DuPont 2011 Annual Report Download - page 62

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Table of Contents E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)
3. OTHER INCOME, NET
2011 2010 2009
Cozaar ® /Hyzaar® income $ 282 $ 483 $ 1,032
Royalty income 194 146 127
Interest income 110 93 91
Equity in earnings of affiliates, excluding exchange gains/losses1191 179 86
Net gains on sales of assets 90 127 63
Net exchange losses1(163) (13) (205)
Miscellaneous income and expenses, net254 213 25
$ 758 $ 1,228 $ 1,219
1. The company routinely uses foreign currency exchange contracts to offset its net exposures, by currency, related to the foreign currency-denominated monetary assets and liabilities. The
objective of this program is to maintain an approximately balanced position in foreign currencies in order to minimize, on an after-tax basis, the effects of exchange rate changes on net
monetary asset positions. The net pre-tax exchange gains and losses are recorded in other income, net and the related tax impact is recorded in provision for income taxes on the
Consolidated Income Statements. Exchange gains (losses) related to earnings of affiliates was $1, $(2) and $13 for 2011, 2010 and 2009, respectively.
2. Miscellaneous income and expenses, net, generally includes interest items, insurance recoveries, litigation settlements and other items.
4. EMPLOYEE SEPARATION/ASSET RELATED CHARGES, NET
At December 31, 2011 , total liabilities relating to restructuring activities were $61 , primarily relating to the 2011 restructuring program.
2011 Restructuring Program
In 2011, the company initiated a series of actions to achieve the expected cost synergies associated with the Danisco acquisition. As a result, the company
recorded a $53 charge in employee separation/asset related charges, net, primarily for employee separation costs in the U.S. and Europe. This charge reduced
segment earnings as follows: Industrial Biosciences - $9, Nutrition & Health - $14, and Other - $30. The company expects this initiative and all related
payments to be substantially complete in 2013.
Account balances and activity for the 2011 restructuring program are summarized below:
Net charges to income in 2011 $ 53
Payments (4)
Net translation adjustment (1)
Balance as of December 31, 2011 $ 48
F-13