DuPont 2015 Annual Report Download - page 4

Part I
ITEM 1. BUSINESS, continued
3
Spin-off of Performance Chemicals
On July 1, 2015, DuPont completed the separation of its Performance Chemicals segment through the spin-off of all of the issued
and outstanding stock of The Chemours Company (Chemours). In accordance with generally accepted accounting principles in
the U.S. (GAAP), the financial position and results of operations of the Performance Chemicals segment are presented as
discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods presented.
Additional details related to the separation can be found in Item 7, Management's Discussion and Analysis of Financial Condition
and Results of Operations, on page 24 of this report and Note 3 to the Consolidated Financial Statements.
Productivity and Cost Savings Initiatives
On December 11, 2015, DuPont announced a 2016 global cost savings and restructuring plan designed to reduce $730 million in
costs in 2016 compared with 2015, which represents a reduction of operating costs on a run-rate basis of about $1.0 billion by end
of 2016. As part of the plan, the company committed to take structural actions across all businesses and staff functions globally
to operate more efficiently by further consolidating businesses and aligning staff functions more closely with them. In connection
with the restructuring actions, the company recorded a pre-tax charge to earnings of $798 million in the fourth quarter 2015,
comprised of $656 million of severance and related benefit costs, $109 million of asset related charges, and $33 million of contract
termination costs. Additional details related to this plan can be found in Item 7, Management's Discussion and Analysis of Financial
Condition and Results of Operations, on page 23 of this report and Note 4 to the Consolidated Financial Statements.
In June 2014, DuPont announced its global, multi-year initiative to redesign its global organization and operating model to reduce
costs and 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 years ended December 31, 2015 and 2014, pre-tax (benefits) charges
of $(21) million and $541 million, respectively, were recorded. Additional details related to this plan can be found in Item 7,
Management's Discussion and Analysis of Financial Condition and Results of Operations, on page 24 of this report and Note 4 to
the Consolidated Financial Statements.
Business Segments
The company consists of 10 businesses which are aggregated into 6 reportable segments based on similar economic characteristics,
the nature of the products and production processes, end-use markets, channels of distribution and regulatory environment. The
company's reportable segments are Agriculture, Electronics & Communications, Industrial Biosciences, Nutrition & Health,
Performance Materials and Safety & Protection. The company includes certain businesses not included in the reportable segments,
such as pre-commercial programs, nonaligned businesses and pharmaceuticals in Other. Additional information with respect to
business segment results is included in Item 7, Management's Discussion and Analysis of Financial Condition and Results of
Operations, on page 30 of this report and Note 22 to the Consolidated Financial Statements.
In November 2015, DuPont announced the consolidation of the DuPont Packaging & Industrial Polymers business with the DuPont
Performance Polymers business within the Performance Materials segment, as well as the consolidation of the DuPont Protection
Technologies business with the DuPont Building Innovations business within the Safety & Protection segment. Both consolidations
will be effective on January 1, 2016. The consolidations will create greater efficiency and enhanced capabilities in the two segments
where these businesses operate, the Performance Materials segment and the Safety & Protection segment, respectively. These
changes will not result in a change in reportable segments.
DuPont Sustainable Solutions, within the company's Safety & Protection segment, is comprised of two business units: clean
technologies and consulting solutions. Effective January 1, 2016, the clean technologies business unit will become part of the
Industrial Biosciences segment with the focus on working with customers to improve the performance, productivity and
sustainability of their products and processes. The company will explore a range of options to maximize the growth of the consulting
solutions business unit which effective January 1, 2016 will be reported within Other. Sustainable solutions net sales accounted
for about 2 percent of the company's total consolidated net sales for the years ended December 31, 2015, 2014 and 2013, respectively.