PART II  NOTE 10 Environmental Year Ended December 31, 2008 Reserve for Discontinued Operations at  December 31, 2010 and 2009 NOTE 10 Environmental For the year ended December 31, 2008, we recorded a $40.2 million  ($25.0 million after-tax) charge to discontinued operations related  primarily to environmental issues and legal reserves and expenses.  Environmental charges of $21.0 million ($13.0 million after-tax)  relate primarily to a provision to increase reserves for environmental  issues at our Front Royal and Middleport sites as well as operating and  maintenance activity. We also recorded increases to legal reserves and  expenses in the amount of $19.2 million ($12.0 million after-tax). The reserve for discontinued operations totaled $38.6 million and  $41.7 million at December 31, 2010 and 2009, respectively. Th  e  liability at December 31, 2010, was comprised of $6.0 million for  workers’ compensation and product liability, $10.8 million for other  postretirement medical and life insurance benefits provided to former  employees of discontinued businesses and $21.8 million of reserves  for legal proceedings associated with discontinued operations. Th  e  discontinued postretirement medical and life insurance benefi ts liability  equals the accumulated postretirement benefit obligation. Associated  with this liability is a net pretax actuarial gain and prior service credit of  $14.0 million ($9.1 million after-tax) and $15.4 million ($10.3 million  after-tax) at December 31, 2010 and 2009, respectively. Th  e estimated  We are subject to various federal, state, local and foreign environmental  laws and regulations that govern emissions of air pollutants, discharges  of water pollutants, and the manufacture, storage, handling and  disposal of hazardous substances, hazardous wastes and other toxic  materials and remediation of contaminated sites. We are also subject to  liabilities arising under the Comprehensive Environmental Response,  Compensation and Liability Act (“CERCLA”) and similar state laws  that impose responsibility on persons who arranged for the disposal  of hazardous substances, and on current and previous owners and  operators of a facility for the clean-up of hazardous substances released  from the facility into the environment. We are also subject to liabilities  under the Resource Conservation and Recovery Act (“RCRA”) and  analogous state laws that require owners and operators of facilities  that have treated, stored or disposed of hazardous waste pursuant to  the RCRA permit to follow certain waste management practices and  to clean up releases of hazardous substances into the environment  associated with past or present practices. In addition, when deemed  appropriate, we enter certain sites with potential liability into voluntary  remediation compliance programs, which are also subject to guidelines  that require owners and operators, current and previous, to clean up  releases of hazardous substances into the environment associated with  past or present practices. We have been named a Potentially Responsible Party (“PRP”) at 30  sites on the federal government’s National Priorities List (“NPL”), at  which our potential liability has not yet been settled. In addition, we  received notice from the EPA or other regulatory agencies that we  may be a PRP, or PRP equivalent, at other sites, including 36 sites at  which we have determined that it is reasonably possible that we have  an environmental liability. In cooperation with appropriate government  agencies, we are currently participating in, or have participated in, a  To ensure we are held responsible only for our equitable share of site  remediation costs, we have initiated, and will continue to initiate, legal  proceedings for contributions from other PRPs. We have recorded  recoveries, representing probable realization of claims against insurance  companies, U.S. government agencies and other third parties, of  Environmental liabilities consist of obligations relating to waste handling  and the remediation and/or study of sites at which we are alleged to  have released or disposed of hazardous substances. These sites include  current operations, previously operated sites, and sites associated with  discontinued operations. We have provided reserves for potential  environmental obligations that we consider probable and for which a  reasonable estimate of the obligation can be made. Accordingly, total  reserves of $241.8 million and $204.2 million, respectively, before  recoveries, were recorded at December 31, 2010 and 2009. Th  e long- term portion of these reserves is included in “Environmental liabilities,  continuing and discontinued” on the consolidated balance sheets, net  of recoveries, and amounted to $209.9 million and $167 million at  December 31, 2010 and 2009, respectively. The short-term portion  of our continuing operations obligations is recorded in “Accrued and  other liabilities”. In addition, we have estimated that reasonably possible  environmental loss contingencies, net of expected recoveries may exceed  amounts accrued by approximately $110 million at December 31, 2010. Remedial Investigation/Feasibility Study (“RI/FS”), or equivalent, at  most of the identified sites, with the status of each investigation varying  from site to site. At certain sites, a RI/FS has only recently begun,  providing limited information, if any, relating to cost estimates, timing,  or the involvement of other PRPs; whereas, at other sites, the studies  are complete, remedial action plans have been chosen, or a Record of  Decision (“ROD”) has been issued. Spending in 2010, 2009 and 2008 was $0.7 million, $1.1 million  and $0.6 million, respectively, for workers’ compensation, product  liability and other claims; $1.6 million, $1.2 million and $1.5 million,  respectively, for other postretirement benefits; and $25.8 million,  $17.6 million and $15.5 million, respectively, related to reserves for  legal proceedings associated with discontinued operations. We use actuarial methods, to the extent practicable, to monitor  the adequacy of product liability, workers’ compensation and other  postretirement benefit reserves on an ongoing basis. While the amounts  required to settle our liabilities for discontinued operations could  ultimately differ materially from the estimates used as a basis for  recording these liabilities, we believe that changes in estimates or  required expenditures for any individual cost component will not have  a material adverse effect on our liquidity or financial condition in any  single year and that, in any event, such costs will be satisfied over the  course of several years. net actuarial gain and prior service credit that will be amortized from  accumulated other comprehensive income into discontinued operations  during 2011 are $1.7 million and $0.1 million, respectively. The liability at December 31, 2009, was comprised of $7.3 million for  workers’ compensation and product liability, $11.8 million for other  postretirement medical and life insurance benefits provided to former  employees of discontinued businesses and $22.6 million of reserves for  legal proceedings associated with discontinued operations. 50 FMC CORPORATION    2010 Form 10K