FMC (FMC) 10-Q 4 Nov 09 2009 Q3 Quarterly report Financial data

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (USD $)
In Millions	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Revenue	713.3	820.8	2104.1	2377.6
Costs and Expenses
Costs of sales and services	510	580.8	1441.2	1616.4
Selling, general and administrative expenses	79.8	81.9	234.6	255.6
Research and development expenses	23.2	23.4	64.2	68.2
Restructuring and other charges (income)	32.3	15.6	84.9	18
Total costs and expenses	645.3	701.7	1824.9	1958.2
Income from continuing operations before equity in (earnings) loss of affiliates, interest expense, net, and income taxes	68	119.1	279.2	419.4
Equity in (earnings) loss of affiliates	-0.9	-2.3	-2.4	-2.9
Interest expense, net	6.2	7.5	19.7	24.5
Income from continuing operations before income taxes	62.7	113.9	261.9	397.8
Provision (benefit) for income taxes	27.2	23.3	74.2	108
Income from continuing operations	35.5	90.6	187.7	289.8
Discontinued operations, net of income taxes	-6.1	-5.9	-15.7	-20.1
Net income	29.4	84.7	172	269.7
Less: Net income attributable to noncontrolling interests	1.4	4.7	5.6	11.4
Net income attributable to FMC stockholders	28	80	166.4	258.3
Amounts attributable to FMC stockholders:
Continuing operations, net of income taxes	34.1	85.9	182.1	278.4
Discontinued operations, net of income taxes	-6.1	-5.9	-15.7	-20.1
Net income attributable to FMC stockholders	$28	$80	166.4	258.3
Basic earnings (loss) per common share attributable to FMC stockholders:
Continuing operations	0.47	1.15	2.52	3.72
Discontinued operations	-0.08	-0.08	-0.22	-0.27
Net income	0.39	1.07	2.3	3.45
Diluted earnings (loss) per common share attributable to FMC stockholders:
Continuing operations	0.46	1.13	2.48	3.65
Discontinued operations	-0.08	-0.08	-0.21	-0.26
Net income	0.38	1.05	2.27	3.39

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (USD $)
In Millions	Sep. 30, 2009	Dec. 31, 2008
Current assets
Cash and cash equivalents	59.9	52.4
Trade receivables, net of allowance	715.4	687.7
Inventories	380.6	380.8
Prepaid and other current assets	145.2	135
Deferred income taxes	134	176.9
Total current assets	1435.1	1432.8
Investments	22.2	20.6
Property, plant and equipment, net	948.8	939.2
Goodwill	212.8	197
Other assets	204.8	160.7
Deferred income taxes	221.8	243.6
Total assets	3045.5	2993.9
Current liabilities
Short-term debt	69.8	28.6
Current portion of long-term debt	1.9	2.1
Accounts payable, trade and other	262.5	372.3
Accrued and other liabilities	372.6	301
Guarantees of vendor financing	44.2	20.3
Accrued pensions and other postretirement benefits, current	10.2	10.2
Income taxes	4	24.6
Total current liabilities	765.2	759.1
Long-term debt, less current portion	541.9	592.9
Accrued pension and other postretirement benefits, long-term	286.7	366.1
Environmental liabilities, continuing and discontinued	150.5	158.8
Reserve for discontinued operations	48.5	37.5
Other long-term liabilities	131	113.1
Equity
Preferred stock	0	0
Common stock	9.3	9.3
Capital in excess of par value of common stock	390.7	395.5
Retained earnings	1664.2	1524.7
Accumulated other comprehensive income (loss)	-227.3	-276.1
Treasury stock, common	-767.5	-750.5
Total FMC stockholders' equity	1069.4	902.9
Noncontrolling interests	52.3	63.5
Total equity	1121.7	966.4
Total liabilities and equity	3045.5	2993.9

1_Condensed Consolidated Balanc

Condensed Consolidated Balance Sheets (Paranthetical Infromation) (USD $)
In Millions, except Share data	Sep. 30, 2009	Dec. 31, 2008
Condensed Consolidated Balance Sheets (Paranthetical Information)
Allowance for doubtful accounts receivable, current	23.6	16.3
Preferred stock, par value	0	0
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common stock, par value	0.1	0.1
Common stock, shares authorized	130,000,000	130,000,000
Common stock, shares issued	92,991,896	92,991,896
Treasury stock, shares	20,691,779	20,481,937

2_Condensed Consolidated Statem

Condensed Consolidated Statements of Cash Flows (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Cash provided (required) by operating activities of continuing operations:
Net income attributable to FMC stockholders	166.4	258.3
Discontinued operations	15.7	20.1
Income from continuing operations	182.1	278.4
Adjustments from income from continuing operations to cash provided (required) by operating activities of continuing operations:
Depreciation and amortization	93.5	94.3
Equity in (earnings) loss of affiliates	-2.4	-2.9
Restructuring and other charges (income)	84.9	18
Deferred income taxes	73.9	88.9
Net income attributable to noncontrolling interests	5.6	11.4
Other	35.4	12.3
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:
Trade receivables, net	(25)	-128.3
Guarantees of vendor financing	24	-8.6
Inventories	-3.9	-50.1
Other current assets and other assets	-3.2	-31.1
Accounts payable	-103.2	40
Accrued and other current liabilities and other liabilities	58.1	51.7
Income taxes	-20.7	9.9
Accrued pension and other postretirement benefits, net	-86.1	-42.7
Environmental spending, continuing, net of recoveries	-8.6	-9.8
Restructuring and other spending	-30.1	-14.2
Cash provided (required) by operating activities	274.3	317.2
Cash provided (required) by operating activities of discontinued operations:
Environmental spending, discontinued, net of recoveries	-17.1	-24.2
Payments of other discontinued reserves	(14)	-13.6
Cash provided (required) by operating activities of discontinued operations	-31.1	-37.8
Cash provided (required) by investing activities:
Capital expenditures	-106.8	-125.9
Proceeds from disposal of property, plant, and equipment	3.1	3.5
Proceeds from sale of Princeton property	0	59.4
Proceeds from sale of sodium sulfate assets	3.9	16.7
Acquisitions, net of cash acquired	-34.3	-89.8
Other investing activities	-7.1	-5.2
Cash provided (required) by investing activities	-141.2	-141.3
Cash provided (required) by financing activities:
Net borrowings (repayments) under committed credit facilities	-81.3	126
Increase (decrease) in other short-term debt	34.5	-12.5
Proceeds from borrowings of long-term debt	21.4	0
Repayments of Long-term Debt	0	-77.7
Distributions to noncontrolling interests	-13.4	-12.5
Issuances of common stock, net	6	12.8
Dividends paid	-27.3	-25.1
Repurchases of common stock	-36.4	-126.6
Cash provided (required) by financing activities	-96.5	-115.6
Effect of exchange rate changes on cash and cash equivalents	2	(3)
Increase (decrease) in cash and cash equivalents	7.5	19.5
Cash and cash equivalents, beginning of period	52.4	75.5
Cash and cash equivalents, end of period	59.9	$95

3_Condensed Consolidated Statem

Condensed Consolidated Statements of Cash Flows (Paranthetical Information) (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Condensed Consolidated Statements of Cash Flows (Paranthetical Information)
Cash paid for interest	13.2	28.9
Income taxes paid, net of refunds	13.4	12.9

Financial Information and Accou

Financial Information and Accounting Policies
	9 Months Ended Sep. 30, 2009
Financial Information and Accounting Policies
Financial Information and Accounting Policies	Note 1: Financial Information and Accounting Policies In our opinion the condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) applicable to interim period financial statements and reflect all adjustments necessary for a fair statement of results of operations and cash flows for the nine months ended September 30, 2009 and 2008, and our financial position as of September 30, 2009. All such adjustments are of a normal recurring nature. The results of operations for the three and nine months ended September 30, 2009 and 2008 are not necessarily indicative of the results of operations for the full year. The condensed consolidated balance sheets as of September 30, 2009 and December 31, 2008 and the related condensed consolidated statements of operations for the three and nine months ended September 30, 2009 and 2008, and condensed consolidated statements of cash flows for the nine months ended September 30, 2009 and 2008, have been reviewed by our independent registered public accountants. The review is described more fully in their report included herein. We have evaluated all subsequent events for recognition or disclosure through November 4, 2009, the date of filing of this 10-Q. Our accounting policies are set forth in detail in Note 1 to the consolidated financial statements included with our Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2008 (the 2008 Form 10-K). Certain prior year amounts have been reclassified to conform to the current years presentation.

Recently Issued and Adopted Acc

Recently Issued and Adopted Accounting Pronouncements
	9 Months Ended Sep. 30, 2009
Recently Issued and Adopted Accounting Pronouncements
Recently Issued and Adopted Accounting Pronoucements	Note 2: Recently Issued and Adopted Accounting Pronouncements New accounting guidance The FASB Accounting Standards Codification In June 2009, the Financial Accounting Standards Board (FASB) established the FASB Accounting Standards Codification (Codification) as the source of authoritative GAAP recognized by the FASB. The Codification was effective for financial statements for interim or annual reporting periods ending after September 15, 2009. This guidance did not change GAAP therefore it did not have an impact on our consolidated financial statements. References within this note and throughout our financial statements to authoritative guidance issued by the FASB are in reference to the codification. Disclosures about Postretirement Benefit Plan Assets In December 2008, the FASB issued authoritative guidance on an employer's disclosures about plan assets of a defined benefit pension or other postretirement plan. The literature requires additional disclosure regarding how investment allocation decisions are made, more information about major categories of plan assets, including concentrations of risk and fair-value measurements, and the fair-value techniques and inputs used to measure plan assets. We are required to adopt this guidance beginning with our 2009 Form 10-K. We are currently in the process of evaluating the effect that this guidance will have on the disclosures in our consolidated financial statements. Variable Interest Entities In June 2009, the FASB amended guidance regarding the consolidation of variable interest entities, by altering how a company determines when an entity that is insufficiently capitalized or not controlled through voting should be consolidated. An entity has to determine whether it should consolidate an entity based upon the entity's purpose and design and the parent company's ability to direct the entity's actions. We are required to adopt this guidance starting in 2010. Early adoption of this guidance is prohibited. We are currently in the process of evaluating the effect that this guidance will have on our consolidated financial statements. Accounting for Transfers of Financial Assets In June 2009, the FASB amended its guidance on accounting for transfers of financial assets. This amended literature will require entities to provide more information about sales of securitized financial assets and similar transactions, particularly if the seller retains some risk to the assets. This guidance eliminates the concept of a qualifying special-purpose entity, changes the requirements for the de-recognition of financial assets, and requires sellers of the assets to make additional disclosures. We are required to adopt this guidance starting in 2010. Early adoption is prohibited and we are currently in the process of evaluating the effect that this literature will have on our consolidated financial statements. Recently adopted accounting guidance in 2009 Subsequent Events In May 2009, the FASB issued authoritative guidance on subsequent events. This guidance establishes the accounting and disclosure of events that occur after the balance sheet date but before financial sta

Acquisitions

Acquisitions
	9 Months Ended Sep. 30, 2009
Acquisitions
Acquisitions	Note 3: Acquisitions 2009 Acquisitions In February 2009, we acquired the CB Professional Products line of insect control products from Waterbury Companies, Inc. and in June 2009, we acquired the proprietary fungicide Benalaxyl from Isagro S.p.A. Both of these acquisitions are being integrated into our Agricultural Products Group and fit our strategic goal of offering an expanded product portfolio in focus markets and geographic segments. The CB Professional Products line provides a comprehensive set of solutions to pest management professionals primarily in the United States. Benalaxyl is a highly effective systematic fungicide and is registered in more than 50 countries with the majority of sales expected in the European Union and Latin America. The combined purchase price for both acquisitions was approximately $34million. The results of operations of the above acquisitions have been included in the Agricultural Products segment since their acquisition dates of February and June 2009, respectively. The CB acquisition included intangible assets of $12.1million (primarily customer relationships and trade names) and inventory of $1.7million. Approximately $1.0 million of the purchase price has been accrued as contingent consideration. The Benalaxyl acquisition totaled $20.0 million and consisted of registration rights and trademarks. The acquired intangible assets from these acquisitions that are subject to amortization, primarily customer relationships, registration rights and developed formulations, have useful lives ranging from 5 to 20 years. Pro forma revenue, net income and earnings per share information related to these acquisitions are not presented because its impact on these measures in our condensed consolidated statements of income is not significant. 2008 Acquisitions During the third quarter of 2008, we acquired the two businesses described below for approximately $97 million. We paid $89.7 million in cash for these two businesses which represents the purchase price of approximately $97 million less cash acquired. The businesses were integrated into our Specialty Chemicals segments BioPolymer Division. In August 2008, we acquired the hydrocolloids ingredients business of International Specialty Products Inc. (ISP) based in Girvan, Scotland. This acquisition is intended to strengthen our position in hydrocolloids and enhance service to the global customers in food, pharmaceutical and specialty industries. Under the agreement, we acquired ISPs alginates and food blends business (other than ISPs Germinal blending business based in Brazil), including ISPs Girvan, Scotland, manufacturing facility and employees. The results of operations of the ISP business have been included in the Specialty Chemicals segment since the acquisition date of August 18, 2008. In September 2008, we acquired shares and assets comprising the food ingredients business of the CoLiving Group. The acquisition is intended to enhance our position in supplying specialty hydrocolloid products and services to the rapidly growing food ingredients market in China. The results of operations of the CoLiving business have been included in the S

Goodwill and Intangible Assets

Goodwill and Intangible Assets
	9 Months Ended Sep. 30, 2009
Goodwill and Intangible Assets
Goodwill and Intangible Assets	Note 4: Goodwill and Intangible Assets The changes in the carrying amount of goodwill by business segment for the nine months ended September 30, 2009 are presented in the table below: (in Millions) Agricultural Products Specialty Chemicals Industrial Chemicals Total 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 - 7.3 - 7.3 Balance, September 30, 2009 $2.8 $209.4 $0.6 $212.8 Acquisitions for the nine months ended September 30, 2009 relate to the CB Professional Products acquisition described in Note 3. Our indefinite life intangible assets totaled $2.4 million at September 30, 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 $54.2 million and $25.9 million at September 30, 2009 and December 31, 2008, respectively. At September 30, 2009, these definite life intangibles were allocated among our business segments as follows: $35.9 million in Agricultural Products, $17.3 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 condensed consolidated balance sheets. The increase in definite life intangibles during the nine months ended September 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.

Financial Instruments and Risk

Financial Instruments and Risk Management
	9 Months Ended Sep. 30, 2009
Financial Instruments and Risk Management
Financial Instruments and Risk Management	Note 5: Financial Instruments and Risk Management Fair Value of Financial Instruments Our financial instruments include cash and cash equivalents, trade receivables, other current assets, accounts payable, and amounts included in investments and accruals meeting the definition of financial instruments. These financial instruments are stated at their carrying value, which is a reasonable estimate of fair value. Financial Instrument Valuation Method Foreign Exchange Forward Contracts................................. Estimated amounts that would be received or paid to terminate the contracts at the reporting date based on current market prices for applicable currencies. Energy Forward and Option Contracts................................ Estimated amounts that would be received or paid to terminate the contracts at the reporting date based on quoted market prices for applicable commodities. Debt............................................................................................ Our estimates and information obtained from independent third parties using market data, such as bid/ask spreads for the last business day of the reporting period. The estimated fair value of the financial instruments in the above chart is based on estimated fair value amounts that have been determined using available market information and appropriate valuation methods. Accordingly, the estimates presented may not be indicative of the amounts that we would realize in a market exchange at settlement date and do not represent potential gains or losses on these agreements. The estimated fair values of foreign exchange forward contracts and energy forward and option contracts which is equivalent to their carrying amounts are included in the below tables under the Accounting for Derivative Instruments and Hedging Activities section. The estimated fair value of debt is $608.9 million and $566.0 million and the carrying amount is $613.6 million and $623.6 million as of September 30, 2009 and December 31, 2008, respectively. Use of Derivative Financial Instruments to Manage Risk We mitigate certain financial exposures, including currency risk, interest rate risk, and energy purchase exposures, through a program of risk management that includes the use of derivative financial instruments. We enter into foreign exchange contracts, including forward and purchased option contracts, to reduce the effects of fluctuating foreign currency exchange rates. We formally document all relationships between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. This process includes relating derivatives that are designated as fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. We also formally assess, both at the inception of the hedge and on an ongoing basis, whether each derivative is highly effective in offsetting changes in fair values or cash flows of the hedged item. If we determine that a derivative is not highly effective as a hedge, or if a derivative ce

Fair Value Measurements

Fair Value Measurements
	9 Months Ended Sep. 30, 2009
Fair Value Measurements
Fair Value Measurements	Note 6: Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Market participants are defined as buyers or sellers in the principle or most advantageous market for the asset or liability that are independent of the reporting entity, knowledgeable and able and willing to transact for the asset or liability. Fair Value Hierarchy We have categorized our assets and liabilities that are recorded at fair value, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level1)and the lowest priority to unobservable inputs (Level3). If the inputs used to measure the assets and liabilities fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Our assets and liabilities required to be measured at fair value are recorded on the condensed consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows: Level1. Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that we have the ability to access (examples include active exchange-traded equity securities, exchange-traded derivatives and most U.S.Government and agency securities). Level2. Assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Examples of Level2 inputs include quoted prices for identical or similar assets or liabilities in non-active markets and pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including interest rate, currency swaps and energy derivatives). Level3. Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect managements own assumptions about the assumptions a market participant would use in pricing the asset or liability. The following table presents our fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis in our condensed consolidated balance sheets as of September 30, 2009. (in Millions) 9/30/2009 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Available-for-sale securities (1) $0.3 $0.3 $ - $ - Derivatives Energy (2) 5.0 - 5.0 - Derivatives Foreign Exchange (2) 1.1 - 1.1 - Other (3) 21.1 21.1 - - Total Assets

Inventories

Inventories
	9 Months Ended Sep. 30, 2009
Inventories
Inventories	Note 7: Inventories Inventories consisted of the following: September 30, December31, 2009 2008 (in Millions) Finished goods and work in process......................................................................................................... $ 230.6 $ 249.7 Raw materials.............................................................................................................................................. 150.0 131.1 Net inventory................................................................................................................................................ $ 380.6 $ 380.8

Property, Plant and Equipment

Property, Plant and Equipment
	9 Months Ended Sep. 30, 2009
Property, Plant and Equipment
Property, Plant and Equipment	Note 8: Property, Plant and Equipment Property, plant and equipment consisted of the following: September 30, December31, 2009 2008 (in Millions) Property, plant and equipment................................................................................................................. $ 2,698.8 $ 2,641.5 Accumulated depreciation......................................................................................................................... 1,750.0 1,702.3 Property, plant and equipment, net.......................................................................................................... $ 948.8 $ 939.2 In August 2008, we entered into an agreement with Princeton South Development, LLC to lease our new RD facility in Ewing Township, NJ. The facility is being developed, owned, and operated by a nonaffiliated company. We are required to be treated, for accounting purposes only, as the owner of the Princeton facility. At September 30, 2009, the cost of the asset representing the building shell is included in property, plant and equipment in the amount of $7.8 million, with an offset to Other long-term liabilities on the condensed consolidated balance sheets. We also invested approximately $30 million in this asset primarily representing building improvements and machinery and equipment and these items are also included in our property, plant and equipment balance.

Asset Retirement Obligations

Asset Retirement Obligations
	9 Months Ended Sep. 30, 2009
Asset Retirement Obligations
Asset Retirement Obligation	Note 9: Asset Retirement Obligations As of September 30, 2009, the balance of our asset retirement obligations was $16.2 million. This amount increased approximately $8.5 million from December31, 2008 primarily due to the revised estimates of the timing of settlement of asset retirement obligation liabilities associated with our decision to shut down our Barcelona, Bayport butyllithium and Santa Clara facilities, partially offset by payments against the reserve. A more complete description of our policy related to asset retirement obligations can be found in Note 9 to our 2008 consolidated financial statements on our 2008 Form 10-K.

Restructuring and Other Charges

Restructuring and Other Charges (Income)
	9 Months Ended Sep. 30, 2009
Restructuring and Other Charges (Income)
Restructuring and Other Charges (Income)	Note 10: Restructuring and other charges (income) Three and Nine Months Ended September 30, 2009 Princeton Property Sale On March 18, 2008, we completed the sale of our 158-acre Princeton research center to the Princeton HealthCare System. As part of the sale, we entered into a sale-leaseback under which certain of the buildings sold to the Princeton HealthCare System were leased back to us for a maximum period up to approximately three years. The leaseback was accounted for as an operating lease and the present value of the lease payments was deferred as part of the gain on sale. At the time of sale, we recorded a deferred gain on sale in the amount of $6.7 million. This amount was being recognized as a reduction of rent expense over the term of the lease. During the third quarter of 2009, we moved into our new RD facility, as discussed in Note 8, and as a result we exited our leases with the Princeton HealthCare System. This event resulted in a net gain of $2.3 million since the amounts we deferred as part of the gain on sale assumed a longer lease period. Sodium Sulfate Assets Sale In February 2008, we completed the sale of Forets non-cogeneration sodium sulfate assets. Foret is part of our Industrial Chemicals segment. We did not complete the sale of the sodium sulfate co-generation facility at the time we sold the other sodium sulfate assets. In the third quarter of 2009, we completed the sale of this asset for a gain of $1.0 million. Refer to the sodium sulfate assets sale discussion below under the heading Three and Nine Months Ended September 30, 2008 for further information. Barcelona Facility Shutdown In June 2009, we made the decision to phase out operations of our Barcelona, Spain facility by March 2010. The facility is part of Foret which is included in our Industrial Chemicals segment. High costs at the Barcelona facility coupled with reduced demand for product manufactured at that site have made it uneconomical for FMC to continue operations at the Barcelona facility. We recorded charges totaling $5.5 million during the three months ended September 30, 2009 which primarily consisted of accelerated depreciation on fixed assets to be abandoned of approximately $7.7 million offset by a $2.2 million benefit due to a reduction in our estimated severance and employee benefits for the shutdown that had been accrued in the second quarter of 2009. We recorded charges totaling $18.0 million during the nine months ended September 30, 2009 which consisted of (i) severance and employee benefits of $10.3 million and (ii) accelerated depreciation on fixed assets to be abandoned of approximately $7.7 million. 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 $6.6 million during the nine months ended September 30, 2009 which consisted of (i) accelerated depreciation on fixed assets to be abandoned of approx

Debt

Debt
	9 Months Ended Sep. 30, 2009
Debt
Debt	Note 11: Debt Debt maturing within one year: Debt maturing within one year consists of the following: (in Millions) September 30, 2009 December 31, 2008 Short-term debt $69.8 $28.6 Current portion of long-term debt 1.9 2.1 Total debt maturing within one year $71.7 $30.7 Short-term debt consisted of foreign credit lines at September 30, 2009 and December 31, 2008. We provide parent-company guarantees to lending institutions providing credit to our foreign subsidiaries. Long-term debt: Long-term debt consists of the following: (in Millions) September 30, 2009 Interest Rate Percentage Maturity Date 9/30/2009 12/31/2008 Pollution control and industrial revenue bonds (less unamortized discounts of $0.3 million and $0.3 million, respectively) 0.4-7.1% 2009-2035 $200.4 $189.4 Debentures (less unamortized discounts of $0.1 million and $0.1 million, respectively) 7.8% 2011 45.4 45.4 European credit agreement 0.8-2.1% 2010 159.9 157.2 Domestic credit agreement 0.6-3.3% 2012 127.0 203.0 Foreign debt 0.0-9.0% 2010-2013 11.1 - Total debt 543.8 595.0 Less: debt maturing within one year 1.9 2.1 Total long-term debt $541.9 $592.9 At September 30, 2009, we had $159.9 million in U.S. dollar equivalent revolving credit facility borrowings under the European Credit Agreement compared to $157.2 million at December 31, 2008. Available funds under this facility were $161.4 million and $150.2 million at September 30, 2009 and December 31, 2008, respectively. We had $127.0 million of borrowings under our Domestic Credit Agreement at September 30, 2009 compared to $203.0 million of borrowings at December 31, 2008. Letters of credit outstanding under the Domestic Credit Agreement totaled $152.9 million and $151.5 million at September 30, 2009 and December31, 2008, respectively. As such, available funds under the Domestic Credit Agreement were $320.1 million and $245.5 million at September 30, 2009 and December 31, 2008, respectively. Among other restrictions, the Domestic Credit Agreement and the European Credit Agreement contain financial covenants applicable to FMC and its consolidated subsidiaries related to leverage (measured as the ratio of debt to adjusted earnings) and interest coverage (measured as the ratio of adjusted earnings to interest expense). Our actual leverage for the four consecutive quarters ended September 30, 2009 was 1.2 which is below the maximum leverage 3.5. Our actual interest coverage for the four consecutive quarters ended September 30, 2009 was 20.4 which is above the minimum interest coverage of 3.5. We were in compliance with all covenants at September 30, 2009.

Discontinued Operations

Discontinued Operations
	9 Months Ended Sep. 30, 2009
Discontinued Operations
Discontinued Operations	Note 12: Discontinued Operations Our results of discontinued operations comprised the following: (in Millions) Three months ended September 30, Nine months ended September 30, Income/(Expense) 2009 2008 2009 2008 Adjustment for workers compensation, product liability, and other postretirement benefits related to previously discontinued operations (net of income tax expense of $0.1 million and $0.4 million for the three and nine months ended September 30, 2009 and $0.1 million and $0.2 million for the three and nine months ended September 30, 2008, respectively) $0.2 $0.2 $0.9 $0.5 Provision for environmental liabilities and legal reserves and expenses related to previously discontinued operations (net of income tax benefit of $3.9 million and $10.2 million for the three and nine months ended September 30, 2009 and $3.8 million and $12.7 million for the three and nine months ended September 30, 2008, respectively) (6.3) (6.1) (16.6) (20.6) Discontinued operations, net of income taxes $(6.1) $(5.9) $(15.7) $(20.1) 2009 During the three and nine months ended September 30, 2009, we recorded a $10.2 million ($6.3 million after-tax) charge and a $26.8 million ($16.6 million after-tax) charge, respectively, to discontinued operations related to environmental issues and legal reserves and expenses. Environmental recoveries of $2.9 million ($1.8 million after-tax) for the three months ended September 30, 2009, related primarily to recoveries related to our Front Royal site offset by a provision increase for operating and maintenance activities. Environmental charges of $1.9 million ($1.1 million after-tax) for the nine months ended September 30, 2009, related primarily to a provision increase for operating and maintenance activities partially offset by recoveries. We also recorded increases to legal reserves and expenses in the amount of $13.1 million ($8.1 million after-tax) and $24.9 million ($15.5 million after-tax) for the three and nine months ended September 30, 2009, respectively. At September 30, 2009 and December 31, 2008, substantially all other discontinued operations reserves recorded on our condensed consolidated balance sheets were related to other post-retirement benefit liabilities, self-insurance and long-term obligations related to legal proceedings associated with operations discontinued between 1976 and 2001. 2008 During the three and nine months ended September 30, 2008, we recorded a $9.9 million ($6.1 million after-tax) charge and a $33.3 million ($20.6 million after-tax) charge, respectively, to discontinued operations related to environmental issues and legal reserves and expenses. Environmental charges of $5.0 million ($3.1 million after-tax) and $15.2 million ($9.4 million after-tax) for the three and nine months ended September 30, 2008, respectively, related to a provision to increase our reserves for environmental issues primarily at our Front Royal and Middleport sites as well as for operating and maintenance activities. We also recorded increases to legal reserves and expenses in the amount of $4.

Environmental Obligations

Environmental Obligations
	9 Months Ended Sep. 30, 2009
Environmental Obligations
Environmental Obligations	Note 13: Environmental Obligations We have provided reserves for potential environmental obligations, which management considers probable and for which a reasonable estimate of the obligation could be made. Accordingly, reserves of $182.7 million and $194.2 million, excluding recoveries, have been provided at September 30, 2009 and December 31, 2008, respectively. At September 30, 2009 and December 31, 2008, expected recoveries were $58.1 million and $47.7 million, respectively, relating to existing contractual arrangements with U.S. government agencies, insurance carriers and other third parties. Recoveries are recorded as either an offset to the Environmental liabilities, continuing and discontinued balance totaling $19.0 million and $21.5 million at September 30, 2009 and December 31, 2008, respectively, or as Other assets totaling $39.1 million and $26.2 million at both September 30, 2009 and December 31, 2008, respectively, in the condensed consolidated balance sheets. Cash recoveries recorded as realized claims against third parties were $6.8 million in the first nine months of 2009. Total cash recoveries recorded for the year ended December 31, 2008 were $5.6 million. The long-term portion of environmental reserves, net of recoveries, totaling $150.5 million and $158.8 million at September 30, 2009 and December 31, 2008, respectively, is included in Environmental liabilities, continuing and discontinued. The short-term portion of continuing obligations is recorded as Accrued and other liabilities. We have estimated that reasonably possible environmental loss contingencies may exceed amounts accrued by approximately $80 million at September 30, 2009. Obligations that have not been reserved for may be material to any one quarters or years results of operations in the future. However, we believe any such liability arising from potential environmental obligations is not likely to have a materially adverse effect on our liquidity or financial condition and may be satisfied over the next twenty years or longer. The table below is a rollforward of our environmental reserves, continuing and discontinued, from December 31, 2008 to September 30, 2009: Operating and Discontinued Sites Total (in Millions) Total environmental reserves, net of recoveries at December31, 2008 $172.7 Provision ........................................................................................................... 16.7 Spending, net of recoveries............................................................................ (25.7) Net Change....................................................................................................... (9.0) Total environmental reserves, net of recoveries at September 30, 2009 $163.7 Environmental reserves, current, net of recoveries (1) ............................. 13.2 Environmental reserves, long-term continuing and discontinued, net of recoveries 150.5 Total environmental reserves, net of recoveries at September 30, 2009 $163.7 (1) Current includes only those reserves related to continuing operations. A more comple

Earnings Per Share

Earnings Per Share
	9 Months Ended Sep. 30, 2009
Earnings Per Share
Earnings Per Share	Note 14: Earnings Per Share Earnings per common share (EPS) is computed by dividing net income by the weighted average number of common shares outstanding during the period on a basic and diluted basis. Our potentially dilutive securities include potential common shares related to our stock options, restricted stock and restricted stock units. Diluted earnings per share (Diluted EPS) considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an antidilutive effect. Diluted EPS excludes the impact of potential common shares related to our stock options in periods in which the option exercise price is greater than the average market price of our common stock for the period. There were 279,615 potential common shares excluded from Diluted EPS for the three and nine months ended September 30, 2009. There were no potential common shares excluded from Diluted EPS for the three and nine months ended September 30, 2008. As discussed in Note 2, we adopted the new guidance related to determining whether instruments granted in share-based payment transactions are participating securities on January 1, 2009. Our non-vested restricted stock awards contain rights to receive nonforfeitable dividends, and thus, are participating securities requiring the two-class method of computing EPS. The two-class method determines EPS by dividing the sum of distributed earnings to common stockholders and undistributed earnings allocated to common stockholders by the weighted average number of shares of common stock outstanding for the period. In calculating the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the weighted average shares outstanding during the period. Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows: (in Millions Except Share and Per Share Data) Three months Ended September 30, Nine months Ended September 30, 2009 2008 2009 2008 Earnings attributable to FMC stockholders: Income from continuing operations attributable to FMC stockholders $34.1 $85.9 $182.1 $278.4 Discontinued operations, net of income taxes (6.1) (5.9) (15.7) (20.1) Net income $28.0 $80.0 $166.4 $258.3 Less: Distributed and undistributed earnings allocable to restricted award holders (0.2) (0.5) (0.8) (1.3) Net income allocable to common stockholders $27.8 $79.5 $165.6 $257.0 Basic earnings per common share attributable to FMC stockholders Continuing operations $0.47 $1.15 $2.52 $3.72 Discontinued operations (0.08) (0.08) (0.22) (0.27) Net income $0.39 $1.07 $2.30 $3.45 Diluted earnings per common share attributable to FMC stockholders Continuing operations $0.46 $1.13 $2.48 $3.65 Discontinued operations (0.08) (0.08) (0.21) (0.26) Net income $0.38 $1.

Comprehensive Income

Comprehensive Income
	9 Months Ended Sep. 30, 2009
Comprehensive Income
Comprehensive Income	Note 15: Comprehensive Income Comprehensive income includes all changes in equity during the period except those resulting from investments by owners and distributions to owners. Our comprehensive income for the three and nine months ended September 30, 2009 and 2008 consisted of the following: (in Millions) Three months ended September 30, Nine months ended September 30, 2009 2008 2009 2008 Net income $29.4 $84.7 $172.0 $269.7 Reclassification adjustments for losses (gains) included in net income, net of income tax expense of $4.9 and $13.5 and $3.2 and $5.2 for the three and nine months ended September 30, 2009 and 2008, respectively 7.2 5.0 21.3 7.9 Foreign currency translation adjustment 16.5 (49.0) 22.9 (28.9) Net deferral of hedging gains (losses) and other (0.3) (31.2) 7.2 (17.4) Net realized pension and other benefit actuarial gains/(losses) and prior service (cost) credits (1.1) (0.1) (2.8) (1.7) Comprehensive income 51.7 9.4 220.6 229.6 Less: Comprehensive income attributable to the noncontrolling interest 1.3 5.2 5.4 12.1 Comprehensive income attributable to FMC stockholders $50.4 $4.2 $215.2 $217.5

Equity

Equity
	9 Months Ended Sep. 30, 2009
Equity
Equity	Note 16: Equity As discussed in Note 2, we adopted the guidance on noncontrolling interests in consolidated financial statements on January 1, 2009. The standard requires additional disclosures around equity, equity attributable to the parent, and equity attributable to noncontrolling interests. Refer to the below table for a reconciliation of these items: FMCs Stockholders Equity Noncontrolling Interest Total Equity (in Millions, Except Par Value) Balance December31, 2008 $ 902.9 $ 63.5 $ 966.4 Net income 166.4 5.6 172.0 Stock compensation plans 13.7 - 13.7 Shares for benefit plan trust (0.5) - (0.5) Reclassification adjustments for losses (gains) included in net income, net of income tax expense of $13.5 21.3 - 21.3 Change in pension and post-retirement benefit plans, net of income tax benefit of $1.7 (2.8) - (2.8) Net deferred gain (loss) on derivative contracts, net of income tax expense of $4.4 7.2 - 7.2 Acquisition of noncontrolling interest (1) 0.4 (3.2) (2.8) Foreign currency translation adjustments 23.1 (0.2) 22.9 Dividends ($0.125 per share) (27.3) - (27.3) Repurchase of common stock (35.0) - (35.0) Distributions to noncontrolling interests - (13.4) (13.4) Balance September 30, 2009 $1,069.4 $52.3 $1,121.7 (1) In the third quarter of 2009, we purchased the remaining noncontrolling interests in certain electricity cogeneration facilities in Foret which is part of our Industrial Chemicals segment. Dividends and Share Repurchases On October 15, 2009, we paid dividends aggregating $9.1 million to our shareholders of record as of September 30, 2009. This amount is included in Accrued and other liabilities on the condensed consolidated balance sheets as of September 30, 2009. For the nine months ended September 30, 2009 and September 30, 2008, we paid $27.3 million and $25.1 million in dividends, respectively. In April 2007, the Board of Directors authorized the repurchase of up to $250 million of our common stock. In October 2008, the Board authorized the repurchase of up to an additional $250 million of our common stock. Although the repurchase program does not include a specific timetable or price targets and may be suspended or terminated at any time, we expect that the program will be accomplished over a two-year period. Shares may be purchased through open market or privately negotiated transactions at the discretion of management based on its evaluation of market conditions and other factors. We also reacquire shares from time to time in connection with the vesting and exercise of awards under our equity compensation plans. During the nine months ended September 30, 2009, we repurchased 684,681 shares under the publicly announced repurchase program for $35 million.

Pensions and Other Postretireme

Pensions and Other Postretirement Benefits
	9 Months Ended Sep. 30, 2009
Pensions and Other Postretirement Benefits
Pension and Other Postretirement Benefits	Note 17: Pensions and Other Postretirement Benefits The following table summarizes the components of net annual benefit cost (income) for the three and nine months ended September 30, 2009 and 2008: (in Millions) Three months ended September 30, Nine months ended September 30, Pensions Other Benefits Pensions Other Benefits 2009 2008 2009 2008 2009 2008 2009 2008 Components of net annual benefit cost: Service cost $3.5 $4.7 $- $ - $12.4 $13.7 $0.1 $0.2 Interest cost 16.5 15.8 0.5 0.6 48.1 46.3 2.0 2.0 Expected return on plan assets (18.3) (19.6) - - (55.9) (58.6) - - Amortization of transition assets (0.1) (0.1) - - (0.1) (0.1) - - Amortization of prior service cost 0.2 0.2 (0.2) (0.3) 0.6 0.8 (0.7) (1.0) Recognized net actuarial (gain) loss 1.9 0.9 (0.3) (0.2) 4.3 2.3 (0.7) (0.6) Recognized loss due to settlement - - - - 0.5 - - - Net periodic benefit cost from continuing operations $3.7 $1.9 $- $0.1 $9.9 $4.4 $0.7 $0.6 We made voluntary cash contributions to our U.S. defined benefit pension plan of $75 million in the nine months ended September 30, 2009 which we expect to be our total voluntary cash contributions to the plan for 2009. In the second quarter of 2009, we closed out our obligations associated with our Canadian defined benefit pension plan through the purchase of an insurance annuity. This event resulted in a settlement charge of $0.5 million.

Income Taxes

Income Taxes
	9 Months Ended Sep. 30, 2009
Income Taxes
Income Taxes	Note 18: Income Taxes Income tax expense was $27.2 million resulting in an effective tax rate of 43.4 percent for the three months ended September 30, 2009 compared to expense of $23.3 million resulting in an effective tax rate of 20.5 percent for the three months ended September 30, 2008. The increase in the effective tax rate was primarily a result of a change in the mix of domestic income compared to income earned outside of the U.S. and a charge in 2009 related to the resolution of a regulatory matter in our Industrial Chemicals segment that is nondeductible for tax purposes. The change in the rate was also the result of a $10.4 million benefit in 2008 to adjust our reserve for unrecognized tax benefits due to favorable conclusions of tax audits. Income tax expense was $74.2 million resulting in an effective tax rate of 28.3 percent for the nine months ended September 30, 2009 compared to expense of $108.0 million resulting in an effective tax rate of 27.1 percent for the nine months ended September 30, 2008. The change in the effective tax rate was a result of a change in the mix of domestic income compared to income earned outside of the U.S. and a charge in 2009 related to the resolution of a regulatory matter in our Industrial Chemicals segment that is nondeductible for tax purposes. This was offset by a reduction in our liability in 2009 for unrecognized tax benefits of approximately $18 million as a result of settlements of audits and expiration of statute of limitations and a $10.4 million benefit in 2008 to adjust our reserve for unrecognized tax benefits due to favorable conclusions of tax audits.

Guarantees, Commitments and Con

Guarantees, Commitments and Contingencies
	9 Months Ended Sep. 30, 2009
Guarantees, Commitments and Contingencies
Guarantees, Commitments and Contingencies	Note 19: Guarantees, Commitments, and Contingencies We continue to monitor the conditions that are subject to guarantees and indemnifications to identify whether a liability must be recognized in our financial statements. Guarantees and Other Commitments The following table provides the estimated undiscounted amount of potential future payments for each major group of guarantees at September 30, 2009: (in Millions) September 30, 2009 Guarantees: - FMC Technologies, Inc. performance guarantees $0.8 - Guarantees of vendor financing 44.2 - Foreign equity method investment debt guarantees 8.5 Total $53.5 We provide guarantees to financial institutions on behalf of certain Agricultural Products customers, principally in Brazil, for their seasonal borrowing. The total of these guarantees was $44.2 million and $20.3 million at September 30, 2009 and December 31, 2008, respectively, and are recorded on the condensed consolidated balance sheets for each date as Guarantees of vendor financing. We guarantee repayment of some of the borrowings of certain foreign affiliates accounted for using the equity method for investments. The other equity investors provide parallel agreements. As of September 30, 2009, these guarantees had maximum potential payments of $8.5 million, compared to $6.8 million at December 31, 2008. In connection with our property and asset sales and divestitures, we have agreed to indemnify the buyer for certain liabilities, including environmental contamination and taxes that occurred prior to the date of sale. Our indemnification obligations with respect to these liabilities may be indefinite as to duration and may or may not be subject to a deductible, minimum claim amount or cap. As such, it is not possible for us to predict the likelihood that a claim will be made or to make a reasonable estimate of the maximum potential loss or range of loss. If triggered, we may be able to recover certain of the indemnity payments from third parties. We have not recorded any specific liabilities for these guarantees. We spun off FMC Technologies, Inc. (Technologies) in 2001. At this time, we entered into a tax sharing agreement wherein each company is obligated for those taxes associated with its respective business, generally determined as if each company filed its own consolidated, combined or unitary tax returns for any period where Technologies is included in the consolidated, combined or unitary tax return of us or our subsidiaries. The statute of limitations for the 2001 U.S. federal income tax year has now closed and no questions regarding the spin-off were raised during the IRS audit for 2000-2001, therefore any liability for taxes if the spin-off of Technologies were not tax free due to an action taken by Technologies has been favorably concluded. The tax sharing agreement continues to be in force with respect to certain items, which we do not believe would have a material effect on our financial condition or results of operations. We guarantee the performance by Technologies of a debt instrument outstanding in the principal amount of $0.8 million as of Septe

Segment Information

Segment Information
	9 Months Ended Sep. 30, 2009
Segment Information
Segment Information	Note 20: Segment Information (in Millions) Three Months Ended September 30, Nine Months Ended September 30, 2009 2008 2009 2008 Revenue Agricultural Products $268.3 $263.8 $782.1 $817.9 Specialty Chemicals 191.7 198.0 558.9 574.2 Industrial Chemicals 254.4 359.6 766.6 988.9 Eliminations (1.1) (0.6) (3.5) (3.4) Total $713.3 $820.8 $2,104.1 $2,377.6 Income (loss) from continuing operations Agricultural Products $59.2 $44.1 $242.2 $211.5 Specialty Chemicals 40.9 35.9 119.5 116.9 Industrial Chemicals 20.7 67.3 57.0 148.1 Eliminations - 0.2 (0.1) (0.1) Segment operating profit (1) 120.8 147.5 418.6 476.4 Corporate (10.3) (12.5) (31.9) (37.4) Other income (expense), net (8.3) (1.7) (21.1) (9.1) Operating profit before the items listed below 102.2 133.3 365.6 429.9 Interest expense, net (6.2) (7.5) (19.7) (24.5) Restructuring and other income (charges) (2) (32.3) (15.6) (84.9) (18.0) Purchase accounting inventory fair value impact and other related inventory adjustments (3) (2.4) (1.0) (4.7) (1.0) Provision for income taxes (27.2) (23.3) (74.2) (108.0) Discontinued operations, net of income taxes (6.1) (5.9) (15.7) (20.1) Net income attributable to FMC stockholders $28.0 $80.0 $166.4 $258.3 (1) Results for all segments are net of noncontrolling interests of $1.4 million and $5.6 million in the three and nine months ended September 30, 2009, respectively and $4.7 million and $11.4 million in the three and nine months ended September 30, 2008, respectively. The majority of these noncontrolling interests pertain to our Industrial Chemicals segment. (2) See Note 10 for details of restructuring and other charges (income). Amounts in this line item for the three months ended September 30, 2009 related to Agricultural Products ($1.2 million), Industrial Chemicals ($32.8 million), Specialty Chemicals ($5.5 million) and Corporate ($7.2 million-gain). Amounts in this line item for the three months ended September 30, 2008 related to Agricultural Products ($6.1 million), Industrial Chemicals ($1.6 million), Specialty Chemicals ($3.6 million) and Corporate ($4.3 million). Amounts in this line item for the nine months ended September 30, 2009 related to Agricultural Products ($6.1 million), Industrial Chemicals ($58.1 million), Specialty Chemicals ($21.3 million) and Corporate ($0.6 million - gain). Amounts in this line item for the nine months ended September 30, 2008 related to Agricultural Products ($32.3 million), Industrial Chemicals ($1.0 million), Specialty Chemicals ($3.9 million) and Corporate ($19.2 million-gain). (3) Charges related to amortization of the inventory fair value step-up resulting from the application of purchase accounting associated with the third quarter 2008 acquisition in our Spec

Document Information

Document Information
	9 Months Ended Sep. 30, 2009
Document Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-09-30

Entity Information

Entity Information (USD $)
	9 Months Ended Sep. 30, 2009
Entity Information
Entity Registrant Name	FMC Corporation
Entity Central Index Key	0000037785
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	72,300,117