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Environmental Obligations | 3 Months Ended
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Mar. 31, 2014
Environmental Remediation Obligations [Abstract] |
Environmental Obligations | Environmental Obligations We have reserves for potential environmental obligations, which management considers probable and for which a reasonable estimate of the obligation could be made. Accordingly, we have reserves of $221.0 million and $225.7 million, excluding recoveries, at March 31, 2014 and December 31, 2013, respectively. The estimated reasonably possible environmental loss contingencies, net of expected recoveries, exceed amounts accrued by approximately $170 million at March 31, 2014. This reasonably possible estimate is based upon information available as of the date of the filing but the actual future losses may be higher given the uncertainties regarding the status of laws, regulations, enforcement policies, the impact of potentially responsible parties, technology and information related to individual sites. Potential environmental obligations that have not been reserved may be material to any one quarter's or year's results of operations in the future. However, we believe any such liability arising from such potential environmental obligations is not likely to have a material adverse effect on our liquidity or financial condition as it may be satisfied over many years. The table below is a roll forward of our total environmental reserves, continuing and discontinued:
(in Millions) | Operating and Discontinued Sites Total
Total environmental reserves, net of recoveries at December 31, 2013 | $ | 204.7 |
Provision | 8.9 |
Spending, net of recoveries | (11.2 | )
Net change | (2.3 | )
Total environmental reserves, net of recoveries at March 31, 2014 | $ | 202.4 |
Environmental reserves, current, net of recoveries (1) | 34.5 |
Environmental reserves, long-term continuing and discontinued, net of recoveries (2) | 167.9 |
Total environmental reserves, net of recoveries at March 31, 2014 | $ | 202.4 |
____________________
(1) | “Current” includes only those reserves related to continuing operations. These amounts are included within "Accrued and other liabilities" on the condensed consolidated balance sheets.
(2) | These amounts are included in “Environmental liabilities, continuing and discontinued” on the condensed consolidated balance sheets.
At March 31, 2014 and December 31, 2013, we have recorded recoveries representing probable realization of claims against U.S. government agencies, insurance carriers and other third parties. Recoveries are recorded as either an offset to the “Environmental liabilities, continuing and discontinued” or as “Other assets” in the condensed consolidated balance sheets. The table below is a roll forward of our total recorded recoveries from December 31, 2013 to March 31, 2014:
(in Millions) | 12/31/2013 |  | Increase in Recoveries |  | Cash Received |  | 3/31/2014
Environmental liabilities, continuing and discontinued | $ | 21.0 |  |  | $ | — |  |  | $ | (2.4 | ) |  | $ | 18.6 |
Other assets | 35.5 |  |  | — |  |  | (5.9 | ) |  | 29.6 |
Total | $ | 56.5 |  |  | $ | — |  |  | $ | (8.3 | ) |  | $ | 48.2 |
Our net environmental provisions relate to costs for the continued cleanup of both operating sites and for certain discontinued manufacturing operations from previous years. The net provisions are comprised as follows:
| Three Months Ended March 31
(in Millions) | 2014 |  | 2013
Continuing operations (1) | $ | 1.4 |  |  | $ | 1.0 |
Discontinued operations (2) | 7.5 |  |  | 3.3 |
Net environmental provision | $ | 8.9 |  |  | $ | 4.3 |
____________________ (1) Recorded as a component of “Restructuring and other charges (income)” on our condensed consolidated statements of income. See Note 7. (2) Recorded as a component of “Discontinued operations, net of income taxes" on our condensed consolidated statements of income. See Note 10. On our condensed consolidated balance sheets, the net environmental provisions are recorded to the following balance sheet captions:
| Three Months Ended March 31
(in Millions) | 2014 |  | 2013
Environmental reserves (1) | $ | 8.9 |  |  | $ | 5.3 |
Other assets (2) | — |  |  | (1.0 | )
Net environmental provision | $ | 8.9 |  |  | $ | 4.3 |
____________________ (1) See above roll forward of our total environmental reserves as presented on our condensed consolidated balance sheets. (2) Represents certain environmental recoveries. A more complete description of our environmental contingencies and the nature of our potential obligations are included in Notes 1 and 10 to our consolidated financial statements in our 2013 Form 10-K. The following represents significant updates that occurred in 2014 related to these contingencies. Pocatello Tribal Litigation Following a trial on certain jurisdictional issues which occurred during April 2014, the Shoshone-Bannock Tribal Appellate Court issued a Statement of Decision finding in favor of the Tribes’ jurisdiction over FMC and awarding costs on appeal to the Tribes. Further post-trial proceedings are expected in the Tribal Appellate Court during the second quarter of 2014. The finding by the Shoshone-Bannock Tribal Appellate Court during April 2014 does not impact our reserves for the period ended March 31, 2014. After we exhaust the Tribal administrative and judicial process, we intend to file an action in the United States District Court seeking declaratory and injunctive relief on the grounds that the Tribes lacked jurisdiction over us. We will argue that in accordance with a U.S. Supreme Court decision, we neither consented to jurisdiction, nor engaged in conduct that threatened the political integrity, economic security or health and welfare of tribal members; therefore, the exceptions under which Tribes may assert jurisdiction over non-Indian owners of fee land within a reservation have not been met. We have estimated a reasonably possible loss for this matter and it has been reflected in our total reasonably possible loss estimate previously discussed within this note. Middleport In 2013 we received from the New York State Department of Environmental Conservation ("NYSDEC"), the Final Statement of Basis ("FSOB"). The FSOB includes the same Corrective Action Management Alternative (“CMA”) as the Preliminary Statement of Basis, which we continue to believe is overly conservative and is not consistent with the Administrative Order on Consent, which governs the remedy selection. In order to negotiate with the NYSDEC with respect to the FSOB, we entered into a tolling agreement with the NYSDEC. The tolling agreement serves as a “standstill” agreement to the FSOB so that time spent negotiating with the NYSDEC does not go against the statute of limitations under the FSOB. The tolling agreement expired on April 30, 2014. We were not able to reach an agreement with the NYSDEC; thus, on May 1, 2014, we submitted a Notice of Dispute to the United States Environmental Protection Agency seeking review of the remedy chosen by the NYSDEC. The amount of the reserve for this site is $40.8 million at March 31, 2014 and $41.7 million at December 31, 2013. Our reserve continues to include the estimated liability for clean-up to reflect the costs associated with our recommended CMA. Our estimated reasonably possible environmental loss contingencies exposure reflects the additional cost of the CMA proposed in the FSOB.

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- Definition The entire disclosure for environmental loss contingencies, such as presence of hazardous waste, relevant information from reports issued by regulators, and estimated costs to achieve compliance with regulatory requirements. This element may be used for all of an entity's disclosures about environmental loss contingencies. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -SubTopic 20 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.Y.Q2) -URI http://asc.fasb.org/extlink&oid=27011672&loc=d3e149879-122751 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 30 -Section 50 -Paragraph 17 -URI http://asc.fasb.org/extlink&oid=6393242&loc=d3e13328-110859 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 30 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6393242&loc=d3e13185-110859 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 30 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6393242&loc=d3e13296-110859 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 30 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6393242&loc=d3e13237-110859 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section Y + Details
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