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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)
Other Intangible Assets
The following table summarizes the gross carrying amounts and accumulated amortization of other intangible assets
by major class:
December 31, 2009 December 31, 2008
Accumulated Accumulated
Gross Amortization Net Gross Amortization Net
Intangible assets subject to amortization
(Definite-lived)
Purchased and licensed technology $1,622 $ (716) $ 906 $2,420 $(1,356) $1,064
Patents 169 (57) 112 128 (45) 83
Trademarks 62 (22) 40 61 (19) 42
Other1642 (302) 340 627 (260) 367
2,495 (1,097) 1,398 3,236 (1,680) 1,556
Intangible assets not subject to
amortization (Indefinite-lived)
Trademarks/tradenames 179 - 179 179 - 179
Pioneer germplasm2975 - 975 975 - 975
1,154 - 1,154 1,154 - 1,154
$3,649 $(1,097) $2,552 $4,390 $(1,680) $2,710
1Primarily consists of sales and grower networks, customer lists, marketing and manufacturing alliances and noncompetition agreements.
2Pioneer germplasm is the pool of genetic source material and body of knowledge gained from the development and delivery stage of plant
breeding. The company recognized germplasm as an intangible asset upon the acquisition of Pioneer. This intangible asset is expected to
contribute to cash flows beyond the foreseeable future and there are no legal, regulatory, contractual, or other factors which limit its useful
life. Prior to the adoption of the requirements for accounting for goodwill and other intangible assets, the company amortized germplasm on
a straight-line basis over a period of forty years, the maximum period previously allowed under generally accepted accounting principles.
The aggregate pre-tax amortization expense for definite-lived intangible assets was $252 for 2009, $275 for 2008, and
$213 for 2007. The estimated aggregate pre-tax amortization expense for 2010, 2011, 2012, 2013 and 2014 is $184,
$188, $191, $190 and $175, respectively, which are primarily reported in cost of goods sold and other operating
charges.
13. SUMMARIZED FINANCIAL INFORMATION FOR AFFILIATED COMPANIES
Summarized combined financial information for affiliated companies for which 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 affiliates were $49 in 2009, $87 in 2008 and $88 in 2007.
Year Ended December 31,
Results of operations 2009 2008 2007
Net sales1$2,924 $3,064 $3,414
Earnings before income taxes 235 281 171
Net income 210 190 66
DuPont’s equity in (losses) earnings of affiliates:
Partnerships-pretax2(22) (4) (19)
Corporate joint ventures-after tax 121 85 54
Write-down of investment3-- (165)
$99 $ 81 $ (130)
1Includes sales to DuPont of $412 in 2009, $390 in 2008, and $496 in 2007.
2Income taxes are reflected in the company’s provision for income tax.
3Impairment charge of $165 to write down the company’s investment in a polyester films joint venture in the Performance Materials segment.
As a result, at December 31, 2007, DuPont ceased using the equity method of accounting for three legal entities within the joint venture.
F-22