third-party recoveries

Liabilities1

1. 410-30Environmental Obligations410 Asset Retirement and Environmental Obligations

   ASC 410-30 governs accounting for environmental remediation liabilities — obligations to clean up pollution arising from past acts under Superfund (CERCLA), RCRA corrective-action provisions, or analogous state/non-U.S. laws. Applied site by site, it uses the loss contingency model of ASC 450-20: accrue when it is probable a liability has been incurred (litigation/claim asserted or probably will be, and an unfavorable outcome probable) and the amount (or a minimum in a range) is reasonably estimable, measured as the entity's allocable share of the joint and several liability plus amounts other PRPs won't pay. Remediation costs are generally expensed as a component of operating income, with narrow capitalization exceptions and separate recognition of probable third-party recoveries as assets.