XML 50 R24.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Domestic and foreign components of income (loss) from continuing operations before income taxes are shown below:
| Year Ended December 31,
(in Millions) | 2023 |  | 2022 |  | 2021
Domestic | $ | (312.7) |  |  | $ | (89.6) |  |  | $ | (57.5) |
Foreign | 612.9 |  |  | 1,073.5 |  |  | 955.3 |
Total | $ | 300.2 |  |  | $ | 983.9 |  |  | $ | 897.8 |
The provision (benefit) for income taxes attributable to income (loss) from continuing operations consisted of:
| Year Ended December 31,
(in Millions) | 2023 |  | 2022 |  | 2021
Current: |  |  |  |  |
Federal | $ | 58.5 |  |  | $ | 45.7 |  |  | $ | (15.1) |
Foreign | 113.9 |  |  | 152.1 |  |  | 96.6 |
State | 1.1 |  |  | 0.1 |  |  | 0.4 |
Total current | $ | 173.5 |  |  | $ | 197.9 |  |  | $ | 81.9 |
Deferred: |  |  |  |  |
Federal | $ | (82.7) |  |  | $ | (28.6) |  |  | $ | 18.4 |
Foreign | (1,212.0) |  |  | (27.4) |  |  | (7.1) |
State | 1.9 |  |  | 3.3 |  |  | (0.7) |
Total deferred | $ | (1,292.8) |  |  | $ | (52.7) |  |  | $ | 10.6 |
Total | $ | (1,119.3) |  |  | $ | 145.2 |  |  | $ | 92.5 |
The 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:
| Year Ended December 31, |  |  |  |
(in Millions) | 2023 |  | 2022 |  | 2021 |  |  |  |
U.S. Federal statutory rate | $ | 63.0 |  |  | $ | 206.6 |  |  | $ | 188.6 |  |  |  |  |
Foreign earnings subject to different tax rates (1) | (130.7) |  |  | (152.7) |  |  | (182.4) |  |  |  |  |
State and local income taxes, less federal income tax benefit | 2.5 |  |  | 5.5 |  |  | 7.6 |  |  |  |  |
Research and development and miscellaneous tax credits(2) | (1,154.6) |  |  | (5.7) |  |  | (8.6) |  |  |  |  |
Tax on dividends, deemed dividends, and GILTI (3) | 37.0 |  |  | 24.6 |  |  | 44.5 |  |  |  |  |
Changes to unrecognized tax benefits | 10.5 |  |  | 10.5 |  |  | (28.7) |  |  |  |  |
Nondeductible expenses | 9.3 |  |  | 19.6 |  |  | 11.5 |  |  |  |  |
Change in valuation allowance (4) | 172.5 |  |  | 71.3 |  |  | 84.7 |  |  |  |  |
Exchange gains and losses (5) | (18.4) |  |  | (12.0) |  |  | (8.6) |  |  |  |  |
Other (6) | (110.4) |  |  | (22.5) |  |  | (16.1) |  |  |  |  |
Total Tax Provision | $ | (1,119.3) |  |  | $ | 145.2 |  |  | $ | 92.5 |  |  |  |  |
____________________ (1)A significant amount of our earnings is generated by our foreign subsidiaries (e.g., Singapore, Hong Kong, and Switzerland), which tax earnings at lower statutory rates than the United States federal statutory rate. Our future effective tax rates may be materially impacted by a future change in the composition of earnings from foreign and domestic tax jurisdictions. (2)The year ended December 31, 2023 is primarily related to ten-year nonrefundable tax credits granted to the Company's Swiss subsidiaries, as discussed further below. (3)The years ended December 31, 2023, 2022, and 2021 includes tax expense of $25.5 million, $17.8 million, and $36.2 million, respectively, associated with the global intangible low-taxed income (GILTI) provisions. (4)The year ended December 31, 2023 is primarily related to the estimated portion of nonrefundable tax credits within our Swiss operations that are not expected to be utilized and net operating losses and other deferred tax assets within our Argentina operations, partially offset by the release of the valuation allowance within our Brazil operations, as described further below. The year ended December 31, 2022 is primarily related to net operating losses and other deferred tax assets within our Brazil and Argentina operations. The year ended December 31, 2021 is primarily related to net operating losses and other deferred tax assets within our Brazil and Luxembourg operations. (5)Includes the impact of transaction gains or losses on net monetary assets for which no corresponding tax expense or benefit is realized and the tax provision for statutory taxable gains or losses in foreign jurisdictions for which there is no corresponding amount in income before taxes. (6)The year ended December 31, 2023 includes a net decrease of approximately $120 million related to adjustments of deferred tax balances in Singapore, Puerto Rico, and Switzerland. The year ended December 31, 2022 included a $39.7 million decrease related to certain deferred tax liabilities as a result of the extension of our incentive tax rate in Puerto Rico. The year ended December 31, 2021 included a $37.1 million decrease related to deferred tax liabilities associated with intercompany investments in foreign subsidiaries. During the three months ended December 31, 2023, the Company’s Swiss subsidiaries were granted ten-year tax incentives effective for 2023 and retroactively for 2021 and 2022. The tax incentives were awarded for the Company’s commitment to invest in additional headcount and transfer significant intellectual property, which is planned for 2024, as well as commitment to establish a new global technology and innovation center in Switzerland. Specifically, the Company was awarded $1,353 million in non-refundable tax credits available for use against Swiss cantonal income taxes. The tax credits are taxable for Swiss federal tax purposes, therefore we have provided a deferred tax liability of approximately $204 million associated with future Swiss federal tax. Net deferred tax benefits of $1,149 million and related valuation allowances of $318 million were recorded during the three months ended December 31, 2023 to reflect the estimated net future reductions in tax of $831 million associated with the incentives. Historically, FMC’s Brazil valuation allowance position was based on long-standing local transfer pricing rules, as well as certain material favorable permanent statutory tax deductions available to FMC Brazil as part of local tax law. During the three months ended June 30, 2023, Brazil passed legislation to conform to Organization for Economic Cooperation and Development ('OECD') transfer pricing rules effective in 2024. Conformity to OECD transfer pricing rules favorably impacts the statutory income level of FMC Brazil. In 2023, the Company continued to monitor its valuation allowance throughout the third and fourth quarters considering this law change. Further, on December 29, 2023, the Brazilian Government enacted new tax law that significantly limits FMC Brazil’s ability to benefit in the future from the material favorable permanent statutory tax deductions previously available as part of local tax law. During the three months ended December 31, 2023, the Company released its FMC Brazil valuation allowance and recorded a tax benefit of approximately $223 million. Significant components of our deferred tax assets and liabilities were attributable to:
| December 31,
(in Millions) | 2023 |  | 2022
Reserves for discontinued operations, environmental and restructuring | $ | 144.7 |  |  | $ | 121.4 |
Accrued pension and other postretirement benefits | 9.8 |  |  | 9.6 |
Capital loss, foreign tax and other credit carryforwards | 1,136.0 |  |  | 3.5 |
Net operating loss carryforwards | 411.2 |  |  | 315.2 |
Deferred expenditures capitalized for tax | 94.5 |  |  | 71.3 |
Other accruals and reserves | 234.0 |  |  | 219.3 |
Deferred tax assets | $ | 2,030.2 |  |  | $ | 740.3 |
Valuation allowance, net | (588.4) |  |  | (457.6) |
Deferred tax assets, net of valuation allowance | $ | 1,441.8 |  |  | $ | 282.7 |
Intangibles, Property, plant and equipment, and Investments, net | 263.3 |  |  | 393.5 |
Deferred tax liabilities | $ | 263.3 |  |  | $ | 393.5 |
Net deferred tax assets (liabilities) | $ | 1,178.5 |  |  | $ | (110.8) |
We evaluate our deferred income taxes quarterly to determine if valuation allowances are required or should be adjusted. GAAP accounting guidance requires companies to assess whether valuation allowances should be established against deferred tax assets based on all available evidence, both positive and negative, using a "more likely than not" standard. In assessing the need for a valuation allowance, appropriate consideration is given to all positive and negative evidence related to the realization of deferred tax assets. This assessment considers, among other matters, the nature and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carryforward periods, and tax planning alternatives. We operate and derive income across multiple jurisdictions. As our business experiences changes in operating results across its geographic footprint, we may encounter losses in jurisdictions that have been historically profitable, and as a result might require additional valuation allowances to be recorded. We are committed to implementing tax planning actions, when deemed appropriate, in jurisdictions that experience losses in order to realize deferred tax assets prior to their expiration. At December 31, 2023, we had net operating loss and tax credit carryforwards as follows: U.S. state net operating loss carryforwards of $20.3 million (tax-effected) expiring in future tax years through 2042, foreign net operating loss carryforwards of $390.9 million (tax-effected) expiring in various future years, and other tax credit carryforwards of $1,136.0 million expiring in various future years through 2034. During the third quarter of 2021, we changed our indefinite reinvestment assertion in connection with plans to repatriate cash in 2021 and subsequent years, contingent upon earnings from certain foreign subsidiaries, and recorded tax of $1.6 million for the year ended December 31, 2021. Additional income taxes have not been provided for certain other remaining outside basis differences inherent in our investments in foreign subsidiaries because the investments and related unremitted earnings are essentially permanent in duration. Determining the amount of unrecognized deferred tax liability related to indefinitely reinvested earnings of our foreign subsidiaries is not practicable due to the complexity of the multi-jurisdictional tax environment in which we operate. Uncertain Income Tax Positions 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 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, 2023, the U.S. federal and state income tax returns are open for examination and adjustment for the years 2017 - 2023 and 2003 - 2023, respectively. Our significant foreign jurisdictions, which total 13, are open for examination and adjustment during varying periods from 2013 - 2023. As of December 31, 2023, we had total unrecognized tax benefits of $51.2 million, of which $37.1 million would favorably impact the effective tax rate from continuing operations if recognized. As of December 31, 2022, we had total unrecognized tax benefits of $46.1 million, of which $29.5 million would favorably impact the effective tax rate if recognized. Interest and penalties related to unrecognized tax benefits are reported as a component of income tax expense. For the years ended December 31, 2023, 2022 and 2021, we had interest and penalties for a net expense (benefit) of $4.3 million, $2.6 million, and $(4.5) million, respectively, in the consolidated statements of income (loss). As of December 31, 2023 and 2022, we have accrued interest and penalties in the consolidated balance sheets of $16.3 million and $12.0 million, respectively. Due to the potential for resolution of federal, state, or foreign examinations, and the expiration of various jurisdictional statutes of limitation, it is reasonably possible that our liability for unrecognized tax benefits will decrease within the next 12 months by a range of $7.1 million to $27.1 million. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| December 31,
(in Millions) | 2023 |  | 2022 |  | 2021
Balance at beginning of year | $ | 46.1 |  |  | $ | 41.9 |  |  | $ | 76.2 |
Increases related to positions taken in the current year | 2.4 |  |  | 4.8 |  |  | 2.4 |
Increases and decreases related to positions taken in prior years | 3.5 |  |  | 2.9 |  |  | (26.4) |
Decreases related to lapse of statutes of limitations | (0.8) |  |  | (3.5) |  |  | (10.3) |
Settlements during the current year | — |  |  | — |  |  | — |
Decreases for tax positions on dispositions | — |  |  | — |  |  | — |
Balance at end of year (1) | $ | 51.2 |  |  | $ | 46.1 |  |  | $ | 41.9 |
____________________ (1)At December 31, 2023, 2022, and 2021 we recognized an offsetting non-current asset of $12.9 million, $12.8 million, and $14.4 million respectively, relating to the indirect income tax benefits associated with specific uncertain tax positions presented above.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration