HOUSTON, Nov. 3, 2010 /PRNewswire/ -- FMC Technologies (NYSE: FTI) announced today that it has reached a settlement with the Internal Revenue Service (IRS) with respect to matters related to its U.S. federal income tax returns for the 2004 and 2005 tax years, which are now closed for U.S. federal income tax purposes.
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In April 2009, FMC Technologies filed a protest with the IRS Appeals Office with respect to proposed adjustments to its federal income tax returns for the 2004 and 2005 tax years related to the treatment of intercompany transfer pricing. On November 2, 2010, the Company finalized a resolution of this matter with the IRS. As a result, FMC Technologies expects to record a benefit in the fourth quarter of 2010 of approximately $26 million, or $0.21 per diluted share. This figure represents the resolution of the appeal as well as the associated impact of remeasuring reserves related to intercompany transfer pricing for all other open tax years.
This benefit was not included in the 2010 guidance of $2.90 to $2.95 diluted earnings per share that FMC Technologies provided in its third quarter 2010 earnings news release on October 27, 2010.
FMC Technologies, Inc. (NYSE: FTI) is a leading global provider of technology solutions for the energy industry. Named by FORTUNE® Magazine as the World's Most Admired Oil and Gas Equipment, Service Company in 2010, the Company has approximately 11,200 employees and operates 25 production facilities in 15 countries. FMC Technologies designs, manufactures and services technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead systems, high pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry. For more information visit www.fmctechnologies.com.
This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are information of a non-historical nature and are subject to risks and uncertainties that are beyond the Company's ability to control. These risks and uncertainties are described under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2009 and may be modified in subsequent quarterly reports filed by the Company with the Securities and Exchange Commission that may be accessed on the Company's website. The Company cautions shareholders and prospective investors that actual results may differ materially from those indicated by the forward-looking statements.
SOURCE FMC Technologies, Inc.
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