DuPont 2006 Annual Report Download - page 117

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27. SEGMENT INFORMATION
The company has six reportable segments. Five of the segments constitute the company’s growth platforms:
Agriculture & Nutrition, Coatings & Color Technologies, Electronic & Communication Technologies,
Performance Materials and Safety & Protection. The sixth segment, Pharmaceuticals, is limited to income
from the company’s interest in two drugs, Cozaar»and Hyzaar». Beginning in 2005, financial transactions
related to the remaining assets of Textiles & Interiors are included in Other.
Major products by segment include: Agriculture & Nutrition (hybrid seed corn and soybean seed, herbicides,
fungicides, insecticides, value enhanced grains and soy protein); Coatings & Color Technologies (automotive
finishes, industrial coatings and white pigments); Electronic & Communication Technologies (fluorochemicals,
fluoropolymers, photopolymers and electronic materials); Performance Materials (engineering polymers,
packaging and industrial polymers, films and elastomers); Pharmaceuticals (representing the company’s
interest in the collaboration relating to Cozaar»/Hyzaar»antihypertensive drugs, which is reported as Other
income); and Safety & Protection (specialty and industrial chemicals, nonwovens, aramids and solid surfaces).
The company operates globally in substantially all of its product lines.
In general, the accounting policies of the segments are the same as those described in the Summary of
Significant Accounting Policies. Exceptions are noted as follows and are shown in the reconciliations below.
Prior years’ data have been reclassified to reflect the 2006 organizational structure. In addition, Segment
Pretax operating income and Segment net assets for 2005 and 2006 include the company’s retrospective
adoption of FSP AUG AIR-1, relating to planned major maintenance activities, effective January 1, 2005.
Additional details regarding this change can be found in Note 1. Segment sales include transfers and a pro rata
share of equity affiliates’ sales. Products are transferred between segments on a basis intended to reflect, as
nearly as practicable, the market value of the products. Segment pretax operating income (PTOI) is defined as
operating income before income taxes, minority interests, exchange gains (losses), corporate expenses, interest
and the cumulative effect of changes in accounting principles. Segment net assets includes net working capital,
net permanent investment and other noncurrent operating assets and liabilities of the segment. Affiliate net
assets (pro rata share) excludes borrowing and other long-term liabilities. Depreciation and amortization
includes depreciation on research and development facilities and amortization of other intangible assets,
excluding write-down of assets which is discussed in Note 5. Expenditures for long-lived assets exclude
Investments in affiliates and include payments for Property, plant and equipment as part of business
acquisitions (see Note 24).
F-54
E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)