DuPont 2008 Annual Report Download - page 70

2008 Activities
In response to the challenging economic environment, the company initiated a global restructuring program during
2008 to reduce costs and improve profitability across its businesses. The program includes the elimination of
approximately 2,500 positions principally located in Western Europe and the United States of America (U.S.)
primarily supporting the motor vehicle and construction markets. As a result, a charge of $535 was recorded in cost
of goods sold and other operating charges. This charge includes $287 related to employee severance costs and
$248 of asset-related charges, including $111 for asset shut-downs, $119 for asset impairments and $18 of other
non-personnel charges.
The 2008 program charge reduced the 2008 segment earnings as follows: Agriculture & Nutrition – $18; Coatings &
Color Technologies – $236; Electronic & Communication Technologies – $55; Performance Materials – $94;
Safety & Protection – $101; and Other – $31.
Essentially all employee terminations related to this program will begin in the first quarter of 2009. The program is
estimated to be substantially completed in 2010. There were no cash payments related to this program in 2008.
Account balances and activity for the 2008 restructuring program are summarized below:
Asset -
Related
Employee
Separation
Costs
Other Non-
personnel
Charges Total
Net charges to income in 2008 $ 230 $287 $18 $ 535
Charges to accounts
Asset write-offs (230) - (2) (232)
Net Translation Adjustment -19 1 20
Other -3- 3
Balance at December 31, 2008 $- $309 $17 $ 326
2007 Activities
During 2007, the company did not institute any significant restructuring programs. In 2007, employee separation
payments, net of exchange impact, of $77 associated with 2006 restructuring activities were made.
2006 Activities
During 2006, the company initiated restructuring actions within its Agriculture & Nutrition and Coatings & Color
Technologies segments to improve the company’s global competitiveness. As a result, a net charge of $326 was
recorded in cost of goods sold and other operating charges for employee separation and asset write-downs. Further
details are discussed below.
Agriculture & Nutrition
During the fourth quarter 2006, the Agriculture & Nutrition segment launched plans to redeploy capital and resources
within various segments of the business. The plans included the closing or streamlining of manufacturing units at
about twelve sites and the reduction of approximately 1,500 positions globally. Restructuring charges resulting from
the plans totaled $194, $72 of which are reflected within Performance Materials segment results following the
realignment of certain businesses in 2007. The global program included $64 for severance payments and $130
principally for asset impairments, primarily related to definite-lived intangible assets whose remaining useful lives
were reduced, abandoned technology and other non-personnel charges. As of December 31, 2008,
1,300 employees were separated from the company and 200 were redeployed. Essentially all employees have
been separated from the company as of December 31, 2008. Cash payments related to these separations were
approximately $20 in 2008, $25 in 2007 and $4 in 2006.
Coatings & Color Technologies
A business transformation plan was instituted during the first quarter 2006 within the Coatings & Color Technologies
segment to better serve the company’s customers and improve profitability. The plan included the elimination of
F-14
E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)