DD » Topics » Remediation Accruals

This excerpt taken from the DD 10-K filed Feb 17, 2010.

Remediation Accruals

At December 31, 2009, the Consolidated Balance Sheets included an accrued liability of $396 million related to activities under RCRA, CERCLA and similar state and global laws compared to $379 million at December 31, 2008. Considerable uncertainty exists with respect to environmental remediation costs, particularly those related to RCRA, and, under adverse changes in circumstances, potential liability may range up to two to three times the amount accrued as of December 31, 2009. Of the $396 million accrued liability, approximately ten percent was reserved for non-U.S. facilities. Approximately 65 percent of the reserve balance was attributable to RCRA and similar remediation liabilities, while about 25 percent was attributable to CERCLA liabilities. Remediation accruals of $89 million, $103 million and $76 million were added to the reserve in 2009, 2008 and 2007, respectively. Based on existing facts and circumstances, management does not believe that a material loss, in excess of amounts accrued, related to remediation activities at any individual site or location is reasonably possible.

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Table of Contents


Part II

ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, continued

Changes in the remediation accruals balance at December 31, 2009, 2008 and 2007 are summarized below:

     

(Dollars in millions)

             

Balance at December 31, 2007

      $ 357    

Remediation Payments

        (81 )  

Increase in Reserve

        103    

Balance at December 31, 2008

      $ 379    

Remediation Payments

        (72 )  

Increase in Reserve

        89    

Balance at December 31, 2009

      $ 396    
               
This excerpt taken from the DD 10-K filed Feb 12, 2009.
Remediation Accruals
At December 31, 2008, the Consolidated Balance Sheets included an accrued liability of $379 million compared to $357 million at December 31, 2007. Considerable uncertainty exists with respect to environmental remediation costs and, under adverse changes in circumstances, potential liability may range up to two to three times the amount accrued as of December 31, 2008. Of the $379 million accrued liability, approximately 8 percent was reserved for non-U.S. facilities. Approximately 69 percent of the reserve balance was attributable to RCRA and similar remediation liabilities, while about 23 percent was attributable to CERCLA liabilities. Remediation accruals of $103 million, $76 million and $71 million were added to the reserve in 2008, 2007 and 2006, respectively.
 
This excerpt taken from the DD 10-K filed Feb 19, 2008.
Remediation Accruals
At December 31, 2007, the Consolidated Balance Sheets included an accrued liability of $357 million compared to $349 million at December 31, 2006. Considerable uncertainty exists with respect to environmental remediation costs and, under adverse changes in circumstances, potential liability may range up to two to three times the amount accrued as of December 31, 2007. Of the $357 million accrued liability, approximately 10 percent was reserved for non-U.S. facilities. Approximately 65 percent of the reserve balance was attributable to RCRA and similar remediation liabilities, while about 25 percent was attributable to CERCLA liabilities. Remediation accruals of $76 million, $71 million and $64 million were added to the reserve in 2007, 2006 and 2005, respectively.
 
This excerpt taken from the DD 10-K filed Feb 28, 2006.

REMEDIATION ACCRUALS

At December 31, 2005, the Consolidated Balance Sheets included an accrued liability of $343 million compared to $359 million at year-end 2004. Considerable uncertainty exists with respect to environmental remediation costs and, under adverse changes in circumstances, potential liability may range up to two to three times the amount accrued as of December 31, 2005. Of the $343 million accrued liability, approximately 12 percent was reserved for non-U.S. facilities. Approximately 63 percent of the reserve balance was attributable to RCRA and similar remediation liabilities, while 25 percent was attributable to CERCLA liabilities. Remediation accruals of $64 million, $58 million and $47 million were added to the reserve in 2005, 2004 and 2003, respectively. In 2004, nearly $5 million of remediation liabilities were transferred to Koch as part of the sale of INVISTA.

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