Our financial instruments include cash and cash equivalents, trade receivables, other current assets, certain receivables classified as other long-term assets, accounts payable, and amounts included in investments and accruals meeting the definition of financial instruments. The carrying value of these financial instruments approximates their fair value. Our other financial instruments include the following:


Financial Instrument						Valuation Method
Foreign exchange forward contracts						Estimated amounts that would be received or paid to terminate the contracts at the reporting date based on current market prices for applicable currencies.

Commodity forward contracts						Estimated amounts that would be received or paid to terminate the contracts at the reporting date based on quoted market prices for applicable commodities.

Cross currency swaps						Estimated amounts that would be received or paid to terminate the contracts at the reporting date based on discounted remaining cash flows for applicable currencies.

Debt						Our estimates and information obtained from independent third parties using market data, such as bid/ask spreads for the last business day of the reporting period.

The estimated fair value of the types of financial instruments in the above table have been determined using standard pricing models which take into account the present value of expected future cash flows discounted to the balance sheet date. These standard pricing models utilize inputs derived from or corroborated by observable market data such as interest rate yield curves and currency and commodity spot and forward rates. In addition, we test a subset of our valuations against valuations received from the transaction's counterparty to validate the accuracy of our standard pricing models. Accordingly, the estimates presented may not be indicative of the amounts that we would realize in a market exchange at settlement date and do not represent potential gains or losses on these agreements. The estimated fair values of foreign exchange forward contracts and commodity forward contracts are included in the tables within this Note. The estimated fair value of debt is $4,032.2 million and $3,809.9 million and the carrying amount is $4,280.6 million and $4,074.9 million as of June 30, 2026 and December 31, 2025, respectively.

We enter into various financial instruments with off-balance sheet risk as part of the normal course of business. These off-balance sheet instruments include financial guarantees and contractual commitments to extend financial guarantees under letters of credit, and other assistance to customers. See Note 18 for more information. Decisions to extend financial guarantees to customers and the amount of collateral required under these guarantees are based on our evaluation of creditworthiness on a case-by-case basis.

We mitigate certain financial exposures, including currency risk, commodity purchase exposures and interest rate risk, through a program of risk management that includes the use of derivative financial instruments. We enter into derivative contracts, including forward contracts and purchased options, to reduce the effects of fluctuating currency exchange rates, interest rates, and commodity prices. A detailed description of these risks including a discussion on the concentration of credit risk is provided in Note 18 to our consolidated financial statements on our 2025 Form 10-K.

We formally document all relationships between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. This process includes relating derivatives that are designated as fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. We also assess, both at the inception of the hedge and on an ongoing basis, whether each derivative is highly effective in offsetting changes in fair values or cash flows of the hedged item. If we determine that a derivative is not highly effective as a hedge, or if a derivative ceases to be a highly effective hedge, we discontinue hedge accounting with respect to that derivative prospectively.

We recognize all derivatives on the balance sheet at fair value. On the date the derivative instrument is entered into, we generally designate the derivative as a hedge of the variability of cash flows to be received or paid related to a forecasted transaction (cash flow hedge). We record in accumulated other comprehensive income (loss) ("AOCI") changes in the fair value of derivatives that are designated as and meet all the required criteria for a cash flow hedge. We then reclassify these amounts into earnings as the underlying hedged item affects earnings. In contrast, we immediately record in earnings changes in the fair value of derivatives that are not designated as cash flow hedges.

As of June 30, 2026, we had open foreign currency forward contracts in AOCI in a net after tax loss position of $5.3 million designated as cash flow hedges of underlying forecasted sales and purchases. Current open contracts hedge forecasted transactions until December 31, 2027. At June 30, 2026, we had open forward contracts designated as cash flow hedges with various expiration dates to buy, sell or exchange foreign currencies with a U.S. dollar equivalent of approximately $491.2 million.

In prior periods, we settled various interest rate swap agreements related to several debt issuances and recorded gains (losses) in other comprehensive income, which are being amortized over the various terms of those debt instruments. As of June 30, 2026, there was a remaining net after-tax loss of $24.8 million in AOCI related to these settlements.

As of June 30, 2026, we had no open commodity contracts in AOCI designated as cash flow hedges of underlying forecasted purchases. At June 30, 2026, we had no mmBTUs (millions of British Thermal Units) in aggregate notional volume of outstanding natural gas commodity forward contracts to hedge forecasted purchases.

Approximately $5.3 million of the net losses after-tax, representing open foreign currency exchange will be realized in earnings during the twelve months ending June 30, 2027 if spot rates in the future are consistent with forward rates as of June 30, 2026. The actual effect on earnings will be dependent on the actual spot rates when the forecasted transactions occur.

The Company is exposed to fluctuations in foreign exchange rates on investments it holds in foreign entities, and, beginning in the third quarter of 2025, the Company uses fixed-to-fixed cross-currency swaps to hedge its exposure to changes in foreign exchange rates on its net investment in Euro (“EUR”) denominated subsidiaries.

During the third quarter of 2025, the Company entered into fixed-to-fixed cross-currency swaps with aggregate notional amounts of $750 million, of which the Company will exchange semi-annual fixed rate payments on United States dollar notional amount for fixed rate payments in EUR. As of June 30, 2026, the Company had $750 million of hedges outstanding to hedge its net investment in EUR denominated subsidiaries and are designated as net investment hedges.

For derivatives designated as net investment hedges, the gain or loss on the derivative is reported in Accumulated other comprehensive income (loss) as part of the cumulative translation adjustment. Amounts are reclassified out of Accumulated other comprehensive income (loss) into earnings when the hedged net investment is either sold or substantially liquidated.

We hold certain forward contracts that have not been designated as cash flow hedging instruments for accounting purposes. Contracts used to hedge the exposure to foreign currency fluctuations associated with certain monetary assets and liabilities are not designated as cash flow hedging instruments, and changes in the fair value of these items are recorded in earnings.

We had open forward contracts not designated as cash flow hedging instruments for accounting purposes with various expiration dates to buy, sell or exchange foreign currencies with a U.S. dollar equivalent of approximately $3,653.2 million at June 30, 2026.


	June 30, 2026
	Gross Amount of Derivatives
(in Millions)	Designated as Cash Flow Hedges		Designated as Net Investment Hedges		Not Designated as Hedging Instruments		Total Gross Amounts		Gross Amounts Subject to Master Netting Arrangements		Net Amounts
Foreign exchange contracts	$	8.1	$	16.8	$	6.5	$	31.4	$	(8.3)	$	23.1




Total derivative assets (1)	$	8.1	$	16.8	$	6.5	$	31.4	$	(8.3)	$	23.1

Foreign exchange contracts	$	(16.4)	$	—	$	(3.6)	$	(20.0)	$	8.3	$	(11.7)



Total derivative liabilities (2)	$	(16.4)	$	—	$	(3.6)	$	(20.0)	$	8.3	$	(11.7)

Net derivative assets (liabilities)	$	(8.3)	$	16.8	$	2.9	$	11.4	$	—	$	11.4


	December 31, 2025
	Gross Amount of Derivatives
(in Millions)	Designated as Cash Flow Hedges		Designated as Net Investment Hedges		Not Designated as Hedging Instruments		Total Gross Amounts		Gross Amounts Subject to Master Netting Arrangements		Net Amounts
Foreign exchange contracts	$	6.1	$	7.5	$	3.0	$	16.6	$	(16.6)	$	—



Total derivative assets (1)	$	6.1	$	7.5	$	3.0	$	16.6	$	(16.6)	$	—

Foreign exchange contracts	$	(9.6)	$	(8.5)	$	(8.0)	$	(26.1)	$	16.6	$	(9.5)


Total derivative liabilities (2)	$	(9.6)	$	(8.5)	$	(8.0)	$	(26.1)	$	16.6	$	(9.5)

Net derivative assets (liabilities)	$	(3.5)	$	(1.0)	$	(5.0)	$	(9.5)	$	—	$	(9.5)

______________


	Contracts
	Foreign Exchange				Interest rate			Total
	Three Months Ended June 30,
(in Millions)	2026		2025			2026		2025		2026		2025
Unrealized hedging gains (losses) and other, net of tax	$	9.4	$	(20.0)		$	—	$	—	$	9.4	$	(20.0)
Reclassification of deferred hedging (gains) losses, net of tax (1)	(5.6)		(4.9)			0.4		0.4		(5.2)		(4.5)


Total derivative instrument impact on comprehensive income, net of tax	$	3.8	$	(24.9)		$	0.4	$	0.4	$	4.2	$	(24.5)

	Contracts
	Foreign Exchange				Interest rate			Total
	Six Months Ended June 30,
(in Millions)	2026		2025			2026		2025		2026		2025
Unrealized hedging gains (losses) and other, net of tax	$	11.9	$	(36.7)		$	—	$	—	$	11.9	$	(36.7)
Reclassification of deferred hedging (gains) losses, net of tax (1)	(7.7)		(1.9)			0.8		0.7		(6.9)		(1.2)


Total derivative instrument impact on comprehensive income, net of tax	$	4.2	$	(38.6)		$	0.8	$	0.7	$	5.0	$	(37.9)

______________

Derivatives Not Designated as Hedging Instruments


	Amount of Pre-tax Gain (Loss) Recognized in Income on Derivatives (1)
	Three Months Ended June 30,				Six Months Ended June 30,
(in Millions)	2026		2025		2026		2025
Foreign exchange contracts	$	(35.8)	$	(15.4)	$	(54.1)	$	(15.5)



Total	$	(35.8)	$	(15.4)	$	(54.1)	$	(15.5)

______________

(1)Amounts in the columns represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item. These amounts are included in Costs of sales and services and to a lesser extent Selling, general, and administrative expenses and Restructuring and other charges (income) on the consolidated statements of income (loss).

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Market participants are defined as buyers or sellers in the principle or most advantageous market for the asset or liability that are independent of the reporting entity, knowledgeable and able and willing to transact for the asset or liability.

We have categorized our assets and liabilities that are recorded at fair value, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the assets and liabilities fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.

The following tables present our fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets. During the periods presented there were no transfers between fair value hierarchy levels.


(in Millions)	June 30, 2026		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets




Derivatives – Foreign exchange (1)	$	31.4	$	—	$	31.4	$	—

Other (2) (3) (4)	92.6		58.4		—		34.2
Total assets	$	124.0	$	58.4	$	31.4	$	34.2

Liabilities




Derivatives – Foreign exchange (1)	$	20.0	$	—	$	20.0	$	—

Other (2)	19.0		19.0		—		—
Total liabilities	$	39.0	$	19.0	$	20.0	$	—


(in Millions)	December 31, 2025		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets



Derivatives – Foreign exchange (1)	$	16.6	$	—	$	16.6	$	—

Other (2) (3) (4)	298.1		262.4		—		35.7
Total assets	$	314.7	$	262.4	$	16.6	$	35.7

Liabilities




Derivatives – Foreign exchange (1)	$	26.1	$	—	$	26.1	$	—

Other (2)	19.6		19.6		—		—
Total liabilities	$	45.7	$	19.6	$	26.1	$	—

(2)Consists of a deferred compensation arrangement, through which we hold various investment securities, recognized on our balance sheets. Both the asset and liability are recorded at fair value. Asset amounts are included in Other assets including long-term receivables, net in the consolidated balance sheets. Liability amounts are included in Other long-term liabilities in the consolidated balance sheets.

(3)FMC maintains a beneficial interest in a trade receivables securitization fund. The fair value of the beneficial interest is determined by calculating the expected amount of cash to be received on the fund’s outstanding credit notes. As part of this evaluation, we rely on unobservable inputs, including estimating the anticipated credit losses. We consider historical information, current conditions and other reasonable factors as part of this assessment. The amount is included in Other assets including long-term receivables, net in the consolidated balance sheets.


	June 30, 2026		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses) (During the six months ended June 30, 2026)
Assets
Net assets related to India held for sale business (1)	$	350.0	$	—	$	—	$	350.0	$	(43.6)
Total assets	$	350.0	$	—	$	—	$	350.0	$	(43.6)

____________________

(1)The carrying value of the India held for sale business decreased from $450 million as of December 31, 2025 to $350.0 million as of June 30, 2026. During the six months ended June 30, 2026, we recorded an impairment charge of $43.6 million to record the assets at the estimated fair value, less costs to sell. The fair value of the net assets was estimated based on the estimated consideration to be received in connection with the definitive sale agreement entered into in May 2026 as well as forecasts of working capital for the India commercial business developed by management. Refer to Note 1 for further details on the India held for sale business.