Asset Retirement Obligation

3 Months Ended

Mar. 31, 2014

Asset Retirement Obligation Disclosure [Abstract]

12.

ASSET RETIREMENT OBLIGATION

During 2008, we recorded $11.5 million, net present value, of asset retirement obligations related to the legal requirement to close several lagoons at the Spring Grove, PA facility. Historically, lagoons were used to dispose of residual waste material. Closure of the lagoons is expected to be completed in 2016 and will be accomplished by filling the lagoons, installing a non-permeable liner which will be covered with soil to construct the required cap over the lagoons. The retirement obligation was accrued with a corresponding increase in the carrying value of the property, equipment and timberlands caption on the consolidated balance sheet. The amount capitalized is being amortized as a charge to operations on the straight-line basis in relation to the expected closure period. Following is a summary of activity recorded during the first three months of 2014 and 2013:


In thousands	2014			2013
Balance at January 1,	$	5,032		$	8,882
Accretion		38			82
Payments		(176	)		(662	)
Gain		(43	)		—

Balance at March 31,	$	4,851		$	8,302

The following table summarizes the line items in the accompanying condensed consolidated balance sheets where the asset retirement obligations are recorded:


In thousands	March 31 2014		December 31 2013
Other current liabilities	$	1,915	$	915
Other long-term liabilities		2,936		4,117

Total	$	4,851	$	5,032