Environmental loss contingencies, net of expected recoveries, in excess of accrual

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FMC CORPORATIONNotes to Condensed Consolidated Financial Statements (unaudited) — (Continued)  
The estimated reasonably possible environmental loss contingencies, net of expected recoveries, exceed amounts accrued by approximately $160 million at September 30, 2022. This reasonably possible estimate is based upon information available as of the date of the filing but the actual future losses may be higher given the uncertainties regarding the status of laws, regulations, enforcement policies, the impact of potentially responsible parties, technology and information related to individual sites. Potential environmental obligations that have not been reserved may be material to any one quarter's or year's results of operations in the future. However, we believe any such liability arising from such potential environmental obligations is not likely to have a material adverse effect on our liquidity or financial condition as it may be satisfied over many years.The table below provides a roll forward of our environmental recoveries representing probable realization of claims against insurance carriers and other third parties. These recoveries are recorded as "Prepaid and other current assets" and "Other assets including long-term receivables, net" in the condensed consolidated balance sheets.

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| (in Millions) | December 31, 2021 |  | Increase (Decrease) in recoveries |  | Cash received |  |  |  | September 30, 2022 |
| Environmental recoveries | $ | 4.5  |  |  | $ | 2.0  |  |  | $ | (0.5) |  |  |  |  | $ | 6.0  |  |
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Our net environmental provisions relate to costs for the continued cleanup of both continuing and discontinued manufacturing operations from previous years. The net provisions are comprised as follows:

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
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|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
| (in Millions) | 2022 |  | 2021 |  | 2022 |  | 2021 |
| Environmental provisions, net - recorded to liabilities (1) | $ | 7.3  |  |  | $ | 8.1  |  |  | $ | 10.4  |  |  | $ | 15.6  |  |
| Environmental provisions, net - recorded to assets (2) | (0.1) |  |  | (0.1) |  |  | (2.0) |  |  | (0.7) |  |
| Environmental provision, net | $ | 7.2  |  |  | $ | 8.0  |  |  | $ | 8.4  |  |  | $ | 14.9  |  |
|  |  |  |  |  |  |  |  |
| Continuing operations (3) | $ | 3.4  |  |  | $ | 3.7  |  |  | $ | 1.0  |  |  | $ | 3.3  |  |
| Discontinued operations (4) | 3.8  |  |  | 4.3  |  |  | 7.4  |  |  | 11.6  |  |
| Environmental provision, net | $ | 7.2  |  |  | $ | 8.0  |  |  | $ | 8.4  |  |  | $ | 14.9  |  |

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(1)See above roll forward of our total environmental reserves as presented on the condensed consolidated balance sheets.(2)See above roll forward of our total environmental recoveries as presented on the condensed consolidated balance sheets.(3)Recorded as a component of "Restructuring and other charges (income)" on the condensed consolidated statements of income (loss). See Note 9. Environmental obligations for continuing operations primarily represent obligations at shut down or abandoned facilities within businesses that do not meet the criteria for presentation as discontinued operations.(4)Recorded as a component of "Discontinued operations, net of income taxes" on the condensed consolidated statements of income (loss). See Note 11.  
A more complete description of our environmental contingencies and the nature of our potential obligations are included in Notes 1 and 12 to our consolidated financial statements in our 2021 Form 10-K. See Note 12 to our consolidated financial statements in our 2021 Form 10-K for a description of significant updates to material environmental sites. There have been no significant updates since the information included in our 2021 Form 10-K other than the update provided below.  
Note 13: Earnings Per ShareEarnings per common share ("EPS") is computed by dividing net income by the weighted average number of common shares outstanding during the period on a basic and diluted basis.Our potentially dilutive securities include potential common shares related to our stock options, restricted stock and restricted stock units. Diluted earnings per share ("Diluted EPS") considers the impact of potentially dilutive securities except in periods in which there is a loss from continuing operations because the inclusion of the potential common shares would have an antidilutive effect. Diluted EPS excludes the impact of potential common shares related to our stock options in periods in which the option exercise price is greater than the average market price of our common stock for the period. For the three and nine months ended September 30, 2022 there were 0.5 million and 0.4 million potential common shares excluded from Diluted EPS, 32
