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6. SEPARATION ACTIVITIES — TEXTILES & INTERIORS
On April 30, 2004, the company sold a majority of the net assets of Textiles & Interiors, referred to as
INVISTA, to Koch, Inc. (Koch). During 2005, the company sold its investments in three affiliated companies
to Koch and its investment in a fourth affiliated company to its equity partner. In January 2006, the company
completed the sale of its interest in the last equity affiliate to its equity partner for proceeds of $14 thereby
completing the sale of all of the net assets of Textiles & Interiors.
In 2005, the company recorded a net benefit of $62 resulting from divesture activities. The company’s transfer
of its interest in the affiliates to Koch resulted in a gain of $35. The sale of two of these affiliates had been
delayed until the company received approval from its equity partners. The company also recorded a gain of
$29 in 2005 related to the sale of the company’s investment in another equity affiliate and $2 of other charges
associated with the separation. Net cash proceeds from these transactions totaled $135.
In 2004, the company recorded a charge of $667. The amount related to INVISTA was $626 and included the
following: a reduction of the original sale price of $240, a charge of $77 related to the delayed transfer of
certain equity affiliates, $118 related to changes in the book value of net assets, $37 related to final settlement
of working capital balances and other separation charges of $154 which consisted primarily of incremental
legal, accounting and other advisory fees, other employee separation costs and the early termination of a
long-term supply contract. The following summarizes 2004 cash proceeds related to the sale of INVISTA:
Sale of INVISTA (April 30, 2004) $3,844
Cash retained by INVISTA businesses sold (75)
Settlement of INVISTA working capital and pensions 3
Sale of investment in equity affiliate (November 30, 2004) 68
Total $3,840
In addition, the company recorded a charge of $41 in 2004 related to the sale of an equity affiliate to its
partner. Total proceeds from this sale were $108, which included $68 received in 2004 and $40 received in
2005.
F-18
E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)