Chairman's - FMC Corporation

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FMC CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Net income .......................................................... Reclassification adjustments for losses (gains) included in net income, net of income tax expense of $16.2, $1.7 and $11.4 for the years ended December 31, 2009, 2008 and 2007, respectively ...................... Foreign currency translation adjustment . ............................... Net deferral of hedging gains (losses) and other ......................... Net unrealized pension and other benefit actuarial gains/(losses) and prior service (costs) credits ............................................ Comprehensive income . ................................................ Less: Comprehensive income attributable to the noncontrolling interest ...... Comprehensive income attributable to FMC stockholders . ..................... 60 Year Ended December 31, 2009 2008 2007 (in Millions) $238.8 $ 321.6 $142.0 25.4 0.9 17.6 16.9 (43.9) 33.6 7.6 (31.7) (1.4) (53.5) (190.9) (2.6) 235.2 56.0 189.2 9.8 17.6 9.6 $225.4 $ 38.4 $179.6
FMC CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1: PRINCIPAL ACCOUNTING POLICIES AND RELATED FINANCIAL INFORMATION Nature of operations. We are a diversified chemical company serving agricultural, industrial and consumer markets globally with innovative solutions, applications and quality products. We operate in three business segments: Agricultural Products, Specialty Chemicals and Industrial Chemicals. Agricultural Products provides crop protection and pest control products for worldwide markets. Specialty Chemicals includes food ingredients that are used to enhance structure, texture and taste; pharmaceutical additives for binding and disintegrant use; and lithium specialties for pharmaceutical synthesis, specialty polymers and energy storage. Industrial Chemicals encompasses a wide range of inorganic materials in which we possess market and technology leadership, including soda ash, phosphorus and peroxygens (hydrogen peroxide and active oxidants) in both North America and in Europe through our subsidiary, FMC Foret, S.A. (“Foret”). Basis of consolidation and basis of presentation. The accompanying consolidated financial statements of FMC Corporation and its subsidiaries were prepared in accordance with accounting principles generally accepted in the United States of America. Our consolidated financial statements include the accounts of FMC and all entities that we directly or indirectly control. All significant intercompany accounts and transactions are eliminated in consolidation. We have evaluated all subsequent events for recognition or disclosure through February 22, 2010, the date of filing of this 10-K. Estimates and assumptions. In preparing the financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results are likely to differ from those estimates, but we do not believe such differences will materially affect our financial position, results of operations or cash flows. Cash equivalents. We consider investments in all liquid debt instruments with original maturities of three months or less to be cash equivalents. Investments. Investments in companies in which our ownership interest is 50 percent or less and in which we exercise significant influence over operating and financial policies are accounted for using the equity method. Under the equity method, original investments are recorded at cost and adjusted by our share of undistributed earnings and losses of these investments. Majority owned investments in which our control is restricted are also accounted for using the equity method. All other investments are carried at their fair values or at cost, as appropriate. We are party to several joint venture investments throughout the world, which individually and in the aggregate are not significant to our financial results. Inventories. Inventories are stated at the lower of cost or market value. Inventory costs include those costs directly attributable to products before sale, including all manufacturing overhead but excluding distribution costs. All domestic inventories, excluding materials and supplies, are determined on a last-in, first-out (“LIFO”) basis and our remaining inventories are recorded on a first-in, first-out (“FIFO”) basis. See Note 5. Property, plant and equipment. We record property, plant and equipment, including capitalized interest, at cost. Depreciation is provided principally on the straight-line basis over the estimated useful lives of the assets (land improvements—20 years, buildings—20 to 40 years, and machinery and equipment—3 to 18 years). Gains and losses are reflected in income upon sale or retirement of assets. Expenditures that extend the useful lives of property, plant and equipment or increase productivity are capitalized. Ordinary repairs and maintenance are expensed as incurred through operating expense. 61
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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
Page 23 and 24: Specialty Chemicals Financial Infor
Page 25 and 26: The following chart summarizes the
Page 27 and 28: Overview Our Industrial Chemicals s
Page 29 and 30: and percarbonates) also function as
Page 31 and 32: cellulose and seaweed extract as we
Page 33 and 34: • Changing regulatory environment
Page 35 and 36: ITEM 3. LEGAL PROCEEDINGS Like hund
Page 37 and 38: PART II ITEM 5. MARKET FOR THE REGI
Page 39 and 40: For the three and twelve months end
Page 41 and 42: Footnotes: (1) Discontinued operati
Page 43 and 44: driven by higher volumes in most re
Page 45 and 46: Revenue of $1,051.6 million was one
Page 47 and 48: 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 71 and 72: FMC CORPORATION CONSOLIDATED STATEM
Page 73: FMC CORPORATION CONSOLIDATED STATEM
Page 77 and 78: FMC CORPORATION NOTES TO CONSOLIDAT
Page 83 and 84: NOTE 3: ACQUISITIONS 2009 Acquisiti
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FMC CORPORATION NOTES TO CONSOLIDAT
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FMC CORPORATION NOTES TO CONSOLIDAT
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MANAGEMENT’S ANNUAL REPORT ON INT
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FMC CORPORATION SCHEDULE II—VALUA
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ITEM 13. CERTAIN RELATIONSHIPS AND
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Exhibit No. Exhibit Description *10
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Exhibit No. Exhibit Description 23.
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Signature Title Date /S/ ROBERT C.
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COMPUTATION OF RATIO OF EARNINGS TO
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The Board of Directors FMC Corporat
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I, W. Kim Foster, certify that: CHI
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CFO CERTIFICATION OF ANNUAL REPORT
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Chairman's - FMC Corporation

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