DuPont 2009 Annual Report Download - page 91

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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)
Environmental
The company is also subject to contingencies pursuant to environmental laws and regulations that in the future may
require the company to take further action to correct the effects on the environment of prior disposal practices or
releases of chemical or petroleum substances by the company or other parties. The company accrues for
environmental remediation activities consistent with the policy set forth in Note 1. Much of this liability results from the
Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, often referred to as Superfund),
the Resource Conservation and Recovery Act (RCRA) and similar state and global laws. These laws require the
company to undertake certain investigative and remedial activities at sites where the company conducts or once
conducted operations or at sites where company-generated waste was disposed. The accrual also includes estimated
costs related to a number of sites identified by the company for which it is probable that environmental remediation will
be required, but which are not currently the subject of enforcement activities.
Remediation activities vary substantially in duration and cost from site to site. These activities, and their associated
costs, depend on the mix of unique site characteristics, evolving remediation technologies, diverse regulatory agencies
and enforcement policies, as well as the presence or absence of potentially responsible parties. At December 31, 2009,
the Condensed Consolidated Balance Sheets included a liability of $396, relating to these matters and, in
management’s opinion, is appropriate based on existing facts and circumstances. The average time frame, over which
the accrued or presently unrecognized amounts may be paid, based on past history, is estimated to be 15-20 years.
Considerable uncertainty exists with respect to these costs and, under adverse changes in circumstances, potential
liability may range up to two to three times the amount accrued as of December 31, 2009.
Other
The company has various purchase commitments incident to the ordinary conduct of business. In the aggregate, such
commitments are not at prices in excess of current market.
21. STOCKHOLDERS’ EQUITY
The company’s Board of Directors authorized a $2 billion share buyback plan in June 2001. During 2009, 2008 and
2007, there were no purchases of stock under this program. As of December 31, 2009, the company has purchased
20.5 million shares at a total cost of $962. Management has not established a timeline for the buyback of the remaining
stock under this plan.
In addition to the plan described above, in October 2005 the Board of Directors authorized a $5 billion share buyback
plan. During 2007, the company paid $1.7 billion to purchase and immediately retire 34.7 million shares at an average
price of $48.85 per share, completing the $5 billion share buyback plan with the purchase and retirement of
112.8 million shares at an average price of $44.33 per share.
Common stock held in treasury is recorded at cost. When retired, the excess of the cost of treasury stock over its par
value is allocated between reinvested earnings and additional paid-in capital.
F-33