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2009
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
(Mark One)
ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2009
OR
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 1-815
E. I. DU PONT DE NEMOURS AND COMPANY
(Exact name of registrant as specified in its charter)
51-0014090
DELAWARE (I.R.S. Employer Identification No.)
(State or Other Jurisdiction of Incorporation or Organization)
1007 Market Street
Wilmington, Delaware 19898
(Address of principal executive offices)
Registrant’s telephone number, including area code: 302-774-1000
Securities registered pursuant to Section 12(b) of the Act
(Each class is registered on the New York Stock Exchange, Inc.):
Title of Each Class
Common Stock ($.30 par value)
Preferred Stock
(without par value-cumulative)
$4.50 Series
$3.50 Series
No securities are registered pursuant to Section 12(g) of the Act.
Indicate by check mark whether the registrant is a well-known seasoned issuer (as defined in Rule 405 of the
Securities Act). Yes No
Indicate by check mark whether the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of
the Act. Yes No
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if
any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of
this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and
post such files). Yes No
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained
herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated
filer. See definition of ‘‘accelerated filer and large accelerated filer’’ in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer Non-accelerated filer Smaller reporting company
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Act). Yes No
The aggregate market value of voting stock held by nonaffiliates of the registrant (excludes outstanding shares
beneficially owned by directors and officers and treasury shares) as of June 30, 2009, was approximately $23.1 billion.
As of January 31, 2010, 903,838,000 shares (excludes 87,041,000 shares of treasury stock) of the company’s common
stock, $.30 par value, were outstanding.
Documents Incorporated by Reference
(Specific pages incorporated are indicated under the applicable Item herein):
Incorporated
By Reference
In Part No.
The company’s Proxy Statement in connection with the Annual Meeting of Stockholders to be held on April 28, 2010 .... III

Table of contents

  • Page 1
    ... Street Wilmington, Delaware 19898 (Address of principal executive offices) Registrant's telephone number, including area code: 302-774-1000 Securities registered pursuant to Section 12(b) of the Act (Each class is registered on the New York Stock Exchange, Inc.): Title of Each Class Common Stock...

  • Page 2
    ... Data Changes In and Disagreements With Accountants on Accounting and Financial Disclosure Controls and Procedures Other Information Directors, Executive Officers and Corporate Governance Executive Compensation Security Ownership of Certain Beneficial Owners and Management and Related Stockholder...

  • Page 3
    ... Introduction Agriculture & Nutrition Electronics & Communications Performance Chemicals Performance Coatings Performance Materials Safety & Protection Pharmaceuticals Other Geographic Information - Net Sales and Net Property Segment Sales, Net Sales, Pre-tax Operating Income and Segment Net Assets...

  • Page 4
    ... 2005, DuPont contracted with Convergys Corporation (Convergys) to provide the company with global human resources transactional services including employee development, workforce planning, compensation management, benefits administration and payroll. In December 2009, the global agreement with...

  • Page 5
    ...Agriculture & Nutrition segment are at a low point at year-end and increase through the selling season to peak at the end of the second quarter. In general, businesses in the remaining segments are not significantly affected by seasonal factors. Marketing With the exception of Pioneerá"¼ brand seeds...

  • Page 6
    ... functionally compete with the company's offerings. Pioneer sells advanced plant genetics, principally for the global production of corn and soybeans and thus directly competes with other seed and plant biotechnology companies. The Nutrition & Health business also provides food safety equipment and...

  • Page 7
    ...'s operating results from period to period. Legislation to address climate change by reducing greenhouse gas emissions and establishing a price on carbon could create increases in energy costs and price volatility. When possible, the company purchases raw materials through negotiated long-term...

  • Page 8
    ... class actions against chemical manufacturers generally seeking relief such as medical monitoring, property damages, off-site remediation and punitive damages arising from alleged environmental torts without claiming present personal injuries. The company also has noted a trend in public and private...

  • Page 9
    ...company. Adversity within capital markets may impact future return on pension assets, thus resulting in greater future pension costs that impact the company's results. Future weakness in the global economy could adversely affect the company's results of operations, financial condition and cash flows...

  • Page 10
    ...difficult or impossible for the company to deliver products to its customers or to receive raw materials from suppliers, and create delays and inefficiencies in the supply chain. The company actively manages the risks within its control that could cause business disruptions to mitigate any potential...

  • Page 11
    ... 2. PROPERTIES The company's corporate headquarters are located in Wilmington, Delaware. The company's manufacturing, processing, marketing and research and development facilities, as well as regional purchasing offices and distribution centers are located throughout the world. Information regarding...

  • Page 12
    ... Safety & Protection Asia Pacific Guangzhou, China; Ulsan, Korea Canada Thetford Mines, Canada Europe Luxembourg; Asturias, Spain U.S. Leawood, KS; Parsippany, NJ; Buffalo, NY; Old Hickory, TN; Richmond, VA The company's plants and equipment are well maintained and in good operating condition. Sales...

  • Page 13
    .... Information related to this matter is included in Note 20 to the Consolidated Financial Statements under the heading PFOA. Environmental Proceedings Chambers Works Plant, Deepwater, New Jersey In September 2009, the New Jersey Department of Environmental Protection (NJDEP) notified DuPont that...

  • Page 14
    ...of plant, marketing, and product management and business director roles. Mr. Fanandakis served as Vice President and General Manager - DuPont Chemical Solutions Enterprise from 2003 until February 2007 when he was named Vice President - Corporate Plans. In January 2008 Mr. Fanandakis was named Group...

  • Page 15
    ... OF EQUITY SECURITIES Market for Registrant's Common Equity and Related Stockholder Matters The company's common stock is listed on the New York Stock Exchange, Inc. (symbol DD) and certain non-U.S. exchanges. The number of record holders of common stock was approximately 85,000 at January 31, 2010...

  • Page 16
    Part II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES, continued Stock Performance Graph The following graph presents the cumulative five-year total return for the company's common stock compared with the S&P 500 Stock Index and...

  • Page 17
    ... Short-term Long-term Total equity General For the year Purchases of property, plant & equipment and investments in affiliates Depreciation Research and development (R&D) expense Average number of common shares outstanding (millions) Basic Diluted Dividends per common share At year-end Employees...

  • Page 18
    ... line growth opportunities in key markets and improving productivity, the company met or surpassed its 2009 financial goals for earnings per share, cash flow, and working capital reductions. The company announced a three-year 2010-2012 plan which includes $1 billion fixed cost productivity actions...

  • Page 19
    ... on location of customers and percentage variances from prior year: Percent Change Due to: Percent Change vs. 2008 (Dollars in billions) 2009 Net Sales Local Price Currency Effect Volume Portfolio Worldwide United States Europe, Middle East, and Africa (EMEA) Asia Pacific Latin America Canada...

  • Page 20
    ... polyester films joint venture in the Performance Materials segment, and a favorable $51 million litigation settlement in 2008. The increases are partially offset by additional net pre-tax exchange losses of $154 million and a decrease of $86 million in asset sales. Additional information related to...

  • Page 21
    ... to 2008. The 2009 decrease was principally due to strict cost controls and was partially offset by higher SG&A in the Agriculture & Nutrition segment as a result of increased global commissions and selling and marketing investments related to the company's seed products. 2008 versus 2007 Higher...

  • Page 22
    ... 1,000 employees have been separated related to the 2009 restructuring program, and about 150 positions were eliminated through other non-severance programs. The actions related to this program are expected to be complete by the end of 2010. These actions achieved pre-tax cost savings of about...

  • Page 23
    ...-cash pension costs. This is expected to be partially offset by $160 million lower pre-tax costs resulting from a change in other employee-related benefits. The company plans to continue a differential level of support for businesses expected to have above-average growth rates and margins. For 2010...

  • Page 24
    ... company's accounting policies which could have a material effect on the company's financial position, liquidity or results of operations. Long-term Employee Benefits Accounting for employee benefit plans involves numerous assumptions and estimates. Discount rate and expected return on plan assets...

  • Page 25
    ... Discount Rate Expected rate of return on plan assets $71 83 $(73) (83) Additional information with respect to pension and other long-term employee benefits expenses, liabilities and assumptions is discussed under ''Long-Term Employee Benefits'' beginning on page 40. Environmental Matters DuPont...

  • Page 26
    ... in adjustments to these assets. Valuation of Assets Assessment of the potential impairment of property, plant and equipment, goodwill, other intangible assets and investments in affiliates is an integral part of the company's normal ongoing review of operations. Testing for potential impairment of...

  • Page 27
    ... & Nutrition's businesses leverage the company's technology, customer relationships, and industry knowledge to improve the quantity, quality and safety of the global food supply and the global production agriculture industry. Land available for worldwide agricultural production is increasingly...

  • Page 28
    .... The segment's businesses operate across the food value chain from inputs for producing agriculture products to global production and distribution of soy-based food ingredients to food quality diagnostic testing equipment. Research and development focuses on leveraging technology to increase grower...

  • Page 29
    ...in volume was primarily due to lower sales of Crop Protection disease and insect control products, and lower sales of Nutrition & Health products largely offset by higher Pioneer corn and soybean seed sales market share gains in North America. PTOI for 2009 was $1.2 billion, up 13 percent versus the...

  • Page 30
    ...markets recover from the global economic recession, and selling prices increase from pass-through of higher precious metal costs. In addition, segment earnings are expected to increase reflecting the impact of higher volumes, cost control initiatives, and benefits from the 2009 restructuring program...

  • Page 31
    ...a $39 million benefit related to a gain on a land sale and inventory valuation adjustments. Outlook Performance Chemicals sales are expected to increase in 2010 as a result of higher global demand for titanium dioxide and specialty chemicals, positive currency impacts and higher prices to offset raw...

  • Page 32
    ... For 2010, the segment expects sales increases that will exceed the OEMs build growth due to expected recovery of OEMs and light truck markets and positive currency impacts. PTOI is also expected to increase significantly due to fixed costs reductions, benefits from the company's 2008 and 2009...

  • Page 33
    Part II ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, continued PERFORMANCE MATERIALS Segment Sales (Dollars in billions) PTOI (Dollars in millions) 2009 2008 2007 $4.8 $6.4 $6.6 $287 $128 $626 Performance Materials' businesses provide productive...

  • Page 34
    ...is also expected to improve due to the impact of higher sales, improved fixed cost performance, benefits from the company's 2008 and 2009 restructuring programs and market-driven innovations for products and processes. SAFETY & PROTECTION Segment Sales (Dollars in billions) PTOI (Dollars in millions...

  • Page 35
    ... to cover employee separation costs and other asset related charges as part of the company restructuring program. Outlook For 2010, sales are expected to benefit from improved global market conditions. Demand for Kevlará"¼ and Nomexá"¼ is expected to increase due to public sector sales growth and...

  • Page 36
    ...including: cash provided by operating activities, cash and cash equivalents, marketable securities, commercial paper, syndicated credit lines, bilateral credit lines, equity and long-term debt markets and asset sales. The company's current strong financial position, liquidity and credit ratings have...

  • Page 37
    ... related to the company's cash management initiatives and matching capacity with market demand. The company expects 2010 purchases of plant, property and equipment to be $1.6 billion, an increase of $300 million over 2009, driven by growth investments. (Dollars in millions) 2009 2008 2007 Cash...

  • Page 38
    ... planning process. The company exceeded its 2009 free cash flow goal of $2.5 billion due to working capital productivity and the currency impact on net monetary assets with the offset in forward exchange contract settlements within investing activities. For 2010, the company has set a free cash flow...

  • Page 39
    ... lawsuit. Obligations for Equity Affiliates and Others The company has directly guaranteed various debt obligations under agreements with third parties related to equity affiliates, customers, suppliers and other affiliated and unaffiliated companies. At December 31, 2009, the company had directly...

  • Page 40
    ...Long-term and short-term debt1 Expected cumulative cash requirements for interest payments through maturity Capital leases1 Operating leases Purchase obligations Information technology infrastructure & services Raw material obligations Utility obligations INVISTA-related obligations3 Human resource...

  • Page 41
    ... December 31, 2006 do not participate in the pension and post-retirement medical, dental and life insurance plans. The company's other long-term employee benefits are unfunded and the cost of the approved claims is paid from operating cash flows. Pre-tax cash requirements to cover actual net claims...

  • Page 42
    ... discount rate (see Note 22 to the Consolidated Financial Statements). For 2010, long-term employee benefits expense is expected to increase by about $410 million, principally due to lower market-related value of pension assets. Other Employee-Related Benefits In October 2009, the company announced...

  • Page 43
    ... or by private parties. These requests, notices and lawsuits assert potential liability for remediation costs at various sites that typically are not company owned, but allegedly contain wastes attributable to the company's past operations. As of December 31, 2009, the company has been notified...

  • Page 44
    ... achieved major global reductions in emissions. Voluntary emissions reductions implemented by DuPont and other companies are valuable but alone will not be sufficient to effectively address a problem of this scale. DuPont is actively engaged in the effort to develop constructive public policies to...

  • Page 45
    ... reporting, record-keeping, testing and control-related requirements for new and existing chemicals. In September 2009, EPA announced its comprehensive approach to enhance the Agency's current chemicals management program under TSCA, including development of action plans. The Agency's actions...

  • Page 46
    ... 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...

  • Page 47
    ... used this technology in its global manufacturing facilities to produce test materials for all major fluoropolymer product lines. DuPont has begun to supply fluoropolymer products without PFOA to customers for testing in their processes, and is working to obtain appropriate regulatory approvals...

  • Page 48
    ... the 2010/2015 PFOA Stewardship Program. In January 2009, the EPA issued a national Provisional Health Advisory for PFOA of 0.4 parts per billion (ppb) in drinking water. In March 2009, EPA and DuPont entered an Order on Consent under the Safe Drinking Water Act (SDWA) reflecting an action level of...

  • Page 49
    ... assets and liabilities of its operations. The primary business objective of this hedging program is to maintain an approximately balanced position in foreign currencies so that exchange gains and losses resulting from exchange rate changes, net of related tax effects, are minimized. The company...

  • Page 50
    ... are also used, from time to time, to manage near-term foreign currency cash requirements. Interest Rate Risk The company uses interest rate swaps to manage the interest rate mix of the total debt portfolio and related overall cost of borrowing. Interest rate swaps involve the exchange of fixed or...

  • Page 51
    ... reasonable assurance that information required to be disclosed in the company's reports filed or submitted under the Securities Exchange Act of 1934 (Exchange Act) is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. These controls and...

  • Page 52
    ...,'' ''2009 Grants of Plan-Based Awards,'' ''Outstanding Equity Awards,'' ''2009 Option Exercises and Stock Vested,'' ''Pension Benefits,'' ''Nonqualified Deferred Compensation,'' ''Potential Payments Upon Termination or Change in Control,'' and ''Directors' Compensation.'' Information related to...

  • Page 53
    ...AND RELATED STOCKHOLDER MATTERS Information with respect to Beneficial Owners is incorporated herein by reference to the Proxy and is included in the section entitled ''Ownership of Company Stock.'' Securities authorized for issuance under equity compensation plans as of December 31, 2009 (Shares in...

  • Page 54
    ...the section entitled ''Review and Approval of Transactions with Related Persons.'' Information with respect to director independence is incorporated by reference herein to the Proxy and is included in the sections entitled ''DuPont Board of Directors - Corporate Governance Guidelines,'' ''Guidelines...

  • Page 55
    ... of subsidiaries combined with the company's equity in the undistributed earnings of affiliated companies does not exceed 25 percent of consolidated net assets at December 31, 2009. Separate financial statements of affiliated companies accounted for by the equity method are omitted because no such...

  • Page 56
    ... defining the rights of holders of long-term debt of the company and its subsidiaries. The DuPont Stock Accumulation and Deferred Compensation Plan for Directors, as last amended effective January 1, 2009 (incorporated by reference to Exhibit 10.1 to the company's Annual Report on Form 10-K for...

  • Page 57
    ... company's Principal Executive Officer. Rule 13a-14 (a)/15d-14 (a) Certification of the company's Principal Financial Officer. Section 1350 Certification of the company's Principal Executive Officer. The information contained in this Exhibit shall not be deemed filed with the Securities and Exchange...

  • Page 58
    ... 17, 2010 E. I. DU PONT DE NEMOURS AND COMPANY By: /s/ NICHOLAS C. FANANDAKIS Nicholas C. Fanandakis Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below...

  • Page 59
    ... Statements: Management's Reports on Responsibility for Financial Statements and Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Consolidated Income Statements for the years ended December 31, 2009, 2008 and 2007 Consolidated Balance Sheets as...

  • Page 60
    ...in this Annual Report on Form 10-K. The financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) and are considered by management to present fairly the company's financial position, results of operations and cash flows...

  • Page 61
    ...the financial position of E. I. du Pont de Nemours and Company and its subsidiaries at December 31, 2009 and 2008, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2009 in conformity with accounting principles generally accepted in...

  • Page 62
    ...) For the year ended December 31, 2009 2008 2007 Net sales Other income, net Total Cost of goods sold and other operating charges Selling, general and administrative expenses Research and development expense Interest expense Employee separation/asset related charges, net Total Income before income...

  • Page 63
    ..., plant and equipment Goodwill Other intangible assets Investment in affiliates Other assets Total Liabilities and Stockholders' Equity Current liabilities Accounts payable Short-term borrowings and capital lease obligations Income taxes Other accrued liabilities Total current liabilities Long-term...

  • Page 64
    ... and clearance of cash flow hedges to earnings Pension benefit plans Other benefit plans Net unrealized loss on securities Total comprehensive loss Common dividends ($1.64 per share) Preferred dividends Common stock Issued - compensation plans Balance December 31, 2008 2009 Acquistion of a majority...

  • Page 65
    ... operating assets (Decrease) increase in operating liabilities: Accounts payable and other operating liabilities Accrued interest and income taxes Cash provided by operating activities Investing activities Purchases of property, plant and equipment Investments in affiliates Payments for businesses...

  • Page 66
    ... at time of purchase. They are classified as held-to-maturity and recorded at amortized cost. Other assets include long-term investments in securities, which comprise investments for which market values are not readily available (cost investments) and available-for-sale securities that are reported...

  • Page 67
    .... Stores and supplies are valued at cost or market, whichever is lower; cost is generally determined by the average cost method. Property, Plant and Equipment Property, plant and equipment (PP&E) is carried at cost and is depreciated using the straight-line method. PP&E placed in service prior...

  • Page 68
    ...are not discounted. Costs related to environmental remediation are charged to expense. Other environmental costs are also charged to expense unless they increase the value of the property or reduce or prevent contamination from future operations, in which case, they are capitalized. Asset Retirement...

  • Page 69
    ...most of the company's worldwide operations. For subsidiaries where the USD is the functional currency, all foreign currency asset and liability amounts are remeasured into USD at end-of-period exchange rates, except for inventories, prepaid expenses, property, plant and equipment, goodwill and other...

  • Page 70
    ... facilitated sale accounting for certain asset transfers, is removed by the new requirement. The company expects that this will not have a material effect on its financial position or results of operations. In June 2009, FASB issued authoritative guidance on accounting for variable interest...

  • Page 71
    ... of this program is to maintain an approximately balanced position in foreign currencies in order to minimize, on an after-tax basis, the effects of exchange rate changes on net monetary asset positions. The net pre-tax exchange gains and losses are partially offset by the associated tax impact...

  • Page 72
    ... into industrial markets. The plan was designed to restructure asset and fixed cost bases in order to improve long-term competitiveness, simplify business processes, and maximize pre-tax operating income. The plan included the elimination of about 2,000 positions by severance principally located in...

  • Page 73
    ... costs and workforce reductions through non-severance programs. The $100 net reduction impacted segment earnings for the year ended December 31, 2009 as follows: Agriculture & Nutrition - $1; Performance Chemicals - $3; Performance Coatings - $61; Performance Materials - $29; Safety & Protection...

  • Page 74
    ... de Nemours and Company Notes to the Consolidated Financial Statements (continued) (Dollars in millions, except per share) Account balances and activity for the 2008 restructuring program are summarized below: Employee Separation Costs Other Non-personnel Charges1 Asset Related Total Net charges...

  • Page 75
    ... 2009 and 2008, are as follows: 2009 Asset Liability Asset 2008 Liability Depreciation Accrued employee benefits Other accrued expenses Inventories Unrealized exchange gains Tax loss/tax credit carryforwards/backs Investment in subsidiaries and affiliates Amortization of intangibles Other Valuation...

  • Page 76
    .... In January 2007, the company implemented new provisions for the accounting for uncertainty in income taxes, which defines criteria that an individual income tax position must meet for any part of the benefit of that position to be recognized in an enterprise's financial statements and provides...

  • Page 77
    ...: 2009 2008 2007 Numerator: Net income attributable to DuPont Preferred dividends Net income available to common stockholders Denominator: Weighted-average number of common shares outstanding - Basic Dilutive effect of the company's employee compensation plans and accelerated share repurchase...

  • Page 78
    ... 59 $3,704 The company's marketable securities consist of money market instruments, such as time deposits and bank deposits. The significant increase in marketable securities for 2009 is primarily due to longer maturities for current year investments, coupled with an increase in cash. The current...

  • Page 79
    ... 31, 2009 Goodwill Adjustments and Acquisitions Balance as of December 31, 2008 Goodwill Adjustments and Acquisitions Balance as of December 31, 2007 Agriculture & Nutrition Electronics & Communications Performance Chemicals Performance Coatings Performance Materials Safety & Protection Other Total...

  • Page 80
    ... the equity method of accounting is used (see Note 1) is shown on a 100 percent basis. The most significant of these affiliates at December 31, 2009, are DuPont Teijin Films, DuPont-Toray Company Ltd. and DuPont-Mitsui, all of which are owned 50 percent by the company. Dividends received from equity...

  • Page 81
    ...087 875 $4,055 Included within long-term investments in securities are securities for which market values are not readily available (cost investments) and securities classified as available-for-sale. The company's cost investments totaled $85 and $71 at December 31, 2009 and 2008, respectively. The...

  • Page 82
    ... advance customer payments related to businesses within the Agriculture & Nutrition segment. Miscellaneous other accrued liabilities principally includes accrued plant and operating expenses, accrued litigation costs, employee separation costs in connection with the company's restructuring programs...

  • Page 83
    ... fixed rate industrial development bonds for December 31, 2009 and 2008, were 6.0 percent. Average interest rates on medium-term notes at December 31, 2009 and 2008, were 3.3 percent and 4.0 percent, respectively. Includes long-term debt due within one year. The company has outstanding interest rate...

  • Page 84
    ... Company Notes to the Consolidated Financial Statements (continued) (Dollars in millions, except per share) 19. OTHER LIABILITIES December 31, 2009 2008 Employee benefits: Accrued other long-term benefit costs (Note 22) Accrued pension benefit costs (Note 22) Accrued environmental remediation costs...

  • Page 85
    ... in its operations. The terms for these leased assets vary depending on the lease agreement. Prior to November 2009, the company leased short-lived equipment under a master operating lease program. Lease payments for these assets totaled $38 in 2009, $55 in 2008 and $59 in 2007, and were reported as...

  • Page 86
    ... a class action, captioned Leach v. DuPont, was filed in West Virginia state court against DuPont and the Lubeck Public Service District. DuPont uses PFOA as a processing aid to manufacture fluoropolymer resins and dispersions at various sites around the world including its Washington Works plant in...

  • Page 87
    ... class actions were filed alleging that drinking water had been contaminated by PFOA in excess of 0.05 ppb due to alleged releases from certain DuPont plants. One of these cases was filed in West Virginia state court by three individual plaintiffs on behalf of customers of the Parkersburg City Water...

  • Page 88
    ... two purported class actions were filed in New Jersey. One was filed in federal court on behalf of individuals who allegedly drank water contaminated by releases from DuPont's Chambers Works plant in Deepwater, New Jersey. The second was filed in state court on behalf of customers serviced primarily...

  • Page 89
    ...crop damage was filed for the third time having been dismissed twice before on DuPont's motion. It has been, and continues to be, the company's position that the plaintiff does not own the property allegedly damaged. One case alleging crop damage is scheduled for trial during the second quarter 2010...

  • Page 90
    ... December 31, 2009, the company has accruals of $0.1 related to Benlateá"¼. Spelter, West Virginia In September 2006, a West Virginia state court certified a class action against DuPont that seeks relief including the provision of remediation services and property value diminution damages for 7,000...

  • Page 91
    ... plan with the purchase and retirement of 112.8 million shares at an average price of $44.33 per share. Common stock held in treasury is recorded at cost. When retired, the excess of the cost of treasury stock over its par value is allocated between reinvested earnings and additional paid-in capital...

  • Page 92
    ...) are shown below: Pretax Tax After-tax 2009 Cumulative translation adjustment Net revaluation and clearance of cash flow hedges to earnings Pension benefits (Note 22) Other benefits (Note 22) Net unrealized losses on securities Other comprehensive loss attributable to noncontrolling interest Other...

  • Page 93
    ... provide medical, dental and life insurance benefits to pensioners and survivors, and disability and life insurance protection to employees. The associated plans for retiree benefits are unfunded and the cost of the approved claims is paid from company funds. Essentially all of the cost and...

  • Page 94
    ... per share) Summarized information on the company's pension and other long-term employee benefit plans is as follows: Pension Benefits Obligations and Funded Status at December 31, 2009 2008 Other Benefits 2009 2008 Change in benefit obligation Benefit obligation at beginning of year Service cost...

  • Page 95
    ...Pont de Nemours and Company Notes to the Consolidated Financial Statements (continued) (Dollars in millions, except per share) Information for pension plans with projected benefit obligation in excess of plan assets 2009 2008 Projected benefit obligation Accumulated benefit obligation Fair value of...

  • Page 96
    ... periodic benefit costs, the discount rate, expected return on plan assets and the rate of compensation increase were 6.25 percent, 9.00 percent and 4.50 percent for 2009, and 6.25 percent, 9.00 percent and 4.50 percent for 2008. In August 2006, the company announced major changes to the pension and...

  • Page 97
    ... asset liability modeling. The general principles guiding U.S. pension asset investment policies are those embodied in the Employee Retirement Income Security Act of 1974 (ERISA). These principles include discharging the company's investment responsibilities for the exclusive benefit of plan...

  • Page 98
    ...2009 and 2008, respectively. Primarily receivables for investment securities sold. Primarily payables for investment securities purchased. The company's pension plans hold Level 3 assets which are primarily ownership interests in investment partnerships and trusts that own private market securities...

  • Page 99
    ...shows the company's pre-tax cash contributions to its pension plans and other long-term employee benefit plans: 2009 2008 2007 Pension plans Other long-term employee benefit plans $306 323 $ 252 326 $277 315 No contributions were required or made to the principal U.S. pension plan trust fund in...

  • Page 100
    ... several of the company's existing compensation plans (the Stock Performance Plan, Variable Compensation Plan, and equity awards of the Stock Accumulation and Deferred Compensation Plan for Directors) into one plan providing for equity-based and cash incentive awards to certain employees, directors...

  • Page 101
    ... market value of the company's stock. Total intrinsic value of options exercised for 2009, 2008 and 2007 were $0, $18 and $96, respectively. In 2009, the company realized a tax benefit of $0 from options exercised. As of December 31, 2009, $16 of total unrecognized compensation cost related to stock...

  • Page 102
    ... currency, interest rate and commodity price risks under established procedures and controls. The company has established a variety of approved derivative instruments to be utilized in each financial risk management program, as well as varying levels of exposure coverage and time horizons based on...

  • Page 103
    ... company had interest rate swap agreements with gross notional amounts of approximately $1,900. Cash Flow Hedges The company maintains a number of cash flow hedging programs to reduce risks related to foreign currency and commodity price risk. While each risk management program has a different time...

  • Page 104
    ... 2009, the company had forward exchange contracts with gross notional amounts of approximately $7,634. In addition, the company has risk management programs for agricultural commodities that do not qualify for hedge accounting treatment. At December 31, 2009, the company had agricultural commodities...

  • Page 105
    ...except per share) The following tables provide information on the location and amounts of derivative fair values in the consolidated balance sheet and derivative gains and losses in the consolidated income statement: Fair Values of Derivative Instruments Asset Derivatives December 31, 2009 Liability...

  • Page 106
    ... de Nemours and Company Notes to the Consolidated Financial Statements (continued) (Dollars in millions, except per share) Cash Flow Hedging Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) December 31, 2009 Amount of...

  • Page 107
    ...India Japan Korea Singapore Taiwan Other Total Asia Pacific Latin America Argentina Brazil Mexico Other Total Latin America Canada...860 Net sales are attributed to countries based on the location of the customer. Includes property, plant and equipment less accumulated depreciation. Europe, Middle ...

  • Page 108
    ..., exchange gains/(losses), corporate expenses, interest and the cumulative effect of changes in accounting principles. Segment net assets includes net working capital, net property, plant and equipment and other noncurrent operating assets and liabilities of the segment. Affiliate net assets (pro...

  • Page 109
    ... per share) Agriculture & Nutrition Electronics & Communi- Performance Performance Performance Safety & Pharmacations Chemicals Coatings Materials Protection ceuticals Other Total 2009 Segment sales Less transfers Net sales Pretax operating income (loss) Depreciation and amortization Equity in...

  • Page 110
    ... $34,131 Pension assets are included in corporate assets. Segment Totals Consolidated Totals Other items Adjustments 2009 Depreciation and amortization Equity in earnings of affiliates Affiliate net assets Expenditures for long-lived assets 2008 Depreciation and amortization Equity in earnings...

  • Page 111
    ... costs related to the 2008 and 2009 programs impacting the segments as follows: Agriculture & Nutrition - $1; Electronics and Communications - $6; Performance Chemicals - $12; Performance Coatings - $50; Performance Materials - $52; Safety & Protection - $10; and Other - $(1). Includes a $82 benefit...

  • Page 112
    ... costs and workforce reductions through non-severance programs. In the fourth quarter 2009 the company recorded a $63 charge to other income, net and reduction to accounts and notes receivable, net in the Pharmaceuticals segment to reflect increased rebates and other sales deductions related...

  • Page 113
    ...for 2010 Annual Meeting of Stockholders; and 3. Quarterly reports to the Securities and Exchange Commission, filed on Form 10-Q Requests should be addressed to: DuPont Corporate Information Center CRP705-GS38 P .O. Box 80705 Wilmington, DE 19880-0705 or call 302 774-5991 E-mail: [email protected]...