Asset Retirement Obligation

6 Months Ended

Jun. 30, 2015

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 six months of 2015 and 2014:


In thousands	2015			2014
Balance at January 1,	$	4,114		$	5,032
Accretion		59			77
Payments		(1,905	)		(429	)
Downward revision		(1,000	)		—
Gain		(286	)		(86	)

Balance at June 30,	$	982		$	4,594

During the second quarter of 2015 we recorded a downward revision to our estimated cost of closing the lagoons. The revision was recorded as an adjustment to both the carrying value of the associated property, equipment and timberlands as well as the asset retirement obligation.

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


	June 30		December 31
In thousands	2015		2014
Other current liabilities	$	982	$	2,855
Other long-term liabilities		—		1,259

Total	$	982	$	4,114