12. Asset Retirement Obligations
The Company’s asset retirement obligations arise primarily from the Federal Surface Mining Control and Reclamation Act of 1977 and similar state statutes, which require that mine property be restored in accordance with specified standards and an approved reclamation plan. The Company also has asset retirement obligations related to certain contractual obligations, including the retirement and removal of long-lived assets from certain properties. We do not have any unrecorded asset retirement obligations.
The following table provides a reconciliation of changes in the asset retirement obligation during each period (dollars in millions):
|
| | | |
Balance at January 1, 2012 | $ | 12.5 |
|
Liabilities incurred | 0.7 |
|
Liabilities settled | — |
|
Accretion expense(1) | 0.8 |
|
Revisions in estimated cash flows | (0.5 | ) |
Balance at December 31, 2012 | $ | 13.5 |
|
Liabilities incurred | 3.1 |
|
Liabilities settled | (0.2 | ) |
Accretion expense(1) | 1.0 |
|
Revisions in estimated cash flows | 0.5 |
|
Balance at December 31, 2013 | $ | 17.9 |
|
| |
(1) | Included in cost of products sold and operating expenses. |
