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Income Taxes | 9 Months Ended
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Sep. 30, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes We determine our interim tax provision using an Estimated Annual Effective Tax Rate methodology (“EAETR”) in accordance with GAAP. The EAETR is applied to the year-to-date ordinary income, exclusive of discrete items. The tax effects of discrete items are then included to arrive at the total reported interim tax provision. The determination of the EAETR is based upon a number of estimates, including the estimated annual pretax ordinary income in each tax jurisdiction in which we operate. As our projections of ordinary income change throughout the year, the EAETR will change period-to-period. The tax effects of discrete items are recognized in the tax provision in the period they occur in accordance with GAAP. Depending on various factors, such as the item’s significance in relation to total income and the rate of tax applicable in the jurisdiction to which it relates, discrete items in any quarter can materially impact the reported effective tax rate. As a global enterprise, our tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, as well as other factors. As a result, there can be significant volatility in interim tax provisions. The below chart provides a reconciliation between our reported effective tax rate and the EAETR of our continuing operations.
| Three Months Ended September 30
| 2017 |  | 2016
(in Millions) | Before Tax | Tax | Effective Tax Rate % |  | Before Tax | Tax | Effective Tax Rate %
Continuing operations | $ | 59.3 |  | $ | (11.6 | ) | (19.6 | )% |  | $ | 55.0 |  | $ | 6.5 |  | 11.8 | %
Discrete items: |  |  |  |  |  |  |
Acquisition-related charges (1) | 48.8 |  | 15.4 |  |  |  | — |  | — |  |
Currency remeasurement (2) | 4.6 |  | 1.2 |  |  |  | 7.5 |  | 1.1 |  |
Other discrete items (3) | (4.1 | ) | 1.3 |  |  |  | (3.6 | ) | 0.6 |  |
Tax only discrete items (4) | — |  | 4.7 |  |  |  | — |  | 1.7 |  |
Total discrete items | $ | 49.3 |  | $ | 22.6 |  |  |  | $ | 3.9 |  | $ | 3.4 |  |
Continuing operations, before discrete items | $ | 108.6 |  | $ | 11.0 |  |  |  | $ | 58.9 |  | $ | 9.9 |  |
Estimated Annualized Effective Tax Rate (EAETR) (5) |  |  | 10.1 | % |  |  |  | 16.8 | %
| Nine Months Ended September 30
| 2017 |  | 2016
(in Millions) | Before Tax | Tax | Effective Tax Rate % |  | Before Tax | Tax | Effective Tax Rate %
Continuing operations | $ | 165.7 |  | $ | 1.1 |  | 0.7 | % |  | $ | 168.7 |  | $ | 47.4 |  | 28.1 | %
Discrete items: |  |  |  |  |  |  |
Acquisition-related charges (1) | 78.7 |  | 24.5 |  |  |  | — |  | — |  |
Currency remeasurement (2) | 16.1 |  | 5.4 |  |  |  | 13.5 |  | 0.5 |  |
Other discrete items (3) | 83.4 |  | 4.6 |  |  |  | 90.9 |  | 2.0 |  |
Tax only discrete items (4) | — |  | 5.8 |  |  |  | — |  | 0.2 |  |
Total discrete items | $ | 178.2 |  | $ | 40.3 |  |  |  | $ | 104.4 |  | $ | 2.7 |  |
Continuing operations, before discrete items | $ | 343.9 |  | $ | 41.4 |  |  |  | $ | 273.1 |  | $ | 50.1 |  |
Estimated Annualized Effective Tax Rate (EAETR) (5) |  |  | 12.0 | % |  |  |  | 18.3 | %
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(1) | See Note 3 for more information on acquisition-related charges.
(2) | Represents transaction gains or losses for currency remeasurement offset by associated hedge gains or losses, which are accounted for discretely in accordance with GAAP. Certain transaction gains or losses for currency remeasurement are not taxable, while offsetting hedge gains or losses are taxable.
(3) | GAAP generally requires subsidiaries for which a full valuation allowance has been provided to be excluded from the EAETR. For the three and nine months ended September 30, 2017 and 2016, the other discrete items component of the EAETR reconciliation primarily relates to the discrete accounting for these pretax losses.
(4) | For the three and nine months ended September 30, 2017, tax only discrete items are comprised of the tax effect of currency remeasurement associated with foreign statutory operations, changes in realizability of certain deferred tax assets, changes in uncertain tax liabilities and related interest, excess tax benefits associated with share-based compensation, and changes in prior year estimates of subsidiary tax liabilities. For the three and nine months ended September 30, 2016, tax only discrete items are comprised primarily of the tax effect of currency remeasurement associated with foreign statutory operations, changes in realizability or measurement of certain deferred tax assets, and changes in prior year estimates of subsidiary tax liabilities.
(5) | The decrease in the EAETR for the three and nine months ended September 30, 2017 is primarily driven by reduced domestic earnings in our FMC Agricultural Solutions business and the impact of the full integration of Cheminova into our global supply chain.
In the first quarter of 2017, we changed our assertion on unremitted earnings for certain foreign subsidiaries as a result of the expected sale of our discontinued FMC Health and Nutrition segment. For the three and nine months ended September 30, 2017, we provided deferred tax liabilities of $3.0 million and $20.8 million, respectively, attributable to outside basis differences within the FMC Health and Nutrition segment as a component of discontinued operations. We have not provided income taxes on undistributed earnings of our other foreign subsidiaries or affiliates since our intention remains that such earnings will be indefinitely reinvested.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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