XML 44 R27.htm IDEA: XBRL DOCUMENT v3.3.1.900
Accounting for Asset Retirement Obligations
 12 Months Ended
Dec. 31, 2015
Accounting for Asset Retirement Obligations [Abstract]  
Accounting for Asset Retirement Obligations
Note 20.Accounting for Asset Retirement Obligations

The Company records asset retirement obligations in which the Company will be required to retire tangible long-lived assets. These are primarily related to its PCC satellite facilities and mining operations. The Company has also recorded the provisions related to conditional asset retirement obligations at its facilities. The Company has recorded asset retirement obligations at all of its facilities except where there are no contractual or legal obligations. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset.

The following is a reconciliation of asset retirement obligations as of December 31, 2014 and 2013:

  
2015
  
2014
 
  
(millions of dollars)
 
Asset retirement liability, beginning of period
 
$
23.0
  
$
14.7
 
Acquisition
  
-
   
9.2
 
Accretion expense
  
2.8
   
1.7
 
Reversals
  
(1.0
)
  
(0.2
)
Payments
  
(1.9
)
  
(1.5
)
Foreign currency translation
  
(1.5
)
  
(0.9
)
Asset retirement liability,  end of period
 
$
21.4
  
$
23.0
 

The Company mines various minerals using a surface mining process that requires the removal of overburden.  In certain areas and under various governmental regulations, the Company is obligated to restore the land comprising each mining site to its original condition at the completion of the mining activity.  The table above includes this land reclamation liability assumed in connection with the purchase of AMCOL. This liability will be adjusted to reflect the passage of time, mining activities, and changes in estimated future cash outflows.
 
The current portion of the liability of approximately $1.8 million is included in other current liabilities and the long-term portion of the liability of approximately $19.6 million is included in other non-current liabilities in the Consolidated Balance Sheet as of December 31, 2015.

Accretion expense is included in cost of goods sold in the Company's Consolidated Statements of Income.