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Glossary of Financial Terms

Following is a glossary of financial terms which management will often reference when evaluating historical financial performance or providing forward-looking statements. These financial terms are defined in relation to financial statement items prepared in FMC’s Consolidated Financial Statements (in the Form 10-K or 10-Q) unless otherwise stated.

Term Definition
Adjusted Earnings (Adjusted after-tax earnings from continuing operations, attributable to FMC Stockholders) Net income (loss) attributable to FMC stockholders plus the sum of Discontinued operations attributable to FMC Stockholders, net of income taxes and the after-tax effect of Corporate special (charges) income and Non-GAAP Tax adjustments.
Corporate special (charges) income Corporate special (charges) income represents the sum of Restructuring and other charges (income), Non-operating pension and postretirement charges, Business separation costs and certain Acquisition/divestiture-related charges.
Corporate expense Corporate staff costs which are not allocated to the business segments.
Adjusted operating profit (Adjusted earnings from continuing operations, before interest, income taxes and noncontrolling interests) Income (loss) from continuing operations before income taxes, plus the sum of Corporate special (charges) income and Interest expense, net.
Adjusted Tax Rate Calculated by dividing the Adjusted Earnings Provision for income taxes by the Adjusted Earnings from Continuing Operations, before income taxes and noncontrolling interests.
Non-GAAP tax adjustments Represents certain discrete tax items including, but are not limited to: income tax expenses or benefits that are not related to ongoing business operations in the current year; unusual or infrequently occurring items; tax adjustments associated with fluctuations in foreign currency remeasurement of certain foreign operations; certain changes in estimates of tax matters related to prior fiscal years; certain changes in the realizability of deferred tax assets; and changes in tax law.
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) Adjusted operating profit (defined above) plus Total Depreciation and Amortization (as presented in the Notes to the Financial Statements in the Form 10-K, see “Business Segments and Geographic Data”).
Free Cash Flow Sum of Cash provided (required) by the following items: Operating activities of continuing operations excluding excess tax benefits from share based compensation, Operating activities of discontinued operations, Capital expenditures of continuing operations and Other discontinued investing activities (which represents capital expenditures of discontinued operations).
Cash provided by operating activities or reported cash from operations (Cash from Operations) As presented on the Consolidated Statements of Cash Flows in either Form 10-Q or Form 10-K
Net debt The sum of Short-term debt, Current portion of long-term debt and Long-term debt less the sum of Cash and cash equivalents.
Operating working capital Total Current Assets less Cash and cash equivalents less the sum of Total Current Liabilities less Short-term debt and Current portion of long-term debt.
ROIC Return on Invested Capital (ROIC) is the sum of Income from continuing operations less Net income attributable to noncontrolling interests plus the sum of After-tax Interest expense, the after-tax effect of Corporate special (charges) income and Tax adjustments divided by the sum of the 2-Point Average of Short-term debt, Current portion of long-term debt, Long-term debt and Total FMC stockholders' equity.
Capital Additions Represents additions to property, plant and equipment as well as investments in our Agricultural Solutions’ contract manufacturers.
Cash Flow provided (required) Working Capital Sum of Cash provided (required) by the following items: Trade receivables, net, Guarantees of vendor financing, Inventories, Accounts Payable, Advance payments from customers and accrued customer rebates.