DuPont 2005 Annual Report Download - page 42

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Part II
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations–Continued
The following table reconciles the differences from Total debt to net debt:
(Dollars in millions)
December 31, 2005 2004 2003
Commercial paper – $584 $4,422
Long-term debt due in one year $ 986 167 1,262
Other short-term debt 411 185 230
Total short-term debt 1,397 936 5,914
Long-term debt 6,783 5,548 4,301
Borrowings and capital leases held for sale – 1 264
Total debt $8,180 $ 6,485 $10,479
Cash and cash equivalents held for sale ––75
Cash and cash equivalents 1,736 3,369 3,273
Marketable debt securities 115 167 25
Net debt $6,329 $2,949 $7,106
The following table summarizes changes in net debt throughout 2005, 2004 and 2003:
(Dollars in millions)
December 31, 2005 2004 2003
Net debt–beginning of year $2,949 $ 7,106 $ 2,689
Cash provided by continuing operations (2,542) (3,231) (2,589)
Purchases of property, plant & equipment and investments in affiliates 1,406 1,298 1,784
Net payments for businesses acquired 206 119 1,527
Proceeds from sales of assets (312) (68) (17)
Proceeds from sale of assets–Textiles & Interiors, net of cash sold – (3,840) –
Debt assumed by Koch – (255) –
Forward exchange contract settlements (653) 509 631
Dividends paid to stockholders 1,439 1,404 1,407
Acquisition of treasury stock 3,530 457 –
Redemption of corporate minority interest structures – – 2,037
Effect of exchange rate changes on cash 722 (404) (425)
Other (416) (146) 62
Increase (decrease) in net debt 3,380 (4,157) 4,417
Net debt–end of year $6,329 $ 2,949 $ 7,106
OFF-BALANCE SHEET ARRANGEMENTS
CERTAIN GUARANTEE CONTRACTS
Indemnifications
The company has indemnified respective parties against certain liabilities that may arise in connection with acquisitions and
divestitures, and related business activities prior to the completion of the transactions. The terms of these indemnifications,
which typically pertain to environmental, tax and product liabilities, are generally indefinite. In addition, the company indemni-
fies its duly elected or appointed directors and officers to the fullest extent permitted by Delaware law, against liabilities
incurred as a result of their activities for the company, such as adverse judgments relating to litigation matters. If the
indemnified party were to incur a liability or have a liability increase as a result of a successful claim, pursuant to the terms of
the indemnification, the company would be required to reimburse the indemnified party. The maximum amount of potential
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