DuPont 2008 Annual Report Download - page 75

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may occur within the next twelve months cannot be made. A reconciliation of the beginning and ending amounts of
unrecognized tax benefits is as follows:
2008 2007
Total Unrecognized Tax Benefits as of January 1 $ 825 $1,070
Gross amounts of decreases in unrecognized tax benefits as a result of tax positions
taken during the prior period (49) (173)
Gross amounts of increases in unrecognized tax benefits as a result of tax positions
taken during the prior period 51 34
Gross amounts of increases in unrecognized tax benefits as a result of tax positions
taken during the current period 59 77
Amount of decreases in the unrecognized tax benefits relating to settlements with
taxing authorities (157) (209)
Reduction to unrecognized tax benefits as a result of a lapse of the applicable statue
of limitations (14) (16)
Exchange gain/(loss) (38) 42
Total Unrecognized Tax Benefits as of December 31 $ 677 $ 825
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 467 $ 443
Total amount of interest and penalties recognized in the Consolidated Income
Statement $7 $25
Total amount of interest and penalties recognized in the Consolidated Balance Sheet $ 115 $ 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:
2008 2007 2006
Numerator:
Net income $ 2,007 $ 2,988 $ 3,148
Preferred dividends (10) (10) (10)
Net income available to common stockholders $ 1,997 $ 2,978 $ 3,138
Denominator:
Weighted-average number of common shares
outstanding – Basic 902,415,000 917,132,000 921,474,000
Dilutive effect of the company’s employee compensation
plans and accelerated share repurchase agreement 4,956,000 8,270,000 7,127,000
Weighted average number of common shares
outstanding – Diluted 907,371,000 925,402,000 928,601,000
The weighted-average number of common shares outstanding in 2008 declined as a result of the company’s 2007
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.
The following average number of stock options are antidilutive and therefore, are not included in the diluted earnings
per share calculation:
2008 2007 2006
Average number of stock options 40,831,000 23,252,000 63,294,000
F-19
E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)