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E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)
F-21
4. EMPLOYEE SEPARATION/ASSET RELATED CHARGES, NET
2016 Global Cost Savings and Restructuring Program
In December 2015, DuPont 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 as part of a 2016 global cost
savings and restructuring plan.
As a result, during the year ended December 31, 2015, a pre-tax charge of $798 was recorded, consisting of $793 of employee
separation / asset related charges, net and $5 in other income, net. The charges consisted of $656 in severance and related benefit
costs, $109 in asset related charges, and $33 in contract termination charges. The restructuring actions associated with this charge
are expected to impact approximately 10 percent of DuPont’s workforce and to be substantially complete in 2016. The company
anticipates additional charges could occur in relation to the restructuring actions, which it cannot reasonably estimate at this time.
The restructuring program charges related to the segments, as follows, for the year ended December 31, 2015: Agriculture - $161,
Electronics & Communications - $93, Industrial Biosciences - $51, Nutrition & Health - $47, Performance Materials - $61, Safety
& Protection - $53, Other - $2, as well as Corporate expenses - $330.
At December 31, 2015, total liabilities related to the restructuring program were $680.
Account balances and activity for the restructuring program are summarized below:
Severance
and Related
Benefit
Costs
Asset
Related
Charges
Other Non-
Personnel
Charges1Total
Charges to income from continuing operations for the year ended December 31, 2015 $ 656 $ 109 $ 33 $ 798
Charges to accounts:
Payments (2) — (1) (3)
Asset write-offs and adjustments (6)(109) — (115)
Balance at December 31, 2015 $ 648 $ — $ 32 $ 680
1. Other non-personnel charges consist of contractual obligation costs.
2014 Restructuring Program
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.
During the year ended December 31, 2015, a net benefit of $(21) was recorded to adjust the estimated costs associated with the
2014 restructuring program in employee separation / asset related charges, net in the company's Consolidated Income Statements.
This was primarily due to lower than estimated individual severance costs and workforce reductions achieved through non-severance
programs, offset by the identification of additional projects in certain segments. The adjustments related to the segments for the
year ended December 31, 2015 as follows: Agriculture - $3, Electronics & Communications - $(15), Industrial Biosciences - $1,
Nutrition & Health - $3, Performance Materials - $1, Safety & Protection - $(4), Other - $1, as well as Corporate expenses $(11).
During the year ended December 31, 2014 a pre-tax charge of $541 was recorded, consisting of $476 in employee separation / asset
related charges, net and $65 in other income, net in the company's Consolidated Income Statements. The charges consisted of $301
of severance and related benefit costs, $17 of other non-personnel charges, and $223 of asset related charges, including $65 of
charges associated with the restructuring actions of a joint venture within the Performance Materials segment.
The 2014 restructuring program charges related to the segments, as follows, for the year ended December 31, 2014: Agriculture -
$134, Electronics & Communications -$84, Industrial Biosciences - $13, Nutrition & Health - $15, Performance Materials - $99,
Safety & Protection - $52, Other - $10, as well as Corporate expenses - $134.