Chairman's - FMC Corporation

FMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
and 2008 was a benefit of $1.1 million and $1.4 million, respectively, which is reflected as a reduction in our net
periodic other postretirement benefit cost from continuing operations.
Assumed health care cost trend rates have an effect on the other postretirement benefit obligations and net
periodic other postretirement benefit costs reported for the health care portion of the other postretirement plan. A
one-percentage point change in the assumed health care cost trend rates would be immaterial to our net periodic
other postretirement benefit costs for the year ended December 31, 2009 and our other postretirement benefit
obligation at December 31, 2009.
The United Kingdom, Ireland and Norway pension plans are included in our disclosures for all years
presented. In the second quarter of 2009, we closed out our obligations associated with our Canadian defined
benefit pension plan through the purchase of an insurance annuity. This event resulted in a settlement charge of
$0.5 million. The financial impact of compliance with U.S. GAAP pension accounting literature for other
non-U.S. pension plans is not substantially different from the locally reported pension expense. The cost of
providing pension benefits for foreign employees covered by other non-U.S. plans was $2.0 million in 2009, $4.0
million in 2008, and $4.5 million in 2007.
FMC Corporation Savings and Investment Plan. The FMC Corporation Savings and Investment Plan is
a qualified salary-reduction plan under Section 401(k) of the Internal Revenue Code in which substantially all of
our U.S. employees may participate by contributing a portion of their compensation. For eligible employees
participating in the Plan, except for those employees covered by certain collective bargaining agreements, the
Company makes matching contributions of 80% of the portion of those contributions up to 5% of the employee’s
compensation. Additionally, effective July 1, 2007, all newly hired and rehired salaried and nonunion employees
receive an employer contribution of five percent of the employee’s eligible compensation. This change was
instituted for these employees effective July 1, 2007 since newly hired and rehired salaried and nonunion hourly
employees are no longer eligible for our defined benefit plan. Charges against income for both of these
contributions were $6.6 million in 2009, $6.9 million in 2008, and $6.1 million in 2007.
NOTE 14: SHARE-BASED COMPENSATION
Stock Compensation Plans
We have a share-based compensation plan, which has been approved by the stockholders, for certain
employees, officers and directors. This plan is described below.
FMC Corporation Incentive Compensation and Stock Plan
The FMC Corporation Incentive Compensation and Stock Plan (the “Plan”) provides for the grant of a
variety of cash and equity awards to officers, directors, employees and consultants, including stock options,
restricted stock, performance units (including restricted stock units), stock appreciation rights, and multi-year
management incentive awards payable partly in cash and partly in common stock. The Compensation and
Organization Committee of the Board of Directors (the “Committee”), subject to the provisions of the Plan,
approves financial targets, award grants, and the times and conditions for payment of awards to employees. The
FMC Corporation Non-Employee Directors’ Compensation Policy (formerly the FMC Corporation
Compensation Plan for Non-Employee Directors), administered by the Nominating and Corporate Governance
Committee of the Board of Directors, sets forth the compensation to be paid to the directors, including awards
(currently restricted stock units only) to be made to directors under the Plan.
Stock options granted under the Plan may be incentive or nonqualified stock options. The exercise price for
stock options may not be less than the fair market value of the stock at the date of grant. Awards granted under
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