Discontinued Operations

12 Months Ended

Dec. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

FMC Lithium (Livent Corporation):

On March 1, 2019, we completed the previously announced distribution of 123 million shares of common stock of Livent as a pro rata dividend on shares of FMC common stock outstanding at the close of business on the record date of February 25, 2019.

The results of our discontinued FMC Lithium operations are summarized below:


(in Millions)	Year Ended December 31,
	2020		2019		2018
Revenue	$	—	$	52.1	$	442.5
Costs of sales and services	—		41.3		235.4

Income (loss) from discontinued operations before income taxes (1)	$	—	$	1.1	$	170.9
Provision (benefit) for income taxes	—		6.0		25.5
Total discontinued operations of FMC Lithium, net of income taxes, before separation-related costs	$	—	$	(4.9)	$	145.4
Separation-related costs and other adjustments of discontinued operations of FMC Lithium, net of income taxes	—		(16.4)		(28.1)
Discontinued operations of FMC Lithium, net of income taxes	$	—	$	(21.3)	$	117.3
Less: Discontinued operations of FMC Lithium attributable to noncontrolling interests	—		—		3.2
Discontinued operations of FMC Lithium, net of income taxes, attributable to FMC Stockholders	$	—	$	(21.3)	$	114.1

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(1) For the year ended December 31, 2018, amount includes $2.5 million of restructuring and other charges (income), and $4.3 million of non-operating pension settlement charges (income).

FMC Health and Nutrition:

On August 1, 2017, we completed the sale of the Omega-3 business to Pelagia AS for $38 million.

On November 1, 2017, we completed the previously disclosed sale of our FMC Health and Nutrition business to DuPont. The sale resulted in a gain of approximately $918 million ($727 million, net of tax). In connection with the sale, we entered into a customary transitional services agreement with DuPont to provide for the orderly separation and transition of various functions and processes. These services have been provided by us to DuPont for 24 months after closing and an additional six months extension. These services included information technology services, accounting, human resource and facility services among other services, while DuPont assumed the operations of FMC Health and Nutrition.

Certain sites were to transfer at a later date due to various local timing constraints. In May 2018, the last site transferred to DuPont. The results of our discontinued FMC Health and Nutrition operations are summarized below, including the results of these delayed sites included in the year ended December 31, 2018.


(in Millions)	Year Ended December 31,
	2020		2019		2018
Revenue	$	—	$	—	$	3.8
Costs of sales and services	—		—		4.0

Income (loss) from discontinued operations before income taxes (1)	$	—	$	—	$	2.0
Provision (benefit) for income taxes	—		—		3.8
Total discontinued operations of FMC Health and Nutrition, net of income taxes, before divestiture related costs and adjustments	$	—	$	—	$	(1.8)

Gain on sale of FMC Health and Nutrition, net of income taxes	—		—		—
Adjustment to gain on sale of FMC Health and Nutrition, net of income taxes (2)	—		—		7.8
Divestiture related costs and other adjustments of discontinued operations of FMC Health and Nutrition, net of income taxes	—		0.5		—
Adjustment to FMC Health and Nutrition Omega-3 net assets held for sale, net of income taxes	—		—		—


Discontinued operations of FMC Health and Nutrition, net of income taxes, attributable to FMC Stockholders	$	—	$	0.5	$	6.0

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(1)Results for the year ended December 31, 2018 include an adjustment to retained liabilities of the disposed FMC Health and Nutrition business.

(2)Amount represents the settlement of working capital adjustments subsequent to the sale.

In addition to our discontinued FMC Lithium and FMC Health and Nutrition segments, our discontinued operations in our financial statements includes adjustments to retained liabilities from previous discontinued operations. The primary liabilities retained include environmental liabilities, other postretirement benefit liabilities, self-insurance, long-term obligations related to legal proceedings and historical restructuring activities.

Our discontinued operations comprised the following:


(in Millions)	Year Ended December 31,
	2020		2019		2018
Adjustment for workers’ compensation, product liability, and other postretirement benefits and other, net of income tax benefit (expense) of $(10.0), $(23.9) and $(5.2), respectively (1)	$	24.7	$	4.3	$	(1.7)
Provision for environmental liabilities, net of recoveries, net of income tax benefit (expense) of $6.0, $6.3 and $32.5, respectively (2)	(24.1)		(23.5)		(121.4)
Provision for legal reserves and expenses, net of recoveries, net of income tax benefit (expense) of $7.6, $6.3 and $6.9, respectively	(28.9)		(23.3)		(26.3)
Discontinued operations of FMC Health and Nutrition, net of income tax benefit (expense) of zero, $(0.2) and $(7.1), respectively	—		0.5		6.0
Discontinued operations of FMC Lithium, net of income tax benefit (expense) of zero, $(12.3) and $(18.0), respectively	—		(21.3)		117.3
Discontinued operations, net of income taxes	$	(28.3)	$	(63.3)	$	(26.1)

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(1)During the year ended December 31, 2020, we finalized the sale of the second of two parcels of land of our discontinued site in Newark, California and recorded a gain of approximately $24 million, net of tax. During the year ended December 31, 2019, we finalized the sale of the first of the two parcels of land of our discontinued site in Newark, California and recorded a gain of approximately $21 million, net of tax.

(2)See a roll forward of our environmental reserves as well as discussion on significant environmental issues that occurred during the year in Note 12.

Reserves for Discontinued Operations, other than Environmental at December 31, 2020 and 2019


(in Millions)	December 31,
	2020		2019
Workers’ compensation, product liability, and indemnification reserves	$	12.9	$	15.7
Postretirement medical and life insurance benefits reserve, net	5.5		5.9
Reserves for legal proceedings	58.2		50.3
Reserve for discontinued operations (1)	$	76.6	$	71.9

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(1)Included in "Other long-term liabilities" on the consolidated balance sheets. Refer to Note 12 for discontinued environmental reserves.

The discontinued postretirement medical and life insurance benefits liability equals the accumulated postretirement benefit obligation. Associated with this liability is a net pre-tax actuarial gain and prior service credit of $4.4 million ($3.6 million after-tax) and $5.2 million ($4.2 million after-tax) at December 31, 2020 and 2019, respectively.

Net spending in 2020, 2019 and 2018 was $1.0 million, $3.8 million and $5.4 million, respectively, for workers’ compensation, product liability and other claims; $0.5 million, $0.4 million and $1.1 million, respectively, for other postretirement benefits; and $28.4 million, $20.2 million and $21.3 million, respectively, related to reserves for legal proceedings associated with discontinued operations.