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REMEDIAL LIABILITIES
12 Months Ended
Dec. 31, 2011
Environmental Remediation Obligations [Abstract]  
REMEDIAL LIABILITIES
REMEDIAL LIABILITIES
The changes to remedial liabilities from January 1, 2010 through December 31, 2011 were as follows (in thousands):
 
Remedial
Liabilities for
Landfill Sites
 
Remedial
Liabilities for
Inactive Sites
 
Remedial
Liabilities
(Including
Superfund) for
Non-Landfill
Operations
 
Total
Balance at January 1, 2010
5,337

 
86,761

 
53,388

 
145,486

Accretion
261

 
3,895

 
2,351

 
6,507

Changes in estimates recorded to statement of income
(115
)
 
(4,491
)
 
(3,584
)
 
(8,190
)
Expenditures
(103
)
 
(3,838
)
 
(3,108
)
 
(7,049
)
Currency translation and other
131

 
27

 
701

 
859

Balance at December 31, 2010
5,511

 
82,354

 
49,748

 
137,613

Liabilities assumed in acquisitions

 

 
100

 
100

Accretion
271

 
3,780

 
2,247

 
6,298

Changes in estimates recorded to statement of income
(55
)
 
(3,825
)
 
2,442

 
(1,438
)
Expenditures
(71
)
 
(3,852
)
 
(2,864
)
 
(6,787
)
Currency translation and other
(56
)
 
(8
)
 
(402
)
 
(466
)
Balance at December 31, 2011
$
5,600

 
$
78,449

 
$
51,271

 
$
135,320


During the year ended December 31, 2011, the benefit resulting from the changes in estimates for remedial liabilities for inactive sites was based primarily on revisions to certain liability estimates due to new site information and the installation of more efficient processing equipment. The benefit resulting from changes in estimates for non-landfill liabilities was primarily due to (i) the successful introduction of new technology for remedial activities, (ii) the discounting effect of delays in certain remedial projects and (iii) the completion of remedial projects at lower than anticipated cost, offset partially by (iv) new regulatory compliance obligations.
During the year ended December 31, 2010, the benefit resulting from the changes in estimates for remedial liabilities for inactive sites was based primarily on revisions to certain liability estimates due to new site information and the installation of more efficient processing equipment. The benefit resulting from changes in estimates for non-landfill liabilities was primarily due to (i) the successful introduction of new technology for remedial activities, (ii) the discounting effect of delays in certain remedial projects and (iii) the completion of remedial projects at lower than anticipated cost, offset partially by (iv) new regulatory compliance obligations.
Anticipated payments at December 31, 2011 (based on current estimated costs and anticipated timing of necessary regulatory approvals to commence work on remedial activities) for each of the next five years and thereafter are as follows (in thousands):
Year ending December 31,
 
2012
$
11,044

2013
12,315

2014
9,893

2015
8,011

2016
10,628

Thereafter
121,365

Undiscounted remedial liabilities
173,256

Less: Discount
(37,936
)
Total remedial liabilities
$
135,320


In light of currently available facts and legal interpretations, existing technology, and presently enacted laws and regulations, the Company estimates that its aggregate liabilities as of December 31, 2011 for future remediation relating to all of its owned or leased facilities and the Superfund sites for which the Company has current or potential future liability is approximately $135.3 million. The Company also estimates that it is reasonably possible that the amount of such total liabilities could be as much as $19.7 million more. Future changes in either available technology or applicable laws or regulations could affect such estimates of remedial liabilities. Since the Company's satisfaction of the liabilities will occur over many years, the Company cannot now reasonably predict the nature or extent of future changes in either available technology or applicable laws or regulations and the impact that those changes, if any, might have on the current estimates of remedial liabilities.
The following tables show, respectively, (i) the amounts of such estimated liabilities associated with the types of facilities and sites involved and (ii) the amounts of such estimated liabilities associated with each facility or site which represents at least 5% of the total and with all other facilities and sites as a group.
Estimates Based on Type of Facility or Site (in thousands):
Type of Facility or Site
Remedial
Liability
 
% of Total
 
Reasonably Possible
Additional Liabilities(1)
Facilities now used in active conduct of the Company's business (21 facilities)
$
49,720

 
36.7
%
 
$
9,114

Inactive facilities not now used in active conduct of the Company's business but most of which were acquired because the assumption of remedial liabilities for such facilities was part of the purchase price for the CSD assets (17 facilities)
78,450

 
58.0

 
9,913

Superfund sites owned by third parties on which wastes generated or shipped by the sellers of the CSD assets (or their predecessors) are present (13 sites)
7,150

 
5.3

 
715

Total
$
135,320

 
100.0
%
 
$
19,742

___________________________________
(1)
Amounts represent the high end of the range of management's best estimate of the reasonably possible additional liabilities.
Estimates Based on Amount of Potential Liability (in thousands):
Location
Type of Facility or Site
 
Remedial
Liability
 
% of Total
 
Reasonably
Possible
Additional
Liabilities(1)
Baton Rouge, LA(2)
Closed incinerator and landfill
 
$
37,200

 
27.5
%
 
$
5,219

Bridgeport, NJ
Closed incinerator
 
21,547

 
15.9

 
2,822

Mercier, Quebec(2)
Idled incinerator and legal proceedings
 
13,616

 
10.1

 
1,459

San Jose, CA
Open treatment, storage, or disposal facilities
 
9,223

 
6.8

 
949

Various(2)
All other incinerators, landfills, wastewater treatment facilities and service centers (34 facilities)
 
46,584

 
34.4

 
8,578

Various(2)
All other Superfund sites (each representing less than 5% of total liabilities) owned by third parties on which wastes generated or shipped by either the Company or the sellers of the CSD assets (or their predecessors) are present (13 sites)
 
7,150

 
5.3

 
715

Total
 
 
$
135,320

 
100.0
%
 
$
19,742

_________________________________
(1)
Amounts represent the high end of the range of management's best estimate of the reasonably possible additional liabilities.
(2)
$26.7 million of the $135.3 million remedial liabilities and $2.7 million of the $19.7 million reasonably possible additional liabilities include estimates of remediation liabilities related to the legal and administrative proceedings discussed in Note 14, "Commitments and Contingencies," as well as other such estimated remedial liabilities.
Revisions to remediation reserve requirements may result in upward or downward adjustments to income from operations in any given period. The Company believes that its extensive experience in the environmental services business, as well as its involvement with a large number of sites, provides a reasonable basis for estimating its aggregate liability. It is possible, however, that technological, regulatory or enforcement developments, the results of environmental studies, or other factors could necessitate the recording of additional liabilities or the revision of currently recorded liabilities that could be material. The impact of such future events cannot be estimated at the current time.