DuPont 2007 Annual Report Download - page 8

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Item 1. Business, continued
The corporate research laboratories are responsible for conducting research programs aligned with corporate
strategy as provided by the growth platforms. All research and development activities are administered by senior
research and development management to ensure consistency with the business and corporate strategy. The future
of the company is not dependent upon the outcome of any single research program.
Additional information with respect to research and development, including the amount incurred during each of the
last three fiscal years, is included in Item 7, Management’s Discussion and Analysis of Financial Condition and
Results of Operations, on page 21 of this report.
Facility Security
DuPont recognizes that the security and safety of its operations are critical to its employees, neighbors and, indeed,
to the future of the company. As such, the company has merged chemical site security into its safety core value
where it serves as an integral part of its long standing safety culture. Physical security measures have been
combined with process safety measures (including the use of inherently safer technology), administrative
procedures and emergency response preparedness into an integrated security plan. The company has
conducted vulnerability assessments at operating facilities in the U.S. and high priority sites worldwide and
identified and implemented appropriate measures to protect these facilities from physical or cyber attacks.
DuPont is partnering with carriers, including railroad, shipping and trucking companies, to secure chemicals in
transit.
In April 2007, the Department of Homeland Security (DHS) issued an interim final rule (Rule) that establishes risk-
based performance standards for the security of U.S. chemical facilities. Covered chemical facilities are required to
prepare Security Vulnerability Assessments that identify facility security vulnerabilities and to develop and
implement Site Security Plans that include measures satisfying the identified risk-based performance
standards. The Rule contains associated provisions addressing inspections and audits, recordkeeping, and the
protection of information that constitutes Chemical-terrorism Vulnerability Information. DHS can seek compliance
through the issuance of Orders, including Orders Assessing Civil Penalty and Orders for the Cessation of
Operations.
In November of 2007, DHS finalized the list of chemicals regulated by the Rule and required facilities that have those
chemicals in specified quantities to register with DHS. Those facilities must provide information by which DHS will
determine if and how the facility will be covered by the Rule’s security requirements. DuPont’s U.S. facilities have
submitted this information and are awaiting DHS’ determination of coverage. Once DHS has determined which
DuPont facilities are covered, it will work with the company to establish security expectations specific to each facility.
As a result, management will be able to better assess the Rule’s impact on the company at that time. However, the
company has already devoted substantial effort and resources in assessing security vulnerabilities and taking steps
to reinforce security at its chemical manufacturing facilities. Management expects that these steps will fulfill most of
the Rule’s risk-based performance standards.
Environmental Matters
Information related to environmental matters is included in several areas of this report: (1) Environmental
Proceedings on pages 11-12, (2) Management’s Discussion and Analysis of Financial Condition and Results of
Operations on pages 25 and 41- 44 and (3) Notes 1 and 19 to the Consolidated Financial Statements.
Available Information
The company is subject to the reporting requirements under the Securities Exchange Act of 1934. Consequently, the
company is required to file reports and information with the Securities Exchange Commission (SEC), including
reports on the following forms: annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on
Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities
Exchange Act of 1934.
The public may read and copy any materials the company files with the SEC at the SEC’s Public Reference Room at
100 F Street, NE, Washington, DC 20549. The public may obtain information on the operation of the Public
Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet site at
6
Part I