PART II  NOTE 11 Income Taxes Total income tax provisions (benefits) were allocated as follows: (in Millions) Year Ended December 31, 2010 2009 2008 Continuing operations $132.0 $53.0 $125.4 Discontinued operations (28.9) (11.2) (15.0) Items charged directly to equity (62.5) (9.4) (132.7) TOTAL $40.6 $32.4 $(22.3) Signifi cant components of the deferred income tax provision (benefi t) attributable to income from continuing operations before income taxes  are as follows: (in Millions) Year Ended December 31, 2010 2009 2008 Deferred tax (exclusive of valuation allowance) $(7.1) $68.1 $97.8 Increase (decrease) in the valuation allowance for deferred tax assets 39.2 (18.2) (0.9) DEFERRED INCOME TAX PROVISION $32.1 $49.9 $96.9 We have recognized that it is more likely than not that certain future  tax benefits may not be realized as a result of current and future  income. During the year ended December 31, 2010, the valuation  allowance was increased by $39.2 million. The increase in the valuation  allowance during 2010 was due to recognition of a valuation allowance  in our Spanish legal entity, predominantly due to the Huelva facility  shutdown, for tax losses that are not expected to be fully recoverable  in future years from the earnings of the remaining businesses in that  entity. During the year ended December 31, 2009, we reduced the  valuation allowance related to domestic operations by $18.2 million  because of our expectation that the related deferred tax assets were  likely to be realized. Significant components of our deferred tax assets and liabilities were attributable to: (in Millions) December 31, 2010 2009 Reserves for discontinued operations, environmental and restructuring $102.8 $112.9 Accrued pension and other postretirement benefi ts 81.0 89.0 Other reserves 53.8 58.4 Alternative minimum, foreign tax and other credit carryforwards 96.5 97.8 Net operating loss carryforwards 88.8 60.9 Deferred expenditures capitalized for tax 71.9 28.0 Other 61.4 68.0 Deferred tax assets $556.2 $515.0 Valuation allowance (76.3) (37.1) Deferred tax assets, net of valuation allowance $479.9 $477.9 Property, plant and equipment, net 56.5 64.2 Deferred tax liabilities $56.5 $64.2 NET DEFERRED TAX ASSETS $423.4 $413.7 We believe that it is more likely than not that future earnings will generate suffi cient taxable income to utilize the net deferred tax assets recorded  as of December 31, 2010. At December 31, 2010, we had net operating loss and tax credit  carryforwards as follows: U.S. state net operating loss carryforwards  of $823.5 million expiring in various amounts and years through  2029, foreign net operating loss carryforwards of $271.8 million  expiring in various years, U.S. foreign tax credit carryforwards of  $32.0 million expiring in various amounts and years through 2019,  and alternative minimum tax credit carryforwards of $54.1 million  with no expiration date. 53 FMC CORPORATION    2010 Form 10K