Annual Report (Form 10-K), fiscal year 1994

ITEM 1. BUSINESS.
A. GENERAL DEVELOPMENT OF BUSINESS.
FMC Corporation was incorporated in 1928 under Delaware law and has its principal executive offices at 200 East Randolph Drive, Chicago, Illinois 60601. As used in this report, except where otherwise stated or indicated by the context, "FMC", "the Company" or "the Registrant" means FMC Corporation and its consolidated subsidiaries and their predecessors.
Restructuring and other charges. In 1993, FMC recorded pretax restructuring and other charges of $172.3 million, net of minority interest (after-tax $123.3 million, or $3.34 per share). These charges primarily related to restructuring costs associated with the Machinery and Equipment and Industrial Chemical segments, expenses to restructure companywide functional support staffs, as well as a write-down of the investment in the Beartrack development property in the Precious Metals segment. The restructuring program was designed to reduce costs and improve operating efficiencies.
During 1994, FMC carried out a number of actions consistent with the 1993 restructuring plan. Employee positions were eliminated, manufacturing facilities were consolidated and unprofitable product lines were exited.
The restructuring reserve remaining at December 31, 1994, is expected to cover spending associated with the remaining work force reductions, downsizing and other restructuring related costs.
Acquisitions. On June 24, 1994, the Company acquired the Fluid Control Systems product line from National-Oilwell, a Houston-based oil field equipment company. The Fluid Control Systems product line is a leader in a variety of high- performance oil field applications, including engineered production and injection manifolds, a family of valves and fittings used to control and distribute the flow of production from oil and gas wells. Fluid Control Systems will be part of the Fluid Control Division within the Energy and Transportation Equipment Group.
On May 27, 1994, the Company acquired the Jetway Systems Division of Pneumo-Abex Inc. Jetway is a leader in design, production and installation of passenger boarding bridges and other aircraft support systems. Jetway Systems will be part of the Airport Products and Systems Division within the Energy and Transportation Equipment Group.
On June 30, 1993, the Company acquired the assets of Kongsberg Offshore a.s., a wholly owned subsidiary of Siemens a.s. Kongsberg Offshore a.s. provides subsea and metering systems on a worldwide basis as well as turnkey subsea systems, including systems integration, project management and FMC subsea products.
Also on June 30, 1993, the Company acquired SOFEC, Inc., a Houston-based engineering and construction company. SOFEC, Inc. designs, fabricates and installs offshore mooring systems for export and import terminals and for floating storage and production facilities for offshore oil and gas.
The Company also completed a number of other smaller acquisitions and joint ventures during the years ended December 31, 1994 and 1993, respectively.
During 1992, the Company acquired the worldwide flame retardants and fluids, and water treatment chemicals businesses of Ciba-Geigy Additives Division (Ciba- Geigy), with annual sales of approximately $150 million.
In 1991, the Company acquired the airplane wing deicer business of The Trump Companies, Inc. The 1991 consolidated results were not significantly affected by this acquisition.
In 1990, FMC Gold Company, a subsidiary of the Company, acquired all of the stock of Meridian Gold Company from a subsidiary of Burlington Resources, Inc., for 8 million shares of authorized but previously unissued FMC Gold Company common stock. The acquired net assets were recorded at $56.7 million based on the estimated market value of the shares issued. As a result of the stock issuance, the Company's ownership interest in FMC Gold Company was reduced to 79 percent from 89 percent. In 1994, the Company purchased additional shares of FMC Gold Company on the open market, bringing its ownership interest to 80 percent. The results of operations of the acquired properties are included in the consolidated financial statements of FMC Corporation effective after the acquisition date of May 15, 1990.
Also during 1990, the Company acquired full ownership of Electro Quimica Mexicana, S.A. from Interindustrias, S.A. for $12.3 million, net of cash acquired. FMC had previously held a 49 percent ownership interest in this producer of hydrogen peroxide and ammonium persulfate. The phaseout of the Company's fire apparatus business was also completed during 1990. Neither this acquisition nor the phaseout significantly affected the 1990 consolidated results of operations.
The purchase prices for the aforementioned acquisitions were satisfied from cash flow from operations and long-term financing. The Company has accounted for these acquisitions by the purchase method. These acquisitions did not have a material impact on the consolidated results of operations.
Formation of United Defense, L.P. On January 28, 1994, FMC and Harsco Corporation ("Harsco") announced completion of a series of agreements, first announced in December 1992, to combine certain assets and liabilities of FMC's Defense Systems Group ("DSG") and Harsco's BMY Combat Systems Division ("BMY"). The effective date of the combination was January 1, 1994. The combined company, United Defense, L.P.
("UDLP"), operates as a limited partnership, with FMC as the Managing General Partner with a 60 percent equity interest and Harsco Defense Holding as the Limited Partner holding a 40 percent equity interest.
Beginning in the first quarter 1994, all sales and earnings of UDLP are included in FMC's consolidated financial statements. The limited partner's share of the partnership's earnings is included in minority interest. Sales and profits for 1994 versus 1993 are affected by the formation of the venture. All of the assets and liabilities of UDLP are also consolidated in the balance sheet at December 31, 1994 resulting in increases to trade receivables, inventories, property, plant and equipment, other assets, accounts payable, and minority interests compared to December 31, 1993.
A description of the principal products and services and the major markets served by each industry segment is included under "Narrative description of business."
B. FINANCIAL INFORMATION ABOUT INDUSTRY SEGMENTS (DOLLARS IN MILLIONS):
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* Certain chemical products with high value-added content and specialty applications that formerly had been included in the Industrial Chemicals segment have been reclassified to the Performance Chemicals segment. Results for both Industrial and Performance Chemicals have been restated for comparative reporting purposes.
(1) Defense System's segment data includes 100 percent of United Defense, L.P. in 1994. Precious Metals' segment data includes 100 percent of FMC Gold Company in 1990 through 1994. Minority shareholder interests are included in Minority Interest, except the portion related to 1993 restructuring and other charges.
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*Certain chemical products with high value-added content and specialty applications that formerly had been included in the Industrial Chemicals segment have been reclassified to the Performance Chemicals segment. Results for both Industrial and Performance Chemicals have been restated for comparative reporting purposes.
(1) Defense System's segment data includes 100 percent of United Defense, L.P. in 1994. Precious Metals' segment data includes 100 percent of FMC Gold Company in 1990 through 1994. Minority shareholder interests are included in Minority Interest, except the portion related to 1993 restructuring and other charges.
(2) Restructuring and other charges related to 1993 are described in Note 2 to the consolidated financial statements and are related to Machinery and Equipment ($66.0 million). Precious Metals ($47.9 million, net of minority interest), Industrial Chemicals ($29.7 million), Performance Chemicals ($3.2 million), and Corporate ($25.5 million).
(3) Other income and (expense), net includes LIFO inventory adjustments and pension-related income.
C. NARRATIVE DESCRIPTION OF BUSINESS.
Principal Products ------------------
FMC manufactures and sells a broad range of machinery and chemical products. FMC's machinery products are marketed principally to industrial, agricultural and defense users. Its chemical products are mainly industrial and agricultural chemicals. The Company conducts its business within the five industry segments identified in b, above. Generally, in all of the segments, FMC competes on the basis of price and product performance.
Information regarding principal products produced and sold by each industry segment and principal markets served by each segment is presented in the columns so designated in the segment table presented below. These products are sold directly to customers from plants and warehouses, as well as being sold in some cases (particularly in markets outside the United States) to and through distributors.
Business Unit Principal Products Markets Served ------------- ------------------ --------------
PERFORMANCE CHEMICALS ---------------------
AGRICULTURAL Produces crop protection Food growers, pest PRODUCTS and pest control control markets. GROUP chemicals for worldwide markets
FOOD Worldwide producer of Processed food INGREDIENTS carrageenan and Avicel industry, personal DIVISION cellulose gel. care products.
PHARMACEUTICAL Worldwide producer of Pharmaceutical DIVISION micro-crystalline industry. cellulose. Produces other specialty chemicals for pharmaceutical markets.
BIOPRODUCTS Worldwide producer of Life science research; agarose and other DNA and protein products for life science analysis markets.
Business Unit Principal Products Markets Served ------------- ------------------ --------------
LITHIUM World's largest Aluminum, ceramics and DIVISION producer of glass, lubricating lithium-based products. greases, swimming pools, textiles, aluminum alloys, batteries, rubber and plastic, air conditioning, pharmaceuticals.
PROCESS A leading world Plastics, hydraulic ADDITIVES producer of phosphate fluids, lubricant DIVISION ester flame retardants. additives, industrial Leading supplier of water treatment and specialty water desalination. treatment chemicals.
INDUSTRIAL CHEMICALS --------------------
ALKALI World's largest Glass-making, chemicals, CHEMICALS producer of natural detergents, food DIVISION soda ash. Downstream products, animal feed, products include sodium additives, mining, bicarbonate, sodium air/water treatment, cyanide, sodium pulp and paper. sesquicarbonate and caustic soda.
PEROXYGEN A leading worldwide Pulp and paper, CHEMICALS producer of hydrogen textiles, chemical and DIVISION peroxide, persulfates polymer synthesis, and other peroxygen environmental clean-up, chemicals. electronics, detergents.
PHOSPHORUS A worldwide supplier Detergents, cleaning CHEMICALS and North American compounds, metal DIVISION producer of phosphorus treatment, food and its derivatives, products, textiles, phosphates and pesticide intermediates, phosphoric acid. additives, pharmaceuticals, water treatment.
Business Unit Principal Products Markets Served ------------- ------------------ --------------
FMC FORET, S.A. A European chemical Chemicals, detergents, producer. Products pulp and paper, textiles, include hydrogen glass, mining, rubber, peroxide, perborate, metallurgy, phosphates, zeolites, pharmaceuticals, tanning, silicates, sulfur ceramics, paint, food, derivatives. animal feed, photography, agriculture, water treatment.
MACHINERY AND EQUIPMENT -----------------------
ENERGY AND Oil and gas wellhead Oil and gas drilling, TRANSPORTATION and completion production and service EQUIPMENT equipment; subsea companies. GROUP engineering, procurement, construction and equipment; valves, pumps and loading arms; marine terminals and floating production systems, metering systems.
Airline and automotive Industrial manufacturing, equipment, material airlines, airports, handling systems. automotive repair facilities, mining, warehouses, newsprint, publishing, chemicals, electrical utilities.
FOOD Systems and equipment Food and juice MACHINERY to process food and processors; fresh fruit GROUP beverages, including packers; food growers; harvesters, supermarkets; bakery, sterilizers, confectionery, pet food, extractors, fillers, pharmaceutical and closers, packaging and personal care markets. material handling equipment.
Business Unit Principal Products Markets Served ------------- ------------------ --------------
DEFENSE SYSTEMS --------------- UNITED DEFENSE, L.P.
GROUND SYSTEMS Produces tracked U.S. Army, Marine Corps military vehicles for and National Guard; U.S. Army, U.S. Marine allied governments. Corps, National Guard; allied governments.
ARMAMENT SYSTEMS Develops high-tech U.S. Navy, Army and weapons systems for Marine Corps and allied U.S. Army; designs and governments. builds guns and launching systems and provides support services for U.S. Navy and international customers.
INTERNATIONAL Marketing and International manufacturing arm for governments. military products outside the United States.
STEEL Produces steel track, Military, PRODUCTS forgings and castings. transportation, energy Overhauls and converts and mining. tracked vehicles
PRECIOUS METALS ---------------
FMC GOLD Produces gold from mines Precious metal in the western United refineries. States. Focusing on exploration of precious metals in Latin America and western United States
SOURCE AND AVAILABILITY OF RAW MATERIALS
FMC's natural resource requirements are primarily mineral oriented rather than oil or natural gas oriented. Substantial portions of requirements for ores and other raw materials, especially trona and phosphate rock, are produced from mines in the United States on property held by FMC under long-term leases which are subject to periodic adjustments of royalty rates. Machinery operations obtain raw materials, principally steel and castings, from many sources both foreign and domestic. No one source is
considered essential to any of the machinery operations. The Company uses oil, gas, coal, coke, hydro-electric power and nuclear power to meet its energy needs.
PATENTS
Although FMC's patents, trademarks and license are cumulatively important to its business, FMC does not believe that the loss of any one or group of related patents, trademarks or licenses would have a material adverse effect on the overall business of FMC or on any of its business segments.
PRINCIPAL CUSTOMER
Sales to various agencies of the United States government aggregated $618.3 million, $768.4 million and $839.5 million in 1994, 1993 and 1992, respectively. These sales were made primarily by the Defense Systems segment. Contracts with various agencies of the United States government and subcontracts with other prime contractors are subject to a profusion of procurement regulations, with noncompliance found by any one agency possibly resulting in fines, penalties, debarment or suspension from receiving additional government contracts. Moreover, these contracts may be terminated at the government's convenience although contractors are normally protected by provisions covering reimbursement for costs incurred as well as the payment of any applicable fees or profits.
SEASONALITY
FMC's businesses are not generally considered to be seasonal although there has been a bias in the Performance Chemicals segment towards lower profitability in the fourth quarter primarily due to seasonality in the markets served by the Agricultural Products Group.
The increase in Defense Systems backlog resulted from Combat Systems Division backlog not included in 1993 and additional funding in 1994 on the Paladin howitzer contract, offset by declines in backlogs for Ground Systems and Armament Systems Divisions.
The increase in Machinery & Equipment backlog reflects the acquisition of Jetway Systems in the Airport Product and Systems Division and the North Sea Norne project awarded to the Wellhead Division.
Backlogs are not reported for Industrial Chemicals, Performance Chemicals and Precious Metals due to the nature of these businesses.
COMPETITIVE CONDITIONS
FMC competes on the basis of price and product performance and is among the market leaders in most products it manufactures. FMC is the world's largest producer of natural soda ash, a leading North American producer of hydrogen peroxide, a leading North American producer of industrial phosphorus chemicals and a world leader in the mining and processing of lithium products. FMC manufactures Furadan, one of the largest selling insecticides in the world. FMC is also the largest worldwide producer of carrageenan, microcrystalline cellulose, and phosphate ester flame retardants. United Defense, L.P. is a world leader in the production of tracked, armored personnel carriers. FMC also participates in many machinery businesses, including food processing, material handling and energy equipment, where FMC has a significant market share. Products are sold in highly competitive markets worldwide.
RESEARCH AND DEVELOPMENT EXPENDITURES
Expenditures for research and development increased in Performance Chemicals primarily due to continued development of herbicides and insecticides. Expenditures also increased in Machinery & Equipment primarily related to acquisitions in 1994.
Not included in these amounts are $104.9 million, $208.8 million and $139.2 million in 1994, 1993 and 1992, respectively for research and development projects contracted directly with the U.S. government and commercial sponsors. The decrease in 1994 is
attributable to the expected overall decline in the Armament Systems and Ground Systems divisions.
ENVIRONMENTAL
The Company may be obligated to recognize expenses required to comply with federal, state and local environmental laws under which the Company has been identified as a Potentially Responsible Party ("PRP") by the Environmental Protection Agency ("EPA") or other government agencies. The Company has been named a PRP at 36 sites on the government's National Priority List. In addition, the Company also has received notice form the EPA or other regulatory agencies that the Company may be a PRP, or PRP equivalent, at other sites including 25 sites at which the company has determined that it has a reasonably possible environmental liability. The Company, in cooperation with appropriate government agencies, is currently participating in, or has participated in, Remediation Investigation/Feasibility Studies ("RI/FS") or their equivalent at most of the identified sites, with the status of each investigation varying from site to site. RI/FS at certain sites have just begun whereby limited information, if any, is available relating to cost estimates, timing, or the involvement of other PRPs; whereas, at other sites, the studies are complete, remedial action plans have been chosen, and Records of Decisions ("RODs") have been issued.
Reserves at December 31, 1994 were provided for potential environmental obligations which management considers probable and for which a reasonable estimate of the obligation could be made. Where the available information is sufficient to estimate the amount of liability, that estimate has been used; where the information is only sufficient to establish a range of probable liability and no point within the range is more likely than any other, the lower end of the range has been used. Accordingly, reserves of $229 million and $187 million, before recoveries, have been provided at December 31, 1994 and December 31, 1993, respectively, of which $142 million and $99 million are included in the reserve for discontinued operations at December 31, 1994 and December 31, 1993, respectively. In addition, the Company has estimated reasonably possible environmental loss contingencies in excess of amounts accrued of approximately $230 million.
Although potential environmental remediation expenditures in excess of the current reserves and estimated loss contingencies could be significant, the impact on the Company's future financial results is not subject to reasonable estimation due to numerous uncertainties concerning the nature and scope of contamination at many sites, identification of remediation alternatives under constantly changing requirements, selection of new and diverse clean-up technologies to meet compliance standards, the timing of potential expenditures, and the allocation of costs among PRPs as well as other third parties.
The liability arising from potential environmental obligations that have not been reserved for at this time, may be material to any one quarter's or year's results of operations in the future. Management, however, believes the liability arising from the potential environmental obligations is not likely to have a material adverse effect on the company's liquidity or financial condition and may be satisfied over the next 20 years or longer.
To ensure FMC is held responsible only for its equitable share of site remediation costs, FMC has initiated, and will continue to initiate, legal proceedings for contributions from other PRPs, and for a determination of coverage against its comprehensive general liability insurance carriers. The Supreme Court of California has determined that FMC's clean-up costs are insured damages under its liability insurance policies, subject to a determination of the application of certain policy exclusions and conditions. In July 1993, in the Superior Court of Santa Clara County, CA, a jury verdict determined that these exclusions do not apply to several of these sites. The other sites will be the subject of future litigation. Approximately $123 million of recoveries ($44 million as other assets and $79 million as an offset to the reserve for discontinued operations) and approximately $54 million of recoveries ($32 million as other assets and $22 million as an offset to the reserve for discontinued operations), has been recorded as probable realization on claims against insurance companies and other third parties at December 31, 1994 and December 31, 1993, respectively.
Regarding current operating sites, the Company spent approximately $20 million, $16 million and $20 million for the years 1994, 1993 and 1992, respectively, on capital projects relating to environmental control facilities, and expects to spend additional capital of approximately $36 million and $21 million in 1995 and 1996, respectively. Additionally, in 1994, 1993, and 1992, FMC spent approximately $55 million, $63 million and $57 million, respectively, for environmental compliance costs for these sites and expects to spend approximately $61 million in 1995.
Regarding previously operated and other sites for the year 1994, 1993 and 1992, FMC charged approximately $18 million, $17 million and $11 million, respectively, against established reserves for remediation spending, with projected spending of approximately $45 million in 1995, and charged approximately $13 million, $10 million and $11 million, respectively, against reserves for spending on RI/FS. Recoveries from third parties of approximately $5 million, $7 million and $3 million, respectively, were received in 1994, 1993 and 1992. FMC anticipates that the expenditures for current operating , previously operated and other sites will continue to be significant for the foreseeable future.
EMPLOYEES.
FMC has 21,344 employees in its domestic and foreign operations. At most of its plants in the United States and Canada, the majority of these employees are members of labor unions, primarily unions which are affiliated with national labor organizations. Contracts covering about 19% of these hourly employees expire during 1995 and certain of these contracts are under negotiation at the present time. Occasionally, FMC experiences strikes at one or more of its plants which adversely affect sales and earnings to varying degrees. FMC considers its employee relations to be good; however, it cannot predict the outcome of contract negotiations.
D. FINANCIAL INFORMATION ABOUT FOREIGN AND DOMESTIC OPERATIONS AND EXPORT SALES:
ITEM 2



ITEM 2 PROPERTIES
FMC leases executive offices in Chicago and administrative offices in Philadelphia. The Company operates 97 manufacturing facilities and mines in 21 countries. Major
research facilities are in Santa Clara, CA, and Princeton, NJ. FMC holds mining leases on shale and ore deposits in Idaho to supply its phosphorus plant in Pocatello, and owns substantial phosphatic ore deposits in Rich County, Utah. Trona ore, used for soda ash production in Green River, WY, is mined primarily from property held under long-term lease. FMC also owns half of a lithium mine located near Cherryville, NC, and has long-term lease commitments for the remaining portion and in Argentina FMC owns the land and mineral rights to the Salar de Hombre Muerto lithium reserves. FMC Gold Company owns mineral rights to gold and silver ore bodies at its wholly-owned Beartrack property in Idaho, as well as the right to 30 percent of the gold ore reserves at the Jerritt Canyon mine in Elko, NV, operated by its joint-venture partner, Independence Mining Company Inc., a wholly-owned subsidiary of Minorco (USA) Inc. and leases its administrative headquarters in Reno, Nevada. Mining operations provide basic raw materials to many of FMC's chemical plants, without which other sources would have to be obtained. FMC's mining properties are operated under numerous long- term leases with no single lease or related group of leases material to the businesses of the Company as a whole. United Defense, L.P. leases its administrative offices in Arlington, Virginia.
Most of FMC's plant sites are owned, with an immaterial number of them being leased. FMC believes its properties and facilities meet present requirements and are in good operating condition. FMC believes that each of its significant manufacturing facilities is operating at a level consistent with the industry in which it operates. FMC's production properties for continuing operations are:
ITEM 3.

ITEM 3. LEGAL PROCEEDINGS
Environmental Proceedings -------------------------
As previously reported in FMC's quarterly report on Form 10-Q for the period ended September 30, 1994, an environmental inspection was conducted in July 1993 at FMC's Phosphorus Chemicals Division plant in Pocatello, Idaho. In August 1994, the United States EPA (Region 10) (the "EPA") formally notified FMC of a number of alleged violations of the Resource Conservation and Recovery Act ("RCRA") and related
environmental regulations governing the management of hazardous waste generated by the plant, including the operations of hazardous waste storage and treatment units without required permits, the failure to implement an adequate groundwater monitoring program and to comply with related reporting requirements and the existence of several other improper treatment and disposal practices. There are no legal proceedings pending at this time; however, the EPA has stated that the alleged violations may subject FMC to enforcement action under RCRA, including possible actions for monetary sanctions, injunctive relief or other available remedies. Management believes that the resolution of these matters will not likely have a material adverse effect on FMC's liquidity, results of operations or financial condition.
Beartrack Gold Property -----------------------
On May 4, 1994, FMC Gold Company, an 80% owned subsidiary of FMC, announced plans to invest $57 million to develop the Beartrack property located near Salmon, Idaho. The decision to proceed with the development was based largely on improved project economics and issuance of a biological opinion by the National Marine Fisheries Service ("NMFS") that the proposed Beartrack mine was "not likely to jeopardize" the continued existence of the endangered salmon. The Company has submitted a request to the Army Corps of Engineers ("ACOE") for renewal of one of the permits necessary to complete construction of the Beartrack mine. ACOE is studying that request at this time, and the Company is participating actively in ACOE's review.
On October 21, 1994, the Sierra Club Legal Defense Fund, Inc., ("Sierra"), on behalf of certain other organizations, sued NMFS and other federal agencies for violation of the Endangered Species Act (the "Act") alleging that NMFS' biological opinion failed to satisfy the requirements of the Act.
During the third quarter of 1994, the Pacific Rivers Council and the Wilderness Society (the "PRC"), represented by Sierra and others, in a lawsuit currently pending in Federal District Court in Idaho (Pacific Rivers Council v. Thomas), filed a motion seeking an injunction against all ongoing and future forest activities which may affect endangered salmon, including mining, within various national forests in Idaho including the Salmon National Forest in which the Beartrack property is located. In that lawsuit, the PRC seeks to require the U.S. Forest Service to consult under the Act with the NMFS regarding existing land resource management plans for the subject forests and their potential impacts on endangered salmon.
The Company, along with other mining and timber companies, has been granted limited leave to intervene in both lawsuits and filed a memorandum in opposition to the PRC's motion for an injunction at least as it might apply to the Beartrack property based on, inter alia, the fact that the Company had already obtained the requisite biological opinion by NMFS and the fact that the Beartrack property is at least 6.5 miles from the closest habitat for salmon.
On January 12, 1995, the court in the PRC lawsuit entered an order enjoining, among other things, all ongoing and announced mining activities in the Idaho national forests (in which the Beartrack Project is located) subject to a determination by the court as to whether an activity may proceed under Sections 7(a)(ii) and 7(d) of the Act. The Company and the government have filed appeals from the court's order. On January 25, 1995, the court entered an order staying until March 16, 1995, the effectiveness of the injunction in order to give the Forest Service time in which to complete consultation with NMFS on the Land and Resource Management Plans for the national forests in Idaho and on March 8, 1995, the Court entered an order dissolving the injunction in recognition of completion of the consultation process. That action is likely to end the Company's involvement in that litigation.
The Company believes that (i) the biological opinion was carefully considered and fully supported by the record and (ii) that it will be permitted to continue its planned activity at the Beartrack site. However, a different conclusion in the earlier lawsuit could result in suspension of further development and/or operation of the Beartrack property.
The Beartrack property encompasses approximately 30 square miles of mining claims and contains approximately one million ounces of proven and probable reserves. At December 31, 1994, FMC Gold Company's investment in Beartrack was approximately $48 million.
ITEM 4.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
EXECUTIVE OFFICERS OF THE REGISTRANT
The Executive Officers of FMC Corporation, together with the offices in FMC Corporation presently held by them, their business experience since January 1, 1990, and their ages, are as follows:
Lawrence P. Holleran 64 Vice President (95); Vice President-Human Resources (88-94)
James A. McClung 57 Vice President (91); Vice President-International (81-91)
Earl M. Morgan 64 Vice President (91) and General Manager- Agricultural Chemical Group (90)
Joseph H. Netherland 48 Vice President (87) and General Manager-Petroleum Equipment Group (86), Specialized Machinery Group (89); Energy and Transportation Equipment Group (93)
Thomas W. Rabaut 46 Vice President (94), President and Chief Executive Officer, United Defense, L.P. (94); General Manager, Defense Systems Group (93); Manager, Ground Systems Division (90-93)
William J. Wheeler 52 Vice President (91); President, FMC Asia-Pacific (91); General Manager, Phosphorus Chemical Division (86-91)
Scott H. Williamson 43 Vice President-Corporate Development (93); Vice President, Acquisitions and Development, Itel Corporation (85-93)
Each of the Company's executive officers has been employed by the Company in a managerial capacity for the past five years except for Messrs. Callahan and Williamson and Ms. Francis. No family relationships exist between any of the above-listed officers and there are no arrangements or understandings between any of them and any other person pursuant to which they are selected as an officer. All officers are elected to hold office for one year and until their successors are elected and qualify.
PART IV.
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
(a) Documents filed with this Report
1. Consolidated financial statements of FMC Corporation and its subsidiaries are incorporated under Item 8