ASSET RETIREMENT OBLIGATIONS

9 Months Ended

Sep. 30, 2023

ASSET RETIREMENT OBLIGATIONS [Abstract]

Note 9: Asset Retirement Obligations

Asset retirement obligations (AROs) are legal obligations associated with the retirement of long-lived assets resulting from the acquisition, construction, development and/or normal use of the underlying assets, including legal obligations for land reclamation. Recognition of a liability for an ARO is required in the period in which it is incurred at its estimated fair value. The associated asset retirement costs are capitalized as part of the carrying amount of the underlying asset and depreciated over the estimated useful life of the asset. The liability is accreted through charges to operating expenses. If the ARO is settled for a value other than the carrying amount of the liability, we recognize a gain or loss on settlement.

ARO operating costs related to accretion of the liabilities and depreciation of the assets are as follows:



	Three Months Ended		Nine Months Ended
	September 30		September 30
in millions	2023	2022	2023	2022
ARO Operating Costs
Accretion	$ 3.5	$ 3.6	$ 10.3	$ 10.7
Depreciation	2.2	2.4	6.6	7.2
Total	$ 5.7	$ 6.0	$ 16.9	$ 17.9

ARO operating costs are reported in cost of revenues. AROs are reported within other noncurrent liabilities in our accompanying Condensed Consolidated Balance Sheets.

Reconciliations of the carrying amounts of our AROs are as follows:



	Three Months Ended		Nine Months Ended
	September 30		September 30
in millions	2023	2022	2023	2022
Asset Retirement Obligations
Balance at beginning of period	$ 311.6	$ 321.1	$ 311.3	$ 315.2
Liabilities incurred	0.0	19.2	0.0	21.5
Liabilities settled	(1.9)	(2.3)	(8.4)	(5.6)
Accretion expense	3.5	3.6	10.3	10.7
Revisions, net	2.3	(1.6)	2.3	(1.8)
Balance at end of period	$ 315.5	$ 340.0	$ 315.5	$ 340.0

ARO liabilities incurred as of September 30, 2022 primarily related to acquisitions completed in 2022 (see Note 16).