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Asset Retirement Obligations
 12 Months Ended
Dec. 31, 2013
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligation
Asset Retirement Obligations
The Company maintains reserves where a legal obligation exists to perform an asset retirement activity and the fair value of the liability can be reasonably estimated. These asset retirement obligations (“AROs”) include liabilities where the timing and (or) method of settlement may be conditional on a future event, that may or may not be within the control of the entity. At December 31, 2013, the Company had recognized AROs of $27.7 million related to landfill closures, facility leases and conditional AROs associated with manufacturing activities using what may be characterized as potentially hazardous materials. The sale of the tungsten materials business included an indemnification to the buyer for conditional ARO costs of up to $13 million for a five year period. The Company recorded a $9.4 million charge to increase recorded reserves to $13 million for these retained liabilities, which was reported as part of the gain on sale of the tungsten materials business. In addition, as part of facility closures in 2013, $4.2 million in environmental exit costs for AROs were reported in continuing operations (see Note 15).
Estimates of AROs are evaluated annually in the fourth quarter, or more frequently if material new information becomes known. Accounting for asset retirement obligations requires significant estimation and in certain cases, the Company has determined that an ARO exists, but the amount of the obligation is not reasonably estimable. The Company may determine that additional AROs are required to be recognized as new information becomes available.
Changes in asset retirement obligations for the years ended December 31, 2013 and 2012 were as follows:
(in millions)
 
2013
 
2012
Balance at beginning of year
 
$
13.0

 
$
12.8

Accretion expense
 
1.1

 
1.1

Payments
 
(0.8
)
 
(0.6
)
Revision of estimates
 
13.8

 
(0.3
)
Liabilities incurred
 
0.6

 
—

Balance at end of year
 
$
27.7

 
$
13.0