Part I  iteM 1a risk Factors industry risks technology risks Financial risks Pricing and volumes in our markets are sensitive to a number of industry  specific and global issues and events including: • Capacity utilization — Our businesses are sensitive to industry capacity  utilization, particularly in our Industrial Chemicals business. As a  result, pricing tends to fluctuate when capacity utilization changes  occur within our industry; • Competition — All of our segments face competition, which could  affect our ability to maintain/raise prices, successfully enter certain  markets or retain our market position. Additionally, in Agricultural  Products, competition from genetically modified products (GMO)  as well as generic producers has increased. Generics are driven by  the number of significant product patents that have expired in the  last decade; • Changes in our customer base — Our customer base has the potential  to change, especially when long term supply contracts are renegotiated.  Our Industrial Chemicals and Specialty Chemicals businesses are  most sensitive to this risk; • Climatic conditions — Our Agricultural Products markets are  affected by climatic conditions, which could adversely impact crop  pricing and pest infestations. The nature of these events makes them  difficult to predict; • Changing regulatory environment — Changes in the regulatory  environment, particularly in the United States, Brazil and the European  Union, could adversely impact our ability to continue selling certain  products in our domestic and foreign markets. Our Agricultural  Products business is most sensitive to this general regulatory risk. In  the European Union, the regulatory risk specifically includes the new  chemicals regulation known as REACH (Registration, Evaluation, and  Authorization of Chemicals), which will affect each of our business  segments to varying degrees. The fundamental principle behind this  regulation is that manufacturers must verify that their chemicals can  be marketed safely through a special registration system; • Climate change regulation — Changes in the regulation of greenhouse  gases, depending on their nature and scope, could subject our  manufacturing operations, particularly certain Industrial Chemicals  operations in the United States, to significant additional costs or  limits on operations; • Raw materials and energy costs — Our operating results are significantly  affected by the cost of raw materials and energy, including natural gas.  We may not be able to fully offset the impact of higher raw materials  and energy costs through price increases or productivity improvements; • Supply arrangements and production hazards — Certain raw materials  are critical to our production process, especially in our Agricultural  Products and Specialty Chemicals segments. While we have made  supply arrangements to meet planned operating requirements, an  inability to obtain the critical raw materials or execute under the  contract manufacturing arrangements would adversely impact our  ability to produce certain products. We increasingly source critical  intermediates and finished products from a number of suppliers,  especially in Agricultural Products. An inability to obtain these  products or execute under the contract sourcing arrangements would  adversely impact our ability to sell products. Our facilities and those  of our key contract manufacturers are subject to operating hazards,  which may disrupt our business; • Economic and political change — Our business could be adversely  affected by economic and political changes in the markets where  we compete including: war, terrorism, civil unrest, inflation rates,  recessions, trade restrictions, foreign ownership restrictions and  economic embargoes imposed by the United States or any of the  foreign countries in which we do business; change in governmental  laws and regulations and the level of enforcement of these laws and  regulations; other governmental actions; and other external factors  over which we have no control; • Market access risk — Our results may be affected by changes in  distribution channels, which could impact our ability to access the  market. In certain Agricultural Products segments, we access the market  through joint ventures in which we do not have majority control.  Where we do not have a strong product portfolio or market access  relationships, we may be vulnerable to changes in the distribution  model or influence of competitors with stronger product portfolios; • Litigation and environmental risks — Current reserves relating to  our ongoing litigation and environmental liabilities may ultimately  prove to be inadequate; • Hazardous materials — We manufacture and transport certain  materials that are inherently hazardous due to their toxic or volatile  nature. While we take precautions to handle and transport these  materials in a safe manner, if they are mishandled or released into the  environment they could cause property damage or personal injury  claims against us. • Failure to make continued improvements in our product technology  and new product introductions could impede our competitive position,  particularly in Agricultural Products and Specialty Chemicals; • Failure to continue to make process improvements to reduce costs  could impede our competitive position. • We are an international company and therefore face foreign exchange  rate risks. We are particularly sensitive to the euro, the Chinese yuan,  and the Brazilian real. To a lesser extent, we are sensitive to other  Asian currencies, particularly the Japanese yen. • In Brazil, our customers face a combination of economic factors  that could result in cash flow pressures that lead to slower payments. • We have deferred income tax assets. The carrying value of these assets  is dependent upon, among other things, our future performance  and our ability to successfully implement our future business plans. 13 FMC Corporation    2010 Form 10K