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REMEDIAL LIABILITIES
12 Months Ended
Dec. 31, 2012
Environmental Remediation Obligations [Abstract]  
REMEDIAL LIABILITIES
REMEDIAL LIABILITIES
The changes to remedial liabilities from January 1, 2011 through December 31, 2012 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, 2011
$
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

Liabilities assumed in Safety-Kleen acquisition

 

 
42,543

 
42,543

Accretion
276

 
3,456

 
2,192

 
5,924

Changes in estimates recorded to statement of income
(31
)
 
(5,978
)
 
(3,643
)
 
(9,652
)
Expenditures
(82
)
 
(4,851
)
 
(2,413
)
 
(7,346
)
Currency translation and other
66

 
3

 
362

 
431

Balance at December 31, 2012
$
5,829

 
$
71,079

 
$
90,312

 
$
167,220


In 2012, the benefit resulting from the changes in estimates for inactive sites primarily related to three sites. Updates to the scope of work at two sites and favorable environmental studies at a third site led to reductions in related remedial liabilities. The benefit resulting from the changes in estimates for non-landfill sites was primarily due to the implementation of a new technology to replace the traditional pump and treat method of handling wastewater at one site.
In 2011, the benefit resulting from the changes in estimates for inactive sites primarily related to four sites. Installation of a solar array system led to lower estimated future utility costs at one site; favorable environmental studies and regulatory approvals were achieved at a second and third site; and utilization of internal labor rather than external contractors at a fourth site enabled the Company to reduce its estimate of remediation costs. The increase in remedial liabilities due to changes in estimates for non-landfill sites was primarily due to the finalization of the corrective action plan at one site.
Anticipated payments at December 31, 2012 (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,
 
2013
$
16,446

2014
16,348

2015
15,501

2016
12,456

2017
9,334

Thereafter
137,442

Undiscounted remedial liabilities
207,527

Less: Discount
(40,307
)
Total remedial liabilities
$
167,220


Based on 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, 2012 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 $167.2 million. The Company also estimates that it is reasonably possible that the amount of such total liabilities could be as much as $21.5 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 (29 facilities)
$
81,883

 
49.0
%
 
$
10,932

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)
71,079

 
42.5

 
9,118

Superfund sites owned by third parties (29 sites)
14,258

 
8.5

 
1,426

Total
$
167,220

 
100.0
%
 
$
21,476

___________________________________
(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
 
$
32,176

 
19.2
%
 
$
4,721

Bridgeport, NJ
Closed incinerator
 
21,593

 
12.9

 
2,811

Mercier, Quebec(2)
Idled incinerator and legal proceedings
 
14,611

 
8.7

 
1,562

Various(2)
All other incinerators, landfills, wastewater treatment facilities and service centers (43 facilities)
 
84,582

 
50.7

 
10,956

Various(2)
Superfund sites (each representing less than 5% of total liabilities) owned by third parties (29 sites)
 
14,258

 
8.5

 
1,426

Total
 
 
$
167,220

 
100.0
%
 
$
21,476

_________________________________
(1)
Amounts represent the high end of the range of management's best estimate of the reasonably possible additional liabilities.
(2)
$34.5 million of the $167.2 million remedial liabilities and $3.5 million of the $21.5 million reasonably possible additional liabilities include estimates of remediation liabilities related to the legal and administrative proceedings discussed in Note 17, "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.