DuPont 2005 Annual Report Download - page 87

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E. I. du Pont de Nemours and Company
Notes to Consolidated Financial Statements (continued)
(Dollars in millions, except per share)
22. Other Liabilities
December 31, 2005 2004
Accrued other postretirement benefits cost (Note 28) $4,311 $4,369
Reserves for employee-related costs 1,928 1,931
Accrued environmental remediation costs 266 283
Miscellaneous 1,936 2,109
$8,441 $8,692
Miscellaneous other liabilities include asset retirement obligations, litigation reserves, tax contingencies, and certain obligations
related to divested businesses.
23. Minority Interests
Changes in Minority interest reflect Dow’s interest in DDE. At December 31, 2004, DDE was consolidated as a VIE. In 2005,
certain assets of DDE were sold to Dow, at which time DDE became a wholly owned subsidiary and was renamed DuPont
Performance Elastomers. See Note 13 for additional details.
24. Commitments and Contingent Liabilities
Guarantees
Product Warranty Liability
The company warrants to the original purchaser of its products that it will, at its option, repair or replace, without charge,
such products if they fail due to a manufacturing defect. The term of these warranties varies (30 days to 10 years) by product.
The company’s estimated product warranty liability as of December 31, 2005 is $16. The company has recourse provisions for
certain products that would enable recovery from third parties for amounts paid under the warranties. The company accrues
for product warranties when, based on available information, it is probable that customers will make claims under warranties
relating to products that have been sold, and a reasonable estimate of the costs (based on historical claims experience
relative to sales) can be made.
Set forth below is a reconciliation of the company’s estimated product warranty liability for 2005:
Balance–December 31, 2004 $14
Settlements (cash & in kind) (22)
Aggregate changes–issued 2005 24
Balance–December 31, 2005 $16
F-28