DuPont 2006 Annual Report Download - page 40

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, continued
TEXTILES & INTERIORS
Segment Sales
(Dollars in billions)
PTOI
(Dollars in millions)
2006 N/A N/A
2005 N/A N/A
2004 $ 3.3 $(515)
On April 30, 2004, the company sold the majority of the net assets of Textiles & Interiors (INVISTA) to
subsidiaries of Koch, Inc. (Koch) for $3,844 million, except for the transfer of certain equity affiliates,
pending the approval of equity partners. Beginning in 2005, financial transactions related to the remaining
assets of Textiles & Interiors are reported in Other.
OTHER
The company combines the results of its developmental and nonaligned businesses under Other. Developmental
businesses include bio-based materials and other growth initiatives. DuPont bio-based materials is focused on the
development of biotechnology solutions using biology, chemistry, materials science and engineering in an
integrated fashion to serve our customers. Specific growth projects across the company globally are consolidated
within bio-based materials to capitalize on the market opportunities and technology needs in this high-growth
industry, including crop-based products and technologies, the biorefinery initiative with the U.S. Department of
Energy and metabolic engineering capability to manufacture biofuels.
DuPont partnered with Tate & Lyle PLC to produce 1,3-propanediol (Bio-PDO
TM
), the key building block for
DuPont
TM
Sorona»polymer, using a proprietary fermentation and purification process based on corn sugar.
This bio-based method uses 40 percent less energy and reduces greenhouse gas emissions by 20 percent versus
petroleum-based propanediol. The first commercial-scale plant to manufacture Bio-PDO
TM
began production in
November 2006, marking the beginning of commercial availability of the company’s bio-based pipeline.
Nonaligned businesses includes activities and costs associated with Benlate»fungicide and other discontinued
businesses and, since January 2005, activities related to the remaining assets of Textiles & Interiors. In 2005,
the company completed the transfer of three equity affiliates to Koch and sold its interest in another equity
affiliate. In January 2006, the company completed the sale of its interest in an equity affiliate to its equity
partner for proceeds of $14 million thereby completing the sale of all the net assets of Textiles & Interiors.
Additional details regarding Textiles & Interiors are contained in Note 6 to the Consolidated Financial
Statements. In the aggregate, sales in Other for 2006, 2005 and 2004 represent less than 1 percent of total
segment sales.
PTOI in 2006 was a loss of $134 million compared to a loss of $78 million in 2005. The losses in 2006 are
reflective of the concentration of activities in bio-based materials. PTOI in 2005 included a net gain of
$62 million related to the disposition of equity affiliates, primarily associated with the Textiles & Interiors
separation.
PTOI in 2005 was a loss of $78 million compared to a loss of $242 million in 2004. The improvement in
2005 reflects the gain relating to the disposition of four equity affiliates. The 2004 loss includes $94 million
for employee separation activities, a $29 million charge to write off abandoned technology and a $20 million
benefit from insurance proceeds related to Benlate»litigation.
40
Part II