DuPont 2007 Annual Report Download - page 75

reduce tax expense. The total gross accrued interest and penalty during 2007 in the Consolidated Income Statement
was $25 and the total gross accrued interest and penalties at December 31, 2007 was $114. The company and/or its
subsidiaries files income tax returns in the United States of America (U.S.) federal jurisdiction, and various states
and non-U.S. jurisdictions. With few exceptions, the company is no longer subject to U.S. federal, state and local, or
non-U.S. income tax examinations by tax authorities for years before 1999. It is reasonably possible that changes to
the company’s global unrecognized tax benefits could be significant, however due to the uncertainty regarding the
timing of completion of audits and possible outcomes, a current estimate of the range of increases or decreases that
may occur within the next twelve months can not be made. A reconciliation of the beginning and ending amounts of
unrecognized tax benefits is as follows:
Total Unrecognized Tax Benefits as of 1/1/2007 $1,070
Gross amounts of decreases in unrecognized tax benefits as a result of tax positions taken during
the prior period (173)
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken during
the prior period 34
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken during
the current period 77
Amount of decreases in the unrecognized tax benefits relating to settlements with taxing authorities (209)
Reduction to unrecognized tax benefits as a result of a lapse of the applicable statue of limitations (16)
Exchange gain/(loss) 42
Total Unrecognized Tax Benefits as of 12/31/2007 $ 825
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 443
Total amount of interest and penalties recognized in the Consolidated Income Statement $25
Total amount of interest and penalties recognized in the Consolidated Balance Sheet $ 114
7. EARNINGS PER SHARE OF COMMON STOCK
Set forth below is a reconciliation of the numerator and denominator for basic and diluted earnings per share
calculations for the periods indicated:
2007 2006 2005
Numerator:
Net income $ 2,988 $ 3,148 $ 2,056
Preferred dividends (10) (10) (10)
Net income available to common stockholders $ 2,978 $ 3,138 $ 2,046
Denominator:
Weighted-average number of common shares
outstanding – Basic 917,132,000 921,474,000 982,193,000
Dilutive effect of the company’s employee compensation
plans and accelerated share repurchase agreement 8,270,000 7,127,000 6,761,000
Weighted average number of common shares
outstanding – Diluted 925,402,000 928,601,000 988,954,000
The weighted-average number of common shares outstanding in 2007 and 2006 declined as a result of the
company’s repurchase and retirement of its common stock in connection with its $5 billion share buyback plan,
which was authorized by the Board of Directors in October 2005. See Note 20 for further information.
F-18
E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)