DuPont 2005 Annual Report Download - page 4

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Part I
Item 1. Business–Continued
The major commodities, raw materials, and supplies for the company’s reportable segments in 2005 include the following:
Agriculture & Nutrition:
carbamic acid related intermediates; insect control products; natural gas; polyethylene; soybeans; soy flake; soy lecithin;
sulfonamides
Coatings & Color Technologies:
butyl acetate; chlorine; HDI based poly aliphatic isocyanates; industrial gases; titanium ore; pigments
Electronic & Communication Technologies:
block co-polymers; chloroform; fluorspar; hydrofluoric acid; hydroxylamine; laminated films; oxydianiline; perchloroethylene;
polyester; precious metals; pyromellitic dianhydride
Performance Materials:
adipic acid; butanediol; dimethyl terephthalate (DMT); ethane; ethylene glycol; fiberglass; hexamethylenediamine; natural
gas; petroleum polymer; purified terephthalic acid
Safety & Protection:
alumina hydroxide; ammonia; benzene; high density polyethylene; isophthaloyl chloride; metaphenylenediamine; methyl
methacrylate; natural gas; paraphenylenediamine; polyester fiber; propylene; terephthaloyl chloride; wood pulp
No commodities or raw materials are purchased for the Pharmaceutical segment. This segment’s revenues arise from royalty
arrangements for Cozaarand Hyzaarantihypertensive drugs, which are manufactured and distributed by Merck & Co.
(Merck).
Since 1997, DuPont has contracted with Computer Sciences Corporation (CSC) and Accenture LLP (Accenture) to provide
certain services for the company. CSC operates a majority of the company’s global information systems and technology
infrastructures and provides selected applications and software services. In December 2005, DuPont entered into a new
contract with CSC to provide these services through December 2014. Accenture provides selected applications, software
services and enterprise resource planning solutions designed to enhance the company’s manufacturing, marketing, distribution
and customer service. Accenture is contracted to provide these services through December 2008.
In November 2005, DuPont contracted with Convergys Corporation to provide the company with global human resources
transactional services including employee development, workforce planning, compensation management, benefits administration
and payroll. The full scope of these services is scheduled to be operating by 2007. Convergys Corporation is contracted to
provide services through 2018.
BACKLOG
The company does not consider backlog to be a significant indicator of the level of future sales activity. In general, the
company does not manufacture its products against a backlog of orders. Production and inventory levels are based on the
level of incoming orders as well as projections of future demand. Therefore, the company believes that backlog information is
not material to understanding its overall business and should not be considered a reliable indicator of the company’s ability to
achieve any particular level of revenue or financial performance.
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