Chairman's - FMC Corporation

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<strong>FMC</strong> CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) Derivatives Not Designated as Hedging Instruments Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives Location of Gain or (Loss) Recognized in Year Ended (in Millions) Income on Derivatives December 31, 2009 Foreign Exchange contracts ............ Cost of Sales and Services $(36.9) Commodity contracts ................. Cost of Sales and Services (0.2) Total .............................. $(37.1) Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Market participants are defined as buyers or sellers in the principle or most advantageous market for the asset or liability that are independent of the reporting entity, knowledgeable and able and willing to transact for the asset or liability. Fair Value Hierarchy We have categorized our assets and liabilities that are recorded at fair value, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the assets and liabilities fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Our assets and liabilities required to be measured at fair value are recorded on the consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows: Level 1. Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that we have the ability to access (examples include active exchange-traded equity securities, exchange-traded derivatives and most U.S. Government and agency securities). Level 2. Assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Examples of Level 2 inputs include quoted prices for identical or similar assets or liabilities in non-active markets and pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including interest rate, currency swaps and energy derivatives). Level 3. Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability. 104
<strong>FMC</strong> CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) The following table presents our fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis in our consolidated balance sheets as of December 31, 2009 and 2008. Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs 12/31/2009 (Level 1) (Level 2) (Level 3) (in Millions) Assets Available-for-sale securities (1) ................. $ 0.1 $ 0.1 $— $— Derivatives – Energy (2) ....................... 4.9 — 4.9 — Derivatives – Foreign Exchange (2) .............. 0.5 — 0.5 — Other (3) ................................... 21.9 21.9 — — Total Assets ..................................... $27.4 $22.0 $ 5.4 $— Liabilities Derivatives – Energy (4) ....................... $ 3.2 $— $3.2 $— Derivatives – Foreign Exchange (4) .............. 1.9 — 1.9 — Other (5) ................................... 31.2 31.2 — — Total Liabilities .................................. $36.3 $31.2 $ 5.1 $— Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs 12/31/2008 (Level 1) (Level 2) (Level 3) (in Millions) Assets Available-for-sale securities (1) ................. $ 0.2 $ 0.2 $— $— Derivatives – Energy (2) ....................... 3.4 — 3.4 — Derivatives – Foreign Exchange (2) .............. 9.0 — 9.0 — Other (3) ................................... 15.9 15.9 — — Total Assets ..................................... $28.5 $16.1 $12.4 $— Liabilities Derivatives – Energy (4) ....................... $26.9 $ — $26.9 $— Derivatives – Foreign Exchange (4) .............. 25.4 — 25.4 — Other (5) ................................... 23.7 23.7 — — Total Liabilities .................................. $76.0 $23.7 $52.3 $— (1) Amounts included in “Investments” in the consolidated balance sheets. (2) Amounts included in “Prepaid and other current assets” in the consolidated balance sheets (3) Consists of a deferred compensation arrangement, through which we hold various investment securities, recognized on our balance sheet. Both the asset and liability are recorded at fair value. Asset amounts included in “Other assets” in the consolidated balance sheets. (4) Amounts included in “Accrued and other liabilities” in the consolidated balance sheets. (5) Consists of a deferred compensation arrangement recognized on our balance sheet. Both the asset and liability are recorded at fair value. Liability amounts included in “Other long-term liabilities” in the consolidated balance sheets. 105
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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 ......
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• $5.6 million of charges represe
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Segment Results Agricultural Produc
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Other Charges (Income), Net • Sol
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corporate purposes, including issui
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Cash required by operating activiti
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indemnification obligations with re
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On January 19, 2009, the European C
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Environmental obligations. We provi
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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 117: 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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