DuPont 2014 Annual Report Download - page 25

Download and view the complete annual report

Please find page 25 of the 2014 DuPont annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 106

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106

Part II
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS, continued
24
In 2013, the company recorded a tax provision on continuing operations of $626 million, reflecting a marginal increase from 2012.
The decrease in the 2013 effective tax rate compared to 2012 was primarily due to geographic mix of earnings, in addition to
benefits associated with certain U.S. business tax provisions in 2013.
See Note 5 to the Consolidated Financial Statements for additional details related to the provision for income taxes on continuing
operations, as well as items that significantly impact the company's effective income tax rate.
(Dollars in millions) 2014 2013 2012
INCOME FROM CONTINUING OPERATIONS AFTER INCOME
TAXES $ 3,621 $ 2,863 $ 2,472
Income from continuing operations after income taxes for 2014 was $3.6 billion compared to $2.9 billion in 2013 and $2.5 billion
in 2012. The changes between periods were due to the reasons noted above.
Corporate Outlook
The company expects 2015 net sales and income will reflect negative currency impact due to the recent strengthening of the U.S.
dollar. The currency impact is expected to be most significant in the first half of the year due to the seasonality of Agriculture in
the northern hemisphere. The company also expects to achieve savings from the operational redesign. The 2015 outlook does not
reflect the planned separation of the Performance Chemicals segment or the impact of the expected return of capital related to the
separation.
Recent Accounting Pronouncements
See Note 1 to the Consolidated Financial Statements for a description of recent accounting pronouncements.
Segment Reviews
Segment sales include transfers to another business segment. Products are transferred between segments on a basis intended to
reflect, as nearly as practicable, the market value of the products. Segment PTOI is defined as income (loss) from continuing
operations before income taxes excluding non-operating pension and other postretirement employee benefit costs, exchange gains
(losses), corporate expenses and interest. Viton® fluoroeastomer products (Viton®) will be included in the Performance Chemicals
separation and therefore the results are reported within Performance Chemicals. Viton® was previously reported within Performance
Materials. Reclassifications of prior year data have been made to conform to current year classifications. All references to prices
are on a U.S. dollar (USD) basis, including the impact of currency, unless otherwise noted.
A reconciliation of segment sales to consolidated net sales and segment PTOI to income from continuing operations before income
taxes for 2014, 2013 and 2012 is included in Note 21 to the Consolidated Financial Statements. Segment PTOI and PTOI margins
include certain items which management believes are significant to understanding the segment results discussed below. See Note
21 to the Consolidated Financial Statements for details related to these items.