PART II  NOTE 11 Income Taxes Th  e effective income tax rate applicable to income from continuing operations before income taxes was different from the statutory U.S. federal  income tax rate due to the factors listed in the following table: As of December 31, 2010, our federal income tax returns for years  through 2006 have been examined by the Internal Revenue Service  (“IRS”) and all issues have been settled. We believe that adequate  provision for both federal and foreign income taxes has been made for  the open years 2003 and after. Income taxes have not been provided for  the equity in undistributed earnings of foreign consolidated subsidiaries  of $710.6 million or for foreign unconsolidated subsidiaries and affiliates  of $13.4 million at December 31, 2010. Restrictions on the distribution  of these earnings are not significant. It is not practical to estimate the  amount of taxes that might be payable upon the remittance of such  earnings. Foreign earnings taxable as dividends were $12.2 million,  $6.2 million and $5.1 million in 2010, 2009 and 2008, respectively. U.S. GAAP accounting guidance for uncertainty in income taxes  prescribes a model for the recognition and measurement of a tax position  taken or expected to be taken in a tax return, and provides guidance  on derecognition, classification, interest and penalties, disclosure and  transition. We adopted this guidance on January 1, 2007. We file income tax returns in the U.S. federal jurisdiction, and various  states and foreign jurisdictions. The income tax returns for FMC  entities taxable in the U.S and significant foreign jurisdictions are  open for examination and adjustment. As of December 31, 2010,  the United States Federal and State income tax returns are open for  examination and adjustment for years 2006-2010. Our signifi cant  foreign jurisdictions, which total 15, are open for examination and  adjustment during varying periods from 2003-2010. The total amount of unrecognized tax benefits as of December 31, 2010,  that, if recognized, would affect the effective tax rate is $17.3 million.  We recognize accrued interest and penalties related to unrecognized  tax benefits as a component of income tax expense in the consolidated  financial statements. Included in the $17.3 million liability for  unrecognized tax benefi ts as of December 31, 2010, is $0.3 million  associated with interest and penalties. We do not expect any reductions in the liability for unrecognized tax  benefits within the next 12 months on account of settlements and the  expirations of statutes of limitations. See the reconciliation of the total  amounts of unrecognized tax benefi ts below: Uncertain Income Tax Positions 54 FMC CORPORATION    2010 Form 10K (in Millions) Balance, January 1, 2008 $49.4 Additions for tax positions of the current year 2.7 Additions for tax positions of prior years 1.0 Reductions for tax positions of prior years for: Settlements during the period (10.7) Balance, January 1, 2009 $42.4 Additions for tax positions of the current year 5.9 Reductions for tax positions of prior years for: Adjustments (1.2) Settlements during the period (32.7) Balance, December 31, 2009 $14.4 Additions for tax positions of the current year 6.1 Reductions for tax positions of prior years for: Adjustments (0.6) Settlements during the period (2.6) Balance, December 31, 2010 $17.3 Year Ended December 31, 2010 2009 2008 Statutory U.S. tax rate 35% 35% 35% Net diff erence: Percentage depletion (5) (6) (4) State and local income taxes, less federal income tax benefi t 1 2 1 Foreign earnings subject to different tax rates (7) (3) (5) Manufacturer’s production deduction and miscellaneous tax credits (1) — — Loss of Medicare Part D tax benefit (See Note 2) 1 — — Tax on intercompany dividends and deemed dividend for tax purposes 1 (2) 1 Nondeductible expenses 1 1 — Changes to unrecognized tax benefi ts 1 (4) (1) Change in valuation allowance 12 (6) — Other (1) — — Total diff erence 3 (18) (8) Effective tax rate 38% 17% 27%