In our opinion the condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") applicable to interim period financial statements and reflect all adjustments necessary for a fair statement of results of operations for the three and nine months ended September 30, 2022 and 2021, cash flows for the nine months ended September 30, 2022 and 2021, changes in equity for the three and nine months ended September 30, 2022 and 2021, and our financial positions as of September 30, 2022 and December 31, 2021. All such adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the Notes. The results of operations for the three and nine months ended September 30, 2022 and 2021 are not necessarily indicative of the results of operations for the full year. The condensed consolidated balance sheets as of September 30, 2022 and December 31, 2021, and the related condensed consolidated statements of income (loss) and condensed consolidated statements of comprehensive income (loss) for the three and nine months ended September 30, 2022 and 2021, condensed consolidated statements of cash flows for the nine months ended September 30, 2022 and 2021, and condensed consolidated statements of changes in equity for the three and nine months ended September 30, 2022 and 2021 have been reviewed by our independent registered public accountants. The review is described more fully in their report included herein. Our accounting policies are set forth in detail in Note 1 to the consolidated financial statements included with our Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2021 (the "2021 Form 10-K").

The effects of the above changes in accounting principle have been retrospectively applied to all periods presented and as such certain prior period financial statement line items have been adjusted. The cumulative effect of these changes in accounting principle, on periods prior to those presented, resulted in an increase of $98.5 million to retained earnings and $1.5 million to accumulated other comprehensive income (losses) as of December 31, 2020, which is the earliest period presented in the condensed consolidated statements of changes in equity.

On July 1, 2022, we changed our method for inventory costing from the last-in, first-out (“LIFO”) cost method to the first-in, first-out (“FIFO”) cost method for inventory in the United States, which were the only operations that were using the LIFO cost method. All inventories outside the United States were already accounted for on the FIFO method. We believe this change in accounting method is preferable as it:

On July 1, 2022, we also changed our method of accounting for the determination of the market-related value of assets for a class of assets within the qualified U.S. defined benefit plan ("the Plan"), impacting our net periodic benefit cost. The market-related value is used to determine both the expected return on plan assets and the amortization of net unamortized actuarial gains or losses expense components of net periodic benefit cost which are reflected on the Non-operating pension and postretirement income (charges) line on the condensed consolidated statements of income (loss). Previously, to calculate the expected return on plan assets and the amortization of net unamortized actuarial gains or losses expense components, we deferred asset gains and losses into the market-related value of assets ("MRVA") over a five year period.

cost. No change is being made to the accounting principle for the other classes of pension assets; however our U.S. qualified pension plan reached fully funded status during 2018 and since that point the portfolio has been 100 percent fixed income securities and cash. Given the Plan's investment strategy, we believe this approach is preferable as it more closely aligns the expected return on plan assets and amortization of net actuarial and other gain and loss expense components with the value reflected in the Plan's funded status.


(In millions, except per share data)	As computed under LIFO and Pension deferred MRVA Method		As reported under FIFO and Pension Fair Value Method		Effect of change
Three Months Ended September 30, 2022

Cost of sales and services	$	899.7	$	899.7	$	—
Gross margin	$	477.5	$	477.5	$	—
Total costs and expenses	$	1,166.6	$	1,166.6	$	—
Income from continuing operations before non-operating pension and postretirement charges (income), interest expense, net and income taxes	$	210.6	$	210.6	$	—
Non-operating pension and postretirement charges (income)	$	3.9	$	(1.7)	$	(5.6)

Income (loss) from continuing operations before income taxes	$	164.9	$	170.5	$	5.6
Provision (benefit) for income taxes	$	34.8	$	36.0	$	1.2
Income (loss) from continuing operations	$	130.1	$	134.5	$	4.4

Net income (loss)	$	113.9	$	118.3	$	4.4

Net income (loss) attributable to FMC stockholders	$	116.6	$	121.0	$	4.4
Basic earnings (loss) per common share attributable to FMC stockholders:
Continuing operations	$	1.05	$	1.09	$	0.04
Net income (loss) attributable to FMC stockholders	$	0.92	$	0.96	$	0.04
Diluted earnings (loss) per common share attributable to FMC stockholders:
Continuing operations	$	1.05	$	1.08	$	0.03
Net income (loss) attributable to FMC stockholders	$	0.92	$	0.95	$	0.03


(in Millions, except per share data)	As Previously Reported		Effect of FIFO Change		Effect of Pension Change		Combined Effect of Changes		As Adjusted

Nine Months Ended September 30, 2021

Cost of sales and services	$	2,074.6	$	3.8	$	—	$	3.8	$	2,078.4
Gross margin	$	1,557.0	$	(3.8)	$	—	$	(3.8)	$	1,553.2
Total costs and expenses	$	2,865.3	$	3.8	$	—	$	3.8	$	2,869.1
Income from continuing operations before non-operating pension and postretirement charges (income), interest expense, net and income taxes	$	766.3	$	(3.8)	$	—	$	(3.8)	$	762.5
Non-operating pension and postretirement charges (income)	$	14.7	$	—	$	(10.8)	$	(10.8)	$	3.9

Income (loss) from continuing operations before income taxes	$	653.5	$	(3.8)	$	10.8	$	7.0	$	660.5
Provision (benefit) for income taxes	$	74.3	$	(0.8)	$	2.3	$	1.5	$	75.8
Income (loss) from continuing operations	$	579.2	$	(3.0)	$	8.5	$	5.5	$	584.7

Net income (loss)	$	546.8	$	(3.0)	$	8.5	$	5.5	$	552.3

Net income (loss) attributable to FMC stockholders	$	543.4	$	(3.0)	$	8.5	$	5.5	$	548.9
Basic earnings (loss) per common share attributable to FMC stockholders:
Continuing operations	$	4.46	$	(0.02)	$	0.07	$	0.05	$	4.51
Net income (loss) attributable to FMC stockholders	$	4.21	$	(0.02)	$	0.07	$	0.05	$	4.26
Diluted earnings (loss) per common share attributable to FMC stockholders:
Continuing operations	$	4.44	$	(0.03)	$	0.07	$	0.04	$	4.48
Net income (loss) attributable to FMC stockholders	$	4.19	$	(0.03)	$	0.07	$	0.04	$	4.23


(in Millions, except per share data)	As computed under LIFO and Pension deferred MRVA Method		As reported under FIFO and Pension Fair Value Method		Effect of change
Three Months Ended September 30, 2022
Net income (loss)	$	113.9	$	118.3	$	4.4
Pension and other postretirement benefits:
Unrealized actuarial gains (losses) and prior service (costs) credits, net of tax expense (benefit) of zero as computed and zero as reported for the three months ended September 30, 2022	$	(0.1)	$	(0.1)	$	—
Reclassification of net actuarial and other (gain) loss and amortization of prior service costs, included in net income, net of tax (expense) benefit of $1.2 as computed and zero as reported for the three months ended September 30, 2022	$	4.4	$	—	$	(4.4)
Total pension and other postretirement benefits, net of tax expense (benefit) of $1.2 as computed and zero as reported for the three months ended September 30, 2022	$	4.3	$	(0.1)	$	(4.4)
Other comprehensive income (loss), net of tax	$	(68.1)	$	(72.5)	$	(4.4)
Comprehensive income (loss)	$	45.8	$	45.8	$	—

Comprehensive income (loss) attributable to FMC stockholders	$	49.2	$	49.2	$	—


(in Millions, except per share data)	As computed under LIFO and Pension deferred MRVA Method		As reported under FIFO and Pension Fair Value Method		Effect of change
Nine Months Ended September 30, 2022
Net income (loss)	$	456.7	$	461.1	$	4.4
Pension and other postretirement benefits:
Unrealized actuarial gains (losses) and prior service (costs) credits, net of tax expense (benefit) of zero as computed and zero as reported for the nine months ended September 30, 2022	$	(0.1)	$	(0.1)	$	—
Reclassification of net actuarial and other (gain) loss and amortization of prior service costs, included in net income, net of tax (expense) benefit of $2.7 as computed and $1.8 as reported for the nine months ended September 30, 2022	$	11.2	$	6.8	$	(4.4)
Total pension and other postretirement benefits, net of tax expense (benefit) of $2.7 as computed and $1.8 as reported for the nine months ended September 30, 2022	$	11.1	$	6.7	$	(4.4)
Other comprehensive income (loss), net of tax	$	(214.1)	$	(218.5)	$	(4.4)
Comprehensive income (loss)	$	242.6	$	242.6	$	—
Comprehensive income (loss) attributable to FMC stockholders	$	246.1	$	246.1	$	—


(in Millions, except per share data)	As Previously Reported		Effect of FIFO Change		Effect of Pension Change		Combined Effect of Changes		As Adjusted
Three Months Ended September 30, 2021
Net income (loss)	$	160.4	$	(1.0)	$	2.8	$	1.8	$	162.2
Pension and other postretirement benefits:
Unrealized actuarial gains (losses) and prior service (costs) credits, net of tax expense (benefit) of $(0.2) as adjusted and zero as previously reported for the three months ended September 30, 2021	$	0.1	$	—	$	(0.8)	$	(0.8)	$	(0.7)
Reclassification of net actuarial and other (gain) loss and amortization of prior service costs, included in net income, net of tax (expense) benefit of $0.7 as adjusted and $1.2 as previously reported for the three months ended September 30, 2021	$	4.5	$	—	$	(2.0)	$	(2.0)	$	2.5
Total pension and other postretirement benefits, net of tax expense (benefit) of $0.5 as adjusted and $1.2 as previously reported for the three months ended September 30, 2021	$	4.6	$	—	$	(2.8)	$	(2.8)	$	1.8
Other comprehensive income (loss), net of tax	$	20.0	$	—	$	(2.8)	$	(2.8)	$	17.2
Comprehensive income (loss)	$	180.4	$	(1.0)	$	—	$	(1.0)	$	179.4

Comprehensive income (loss) attributable to FMC stockholders	$	178.2	$	(1.0)	$	—	$	(1.0)	$	177.2


(in Millions, except per share data)	As Previously Reported		Effect of FIFO Change		Effect of Pension Change		Combined Effect of Changes		As Adjusted
Nine Months Ended September 30, 2021
Net income (loss)	$	546.8	$	(3.0)	$	8.5	$	5.5	$	552.3
Pension and other postretirement benefits:
Unrealized actuarial gains (losses) and prior service (costs) credits, net of tax expense (benefit) of $(0.6) as adjusted and zero as previously reported for the nine months ended September 30, 2021	$	—	$	—	$	(2.2)	$	(2.2)	$	(2.2)
Reclassification of net actuarial and other (gain) loss and amortization of prior service costs, included in net income, net of tax (expense) benefit of $1.8 as adjusted and $3.5 as previously reported for the nine months ended September 30, 2021	$	13.2	$	—	$	(6.3)	$	(6.3)	$	6.9

Total pension and other postretirement benefits, net of tax expense (benefit) of $1.2 as adjusted and $3.5 as previously reported for the nine months ended September 30, 2021	$	13.2	$	—	$	(8.5)	$	(8.5)	$	4.7
Other comprehensive income (loss), net of tax	$	(2.2)	$	—	$	(8.5)	$	(8.5)	$	(10.7)
Comprehensive income (loss)	$	544.6	$	(3.0)	$	—	$	(3.0)	$	541.6

Comprehensive income (loss) attributable to FMC stockholders	$	541.4	$	(3.0)	$	—	$	(3.0)	$	538.4


(in Millions)	As computed under LIFO and Pension deferred MRVA Method		As reported under FIFO and Pension Fair Value Method		Effect of change
September 30, 2022
Inventories	$	1,615.3	$	1,731.5	$	116.2
Total current assets	$	4,994.4	$	5,110.6	$	116.2
Deferred income taxes	$	208.5	$	184.1	$	(24.4)
TOTAL ASSETS	$	10,672.9	$	10,764.7	$	91.8






Retained earnings	$	5,248.8	$	5,354.8	$	106.0
Accumulated other comprehensive income (loss)	$	(527.8)	$	(542.0)	$	(14.2)
Total FMC stockholders’ equity	$	3,096.4	$	3,188.2	$	91.8
Total equity	$	3,111.8	$	3,203.6	$	91.8
TOTAL LIABILITIES AND EQUITY	$	10,672.9	$	10,764.7	$	91.8


(in Millions)	As Previously Reported		Effect of FIFO Change		Effect of Pension Change		Combined Effect of Changes		As Adjusted
December 31, 2021
Inventories	$	1,405.7	$	116.2	$	—	$	116.2	$	1,521.9
Total current assets	$	4,937.6	$	116.2	$	—	$	116.2	$	5,053.8
Deferred income taxes	$	218.5	$	(24.4)	$	—	$	(24.4)	$	194.1
TOTAL ASSETS	$	10,581.3	$	91.8	$	—	$	91.8	$	10,673.1





Retained earnings	$	4,991.3	$	91.8	$	9.8	$	101.6	$	5,092.9

Accumulated other comprehensive income (loss)	$	(315.7)	$	—	$	(9.8)	$	(9.8)	$	(325.5)
Total FMC stockholders’ equity	$	3,032.5	$	91.8	$	—	$	91.8	$	3,124.3
Total equity	$	3,051.9	$	91.8	$	—	$	91.8	$	3,143.7
TOTAL LIABILITIES AND EQUITY	$	10,581.3	$	91.8	$	—	$	91.8	$	10,673.1


(in Millions)	As computed under LIFO and Pension deferred MRVA Method		As reported under FIFO and Pension Fair Value Method		Effect of change
Nine Months Ended September 30, 2022
Cash provided (required) by operating activities of continuing operations:
Net income (loss)	$	456.7	$	461.1	$	4.4
Income (loss) from continuing operations	$	498.9	$	503.3	$	4.4
Adjustments from income (loss) from continuing operations to cash provided (required) by operating activities of continuing operations:



Pension and other postretirement benefits	$	15.0	$	9.4	$	(5.6)
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:
Inventories	$	(282.3)	$	(282.3)	$	—
Income taxes	$	(4.7)	$	(3.5)	$	1.2

Net cash provided (required) by operating activities of continuing operations	$	15.7	$	15.7	$	—


(in Millions)	As Previously Reported		Effect of FIFO Change		Effect of Pension Change		Combined Effect of Changes		As Adjusted
Nine Months Ended September 30, 2021
Cash provided (required) by operating activities of continuing operations:
Net income (loss)	$	546.8	$	(3.0)	$	8.5	$	5.5	$	552.3
Income (loss) from continuing operations	$	579.2	$	(3.0)	$	8.5	$	5.5	$	584.7
Adjustments from income (loss) from continuing operations to cash provided (required) by operating activities of continuing operations:



Pension and other postretirement benefits	$	18.4	$	—	$	(10.8)	$	(10.8)	$	7.6
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:
Inventories	$	(371.2)	$	3.8	$	—	$	3.8	$	(367.4)
Income taxes	$	(23.5)	$	(0.8)	$	2.3	$	1.5	$	(22.0)



Net cash provided (required) by operating activities of continuing operations	$	298.2	$	—	$	—	$	—	$	298.2


	FMC Stockholders’ Equity
(in Millions, Except Per Share Data)	As Previously Reported		Effect of FIFO Change		Effect of Pension Change		Combined Effect of Changes		As Adjusted
Balance at December 31, 2020
Retained earnings	$	4,506.4	$	100.0	$	(1.5)	$	98.5	$	4,604.9
Accumulated Other Comprehensive Income (Loss)	$	(282.2)	$	—	$	1.5	$	1.5	$	(280.7)
Total equity	$	2,984.2	$	100.0	$	—	$	100.0	$	3,084.2


	FMC Stockholders’ Equity
(in Millions, Except Per Share Data)	As Previously Reported		Effect of FIFO Change		Effect of Pension Change		Combined Effect of Changes		As Adjusted
Balance at March 31, 2021
Retained earnings	$	4,627.0	$	99.0	$	1.4	$	100.4	$	4,727.4
Accumulated Other Comprehensive Income (Loss)	$	(282.8)	$	—	$	(1.4)	$	(1.4)	$	(284.2)
Total equity	$	3,031.3	$	99.0	$	—	$	99.0	$	3,130.3


	FMC Stockholders’ Equity
(in Millions, Except Per Share Data)	As Previously Reported		Effect of FIFO Change		Effect of Pension Change		Combined Effect of Changes		As Adjusted
Balance at June 30, 2021
Retained earnings	$	4,767.9	$	98.0	$	4.2	$	102.2	$	4,870.1
Accumulated Other Comprehensive Income (Loss)	$	(304.5)	$	—	$	(4.2)	$	(4.2)	$	(308.7)
Total equity	$	3,134.1	$	98.0	$	—	$	98.0	$	3,232.1


	FMC Stockholders’ Equity
(in Millions, Except Per Share Data)	As Previously Reported		Effect of FIFO Change		Effect of Pension Change		Combined Effect of Changes		As Adjusted
Balance at September 30, 2021
Retained earnings	$	4,864.9	$	97.0	$	7.0	$	104.0	$	4,968.9
Accumulated Other Comprehensive Income (Loss)	$	(284.2)	$	—	$	(7.0)	$	(7.0)	$	(291.2)
Total equity	$	3,057.0	$	97.0	$	—	$	97.0	$	3,154.0


	FMC Stockholders’ Equity
(in Millions, Except Per Share Data)	As Previously Reported		Effect of FIFO Change		Effect of Pension Change		Combined Effect of Changes		As Adjusted
Balance at December 31, 2021
Retained earnings	$	4,991.3	$	91.8	$	9.8	$	101.6	$	5,092.9
Accumulated Other Comprehensive Income (Loss)	$	(315.7)	$	—	$	(9.8)	$	(9.8)	$	(325.5)
Total equity	$	3,051.9	$	91.8	$	—	$	91.8	$	3,143.7


	FMC Stockholders’ Equity
(in Millions, Except Per Share Data)	As Previously Reported		Effect of FIFO Change		Effect of Pension Change		Combined Effect of Changes		As Adjusted
Balance at March 31, 2022
Retained earnings	$	5,131.8	$	91.8	$	9.8	$	101.6	$	5,233.4
Accumulated Other Comprehensive Income (Loss)	$	(435.6)	$	—	$	(9.8)	$	(9.8)	$	(445.4)
Total equity	$	3,082.2	$	91.8	$	—	$	91.8	$	3,174.0


	FMC Stockholders’ Equity
(in Millions, Except Per Share Data)	As Previously Reported		Effect of FIFO Change		Effect of Pension Change		Combined Effect of Changes		As Adjusted
Balance at June 30, 2022
Retained earnings	$	5,199.1	$	91.8	$	9.8	$	101.6	$	5,300.7
Accumulated Other Comprehensive Income (Loss)	$	(460.4)	$	—	$	(9.8)	$	(9.8)	$	(470.2)
Total equity	$	3,127.3	$	91.8	$	—	$	91.8	$	3,219.1


	FMC Stockholders’ Equity
(in Millions, Except Per Share Data)	As computed under LIFO and Pension deferred MRVA Method		As reported under FIFO and Pension Fair Value Method		Effect of change
Balance at September 30, 2022
Retained earnings	$	5,248.8	$	5,354.8	$	106.0
Accumulated Other Comprehensive Income (Loss)	$	(527.8)	$	(542.0)	$	(14.2)
Total equity	$	3,111.8	$	3,203.6	$	91.8