FMC (FMC) 10-Q 5 May 10 2010 Q1 Quarterly report Financial data

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (USD $)
In Millions, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Revenue	756.5	690.5
Costs and Expenses
Costs of sales and services	489.5	453.9
Selling, general and administrative expenses	90.9	80.1
Research and development expenses	23.5	20
Restructuring and other charges (income)	16.7	22.5
Total costs and expenses	620.6	576.5
Income from continuing operations before equity in (earnings) loss of affiliates, interest expense, net and income taxes	135.9	114
Equity in (earnings) loss of affiliates	-0.9	-1.7
Interest expense, net	10	7
Income from continuing operations before income taxes	126.8	108.7
Provision for income taxes	40.7	33.4
Income from continuing operations	86.1	75.3
Discontinued operations, net of income taxes	-5.7	-4.4
Net income	80.4	70.9
Less: Net income attributable to noncontrolling interests	3	1.8
Net income attributable to FMC stockholders	77.4	69.1
Amounts attributable to FMC stockholders:
Continuing operations, net of income taxes	83.1	73.5
Discontinued operations, net of income taxes	-5.7	-4.4
Net income attributable to FMC stockholders	77.4	69.1
Basic earnings (loss) per common share attributable to FMC stockholders:
Continuing operations	1.14	1.01
Discontinued operations	-0.08	-0.06
Net income	1.06	0.95
Diluted earnings (loss) per common share attributable to FMC stockholders:
Continuing operations	1.14	$1
Discontinued operations	-0.08	-0.06
Net income	1.06	0.94

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (USD $)
In Millions	Mar. 31, 2010	Dec. 31, 2009
Current assets
Cash and cash equivalents	86.7	76.6
Trade receivables, net of allowance of $19.0 at March 31, 2010 and $18.2 at December 31, 2009	892.5	749.6
Inventories	345.5	350.5
Prepaid and other current assets	154.1	138
Deferred income taxes	159.1	173
Total current assets	1637.9	1487.7
Investments	21.7	22.4
Property, plant and equipment, net	937.5	964.5
Goodwill	197.7	209.5
Other assets	213.6	211.4
Deferred income taxes	224.6	240.7
Total assets	3,233	3136.2
Current liabilities
Short-term debt	31.7	33.4
Current portion of long-term debt	58.3	22.5
Accounts payable, trade and other	272.9	290.5
Accrued and other liabilities	161.7	180.8
Accrued payroll	37.1	52.2
Accrued customer rebates	98.6	67.3
Guarantees of vendor financing	56.6	49.5
Accrued pension and other postretirement benefits, current	10.2	9.4
Income taxes	7.4	3.6
Total current liabilities	734.5	709.2
Long-term debt, less current portion	609.9	588
Accrued pension and other postretirement benefits, long-term	349.9	364.8
Environmental liabilities, continuing and discontinued	172.4	167
Reserve for discontinued operations	41.9	41.7
Other long-term liabilities	137.4	132.4
Equity
Preferred stock, no par value, authorized 5,000,000 shares; no shares issued in 2010 or 2009	0	0
Common stock, $0.10 par value, authorized 130,000,000 shares in 2010 and 2009; 92,991,896 issued shares at March 31, 2010 and December 31, 2009, respectively	9.3	9.3
Capital in excess of par value of common stock	389	388.6
Retained earnings	1785.1	1716.9
Accumulated other comprehensive income (loss)	-298.3	-279.2
Treasury stock, common, at cost: 20,292,026 shares at March 31, 2010 and 20,473,016 shares at December 31, 2009	-752.8	-759.2
Total FMC stockholders' equity	1132.3	1076.4
Noncontrolling interests	54.7	56.7
Total equity	1,187	1133.1
Total liabilities and equity	$3,233	3136.2

1_Condensed Consolidated Balanc

Condensed Consolidated Balance Sheets (Paranthetical Information) (USD $)
In Millions, except Share data	Mar. 31, 2010	Dec. 31, 2009
Condensed Consolidated Balance Sheets (Paranthetical Information)
Allowance for doubtful accounts receivable, current	$19	18.2
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	20,292,026	20,473,016

2_Condensed Consolidated Statem

Condensed Consolidated Statements of Cash Flows (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Cash provided (required) by operating activities of continuing operations:
Net income	80.4	70.9
Discontinued operations	5.7	4.4
Income from continuing operations	86.1	75.3
Adjustments from income from continuing operations to cash provided (required) by operating activities of continuing operations:
Depreciation and amortization	33.9	30.3
Equity in (earnings) loss of affiliates	-0.9	-1.7
Restructuring and other charges (income)	16.7	22.5
Deferred income taxes	36.8	39.9
Pension and other postretirement benefits	7.7	3.3
Stock-based compensation	4.2	4.1
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:
Trade receivables, net	-148.3	-43.6
Guarantees of vendor financing	7.2	3.5
Inventories	-6.9	(35)
Other current assets and other assets	(21)	0.6
Accounts payable	(14)	-60.2
Accrued and other current liabilities and other liabilities	12.7	-5.9
Accrued payroll	-15.1	-21.6
Accrued customer rebates	31.2	23.4
Income taxes	3.9	1.4
Accrued pension and other postretirement benefits, net	-14.1	-3.5
Environmental spending, continuing, net of recoveries	-1.9	-2.7
Restructuring and other spending	-19.6	-5.3
Cash provided (required) by operating activities	-1.4	24.8
Cash provided (required) by operating activities of discontinued operations:
Environmental spending, discontinued, net of recoveries	-1.8	-5.4
Payments of other discontinued reserves	-4.5	-4.2
Cash provided (required) by operating activities of discontinued operations	-6.3	-9.6
Cash provided (required) by investing activities:
Capital expenditures	(31)	(31)
Proceeds from disposal of property, plant and equipment	1.2	0.9
Acquisitions, net of cash acquired	0	-12.9
Other investing activities	-0.7	-1.4
Cash provided (required) by investing activities	-30.5	-44.4
Cash provided (required) by financing activities:
Net borrowings (repayments) under committed credit facilities	58.9	17.9
Increase (decrease) in other short-term debt	-0.2	20.3
Proceeds from borrowings of long-term debt	0	11.8
Repayments of other long-term debt	-1.1	0
Distributions to noncontrolling interests	-2.6	-8.4
Issuances of common stock, net	4.2	0.7
Dividends paid	-9.1	-9.1
Repurchases of common stock	-1.4	-1.1
Cash provided (required) by financing activities	48.7	32.1
Effect of exchange rate changes on cash and cash equivalents	-0.4	-0.4
Increase (decrease) in cash and cash equivalents	10.1	2.5
Cash and cash equivalents, beginning of period	76.6	52.4
Cash and cash equivalents, end of period	86.7	54.9

3_Condensed Consolidated Statem

Condensed Consolidated Statements of Cash Flows (Paranthetical Information) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Condensed Consolidated Statements of Cash Flows (Paranthetical Information)
Cash paid for interest	7.2	8.3
Income taxes paid, net of refunds	2.8	1.9

Financial Information and Accou

Financial Information and Accounting Policies
	3 Months Ended Mar. 31, 2010
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 applicable to interim period financial statements and reflect all adjustments necessary for a fair statement of results of our operations and cash flows for the three months ended March 31, 2010 and 2009, and our financial position as of March 31, 2010. All such adjustments are of a normal recurring nature. The results of operations for the three months ended March 31, 2010 and 2009 are not necessarily indicative of the results of operations for the full year. The condensed consolidated balance sheet as of March 31, 2010, and the related condensed consolidated statements of income for the three months ended March 31, 2010 and 2009, and condensed consolidated statements of cash flows for the three months ended March 31, 2010 and 2009, have been reviewed by our independent registered public accountants. The review is described more fully in their report included herein. 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, 2009 (the 2009 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 and Regulatory Items
	3 Months Ended Mar. 31, 2010
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items
Recently Issued and Adopted Accounting Pronoucements and Regulatory Items	Note 2: Recently Issued and Adopted Accounting Pronouncements and Regulatory Items New accounting guidance and regulatory items Patient Protection and Affordable Care Act On March 23, 2010, the Patient Protection and Affordable Care Act was signed into law. The new legislation makes extensive changes to the current system of health care insurance and benefits. The Reconciliation Act of 2010 makes certain changes to the law. The reconciliation bill was passed on March 25, 2010. A provision of the new law relates to the elimination of the deduction for the Medicare Part D subsidy. We provide qualifying prescription drug coverage to Medicare-eligible retirees and as a result we receive a nontaxable subsidy from the U.S. government. As a result of the new health care legislation, income tax deductions for the cost of providing prescription drug coverage will be reduced by the amount of any subsidy received. Under U.S. accounting literature, the effect of changes in tax laws or rates on deferred tax assets and liabilities is reflected in the period that includes the enactment date, even though the changes may not be effective until future periods. Please see Note 15 for the impact of this tax law change on our deferred tax assets. We believe the effect of these acts on our U.S. postretirement healthcare benefit plans obligation and cost is immaterial. However, we will continue to monitor and assess the effect of the Acts as the regulatory requirements are finalized. Recently adopted accounting guidance in 2010 Variable Interest Entities In June 2009, the Financial Accounting Standards Board (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. A company 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 adopted this guidance on January 1, 2010. There was no impact to our condensed consolidated financial statements upon adoption. Accounting for Transfers of Financial Assets In June 2009, the FASB amended its guidance on accounting for transfers of financial assets. This amended literature requires 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 adopted this guidance on January 1, 2010. There was no impact to our condensed consolidated financial statements upon adoption.

Goodwill and Intangible Assets

Goodwill and Intangible Assets
	3 Months Ended Mar. 31, 2010
Goodwill and Intangible Assets
Goodwill and Intangible Assets	Note 3: Goodwill and Intangible Assets The changes in the carrying amount of goodwill by business segment for the three months ended March 31, 2010, are presented in the table below: (in Millions) Agricultural Products Specialty Chemicals Industrial Chemicals Total Balance, December 31, 2009 $2.8 $206.1 $0.6 $209.5 Foreign Currency Adjustments - (11.8) - (11.8) Balance, March 31, 2010 $2.8 $194.3 $0.6 $197.7 Our indefinite life intangible assets totaled $2.4 million at March 31, 2010 and December 31, 2009. The indefinite life intangible assets consist of trade names in our Agricultural Products segment. Our definite life intangible assets totaled $54.5 million and $55.1 million at March 31, 2010 and December 31, 2009, respectively. At March 31, 2010, these definite life intangibles were allocated among our business segments as follows: $35.1 million in Agricultural Products, $18.5 million in Specialty Chemicals and $0.9 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. Amortization was not significant in the periods presented.

Inventory

Inventory
	3 Months Ended Mar. 31, 2010
Inventory
Inventory	Note 4: Inventories Inventories consisted of the following: March 31, 2010 December 31, 2009 (in Millions) Finished goods and work in process $216.6 $214.6 Raw materials 128.9 135.9 Net inventory $345.5 $350.5

Property, Plant and Equipment

Property, Plant and Equipment
	3 Months Ended Mar. 31, 2010
Property, Plant and Equipment
Property, Plant and Equipment	Note 5: Property, Plant and Equipment Property, plant and equipment consisted of the following: March 31, 2010 December 31, 2009 (in Millions) Property, plant and equipment $2,715.8 $2,749.8 Accumulated depreciation 1,778.3 1,785.3 Property, plant and equipment, net $ 937.5 $ 964.5

Asset Retirement Obligations

Asset Retirement Obligations
	3 Months Ended Mar. 31, 2010
Asset Retirement Obligations
Asset Retirement Obligation	Note 6: Asset Retirement Obligations As of March31, 2010, the balance of our asset retirement obligations was $12.7 million. This amount decreased $2.4 million from December31, 2009, primarily due to payments against the reserve and the reduction of our estimated asset retirement obligation liability associated with our Bayport butyllithium facility (See Note 7). A more complete description of our asset retirement obligations can be found in Note 8 to our 2009 consolidated financial statements on our 2009 Form 10-K.

Restructuring and Other Charges

Restructuring and Other Charges (Income)
	3 Months Ended Mar. 31, 2010
Restructuring and Other Charges (Income)
Restructuring and Other Charges (Income)	Note 7: Restructuring and other charges (income) Our restructuring and other charges (income) are comprised of restructuring, asset impairments and other charges (income). Our restructuring and other charges (income) are comprised of the following: March 31, 2010 March 31, 2009 (in Millions) Baltimore Phase Out $ - $0.8 Alginates Restructuring 4.6 2.8 Bayport Butyllithium Shutdown (0.9) 4.1 Barcelona Facility Shutdown 8.6 - Santa Clara Shutdown - 6.5 Other Items 1.1 5.4 Restructuring Charges and Asset Impairments $13.4 $19.6 Environmental Charges at Operating Sites (see Note 10) 2.4 1.2 Other, Net 0.9 1.7 Other Charges (Income), Net $3.3 $2.9 Total Restructuring and Other Charges $16.7 $22.5 RESTRUCTURING CHARGES AND ASSET IMPAIRMENTS Agricultural Products Baltimore Phase Out In June 2007, we made the decision to phase out operations of our Baltimore, Maryland facility in our Agricultural Products segment. Our decision was consistent with our strategy to maintain globally cost-competitive manufacturing positions by sourcing raw materials, intermediates and finished products in lower-cost manufacturing locations. We ceased production at this facility in the second quarter of 2008. During the three months ended March 31, 2009, we recorded charges totaling $0.8 million which related to demolition costs. Specialty Chemicals Alginates Restructuring In January 2009, we announced plans to realign our BioPolymer alginates manufacturing operations in Norway and the United Kingdom as we continued integration of the International Specialty Products (ISP) alginates business acquired in August 2008. We recorded charges related to the pre-existing operations totaling $4.6 million during the three months ended March 31, 2010, which related to the accrual of costs associated with a leased property which we have ceased using. We recorded charges related to the pre-existing operations totaling $2.8 million during the three months ended March 31, 2009, which consisted of (i) accelerated depreciation on fixed assets to be abandoned of $1.3 million and (ii) severance and employee benefits of $1.5 million. Bayport Shutdown In March 2009, we made the decision to close our Bayport butyllithium facility located in Bayport, Texas. The Bayport butyllithium facility is part of our Lithium division which is included in our Specialty Chemicals segment. Our decision is consistent with our ongoing strategy to be globally competitive and focus on products consistent with market demands. We recorded income of $0.9 million during the three months ended March 31, 2010, due to a reduction of previously recorded retirement obligations at the site (See Note 6). We recorded charges totaling $4.1 million during the three months ended March 31, 2009, which consisted of (i) accelerated depreciation on fixed assets to be abandoned of $3.4 million and (ii) severance and employee benefits of $0.7 million. Industrial Chemicals Barcelona Facility Shutdown In June 2009, we made t

Debt

Debt
	3 Months Ended Mar. 31, 2010
Debt
Debt	Note 8: Debt Debt maturing within one year: Debt maturing within one year consists of the following: (in Millions) March 31, 2010 December 31, 2009 Short-term debt $31.7 $33.4 Current portion of long-term debt 58.3 22.5 Total debt maturing within one year $90.0 $55.9 Short-term debt consisted of foreign credit lines at March 31, 2010 and December 31, 2009. We often 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) March 31, 2010 Interest Rate Percentage Maturity Date 3/31/2010 12/31/2009 Pollution control and industrial revenue bonds (less unamortized discounts of $0.3 million and $0.3 million, respectively) 0.3-6.5% 2010-2035 $198.4 $198.4 Debentures (less unamortized discounts of $0.1 million and $0.1 million, respectively) 7.8% 2011 45.4 45.4 Senior notes (less unamortized discount of $1.0 million and $1.0 million, respectively) 5.2% 2019 299.0 299.0 European credit agreement 0.7% 2010 28.9 - Domestic credit agreement 0.5-3.3% 2012 30.0 - Foreign debt 0-14.0% 2011-2013 66.5 67.7 Total long-term debt 668.2 610.5 Less: debt maturing within one year 58.3 22.5 Total long-term debt, less current portion $609.9 $588.0 At March 31, 2010, we had $28.9 million in U.S. dollar equivalent revolving credit facility borrowings under the European Credit Agreement compared to no borrowings at December 31, 2009. Available funds under this facility were $267.1 million and $315.4 million at March 31, 2010 and December 31, 2009, respectively. We had $30.0 million of borrowings under our Domestic Credit Agreement at March 31, 2010, compared to no borrowings at December 31, 2009. Letters of credit outstanding under the Domestic Credit Agreement totaled $152.2 million and $153.2 million at March 31, 2010 and December31, 2009, respectively. As such, available funds under the Domestic Credit Agreement were $417.8 million and $446.8 million at March 31, 2010 and December 31, 2009, 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 March 31, 2010, was 1.4 which is below the maximum leverage of 3.5. Our actual interest coverage for the four consecutive quarters ended March 31, 2010, was 18.3 which is above the minimum interest coverage of 3.5. We were in compliance with all covenants at March 31, 2010.

Discontinued Operations

Discontinued Operations
	3 Months Ended Mar. 31, 2010
Discontinued Operations
Discontinued Operations	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. Our discontinued operations comprised the following: Three Months Ended March 31, 2010 2009 (in Millions) Adjustment for workers compensation, product liability, and other postretirement benefits related to previously discontinued operations (net of income tax expense of $0.1 million for the three months ended March 31, 2010) $0.1 $-- Provision for environmental liabilities and legal reserves and expenses related to previously discontinued operations (net of income tax benefit of $3.6 million and $2.7 million for the three months ended March 31, 2010 and 2009, respectively) (5.8) (4.4) Discontinued operations, net of income taxes $(5.7) $(4.4) 2010 During the first three months of 2010, we recorded a $9.4 million ($5.8 million after-tax) charge to discontinued operations related primarily to environmental issues and legal reserves and expenses. Environmental charges of $4.7 million ($2.9 million after-tax) related primarily to a provision increase for environmental issues at our Front Royal and Modesto sites as well as operating and maintenance activities partially offset by recoveries. See a rollforward of our environmental reserves in Note 10. We also recorded increases to legal reserves and expenses in the amount of $4.7 million ($2.9 million after-tax). 2009 During the first three months of 2009, we recorded a $7.1 million ($4.4 million after-tax) charge to discontinued operations related primarily to environmental issues and legal reserves and expenses. Environmental charges of $0.9 million ($0.6 million after-tax) relate primarily to operating and maintenance activities. We also recorded increases to legal reserves and expenses in the amount of $6.2 million ($3.8 million after-tax).

Environmental

Environmental
	3 Months Ended Mar. 31, 2010
Environmental
Environmental	Note 10: 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 $208.3 million and $204.2 million, excluding recoveries, have been provided at March 31, 2010 and December 31, 2009, respectively. At March 31, 2010 and December 31, 2009, expected recoveries were $58.0 million and $57.2 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 $19.6 million and $20.1 million at March 31, 2010 and December 31, 2009, respectively, or as Other assets totaling $38.4 million and $37.1 million at March 31, 2010 and December 31, 2009, respectively, in the condensed consolidated balance sheets. Cash recoveries were $3.7 million in the first three months of 2010. Total cash recoveries recorded for the year ended December 31, 2009, were $13.7 million. The long-term portion of environmental reserves, net of recoveries, totaling $172.4 million and $167.0 million at March 31, 2010 and December 31, 2009, 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, net of expected recoveries, may exceed amounts accrued by approximately $75 million at March 31, 2010. 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, 2009 to March 31, 2010: Operating and Discontinued Sites Total (in Millions) Total environmental reserves, net of recoveries at December31, 2009 $184.1 Provision 9.9 Spending, net of recoveries (5.3) Net Change 4.6 Total environmental reserves, net of recoveries at March31, 2010 $188.7 Environmental reserves, current, net of recoveries (1) 16.3 Environmental reserves, long-term continuing and discontinued, net of recoveries 172.4 Total environmental reserves, net of recoveries at March31, 2010 $188.7 (1) Current includes only those reserves related to continuing operations. A more complete description of our environmental contingencies and the nature of our potential obligations are included in Notes 1 and 10 to our 2009 consolidated financial statements in our 2009 10-K.

Earnings Per Share

Earnings Per Share
	3 Months Ended Mar. 31, 2010
Earnings Per Share
Earnings Per Share	Note 11: 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 271,374 and 557,226 potential common shares excluded from Diluted EPS for the three months ended March 31, 2010 and 2009, respectively. Our non-vested restricted stock awards contain rights to receive non-forfeitable 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 March 31, 2010 2009 Earnings attributable to FMC stockholders: Income from continuing operations attributable to FMC stockholders $83.1 $73.5 Discontinued operations, net of income taxes (5.7) (4.4) Net income $77.4 $69.1 Less: Distributed and undistributed earnings allocable to restricted award holders (0.5) (0.4) Net income allocable to common stockholders $76.9 $68.7 Basic earnings per common share attributable to FMC stockholders Continuing operations $1.14 $1.01 Discontinued operations (0.08) (0.06) Net income $1.06 $0.95 Diluted earnings per common share attributable to FMC stockholders Continuing operations $1.14 $1.00 Discontinued operations (0.08) (0.06) Net income $1.06 $0.94 Shares (in thousands): Weighted average number of shares of common stock outstanding - Basic 72,308 72,252 Weighted average additional shares assuming conversion of potential common shares 1,022 1,141 Shares diluted basis 73,330 73,393

Comprehensive Income

Comprehensive Income
	3 Months Ended Mar. 31, 2010
Comprehensive Income
Comprehensive Income	Note 12: 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 months ended March 31, 2010 and 2009 consisted of the following: (in Millions) Three Months ended March 31, 2010 2009 Net income $80.4 $70.9 Reclassification adjustments for losses (gains) included in net income, net ofincome tax expense of $2.4 and $4.1, respectively 3.7 6.5 Foreign currency translation adjustment (20.9) (24.4) Net deferral of hedging gains (losses) and other (3.1) 2.5 Net unrealized pension and other benefit actuarial gains/(losses) and prior service (cost) credits 1.3 (0.1) Comprehensive income 61.4 55.4 Less: Comprehensive income attributable to the noncontrolling interest 3.1 1.5 Comprehensive income attributable to FMC stockholders $58.3 $53.9

Equity

Equity
	3 Months Ended Mar. 31, 2010
Equity
Equity	Note 13: Equity Refer to the below table for a reconciliation of equity, equity attributable to the parent, and equity attributable to noncontrolling interests: FMCs Stockholders Equity Noncontrolling Interest Total Equity (in Millions, Except Per Share Data) Balance December31, 2009 $1,076.4 $56.7 $1,133.1 Net income 77.4 3.0 80.4 Stock compensation plans 6.9 - 6.9 Shares for benefit plan trust (0.2) - (0.2) Reclassification adjustments for losses (gains) included in net income, net of income tax expense of $2.4 3.7 - 3.7 Net unrealized pension and other benefit actuarial gains/(losses) and prior service cost credits, net of income tax expense of $0.8 1.3 - 1.3 Net deferral of hedging gains (losses) and other, net of income tax benefit of $1.9 (3.1) - (3.1) Foreign currency translation adjustments (21.0) 0.1 (20.9) Dividends ($0.125 per share) (9.1) - (9.1) Distributions to noncontrolling interests - (5.1) (5.1) Balance March31, 2010 $1,132.3 $54.7 $1,187.0 Dividends and Share Repurchases On April 15, 2010, we paid dividends totaling $9.1 million to our shareholders of record as of March 31, 2010. This amount is included in Accrued and other liabilities on the condensed consolidated balance sheets as of March 31, 2010. 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 the next two years. 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. During the three months ended March 31, 2010, we did not repurchase any of our shares under the publicly announced repurchase program. The remaining dollar value of shares that may yet be purchased under this program was $189.8 million at March 31, 2010. We also reacquire shares from time to time from employees to pay taxes owed in connection with the vesting and exercise of awards under our equity compensation plans.

Pensions and Other Postretireme

Pensions and Other Postretirement Benefits
	3 Months Ended Mar. 31, 2010
Pensions and Other Postretirement Benefits
Pension and Other Postretirement Benefits	Note 14: Pensions and Other Postretirement Benefits The following table summarizes the components of net annual benefit cost (income) for the three months ended March 31, 2010 and 2009: (in Millions) Three Months Ended March 31, Pensions Other Benefits 2010 2009 2010 2009 Components of net annual benefit cost: Service cost $4.6 $4.5 $0.1 $0.1 Interest cost 15.7 15.8 0.6 0.7 Expected return on plan assets (19.9) (18.8) - - Amortization of prior service cost 0.2 0.2 (0.1) (0.2) Recognized net actuarial and other (gain) loss 6.6 1.2 (0.1) (0.2) Net periodic benefit cost from continuing operations $7.2 $2.9 $0.5 $0.4 We made voluntary cash contributions to our U.S. defined benefit pension plan of $12.0 million in the three months ended March 31, 2010. We expect that our total voluntary cash contributions to the plan for 2010 will be approximately $80 million.

Income Taxes

Income Taxes
	3 Months Ended Mar. 31, 2010
Income Taxes
Income Taxes	Note 15: Income Taxes Income tax expense was $40.7 million resulting in an effective tax rate of 32.1 percent for the three months ended March31, 2010, compared to expense of $33.4 million resulting in an effective tax rate of 30.7 percent for the three months ended March31, 2009. The increase in the effective tax rate was primarily a result of a tax adjustment of $3.5 million recorded during the three months ended March 31, 2010, due to a non-cash charge associated with a change in the tax treatment of the Medicare Part D subsidy which was enacted as part of the recent U.S. health care reform legislation. The increase was also impacted by a change in the mix of domestic income compared to income earned outside of the U.S. Income we earn domestically is typically taxed at rates higher than income earned outside the U.S.

Financial Instruments, Risk Man

Financial Instruments, Risk Management and Fair Value Measurements
	3 Months Ended Mar. 31, 2010
Financial Instruments, Risk Management and Fair Value Measurements
Financial Instruments, Risk Management and Fair Value Measurements	Note 16: Financial Instruments, Risk Management and Fair Value Measurements 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 $716.5 million and $638.4 million and the carrying amount is $699.9 million and $643.9 million as of March 31, 2010 and December 31, 2009, 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 ceases to be a highly effective hedge, we discontinue hedge accounting with respect to that derivative prospectively. Foreign Currency Exchange Risk Management We conduc

Guarantees, Commitments, and Co

Guarantees, Commitments, and Contingencies
	3 Months Ended Mar. 31, 2010
Guarantees, Commitments, and Contingencies
Guarantees, Commitments, and Contingencies	Note 17: 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 March 31, 2010: (in Millions) March 31, 2010 Guarantees: - Guarantees of vendor financing $56.6 - Foreign equity method investment debt guarantees 6.3 Total $62.9 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 $56.6 million and $49.5 million at March 31, 2010 and December 31, 2009, 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. We also guarantee the repayment of the borrowing of a minority partner in a foreign affiliate that we consolidate in our financial statements. As of March 31, 2010, these guarantees had maximum potential payments of $6.3 million, compared to $5.8 million at December 31, 2009. 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. Contingencies On January 28, 2005, we and our wholly owned subsidiary Foret received a Statement of Objections from

Segment Information

Segment Information
	3 Months Ended Mar. 31, 2010
Segment Information
Segment Information	Note 18: Segment Information (in Millions) Three Months Ended March 31, 2010 2009 Revenue Agricultural Products $304.6 $261.4 Specialty Chemicals 202.6 174.6 Industrial Chemicals 250.1 256.0 Eliminations (0.8) (1.5) Total $756.5 $690.5 Income (loss) from continuing operations before income taxes Agricultural Products $92.8 $92.5 Specialty Chemicals 40.8 38.1 Industrial Chemicals 34.5 22.8 Eliminations 0.2 (0.2) Segment operating profit (1) 168.3 153.2 Corporate (12.1) (11.3) Other income (expense), net (5.7) (3.6) Operating profit before the items listed below 150.5 138.3 Interest expense, net (10.0) (7.0) Restructuring and other income (charges) (2) (16.7) (22.5) Purchase accounting inventory fair value impact and other related inventory adjustments (3) - (1.9) Provision for income taxes (40.7) (33.4) Discontinued operations, net of income taxes (5.7) (4.4) Net income attributable to FMC stockholders $77.4 $69.1 (1)Results for all segments are net of noncontrolling interests of $3.0 million and $1.8 million in the three months ended March 31, 2010 and 2009, respectively, the majority of which pertains to Industrial Chemicals. (2)See Note 7 for details of restructuring and other charges (income). Amounts in this line item for the first quarter of 2009 related Agricultural Products ($0.1 million), Specialty Chemicals ($3.7 million), Industrial Chemicals ($10.5 million) and Corporate ($2.4 million). Amounts in this line item for the first quarter of 2009 related to Agricultural Products ($4.3 million), Specialty Chemicals ($6.7 million), Industrial Chemicals ($10.2 million) and Corporate ($1.3 million). (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 Specialty Chemicals segment and the first quarter 2009 acquisition in our Agricultural Products segment. On the condensed consolidated statements of income these charges are included in Costs of sales and services for the three months ended March 31, 2009.

Document Information

Document Information
	3 Months Ended Mar. 31, 2010
Document Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2010-03-31
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1

Entity Information

Entity Information
	3 Months Ended Mar. 31, 2010
Entity Information
Entity Registrant Name	FMC Corporation
Entity Central Index Key	0000037785
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	72,699,870