Chairman's - FMC Corporation

FMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Total income tax provisions (benefits) were allocated as follows:
Year Ended December 31,
2009 2008 2007
(in Millions)
Continuing operations .................................................. $53.0 $ 125.4 $ 29.0
Discontinued operations ................................................. (11.2) (15.0) (15.0)
Items charged directly to equity ........................................... (9.4) (132.7) 10.2
Total ................................................................ $32.4 $ (22.3) $ 24.2
Significant components of the deferred income tax provision (benefit) attributable to income from
continuing operations before income taxes are as follows:
Year Ended December 31,
2009 2008 2007
(in Millions)
Deferred tax (exclusive of valuation allowance) ................................ $68.1 $97.8 $ 22.9
Increase (decrease) in the valuation allowance for deferred tax assets . .............. (18.2) (0.9) (16.4)
Deferred income tax provision ............................................. $49.9 $96.9 $ 6.5
Significant components of our deferred tax assets and liabilities were attributable to:
December 31,
2009 2008
(in Millions)
Reserves for discontinued operations, environmental and restructuring ............ $112.9 $ 95.3
Accrued pension and other postretirement benefits ............................ 89.0 103.0
Other reserves ......................................................... 58.4 55.4
Alternative minimum, foreign tax and other credit carryforwards ................ 97.8 81.8
Net operating loss carryforwards .......................................... 60.9 136.7
Other ................................................................ 68.0 59.3
Deferred tax assets .................................................... 487.0 531.5
Valuation allowance .................................................... (37.1) (55.3)
Deferred tax assets, net of valuation allowance ............................. $449.9 $476.2
Property, plant and equipment, net ......................................... $ 36.2 $ 55.7
Deferred tax liabilities ................................................. $ 36.2 $ 55.7
Net deferred tax assets ................................................. $413.7 $420.5
We have recognized that it is more likely than not that certain future tax benefits may not be realized as a
result of current and future income. During the year ended December 31, 2009, the valuation allowance was
decreased by $18.2 million. We believe that it is more likely than not that future earnings will generate sufficient
taxable income to utilize the net deferred tax assets recorded as of December 31, 2009.
At December 31, 2009, we had net operating loss and tax credit carryforwards as follows: U.S. net operating
loss carryforwards of $129.3 million expiring in varying amounts and years through 2028, state net operating loss
carryforwards of $940.1 million expiring in various amounts and years through 2028, foreign net operating loss
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