ENVIRONMENTAL

9 Months Ended

Sep. 30, 2020

Environmental Remediation Obligations [Abstract]

ENVIRONMENTAL

NOTE 9. ENVIRONMENTAL

We are party to various government and private environmental actions associated with past manufacturing facilities and former waste disposal sites. Environmental provisions charged (credited) to income, which are included in costs of goods sold, were as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2020		2019			2020		2019
	($ in millions)
Provisions charged (credited) to income	$	12.5	$	(0.8	)	$	17.9	$	23.0
Recoveries for costs incurred and expensed	—		—			—		(4.8		)
Environmental expense (income)	$	12.5	$	(0.8	)	$	17.9	$	18.2

Provisions charged (credited) to income for the nine months ended September 30, 2019 include $4.8 million of recoveries associated with resolving outstanding third party claims against the proceeds from a 2018 environmental insurance settlement.  The condensed balance sheets included reserves for future environmental expenditures to investigate and remediate known sites amounting to $146.7 million, $139.0 million and $140.1 million at September 30, 2020, December 31, 2019 and September 30, 2019, respectively, of which $129.7 million, $122.0 million and $123.1 million, respectively, were classified as other noncurrent liabilities.

Environmental exposures are difficult to assess for numerous reasons, including the identification of new sites, developments at sites resulting from investigatory studies, advances in technology, changes in environmental laws and regulations and their application, changes in regulatory authorities, the scarcity of reliable data pertaining to identified sites, the difficulty in assessing the involvement and financial capability of other Potentially Responsible Parties (PRPs), our ability to obtain contributions from other parties and the lengthy time periods over which site remediation occurs. It is possible that some of these matters (the outcomes of which are subject to various uncertainties) may be resolved unfavorably to us, which could materially adversely affect our financial position or results of operations.

In connection with the October 5, 2015 acquisition of Dow’s U.S. Chlor Alkali and Vinyl, Global Chlorinated Organics and Global Epoxy businesses, the prior owner of the businesses retained liabilities relating to releases of hazardous materials and violations of environmental law to the extent arising prior to October 5, 2015.