DuPont 2011 Annual Report Download - page 22

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Table of Contents
Part II
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, continued
(Dollars in millions) 2011 2010 2009
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES $ 4,170 $ 3,669 $ 3,440
As a percent of net sales 11% 12% 13%
2011 versus 2010 The 2011 increase of $501 million was due to the additional selling expense of acquired companies and increased global commissions and
selling and marketing investments, primarily in the Agriculture segment.
2010 versus 2009 The 2010 increase of $229 million was due to higher selling expenses, primarily in the Agriculture segment as a result of increased
global commissions and selling and marketing investments related to the company's seed products, and higher non-cash pension expenses.
(Dollars in millions) 2011 2010 2009
RESEARCH AND DEVELOPMENT EXPENSE $ 1,956 $ 1,651 $ 1,378
As a percent of net sales 5% 5% 5%
2011 versus 2010 The $305 million increase was primarily attributable to research and development expense from acquired companies and continued
growth investment in the Agriculture segment. Both periods include a $50 million charge for payments related to a Pioneer licensing agreement prior to the
business receiving regulatory approval in the third quarter 2011.
2010 versus 2009 The $273 million increase was due to continued growth investment aligned with the company's global trends, including resources to
support agriculture productivity, alternative fuels and energy efficient materials, and safety and protection. In addition, research and development expense
increased due to higher non-cash pension expenses and a $50 million charge for an upfront payment related to a Pioneer licensing agreement.
(Dollars in millions) 2011 2010 2009
INTEREST EXPENSE $ 447 $ 590 $ 408
The $143 million decrease in 2011 was due primarily to the absence of a $179 million pre-tax charge on the early extinguishment of debt and lower interest
rates, partially offset by higher average debt resulting from financing for the Danisco acquisition. The $182 million increase in 2010 was primarily due to a
$179 million pre-tax charge on the early extinguishment of debt in the fourth quarter 2010.
(Dollars in millions) 2011 2010 2009
EMPLOYEE SEPARATION/ASSET RELATED CHARGES, NET $ 50 $ (34) $ 210
2011 versus 2010 The $84 million change in 2011 was due to a net $50 million restructuring charge in 2011, primarily related to restructuring charges
associated with the Danisco acquisition and the absence of a $34 million net reduction in the estimated costs for prior years restructuring programs.
2010 versus 2009 The $244 million change in 2010 was due to the absence of a net $210 million restructuring charge in 2009 and a $34 million net
reduction in the estimated costs for prior years restructuring programs in 2010. The $34 million net reduction resulted from lower than estimated individual
severance costs and work force reductions through non-severance programs.
Additional information related to the company's employee separation/asset related charges, net is included in Note 4 to the Consolidated Financial Statements.
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