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.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A
  • Adjusted cash from operations*

    Defined as Cash provided by operating activities excluding the effects of transaction-related cash flows.

  • 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.

  • Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)*

    Adjusted operating profit (defined above) plus Total Depreciation and Amortization.

  • 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.

  • After-tax Interest Expense*

    Defined as the difference between interest income and interest expense, multiplied by the Adjusted Tax Rate.

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C
  • 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.

  • 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

  • Corporate expenses

    Corporate staff costs which are not allocated to the business segments.

  • Corporate special charges (income)

    Corporate special charges (income) represents the sum of Restructuring and other charges (income), Non-operating pension and postretirement charges (income), and certain Transaction-related charges.

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F
  • Free Cash Flow*

    Adjusted cash from operations reduced by spending for capital additions and other investing activities as well as legacy and transformation spending, which consists of cash provided (required) by both operating and investing activities of discontinued operations, transaction-related cash flows, and spending for investment in ERP system.

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N
  • 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.

  • 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; 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 related interim accounting impacts; and changes in tax law.

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O
  • 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.

  • Organic revenue growth*

    Revenue growth, excluding the impact of foreign currency changes.

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R
  • ROIC*

    Return on Invested Capital (ROIC) is the sum of Income (loss) from continuing operations attributable to FMC stockholders, net of tax plus the sum of After-tax Interest expense, the after-tax effect of Corporate special (charges) income and Non-GAAP 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.

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*Represents a non-GAAP financial term. We have provided on our website at www.fmc.com reconciliations of non-GAAP terms to the most directly comparable GAAP term.