PART II  NOTE 13 Pensions and Other Postretirement Benefi ts Other changes in plan assets and benefit obligations for continuing operations recognized in other comprehensive loss (income) for the years  ended December 31, 2010 and 2009 are as follows: (1) Refer to Note 9 for information on our discontinued postretirement benefit plans. The estimated net actuarial loss, prior service cost and net transition  asset for our pension plans that will be amortized from accumulated  other comprehensive income (loss) into our net annual benefi t cost  (income) during 2011 are $36.9 million, $1.8 million and $(0.1) million,  respectively. The estimated net actuarial gain and prior service credit  for our other benefits that will be amortized from accumulated other  comprehensive income (loss) into net annual benefit cost during  2011 will be $(0.3) million — income and $(0.2) million — income,  respectively. The following table summarizes the weighted-average assumptions used for and the components of net annual benefit cost (income) for the years  ended December 31: Our U.S. qualifi ed defi ned benefi t pension plan (“U.S. Plan”) holds  the majority of our pension plan assets. The expected long-term rate  of return on these plan assets was 8.50 percent, 8.50 percent and  8.75 percent for 2010, 2009 and 2008, respectively. In developing  the assumption for the long-term rate of return on assets for our U.S.  Plan, we take into consideration the technical analysis performed by  our outside actuaries, including historical market returns, information  on the assumption for long-term real returns by asset class, infl ation  assumptions, and expectations for standard deviation related to these  best estimates. We also consider the historical performance of our own  plan’s trust, which has earned a compound annual rate of return of  approximately 10.61 percent over the last 20 years (which is in excess  of comparable market indices for the same period) as well as other  factors. Given an actively managed investment portfolio, the expected  annual rates of return by asset class for our portfolio, using geometric  averaging, and after being adjusted for an estimated infl ation rate  of approximately 2.50 percent, is between 8.60 percent and 10.30  percent for equities, and between 4.20 percent and 6.30 percent for  fi xed-income investments, which generates a total expected portfolio  return that is in line with our assumption for the rate of return on  assets. The target asset allocation for 2010, by asset category, is 75-85  percent equity securities, 15-25 percent fixed income investments and  0-5 percent cash and other short-term investments. Our U.S. qualified pension plan’s investment strategy consists of a  total return investment management approach using a portfolio mix  of equities and fi xed income investments to maximize the long-term  return of plan assets for an appropriate level of risk. The goal of this  strategy is to minimize plan expenses by matching asset growth to the  plan’s liabilities over the long run. Furthermore, equity investments are  weighted towards value equities and diversified across U.S and non-U.S.  stocks. Derivatives and hedging instruments may be used eff ectively  to manage and balance risks associated with the plan’s investments.  Investment performance and related risks are measured and monitored  on an ongoing basis through annual liability measurements, periodic  asset and liability studies, and quarterly investment portfolio reviews. 57 FMC CORPORATION    2010 Form 10K (in Millions) Year ended December 31 Pensions Other Benefi ts  (1) 2010 2009 2010 2009 Current year net actuarial loss (gain) $33.8 $77.7 $2.9 $4.1 Current year prior service cost (credit) 5.5 0.7 — — Amortization of net actuarial (loss) gain (34.1) (8.9) 0.4 0.9 Amortization of prior service (cost) credit (1.2) (0.9) 0.1 1.0 Amortization of transition obligation — 0.3 — — Foreign currency exchange rate changes on the above line items (0.8) 2.3 — — Total recognized in other comprehensive (income) loss, before taxes $3.2 $71.2 $3.4 $6.0 Total recognized in other comprehensive (income) loss, after taxes $0.6 $45.5 $1.7 $5.3 Year Ended December 31 Pensions Other Benefi ts 2010 2009 2008 2010 2009 2008 Discount rate 5.90% 7.00% 6.50% 5.90% 7.00% 6.50% Expected return on plan assets 8.50% 8.50% 8.75% — — — Rate of compensation increase 4.20% 4.20% 4.20% — — — Components of net annual benefi t cost  (in millions): Service cost $18.2 $16.7 $18.2 $0.2 $0.2 $0.2 Interest cost 63.2 64.2 61.8 2.5 2.6 2.7 Expected return on plan assets (79.0) (74.8) (78.0) — — — Amortization of transition asset — (0.1) (0.1) — — — Amortization of prior service cost 1.2 0.8 1.1 (0.1) (1.0) (1.3) Amortization of net actuarial and other (gain) loss 26.5 5.8 3.1 (0.4) (0.9) (0.8) Recognized loss due to settlement and curtailments 7.1 0.8 — — — — Net annual benefit cost from continuing operations $37.2 $13.4 $6.1 $2.2 $0.9 $0.8