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Quarterly report pursuant to Section 13 or 15(d)

ASSET RETIREMENT OBLIGATIONS (Notes)

v3.20.2
ASSET RETIREMENT OBLIGATIONS (Notes)
6 Months Ended
Jun. 30, 2020
Asset Retirement Obligation [Abstract] Ìý
ASSET RETIREMENT OBLIGATIONS
The following is a summary of our asset retirement obligations:
Ìý
(In Millions)
Ìý
JuneÌý30,
2020
Ìý
DecemberÌý31,
2019
Asset retirement obligations1
$
183.3

Ìý
$
165.3

Less current portion
2.2

Ìý
2.1

Long-term asset retirement obligations
$
181.1

Ìý
$
163.2


1 Includes $33.0 million and $22.0 million related to our active operations as of JuneÌý30, 2020 and DecemberÌý31, 2019, respectively.
The accrued closure obligation is predominantly related to our indefinitely idled and closed iron ore mining operations and provides for contractual and legal obligations associated with the eventual closure of those operations. Additionally, we have included in our asset retirement obligation $13.9 million for our integrated steel facilities acquired in the Merger. The closure date for each of our active mine sites was determined based on the exhaustion date of the remaining iron ore reserves and the amortization of the related asset and accretion of the liability is recognized over the estimated mine lives. The closure date and expected timing of the capital requirements to meet our obligations for our indefinitely idled or closed mines is determined based on the unique circumstances of each property. For indefinitely idled or closed mines, the accretion of the liability is recognized over the anticipated timing of remediation. As the majority of our asset retirement obligations at our steelmaking operations have indeterminate settlement dates, asset retirement obligations have been recorded at present values using estimated ranges of the economic lives of the underlying assets.
The following is a roll forward of our asset retirement obligation liability:
Ìý
(In Millions)
Ìý
2020
Ìý
2019
Asset retirement obligation as of January 1
$
165.3

Ìý
$
172.4

Increase from AK Steel acquisition
13.9

Ìý
—

Accretion expense
4.9

Ìý
5.1

Remediation payments
(0.8
)
Ìý
(0.4
)
Asset retirement obligation as of June 30
$
183.3

Ìý
$
177.1