COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

3. COMMITMENTS AND CONTINGENCIES

Claims and Legal Proceedings

In the ordinary course of business, we are involved in various claims and legal proceedings, some of which are covered by insurance.  We are generally unable to predict the timing or outcome of these claims and proceedings.  Based upon our evaluation of existing claims and proceedings and the probability of losses relating to such contingencies, we have accrued certain amounts relating to such claims and proceedings, none of which are considered material.

Environmental Contingencies

We recorded operating expenses, net of insurance recoveries, of $1.8 million and $1.7 million during the three months ended September 30, 2016 and 2015, respectively, related to environmental remediation liabilities unrelated to claims and legal proceedings.  For the nine months ended September 30, 2016 and 2015, we recorded operating expenses, net of insurance recoveries, of $6.0 million and $4.5 million, respectively, related to environmental remediation liabilities unrelated to claims and legal proceedings. As of September 30, 2016 and December 31, 2015, we recorded environmental remediation liabilities of $46.3 million and $48.0 million, respectively.  Costs incurred may be in excess of our estimate, which may have a material impact on our financial condition, results of operations or cash flows.  At September 30, 2016 and December 31, 2015, we had $7.0 million and $10.9 million, respectively, of receivables related to these environmental remediation liabilities covered by insurance or third-party claims.