Chairman's - FMC Corporation

FMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(1) We have $65.4 million of investments in certain mutual funds where the net asset value reported by the
underlying funds approximates the fair value. These investments are redeemable with the fund at net asset
value under the original terms of the partnership agreements and/or subscription agreements and operations
of the underlying funds. However, it is possible that these redemption rights may be restricted or eliminated
by the funds in the future in accordance with the underlying fund agreements. Due to the nature of the
investments held by the funds, changes in market conditions and the economic environment may
significantly impact the net asset value of the funds and, consequently, the fair value of the interests in the
funds. Furthermore, changes to the liquidity provisions of the funds may significantly impact the fair value
of the interest in the funds.
The change in the fair value measurements of plan assets using significant unobservable inputs (level 3) was
a loss of approximately $0.1 million from the prior year. This change impacted the real estate property
investments noted above and represented the actual return on those plan assets that were still held at the end of
the reporting period. There were no changes to the other level 3 investments from the prior year.
We made the following contributions to our pension and other postretirement benefit plans during the years
ended December 31, 2009 and 2008:
Year Ended
December 31,
2009 2008
(in Millions)
U.S. qualified pension plan ........................................................ $75.0 $30.0
Nonqualified pension plan ........................................................ 6.5 5.8
Non-U.S. plans ................................................................. 7.3 6.3
Other postretirement benefits, net of participant contributions ............................ 4.6 4.7
Total ......................................................................... $93.4 $46.8
We expect our voluntary cash contributions to our U.S. qualified pension plan to be $80 million in 2010.
The following table reflects the estimated future benefit payments for our pension and other postretirement
benefit plans. These amounts are reflected net of the annual Medicare Part D subsidy (see below) of
approximately $1.0 million per year. These estimates take into consideration expected future service, as
appropriate:
Estimated Net Future Benefit Payments
(in Millions)
2010 .............................................................. $ 64.5
2011 .............................................................. 81.3
2012 .............................................................. 69.1
2013 .............................................................. 72.6
2014 .............................................................. 74.6
2015 – 2019 ........................................................ 415.6
We completed our evaluation of the Medicare Act during 2005 and determined the estimated effects of the
Medicare Act on our retiree medical plan and the other postretirement benefit liabilities and net periodic other
postretirement benefit costs reported in our consolidated financial statements. Our retiree medical plan was
determined to be actuarially equivalent to the Medicare Part D benefit and therefore, we began to collect the
government subsidy in 2006, for those participants who elect to remain in our plan. As a result, the effect of the
government subsidy and other related effects of the Medicare Act for each of the years ended December 31, 2009
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