DuPont 2009 Annual Report Download - page 77

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E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)
with the majority due to the settlement of uncertain tax positions with various tax authorities. A reconciliation of the
beginning and ending amounts of unrecognized tax benefits is as follows:
2009 2008 2007
Total Unrecognized Tax Benefits as of January 1 $677 $825 $1,070
Gross amounts of decreases in unrecognized tax benefits as a result of
tax positions taken during the prior period (60) (49) (173)
Gross amounts of increases in unrecognized tax benefits as a result of
tax positions taken during the prior period 68 51 34
Gross amounts of increases in unrecognized tax benefits as a result of
tax positions taken during the current period 42 59 77
Amount of decreases in the unrecognized tax benefits relating to
settlements with taxing authorities (9) (157) (209)
Reduction to unrecognized tax benefits as a result of a lapse of the
applicable statue of limitations (10) (14) (16)
Exchange gain/(loss) 31 (38) 42
Total Unrecognized Tax Benefits as of December 31 $739 $677 $ 825
Total unrecognized tax benefits that, if recognized, would impact the
effective tax rate $566 $467 $ 443
Total amount of interest and penalties recognized in the Consolidated
Income Statement $12 $7 $ 25
Total amount of interest and penalties recognized in the Consolidated
Balance Sheet $125 $115 $ 114
7. EARNINGS PER SHARE OF COMMON STOCK
Set forth below is a reconciliation of the numerator and denominator for basic and diluted earnings per share
calculations for the periods indicated:
2009 2008 2007
Numerator:
Net income attributable to DuPont $ 1,755 $ 2,007 $ 2,988
Preferred dividends (10) (10) (10)
Net income available to common stockholders $ 1,745 $ 1,997 $ 2,978
Denominator:
Weighted-average number of common shares outstanding – Basic 904,395,000 902,415,000 917,132,000
Dilutive effect of the company’s employee compensation plans and
accelerated share repurchase agreement 4,317,000 4,956,000 8,270,000
Weighted average number of common shares outstanding – Diluted 908,712,000 907,371,000 925,402,000
The weighted-average number of common shares outstanding in 2009 increased as a result of the issuance of new
shares from the company’s equity compensation plans. The weighted-average number of common shares outstanding
in 2008 declined as a result of the company’s 2007 repurchase and retirement of its common stock in connection with
its $5 billion share buyback plan, which was authorized by the Board of Directors in October 2005. See Note 21 for
further information.
F-19