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Part II
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS, continued
28
The $476 million in charges recorded during 2014 in employee separation / asset related charges, net related to the 2014 global,
multi-year initiative to redesign its global organization and operating model to improve productivity and agility across all businesses
and functions. DuPont commenced a restructuring plan to realign and rebalance staff function support, enhance operational
efficiency, and to reduce residual costs associated with the separation of its Performance Chemicals segment. As a result, during
the year ended December 31, 2014, a pre-tax charge of $541 million was recorded, consisting of $476 million in employee
separation / asset related charges, net and $65 million in other income, net. The charges consisted of $301 million severance and
related benefit costs, $17 million of other non-personnel costs, and $223 million of asset related costs, including $65 million of
costs associated with the restructuring actions of a joint venture within the Performance Materials segment. The actions associated
with this charge and all related payments are substantially complete.
The $112 million in charges recorded during 2013 in employee separation / asset related charges, net consisted of a net $17 million
restructuring benefit and a $129 million asset impairment charge discussed below. The net $17 million restructuring benefit
consisted of a $26 million benefit associated with prior year restructuring programs offset by a $9 million charge resulting from
restructuring actions related to a joint venture within the Performance Materials segment. The majority of the $26 million benefit
was due to the achievement of work force reductions through non-severance programs associated with the 2012 restructuring
program.
Asset Impairments
During 2015, the company recorded an impairment charge of $38 million in the Other segment, the majority relating to an
impairment of a cost basis investment.
During 2013, the company recorded an asset impairment charge of $129 million to write-down the carrying value of an asset
group, within the Electronics & Communications segment, to fair value.
Additional details related to the restructuring programs and asset impairments discussed above can be found in Note 4 to the
Consolidated Financial Statements.
Below is a summary of the net impact related to items recorded in employee separation / asset related charges, net:
(Dollars in millions) 2015 (Charges)
and Credits 2014 (Charges)
and Credits 2013 (Charges)
and Credits
Agriculture $ (164) $ (134) $ 1
Electronics & Communications (78) (84) (131)
Industrial Biosciences (52) (13) 1
Nutrition & Health (50) (15) 6
Performance Materials (58) (34) (6)
Safety & Protection (49) (52) 4
Other (40) (22) 1
Corporate expenses (319) (122) 12
Total Charges $ (810) $ (476) $ (112)
(Dollars in millions) 2015 2014 2013
PROVISION FOR INCOME TAXES ON CONTINUING OPERATIONS $ 696 $ 1,168 $ 360
Effective income tax rate 26.9% 27.1% 14.0%
In 2015, the company recorded a tax provision on continuing operations of $0.7 billion, reflecting a $0.5 billion decrease from
2014. The decrease was largely due to the impact associated with the company’s policy of hedging the foreign currency-denominated
monetary assets and liabilities of its operations, the absence of 2014 gains on sales of businesses and other assets in the Performance
Materials and Agriculture segments, as well as increased tax benefits on employee separation/asset related charges.
In 2014, the company recorded a tax provision on continuing operations of $1.2 billion, reflecting a $0.8 billion increase from
2013, largely due to the impact associated with the company’s policy of hedging the foreign currency-denominated monetary