165 million
Affected area: Wallula, Washington containerboard mill
Headcount: approximately 200 positions

Exact text from the filing

These charges include approximately $165 million of non-cash impairment and accelerated depreciation charges and $40 million of cash charges for contract termination, severance, and other charges.

View on SEC.gov

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 1.0

PACKAGING CORP OF AMERICA announced a restructuring with charges of Cash charges of $40 million for contract termination, severance, and other charges affecting Wallula, Washington containerboard mill (approximately 200 positions).

Type: restructuring
Charge: Cash charges of $40 million for contract termination, severance, and other charges
Affected area: Wallula, Washington containerboard mill
Headcount: approximately 200 positions

Exact text from the filing

These charges include approximately $165 million of non-cash impairment and accelerated depreciation charges and $40 million of cash charges for contract termination, severance, and other charges.

View on SEC.gov

3 restructurings & charges filed in the last 30 days. Browse all restructurings & charges →

PACKAGING CORP OF AMERICA filing history →

Source: SEC EDGAR

accession 0001193125-25-307535

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