Chairman's - FMC Corporation

FMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
NOTE 4: GOODWILL AND INTANGIBLE ASSETS
The changes in the carrying amount of goodwill by business segment for the years ended December 31,
2009 and December 31, 2008 are presented in the table below:
Agricultural Specialty Industrial
(in Millions) Products Chemicals Chemicals Total
Balance, December 31, 2007 ............................. $2.7 $176.9 $ 0.6 $180.2
Acquisitions .......................................... — 22.7 — 22.7
Foreign Currency Adjustments ............................ — (5.9) — (5.9)
Balance, December 31, 2008 ............................. $2.7 $193.7 $ 0.6 $197.0
Acquisitions .......................................... 0.1 — — 0.1
Purchase Price Allocation Adjustments (See Note 3) .......... — 8.4 — 8.4
Foreign Currency Adjustments ............................ — 4.0 — 4.0
Balance, December 31, 2009 ............................. $2.8 $206.1 $ 0.6 $209.5
Acquisitions for the year ended December 31, 2009, related to the CB Professional Products acquisition and
acquisitions for the year ended December 31, 2008, relate to the ISP and CoLiving acquisitions. These
acquisitions are described in Note 3.
Our indefinite life intangible assets totaled $2.4 million at December 31, 2009. We did not have any
indefinite life intangible assets at December 31, 2008. The indefinite life intangible assets consist of trade names
acquired as part of the CB Professional Products acquisition in our Agricultural Products segment as discussed in
Note 3.
Our definite life intangible assets totaled $55.1 million and $26.9 million at December 31, 2009 and 2008,
respectively. At December 31, 2009, these definite life intangibles were allocated among our business segments
as follows: $35.6 million in Agricultural Products, $18.5 million in Specialty Chemicals and $1.0 million in
Industrial Chemicals. Definite life intangible assets consist primarily of patents, customer relationships, access
and registration rights, industry licenses, developed formulations and other intangibles and are included in “Other
assets” in the consolidated balance sheets. The increase in definite life intangibles during the year ended
December 31, 2009, was due to the intangible assets acquired in connection with the acquisitions described in
Note 3. Amortization was not significant in the periods presented. The estimated amortization expense for each
of the five years ended December 31, 2010 to 2014 is also not significant.
NOTE 5: INVENTORIES
The current replacement cost of inventories exceeded their recorded values by $165.3 million at
December 31, 2009 and $150.0 million at December 31, 2008. Approximately 36 percent of inventories in 2009
and approximately 34 percent of inventories in 2008 are recorded on the LIFO basis. In 2009 and 2008,
approximately 64 percent and 66 percent, respectively, of inventories are determined on a FIFO basis.
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