Chairman's - FMC Corporation

FMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
We recorded charges totaling $25.8 million during the year ended December 31, 2009, which consisted of
(i) severance and employee benefits of $10.1 million, (ii) accelerated depreciation on fixed assets to be
abandoned of $15.2 million and (iii) other shut down costs of $0.5 million.
Abandonment of Foret Co-Generation Facility and Other Foret Fixed Asset Abandonments
During the second quarter of 2007, we abandoned a co-generation facility at Foret and recorded an
impairment charge of $8.2 million. This facility, which is part of our Industrial Chemicals segment, produced
electrical power and thermal energy by co-generation for use at one of Foret’s production properties.
Historically, excess electricity produced from this facility was sold into the Spanish market. We own 75 percent
of this co-generation facility and have recorded noncontrolling interest associated with this charge of $1.4 million
as part of “Noncontrolling interests” in the consolidated statements of income for the year ended December 31,
2007.
During the third quarter of 2007, we abandoned certain fixed assets also at Foret and recorded impairment
charges of $4.0 million. These fixed assets were at various facilities at Foret.
Santa Clara Shutdown
In March 2009, we made the decision to shut down our manufacturing operations at our Peroxygens facility
in Santa Clara, Mexico, which is part of our Industrial Chemicals segment. The decision to shut down the Santa
Clara operations was made in an effort to maximize cost savings and improve efficiencies.
We recorded charges totaling $6.7 million during the year ended December 31, 2009, which consisted of
(i) accelerated depreciation on fixed assets to be abandoned of $3.5 million, (ii) severance and employee benefits
of $1.5 million, and (iii) other shut down costs of $1.7 million.
Other Items
In addition to the restructurings described above, we engaged in certain other restructuring activities within
all three of our segments during the years ended December 31, 2009, 2008 and 2007 which resulted in severance
and asset abandonment charges. We expect these restructuring charges to improve our global competitiveness
through improved cost efficiencies.
Restructuring and other charges (income) for the year ended December 31, 2009, included $12.4 million of
severance costs due to workforce restructurings, of which $11.0 million related to our Industrial Chemicals
segment and $1.4 million related to our Specialty Chemicals segment. We also recorded $6.4 million of asset
abandonment charges, of which $2.6 million related to our Agricultural Products segment, $2.7 million related to
our Industrial Chemicals segment and $1.1 million related to our Specialty Chemicals segment. Remaining
restructuring and other charges (income) for the year ended December 31, 2009 included $0.2 million of charges
primarily representing adjustments related to previously recorded restructuring reserves. Asset abandonment
charges were determined based upon our decision to abandon these assets before the end of their previously
estimated life.
Restructuring and other charges (income) for the year ended December 31, 2008, included $8.1 million of
severance costs due to workforce restructurings, of which $3.2 million related to our Agricultural Products
segment, $4.2 million related to our Industrial Chemicals segment and $0.7 million related to our Specialty
Chemicals segment. We recorded $7.0 million of asset abandonment charges, of which $2.2 million related to
our Agricultural Products segment, $1.5 million related to our Industrial Chemicals segment and $3.3 million
related to our Specialty Chemicals segment.
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