DuPont 2007 Annual Report Download - page 96

and risk. Strategic asset allocations in other countries are selected in accordance with the laws and practices of
those countries. Where appropriate, asset liability studies are utilized in this process. U.S. plan assets and a
significant portion of non-U.S. plan assets are managed by investment professionals employed by the company. The
remaining assets are managed by professional investment firms unrelated to the company. The company’s pension
investment professionals have discretion to manage the assets within established asset allocation ranges approved
by senior management of the company. Plans invest in securities from a variety of countries to take advantage of the
investment opportunities that a global portfolio presents and to increase portfolio diversification. Additionally,
pension trust funds are permitted to enter into certain contractual arrangements generally described as
“derivatives.” Derivatives are primarily used to reduce specific market risks, hedge currency and adjust portfolio
duration and asset allocation in a cost-effective manner.
The company’s pension plans directly held $440 (2 percent of total plan assets) and $486 (2 percent of total plan
assets) of DuPont common stock at December 31, 2007 and 2006, respectively.
Cash Flow
Contributions
In 2007, the company contributed $277 to its pension plans. No contributions were required or made to the principal
U.S. pension plan trust fund in 2007 and no contributions are required or expected to be made to this Plan in 2008.
The company will continue to monitor asset values during the year. The Pension Protection Act of 2006 (the “Act”)
was signed into law in the U.S. in August 2006. The Act introduced new funding requirements for single-employer
defined benefit pension plans, provided guidelines for measuring pension plan assets and pension obligations for
funding purposes, introduced benefit limitations for certain underfunded plans and raised tax deduction limits for
contributions to retirement plans. The new funding requirements are generally effective for plan years beginning
after December 31, 2007. The company does not anticipate that the Act will have a material impact on its required
contributions. The company expects to contribute approximately $250 in 2008 to its pension plans other than the
principal U.S. pension plan and also expects to make cash payments of $315 in 2008 under its other long-term
employee benefit plans.
In 2006, the company made contributions of $280 to its pension plans. No contributions were required or made to the
principal U.S. pension plan trust fund in 2006. In 2005, the company made contributions of $1,253 to its pension
plans, including a $1,000 contribution to its principal U.S. pension plan.
Estimated Future Benefit Payments
The following benefit payments, which reflect future service, as appropriate, are expected to be paid:
Pension
Benefits
Other
Benefits
2008 $1,525 $ 315
2009 1,507 311
2010 1,493 306
2011 1,500 297
2012 1,500 292
Years 2013 – 2017 7,690 1,382
Defined Contribution Plan
The company sponsors several defined contribution plans, which cover substantially all U.S. employees. The most
significant is The Savings and Investment Plan (the Plan). This Plan includes a non-leveraged Employee Stock
Ownership Plan (ESOP). Employees are not required to participate in the ESOP and those who do are free to
diversify out of the ESOP. The purpose of the Plan is to provide additional retirement savings benefits for employees
and to provide employees an opportunity to become stockholders of the company. The Plan is a tax qualified
contributory profit sharing plan, with cash or deferred arrangement and any eligible employee of the company may
participate. The company contributed an amount equal to 50 percent of the first 6 percent of the employee’s
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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)