Part II  iteM 7 Management’s Discussion and analysis of Financial Condition and results of operations • A $7.5 million charge in our Specialty Chemicals segment due to  our decision to close our Bayport butyllithium facility located in  Bayport, Texas. The charge consisted of (i) accelerated depreciation  on fixed assets to be abandoned of $6.8 million and (ii) severance  and employee benefits of $0.7 million. • A $7.4 million charge in our Specialty Chemicals segment due to  our decision to close our Lithium metal production unit at our  Bromborough, UK plant. The charge consisted of (i) accelerated  depreciation on fixed assets to be abandoned of $5.0 million,  (ii) severance and employee benefits of $1.8 million and (iii) other  shut down charges of $0.6 million. • A $25.8 million charge in our Industrial Chemicals segment due  to our decision to phase out operations of our Barcelona, Spain  facility. The charge consisted of (i) severance and employee benefits  of $10.1 million, (ii) accelerated depreciation on fixed assets to  be abandoned of $15.2 million and (iii) other shut down costs of  $0.5 million. • A $6.7 million charge in our Industrial Chemicals segment due to  our decision to shut down our manufacturing operations at our  Peroxygens facility in Santa Clara, Mexico. The charge consisted  of (i) accelerated depreciation on fixed assets to be abandoned of  $3.5 million, (ii) severance and employee benefits of $1.5 million  and (iii) other shut down costs of $1.7 million. • $12.4 million of severance costs due to other workforce restructurings,  of which $11.0 million related to our Industrial Chemicals segment  and $1.4 million related to our Specialty Chemicals segment. • Other asset abandonment charges of $6.4 million, of which $2.6 million  related to our Agricultural Products segment, $2.7 million related  to our Industrial Chemicals segment and $1.1 million related to  our Specialty Chemicals segment. Asset abandonment charges were  determined based upon our decision and related analysis to abandon  these assets before the end of their previously estimated life. • $0.2 million of other charges primarily representing adjustments  related to previously recorded restructuring reserves. • A $2.3 million net gain as a result of exiting our leases at our Princeton  facility. • A gain of $1.0 million as a result of the sale of our sodium sulfate  co-generation facility in our Industrial Chemicals segment. • A charge of $21.0 million related to the resolution of a regulatory  matter in our Industrial Chemicals segment. • A charge of $3.3 million related to the settlement of a legal matter  in our Industrial Chemicals segment. • $5.6 million of charges representing settlements with state authorities  for property claims. • Corporate charges of $20.2 million relating to environmental  remediation at operating sites. • Charges of $2.0 million related to our Agricultural Products segment  acquiring further rights under a collaboration and license agreement  with a third-party company. • $2.5 million of other charges primarily representing the accrual of  interest associated with the European Commission fine. Other charges (income), net The activity of the restructuring charges listed above are included  within Note 7 to our consolidated financial statements included in  this Form 10-K. We believe the restructuring plans implemented are  on schedule and the benefits and savings either have been or will be  achieved. Purchase accounting inventory fair value impact and other related inventory  adjustments for the year ended December 31, 2009, totaled $7.1 million.  In purchase accounting, inventory is stepped up from its cost value  to estimated selling prices less costs to sell. This line item represented  charges related to amortization of the inventory fair value step-up  associated with the third quarter 2008 acquisition in our Specialty  Chemicals segment and the first quarter 2009 acquisition in our  Agricultural Products segment. Additionally the amount in 2009 includes  inventory adjustments related to the third quarter 2008 acquisition in  our Specialty Chemicals segment and subsequent alginates business  restructuring. On the consolidated statements of income, these charges  are included in “Costs of sales and services”. No such events occurred  in the year ended December 31, 2010. Pension settlement charge represent a settlement charge associated  with the acceleration of previously deferred pension actuarial losses.  The acceleration was triggered by a lump-sum payout to our former  Chairman and CEO. On the consolidated statements of income, these  charges are included in “Selling, general and administrative expenses”  for the year ended December 31, 2010. No such event occurred for  the year ended December 31, 2009. We recorded a provision of $132.0 million in 2010 compared with a  provision of $53.0 million in 2009 resulting in effective tax rates of  37.7 percent and 17.1 percent, respectively. The change in the effective  tax rate was primarily a result of tax adjustments recorded in 2010 and  2009 as described below. 2010 tax adjustments were unfavorable in the amount of $38.7 million  and are primarily a result of recording a $40 million 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. 2010 tax adjustments were also impacted by a $3.6 million  tax charge associated with the tax treatment of the Medicare Part D  subsidy, which was enacted as part of the recent U.S. health care  reform legislation. The unfavorable tax adjustments were partially  offset by a reduction in our liability for unrecognized tax benefits due  to settlements of audits and expiration of statute of limitations and  recognition of various tax credits. 2009 tax adjustments were favorable in the amount of $43.7 million and  were primarily a result of a reduction in our liability for unrecognized  tax benefits due to favorable settlements of tax audits and the expiration  of statutes of limitations as well as the reversal of certain domestic  related tax valuation allowances. These domestic valuation allowances  were no longer necessary because of our expectation that the related  deferred tax assets were likely to be realized. Excluding the impact of these tax adjustments, our effective tax rate in  2010 was 26.6 percent versus 31.1 percent in 2009 and the fluctuation  is primarily the result of 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. Provision for income taxes 24 FMC Corporation    2010 Form 10K