Income Taxes (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of effective income tax rate reconciliation

The below chart provides a reconciliation between our reported effective tax rate and the EAETR of our continuing operations.



	Three Months Ended June 30,
	2019							2018
(in Millions)	Before Tax		Tax			Effective Tax Rate %		Before Tax		Tax			Effective Tax Rate %
Continuing operations	$	225.0	$	30.6		13.6	%	$	98.7	$	(1.1	)	(1.1	)%
Discrete items:
Currency remeasurement ⁽¹⁾	$	6.4	$	1.9				$	2.3	$	0.3
Other discrete items ⁽²⁾	47.0		4.5					123.8		24.8
Tax only discrete items ⁽³⁾	—		(0.1		)			—		7.6
Total discrete items	$	53.4	$	6.3				$	126.1	$	32.7
Continuing operations, before discrete items	$	278.4	$	36.9				$	224.8	$	31.6
Estimated Annualized Effective Tax Rate (EAETR)						13.3	%						14.1	%



	Six Months Ended June 30,
	2019						2018
(in Millions)	Before Tax		Tax		Effective Tax Rate %		Before Tax		Tax			Effective Tax Rate %
Continuing operations	$	468.9	$	66.9	14.3	%	$	389.4	$	59.4		15.3	%
Discrete items:
Currency remeasurement ⁽¹⁾	$	8.3	$	2.8			$	0.6	$	0.9
Other discrete items ⁽²⁾	93.0		7.9				70.3		6.7
Tax only discrete items ⁽³⁾	—		2.3				—		(0.7		)
Total discrete items	$	101.3	$	13.0			$	70.9	$	6.9
Continuing operations, before discrete items	$	570.2	$	79.9			$	460.3	$	66.3
Estimated Annualized Effective Tax Rate (EAETR)					14.0	%						14.4	%

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(1)	Represents transaction gains or losses for currency remeasurement offset by associated hedge gains or losses, which are accounted for discretely in accordance with U.S. GAAP. Certain transaction gains or losses for currency remeasurement are not taxable, while offsetting hedge gains or losses are taxable.

(2)

U.S. GAAP generally requires subsidiaries for which a full valuation allowance has been provided to be excluded from the EAETR. For the three and six months ended June 30, 2019, other discrete items were materially comprised of the accounting for excluded pretax losses of subsidiaries for which a full valuation allowance has been provided. During the three months ended June 30, 2018, other discrete items were materially comprised of restructuring charges and other integration related costs associated with the acquired DuPont Crop Protection Business and the accounting for excluded pretax losses of subsidiaries for which a full valuation allowance has been provided. During the six months ended June 30, 2018, other discrete items also included the gain attributable to the sale of a portion of FMC's European herbicide portfolio to Nufarm Limited recorded in the first quarter.

(3)

For the three and six months ended June 30, 2019 and 2018, tax only discrete items are primarily comprised of the tax effect of currency remeasurement associated with foreign statutory operations, excess tax benefits associated with share-based compensation, and changes in tax law.