## other results of operations 

## Corporate expenses 

We recorded expenses of $63.0 million in 2010 compared to $44.1 million in 2009. The increase was primarily due to increased incentive compensation expense and consulting expense compared to the prior year. The increase in consulting services is a result of several new initiatives, primarily involving global procurement, aimed at reducing the costs of goods and services purchased on a world-wide basis. Corporate expenses are included as a component of the line item “Selling, general and administrative expenses” on our consolidated statements of income. 

## Other income (expense), net 

Other income (expense), net is comprised primarily of LIFO inventory adjustments and pension expense. Other expense was $18.0 million in 2010 compared to $27.5 million in 2009. The decrease was due primarily to income related to a decrease in our LIFO inventory reserves. These charges were partially offset by higher pension expense and incentive compensation. Excluding pension expense, other income (expense), net is included as a component of the line item “Costs of sales and services” on our consolidated statements of income. Pension expense is included as a component of the line item “Selling, general and administrative expenses” on our consolidated statements of income. 

## Interest expense, net 

The 2010 net interest expense increased to $39.3 million compared to $27.0 million in 2009 primarily due to higher interest rates associated with our senior bond offering in the fourth quarter 2009 whose proceeds were used to pay off lower variable rate debt under out committed credit facilities. 

## Corporate special income (charges) 

Restructuring and other charges (income) were $151.9 million in 2010 compared to $132.8 million in 2009. Please see the table and further discussion regarding our restructuring and other charges (income) in Note 7 to our Consolidated Financial Statements included in this Form 10-K. The restructuring and other charges (income) of $151.9 million recorded in 2010 were a result of the following: 

## Restructuring charges and asset disposals 

• A $7.2 million charge in our Specialty Chemicals segment due to the continued realignment of our BioPolymer alginates manufacturing operations. The charge consisted of (i) accelerated depreciation on fixed assets to be abandoned of $1.6 million, (ii) a reduction to previously recorded severance reserves of $0.6 million, (iii) the accrual of costs associated with leased properties which we have ceased using of $5.2 million and (iv) other shut down charges of $1.0 million. 

• In 2009, we made the decision to close our Bayport butyllithium facility located in Bayport, Texas, which is part of our Specialty Chemicals segment. As the closure was finalized in 2010, we recorded $1.1 million of income which consisted of (i) a reduction of previously recorded retirement obligations at the site of $0.9 million and (ii) a reduction of previously recorded severance reserves of $0.2 million. 

• A $110.4 million charge in our Industrial Chemicals segment due to the decision to shut down our Huelva facility and exit the phosphate business. The charge consisted of (i) severance and employee benefits of $37.0 million, (ii) accelerated depreciation on fixed assets to be abandoned of $69.4 million and (iii) other shut down charges of $4.0 million. We ceased production at this facility on December 31, 2010. 

• A $6.9 million charge in our Industrial Chemicals segment due to our decision in 2009 to phase out operations of our Barcelona, Spain facility. The charge consisted of (i) accelerated depreciation on fixed assets to be abandoned of $10.1 million and (ii) other costs of $1.0 million, mainly related to spare part write-offs and contract termination expenses, partially offset by (iii) recoveries associated with the phase out of $4.0 million, and (iv) a reduction to previously recorded severance reserves of $0.2 million. The recoveries represented the sale of the land lease rights associated with a portion of this facility. 

• In 2009, we made the decision to shut down our manufacturing operations at our Peroxygens facility in Santa Clara, Mexico, which is part of our Industrial Chemicals segment. During 2010, we recorded $1.0 million of income which related to the reversal of a previously recorded loss contingency. 

• Severance costs due to other workforce restructurings of $5.5 million primarily related to our Industrial Chemicals segment. 

• A $0.7 million gain, primarily related to foreign currency translation adjustment as a result of the liquidation of a legal entity that owned a co-generation facility at Foret. 

## Other charges (income), net 

• Corporate net charges of $14.2 million relating to environmental remediation at operating sites. 

• A $5.7 million charge related to our Agricultural Products segment acquiring certain rights relating to a herbicide compound still under development. 

• $1.5 million of net charges primarily related to a legal settlement associated with the U.S. hydrogen peroxide matter in our Industrial Chemicals segment. 

• $0.5 million of charges in our Agricultural Products segment related to a collaboration and license agreement with a third-party company. 

• $2.8 million of charges, primarily relating to the accrual of interest associated with a European Commission fine currently being appealed. 

The restructuring and other charges (income) of $132.8 million recorded in 2009 were a result of the following: 

## Restructuring charges and asset disposal charges 

• A $1.8 million charge in our Agricultural Products segment due to our decision to phase-out operations at our Baltimore, Maryland agricultural chemicals facility. The charge consisted of (i) demolition costs of $1.2 million and (ii) other shutdown costs of $0.6 million. We ceased production at this facility in the second quarter of 2008. 

• A $13.3 million charge in our Specialty Chemicals segment due to the realignment of our BioPolymer alginates manufacturing operations. The charge consisted of (i) accelerated depreciation on fixed assets to be abandoned of $8.6 million, (ii) severance and employee benefits of $3.9 million and (iii) other shut down charges of $0.8 million. 

