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Environmental Obligations | 9 Months Ended
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Sep. 30, 2017
Environmental Remediation Obligations [Abstract] |
Environmental Obligations | Environmental Obligations We have reserves for potential environmental obligations which management considers probable and which management can reasonably estimate. The table below is a roll forward of our total environmental reserves, continuing and discontinued:
(in Millions) | Gross |  | Recoveries (3) |  | Net
Total environmental reserves at December 31, 2016 | $ | 378.1 |  |  | $ | (11.4 | ) |  | $ | 366.7 |
Provision/(benefit) | 53.1 |  |  | — |  |  | 53.1 |
(Spending)/recoveries | (41.5 | ) |  | — |  |  | (41.5 | )
Foreign currency translation adjustments | 5.6 |  |  | — |  |  | 5.6 |
Net change | 17.2 |  |  | — |  |  | 17.2 |
Total environmental reserves at September 30, 2017 | $ | 395.3 |  |  | $ | (11.4 | ) |  | $ | 383.9 |
Environmental reserves, current (1) | 80.0 |  |  | (1.2 | ) |  | 78.8 |
Environmental reserves, long-term (2) | 315.3 |  |  | (10.2 | ) |  | 305.1 |
Total environmental reserves at September 30, 2017 | $ | 395.3 |  |  | $ | (11.4 | ) |  | $ | 383.9 |
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(1) | 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.
(3) | These recorded recoveries represent probable realization of claims against U.S. government agencies and are recorded as an offset to our environmental reserves in the condensed consolidated balance sheets.
The estimated reasonably possible environmental loss contingencies, net of expected recoveries, exceed amounts accrued by approximately $240 million at September 30, 2017. 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 provides a roll forward of our environmental recoveries representing probable realization of claims against insurance carriers and other third parties. These recoveries are recorded as "Other assets including long-term receivables, net" in the condensed consolidated balance sheets.
(in Millions) | 12/31/2016 |  | Increase in Recoveries |  | Cash Received |  | 9/30/2017
Environmental recoveries | $ | 27.2 |  |  | 0.4 |  |  | (10.8 | ) |  | $ | 16.8 |
Our net environmental provisions relate to costs for the continued cleanup of both continuing and discontinued manufacturing operations from previous years. The net provisions are comprised as follows:
| Three Months Ended September 30 |  | Nine Months Ended September 30
(in Millions) | 2017 |  | 2016 |  | 2017 |  | 2016
Environmental provisions, net - recorded to liabilities (1) | $ | 31.9 |  |  | $ | 13.3 |  |  | $ | 53.1 |  |  | $ | 31.4 |
Environmental provisions, net - recorded to assets (2) | — |  |  | — |  |  | (0.4 | ) |  | (1.8 | )
Environmental provision, net | $ | 31.9 |  |  | $ | 13.3 |  |  | $ | 52.7 |  |  | $ | 29.6 |
Continuing operations (3) | 2.7 |  |  | 8.1 |  |  | 8.3 |  |  | 17.1 |
Discontinued operations (4) | 29.2 |  |  | 5.2 |  |  | 44.4 |  |  | 12.5 |
Environmental provision, net | $ | 31.9 |  |  | $ | 13.3 |  |  | $ | 52.7 |  |  | $ | 29.6 |
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(1) | See above roll forward of our total environmental reserves as presented on the condensed consolidated balance sheets.
(2) | See above roll forward of our total environmental recoveries as presented on the condensed consolidated balance sheets.
(3) | Recorded as a component of “Restructuring and other charges (income)” on the condensed consolidated statements of income (loss). See Note 8. Environmental obligations for continuing operations primarily represent obligations at shut down or abandoned facilities within businesses that do not meet the criteria for presentation as discontinued operations.
(4) | Recorded as a component of “Discontinued operations, net of income taxes" on the condensed consolidated statements of income (loss). See Note 10.
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 2016 Form 10-K. See Note 10 to our consolidated financial statements in our 2016 Form 10-K for a description of significant updates to material environmental sites. There have been no significant updates since the information included in our 2016 Form 10-K other than the update provided below. Middleport As disclosed in our 2016 Form 10-K, our reserve continues to include the estimated liability for clean-up to reflect the costs associated with our recommended Corrective Measure Alternatives for the Operable Units for which FMC has completed Corrective Measures Studies, including estimates for the proposed remedy for the southern portion of the tributary, which is one of the discrete contaminated areas of the site. In the third quarter of 2017, we increased the reserve by $25.0 million, which reflects our best estimate for remediation costs associated with the southern portion of the tributary. The increased costs were based on estimates for proposed remediation alternatives developed through a work study requested by the New York State Department of Environmental Conservation ("NYSDEC") that was completed in the third quarter of 2017. This increase has been reflected within the environmental reserves balance above. Middleport Litigation In the federal court action before the United States District Court for the Western District of New York, FMC responded to the Court’s dismissal of FMC’s action by filing a Motion to Vacate Judgment and For Leave to Amend Complaint on March 2, 2017. The purpose of this motion is to allow FMC to amend its Complaint to add a citizen’s suit under RCRA against the United States for the Environmental Protection Agency's ("EPA") failure to perform its non-discretionary duties under the 1991 Administrative Order on Consent ("AOC"). Simultaneously, FMC served the EPA with a 60-day notice letter, which is a procedural precursor to filing the citizen’s suit complaint. In the NYSDEC appeal, the Court denied FMC’s motion to strike portions of NYSDEC's brief that were items outside the record on appeal. Both FMC and NYSDEC have submitted their briefs on the appeal and oral argument is anticipated to occur in early 2018. Pocatello Tribal Litigation As discussed in our 2016 Form 10-K, FMC owns the Pocatello property on the Shoshone-Bannock Tribal Reservation. For the past 12 years, we have litigated in the Shoshone-Bannock Tribal Court system and the United States District Court for the District of Idaho concerning the Tribes’ attempts to regulate our activities within the Reservation. Refer to the 2016 Form 10-K for more information on the history of this matter. We have continued to include the costs related to an adverse decision in this matter within our reasonably possible estimates. On September 28, 2017, the District Court issued a decision finding that the Tribal Court has jurisdiction over FMC to require FMC to pay a $1.5 million per year fee to the Tribes for hazardous wastes “stored” on the Reservation. We do not believe it is probable that we will incur a loss for this matter due to legal principles established by the United States Supreme Court and the United States Court of Appeals for the Ninth Circuit that we believe were not followed by the District Court. Our reasonably possible estimate continues to include the estimated costs of an adverse decision and does not need to be adjusted as a result of the District Court's decision. On October 12, 2017, we filed a notice of appeal to the Ninth Circuit. The District Court Judgment has been stayed pending the outcome of the appeal to the Ninth Circuit.

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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 410 -SubTopic 30 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6393242&loc=d3e13296-110859 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 10 -URI http://asc.fasb.org/extlink&oid=6393242&loc=d3e13237-110859 Reference 4: 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 5: 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 + Details
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