DuPont 2009 Annual Report Download - page 73

Download and view the complete annual report

Please find page 73 of the 2009 DuPont annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 113

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113

E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)
Account balances and activity for the 2009 restructuring program are summarized below:
Employee Other
Asset Separation Non-personnel
Related Costs Charges1Total
Net charges to income in 2009 $ 104 $212 $24 $ 340
Charges to accounts
Payments - (33)2- (33)
Net translation adjustment - 1 - 1
Net credits to income - (30) - (30)
Asset write-offs and adjustments (104) - - (104)
Balance at December 31, 2009 $ - $150 $24 $ 174
1Other non-personnel charges consist of contractual obligation costs.
2Payments to U.S. based employees are generally paid over a period of time not to exceed twelve months.
2008 Restructuring Program
During 2008, in response to the challenging economic environment, the company initiated a global restructuring
program to reduce costs and improve profitability across its businesses. The program included the elimination of
approximately 2,500 positions principally located in Western Europe and the U.S. primarily supporting the motor
vehicle and construction markets. As a result, a charge of $535 was recorded in employee separation/asset related
charges, net, which pertains to the cost of goods sold and other operating charges financial statement line item. This
charge included $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 restructuring program charge of $535 reduced 2008 segment earnings as follows: Agriculture &
Nutrition – $18; Electronics & Communications – $37; Performance Chemicals – $50; Performance Coatings – $209;
Performance Materials – $94; Safety & Protection – $96; and Other – $31.
In 2009, the company recorded a $100 net reduction in the estimated costs associated with the 2008 restructuring
program. This net reduction was primarily due to lower than estimated individual severance 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 – $2; and Other – $4.
There were $110 of cash payments related to the 2008 restructuring program in 2009. As of December 31, 2009,
approximately 1,700 employees have been separated related to the 2008 global restructuring program, and about 400
positions were eliminated through other non-severance programs. The program is estimated to be complete by the
end of 2010.
F-15