## other results of operations 

## Corporate expenses 

We recorded charges of $44.1 million in 2009 compared to $49.8 million in 2008. The decrease was primarily due to reduced incentive compensation expense and reductions in discretionary spending compared to the prior year. 

## Other income (expense), net 

Other expense was $27.5 million in 2009 compared to $8.6 million in 2008. The increase was due primarily to higher charges related to our LIFO inventory reserves, higher pension expense and an increase to the mark to market impact of our deferred compensation liability. 

## Interest expense, net 

The 2009 net interest expense decreased to $27.0 million compared to $31.9 million in 2008 primarily due to lower interest rates on the borrowings under our credit agreements as compared to the prior period. 

## Corporate special income (charges) 

Restructuring and other charges (income) were $132.8 million in 2009 compared to $49.6 million in 2008. Refer to page 23 for a list of the charges in this category for the year ended December 31, 2009. The restructuring and other charges (income) of $49.6 million recorded in 2008 were a result of the following: 

## Restructuring charges and asset impairments 

• A $31.5 million charge in our Agricultural Products segment due to our decision in 2007 to phase-out operations at our Baltimore, Maryland agricultural chemicals facility. These charges consisted of (i) accelerated depreciation on fixed assets of $27.0 million, (ii) severance and employee benefits of $1.4 million, and (iii) other shutdown charges of $3.1 million. 

• A $5.6 million charge in our Agricultural Products segment due to our decision in 2008 to phase-out operations at our Jacksonville, Florida facility. The charge consisted of (i) accelerated depreciation on fixed assets of $3.8 million, (ii) severance and employee benefits of $1.0 million and (iii) other shutdown charges of $0.8 million. 

• Severance costs due to workforce restructurings of $8.1 million, of which $3.2 million related to our Agricultural Products segment, $0.7 million related to our Specialty Chemicals segment and $4.2 million related to our Industrial Chemicals segment. 

• Asset abandonment charges of $7.0 million, of which $2.2 million related to our Agricultural Products segment, $1.5 million related to our Industrial Chemicals segment and $3.3 million related to our Specialty Chemicals segment. 

## Other charges (income), net 

• A gain on the sale of the Princeton property of $29.0 million, completed on March 18, 2008. 

• A gain on the sale of Foret’s sodium sulfate assets of $3.6 million. Foret is part of our Industrial Chemicals segment. 

• A $10.0 million charge related to an agreement in principle to settle a 

class action alleging violations of antitrust law involving our hydrogen peroxide product in our Industrial Chemicals segment. 

• $16.2 million of charges relating to environmental remediation at operating sites as a Corporate charge. 

• A $1.0 million charge related to our Agricultural Products segment extending their rights associated with the collaboration and license agreement discussed below. 

• $2.8 million of other charges primarily representing the accrual of interest associated with the European Commission fine. 

Impairment of Perorsa joint venture represents a $1.4 million charge related to the impairment of our Perorsa joint venture in our Industrial Chemicals segment. On the consolidated statements of income this charge is included in “Equity in (earnings) loss of affiliates” for the year ended December 31, 2008. There is no such comparable charge in 2009. 

Purchase accounting inventory fair value impact and other related inventory adjustments for the year ended December 31, 2009, totaled $7.1 million. Refer to page 24 for a description of this charge for the year ended December 31, 2009. For the year ended December 31, 2008, the charges of $2.3 million represented the amortization of the inventory fair value step-up resulting from the application of purchase accounting associated with the third quarter 2008 acquisition in our Specialty Chemicals segment. 

## Provision for income taxes 

We recorded a provision of $53.0 million in 2009 compared with a provision of $125.4 million in 2008 resulting in effective tax rates of 17.1 percent and 26.6 percent, respectively. The effective tax rates were impacted by tax adjustments recorded during 2009 and 2008. These tax adjustments are described below. 

2009 tax adjustments were favorable in the amount of $43.7 million and were primarily a result of a reduction in our liability for unrecognized tax benefits due to favorable settlements of tax audits and the expiration of statutes of limitations as well as the reversal of certain domestic related tax valuation allowances. These domestic valuation allowances were no longer necessary because of our expectation that the related deferred tax assets were likely to be realized. 

2008 tax adjustments were favorable in the amount of $8.7 million and primarily result from a benefit to adjust our reserve for unrecognized tax benefits due to favorable settlements of tax audits. Partially offsetting this benefit are charges associated with adjustments for prior years’ tax matters. 

Excluding the impact of these tax adjustments, our effective tax rate in 2009 was 31.1 percent versus 28.4 percent in 2008. This change was related to the 2009 resolution of a regulatory matter in our Industrial Chemicals segment that was non-deductible for tax purposes. 

## Discontinued operations, net of income tax 

Discontinued operations, net of income tax totaled a loss of $18.2 million in 2009 versus a loss of $24.9 million in 2008. The 2009 loss is primarily related to environmental charges associated with our Front Royal and Middleport sites and operating and maintenance activities partially offset by recoveries related to our Front Royal site. The 2009 loss also includes charges for legal reserves and expenses related to discontinued operations. The 2008 loss is primarily related to environmental charges associated with our Front Royal and Middleport sites and charges 

