Chairman's - FMC Corporation

FMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
NOTE 8: ASSET RETIREMENT OBLIGATIONS
We have mining operations in Green River, Wyoming for our soda ash business as well as mining
operations in our lithium operations. We have legal reclamation obligations related to these facilities upon
closure of the mines. Additionally, we have obligations at the majority of our manufacturing facilities in the
event of a permanent plant shutdown. Certain of these obligations are recorded in our environmental reserves
described in Note 10. For certain asset retirement obligations (“ARO’s”) not already accrued, we have calculated
the fair value of these ARO’s and concluded that the present value of these obligations was immaterial at
December 31, 2009. We have also determined that the liability for certain other ARO’s cannot currently be
calculated as the settlement dates are not reasonably estimable. We will recognize the liability for these ARO’s
when sufficient information exists to estimate a range of potential settlement dates.
The changes in the carrying amounts of ARO’s for the years ended December 31, 2009 and 2008 are as
follows.
(in Millions)
Balance at December 31, 2007 .................................................. $15.1
Acceleration due to facility shutdowns (1) ......................................... 5.2
Additional ARO liability (2) .................................................... 3.6
Accretion expense ............................................................ 0.4
Payments ................................................................... (16.6)
Balance at December 31, 2008 .................................................. $ 7.7
Acceleration due to facility shutdowns (1) ......................................... 11.7
Additional ARO liability (2) .................................................... 1.0
Accretion expense ............................................................ 0.4
Payments ................................................................... (5.7)
Balance at December 31, 2009 .................................................. $15.1
(1) This increase in 2008 was primarily associated with our decision to phase out operations at our Baltimore
facility and our Jacksonville facility and in 2009, our Barcelona, Bromborough and Bayport facilities. As a
result of these decisions, the estimated settlement dates associated with asset retirement obligations at the
facilities were accelerated, resulting in an increase to the liability and an increase to capitalized asset
retirement costs. The capitalized asset retirement costs were depreciated on an accelerated basis over the
period that we operated the facilities. See Note 7 for further details on these phase outs.
(2) The additions to the ARO liability primarily related to the acquisitions in our Specialty Chemicals segment.
Refer to Note 3.
NOTE 9: DISCONTINUED OPERATIONS
Our discontinued operations represent adjustments to retained liabilities primarily related to operations
discontinued between 1976 and 2001. The primary liabilities retained include environmental liabilities, other
post-retirement benefit liabilities, self-insurance and long-term obligations related to legal proceedings.
78