Part II  note 1 principal accounting policies and related financial information inventory step-up from business acquisitions and other related inventory  adjustments, pension settlement charges and other income and expense  items. Information about how restructuring and other charges (income)  relate to our businesses at the segment level is discussed in Note 7. Segment assets and liabilities are those assets and liabilities that are recorded  and reported by segment operations. Segment operating capital employed  represents segment assets less segment liabilities. Segment assets exclude  corporate and other assets, which are principally cash equivalents, the LIFO  reserve on inventory, deferred income taxes, eliminations of intercompany  receivables and property and equipment not attributable to a specific  segment. Segment liabilities exclude substantially all debt, income taxes,  pension and other postretirement benefit liabilities, environmental reserves,  restructuring reserves, deferred gains on sale and leaseback of equipment,  fair value of currency contracts, intercompany eliminations, and reserves  for discontinued operations. Geographic segment revenue is based on the location of our customers.  Geographic segment long-lived assets include investments, net property,  plant and equipment, and other non-current assets. Geographic segment  data is included in Note 19. We recognize compensation expense in the financial statements for all share  options and other equity-based arrangements. Share-based compensation  cost is measured at the date of grant, based on the fair value of the award,  and is recognized over the employee’s requisite service period. See Note 14  for further discussion on our share-based compensation. We provide for environmental-related obligations when they are probable  and amounts can be reasonably estimated. Where the available information  is sufficient to estimate the amount of liability, that estimate has been used.  Where the information is only sufficient to establish a range of probable  liability and no point within the range is more likely than any other, the  lower end of the range has been used. Estimated obligations to remediate sites that involve oversight by the  United States Environmental Protection Agency (“EPA”), or similar  government agencies, are generally accrued no later than when a Record  of Decision (“ROD”), or equivalent, is issued, or upon completion of a  Remedial Investigation/Feasibility Study (“RI/FS”), or equivalent, that  is submitted by us and the appropriate government agency or agencies.  Estimates are reviewed quarterly and, if necessary, adjusted as additional  information becomes available. The estimates can change substantially as  additional information becomes available regarding the nature or extent  of site contamination, required remediation methods, and other actions  by or against governmental agencies or private parties. Included in the environmental reserve balance, other assets balance and  disclosure of reasonably possible loss contingencies are amounts from  third party insurance policies which we believe are probable of recovery. Our environmental liabilities for continuing and discontinued operations  are principally for costs associated with the remediation and/or study of  sites at which we are alleged to have released hazardous substances into the  environment. Such costs principally include, among other items, RI/FS, site  remediation, costs of operation and maintenance of the remediation plan,  attorney fees and consultants for work related to the environmental effort,  and future monitoring costs. Estimated site liabilities are determined based  Certain prior year amounts have been reclassified to conform to the current  year’s presentation. We provide qualified and nonqualified defined benefit and defined  contribution pension plans, as well as postretirement health care and life  insurance benefit plans to our employees and retirees. Effective July 1, 2007,  all of our newly hired and rehired salaried and nonunion hourly employees  are no longer eligible for our defined benefit pension plans. The costs (or  benefits) and obligations related to these benefits reflect key assumptions  related to general economic conditions, including interest (discount) rates,  healthcare cost trend rates, expected rates of return on plan assets and the  rates of compensation increases for employees. The costs (or benefits) and  obligations for these benefit programs are also affected by other assumptions,  such as average retirement age, mortality, employee turnover, and plan  participation. To the extent our plans’ actual experience, as influenced  by changing economic and financial market conditions or by changes to  our own plans’ demographics, differs from these assumptions, the costs  and obligations for providing these benefits, as well as the plans’ funding  requirements, could increase or decrease. When actual results differ from  our assumptions, the difference is typically recognized over future periods.  In addition, the unrealized gains and losses related to our pension and  postretirement benefit obligations may also affect periodic benefit costs  (or benefits) in future periods. See Note 13 for additional information  relating to pension and other postretirement benefits. In calculating and evaluating the adequacy of our environmental reserves,  we have taken into account the joint and several liability imposed by  Comprehensive Environmental Remediation, Compensation and Liability  Act (“CERCLA”) and the analogous state laws on all PRPs and have  considered the identity and financial condition of the other PRPs at each  site to the extent possible. We have also considered the identity and financial  condition of other third parties from whom recovery is anticipated, as well  as the status of our claims against such parties. Although we are unable to  forecast the ultimate contributions of PRPs and other third parties with  absolute certainty, the degree of uncertainty with respect to each party  is taken into account when determining the environmental reserve on  a site-by-site basis. Our liability includes our best estimate of the costs  expected to be paid before the consideration of any potential recoveries  from third parties. We believe that any recorded recoveries related to PRPs  are realizable in all material respects. Recoveries are recorded as either an  offset in “Environmental liabilities, continuing and discontinued” or as  “Other Assets” in our consolidated balance sheets in accordance with U.S.  accounting literature. upon existing remediation laws and technologies, specific site consultants’  engineering studies or by extrapolating experience with environmental  issues at comparable sites. Provisions for environmental costs are reflected in income, net of probable  and estimable recoveries from named Potentially Responsible Parties  (“PRPs”) or other third parties. Such provisions incorporate inflation and  are not discounted to their present values. pension and other postretirement benefits Stock compensation plans environmental obligations reclassifications 42 FMC Corporation    2010 Form 10K