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Quotes & Info
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| FMC > SEC Filings for FMC > Form 8-K on 2-Jul-2009 | All Recent SEC Filings |
2-Jul-2009
Costs Associated with Exit or Disposal Activities, Material Impairments
On June 23, 2009, FMC Corporation ("FMC" or "the Company") made the decision to phase out operations of its Barcelona, Spain facility by March 2010. This decision was announced to the facility employees on July 1, 2009. The facility is part of Foret which is included in FMC's Industrial Chemicals segment. High costs at the Barcelona facility coupled with reduced demand for product manufactured at that site have made it uneconomical for FMC to continue operations.
The Company expects that the phase out of the Barcelona facility will result in estimated pre-tax charges to income from continuing operations of approximately $32 to 36 million over the next four quarters, beginning in the second quarter of 2009. Estimates of the total cost the Company expects to incur for each major type of cost associated with the phase out are: (i) accelerated depreciation of fixed assets to be abandoned of approximately $14 to 15 million, and (ii) other charges of approximately $18 to 21 million primarily related to severance and employee benefits and to a lesser extent clean-out and demolition costs. Net cash outlays related to the phase out are expected to be approximately $19 to 20 million.
The information required to be disclosed under this item is included in Item 2.05 above and incorporated by reference.
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