Chairman's - FMC Corporation

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FMC CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) carryforwards of $145.1 million expiring in various years, U.S. foreign tax credit carryforwards of $50.8 million expiring in various amounts and years through 2018, and alternative minimum tax credit carryforwards of $40.8 million with no expiration date. The effective income tax rate applicable to income from continuing operations before income taxes was different from the statutory U.S. federal income tax rate due to the factors listed in the following table: Year Ended December 31, 2009 2008 2007 Statutory U.S. tax rate ..................................................... 35% 35% 35% Net difference: Percentage depletion ...................................................... (6) (4) (8) State and local income taxes, less federal income tax benefit ...................... 2 1 — Foreign earnings subject to different tax rates .................................. (3) (5) (10) Tax on intercompany dividends and deemed dividend for tax purposes .............. (2) 1 1 Nondeductible expenses ................................................... 1 — 2 Changes to unrecognized tax benefits ......................................... (4) (1) 5 Change in valuation allowance .............................................. (6) — (10) Total difference .......................................................... (18) (8) (20) Effective tax rate ......................................................... 17% 27% 15% As of December 31, 2009, our federal income tax returns for years through 2006 have been examined by the Internal Revenue Service (“IRS”) and all issues have been settled. We believe that adequate provision for both federal and foreign income taxes has been made for the open years 2001 and after. Income taxes have not been provided for the equity in undistributed earnings of foreign consolidated subsidiaries of $657.4 million or for foreign unconsolidated subsidiaries and affiliates of $18.2 million at December 31, 2009. Restrictions on the distribution of these earnings are not significant. It is not practical to estimate the amount of taxes that might be payable upon the remittance of such earnings. Foreign earnings taxable as dividends were $6.2million, $5.1 million and $4.4 million in 2009, 2008 and 2007, respectively. Uncertain Income Tax Positions U.S. GAAP accounting guidance for uncertainty in income taxes prescribes a model for the recognition and measurement of a tax position taken or expected to be taken in a tax return, and provides guidance on derecognition, classification, interest and penalties, disclosure and transition. We adopted this guidance on January 1, 2007. As a result of the implementation, we recognized a net increase in our liability for unrecognized tax benefits which was accounted for as a $2.8 million decrease to the January 1, 2007 balance of retained earnings. We file income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. The income tax returns for FMC entities taxable in the U.S and significant foreign jurisdictions are open for examination and adjustment. As of December 31, 2009, the United States Federal and State income tax returns are open for examination and adjustment for years 2004-2009. Our significant foreign jurisdictions, which total 13, are open for examination and adjustment during varying periods from 2001-2009. The total amount of unrecognized tax benefits as of December 31, 2009 that, if recognized, would affect the effective tax rate is $14.4 million. We recognize accrued interest and penalties related to unrecognized tax 86
FMC CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) benefits as a component of income tax expense in the consolidated financial statements. Included in the $14.4 million liability for unrecognized tax benefits as of December 31, 2009, is $0.6 million associated with interest and penalties. We reasonably expect reductions in the liability for unrecognized tax benefits of up to $2.3 million within the next 12 months on account of settlements and the expirations of statutes of limitations. See the reconciliation of the total amounts of unrecognized tax benefits below: (in Millions) Balance, January 1, 2008 ........................................................... $ 49.4 Additions for tax positions of the current year . ........................................... 2.7 Additions for tax positions of prior years . ............................................... 1.0 Reductions for tax positions of prior years for: Settlements during the period . .................................................... (10.7) Balance, December 31, 2008 ........................................................ $ 42.4 Additions for tax positions of the current year . ........................................... 5.9 Reductions for tax positions of prior years for: Adjustments .................................................................. (1.2) Settlements during the period . .................................................... (32.7) Balance, December 31, 2009 ........................................................ $ 14.4 NOTE 12: DEBT Debt maturing within one year: Debt maturing within one year consists of the following: December 31, 2009 2008 (in Millions) Short-term debt ................................................................. $33.4 $28.6 Current portion of long-term debt ................................................... 22.5 2.1 Total debt maturing within one year ................................................. $55.9 $30.7 Weighted average interest rates for short-term debt outstanding at year-end . ................. 10.1% 17.0% Short-term debt consisted of foreign credit lines at December 31, 2009 and 2008. We often provide parentcompany guarantees to lending institutions providing credit to our foreign subsidiaries. 87
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Chairman’s LETTER Eight years ago
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from acquisitions made in 2008. Lit
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1000 800 600 400 Dollars in Million
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Dollars in Millions 800 700 600 500
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SEGMENT REVENUE AND OPERATING EARNI
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NON-GAAP RECONCILIATIONS Segment op
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UNITED STATES SECURITIES AND EXCHAN
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PART I FMC Corporation (FMC) was in
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energy storage markets to serve the
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The following table summarizes the
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Specialty Chemicals Financial Infor
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The following chart summarizes the
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Overview Our Industrial Chemicals s
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and percarbonates) also function as
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cellulose and seaweed extract as we
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• Changing regulatory environment
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ITEM 3. LEGAL PROCEEDINGS Like hund
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PART II ITEM 5. MARKET FOR THE REGI
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For the three and twelve months end
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Footnotes: (1) Discontinued operati
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driven by higher volumes in most re
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Revenue of $1,051.6 million was one
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Industrial Chemicals Revenue ......
Page 49 and 50: • $5.6 million of charges represe
Page 51 and 52: Segment Results Agricultural Produc
Page 53 and 54: Other Charges (Income), Net • Sol
Page 55 and 56: corporate purposes, including issui
Page 57 and 58: Cash required by operating activiti
Page 59 and 60: indemnification obligations with re
Page 61 and 62: On January 19, 2009, the European C
Page 63 and 64: Environmental obligations. We provi
Page 65 and 66: Sensitivity analysis related to key
Page 67 and 68: Our debt portfolio, at December 31,
Page 69 and 70: FMC CORPORATION CONSOLIDATED STATEM
Page 75 and 76: FMC CORPORATION NOTES TO CONSOLIDAT
Page 83 and 84: NOTE 3: ACQUISITIONS 2009 Acquisiti
Page 99: FMC CORPORATION NOTES TO CONSOLIDAT
Page 129 and 130: MANAGEMENT’S ANNUAL REPORT ON INT
Page 131 and 132: FMC CORPORATION SCHEDULE II—VALUA
Page 133 and 134: ITEM 13. CERTAIN RELATIONSHIPS AND
Page 135 and 136: Exhibit No. Exhibit Description *10
Page 137 and 138: Exhibit No. Exhibit Description 23.
Page 139 and 140: Signature Title Date /S/ ROBERT C.
Page 141 and 142: COMPUTATION OF RATIO OF EARNINGS TO
Page 143 and 144: The Board of Directors FMC Corporat
Page 145 and 146: I, W. Kim Foster, certify that: CHI
Page 147: CFO CERTIFICATION OF ANNUAL REPORT
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Chairman's - FMC Corporation

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