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2010
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, 2010
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, 2010, was approximately $31.3 billion.
As of January 31, 2011, 921,634,000 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 27, 2011 .... III

Table of contents

  • Page 1
    ... No.) 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...

  • Page 2
    ... Information Directors, Executive Officers and Corporate Governance Executive Compensation Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Certain Relationships and Related Transactions, and Director Independence Principal Accountant Fees and Services...

  • Page 3
    ... division, represents about 35 percent of its total sales. DuPont and Danisco are joint venture partners in the development of cellulosic ethanol technology. (See Applied BioSciences business discussion on page 34 for more information.) Danisco has nearly 7,000 employees globally with operations in...

  • Page 4
    ... generally procured under competitively priced supply contracts. The company's wholly owned subsidiary, Pioneer Hi-Bred International, Inc. (Pioneer), operates in the seed industry and has seed production facilities located throughout the world. Seed production is performed directly by the company...

  • Page 5
    ... seed companies. (See page 27 for a discussion of Pioneer's PROaccessSM business strategy.) In other North American markets, Pioneerá"¼ products are marketed through distributors and crop input retailers. Pioneerá"¼ products outside of North America are marketed through a network of subsidiaries...

  • Page 6
    ...Solae Company facilities in St. Louis, Missouri; polymer research facilities in Richmond, Virginia, and Parkersburg, West Virginia; and electronic materials research facilities in Research Triangle Park, North Carolina, and Santa Barbara, California. DuPont, reflecting the company's global interests...

  • Page 7
    ... periods. Price increases for energy and raw materials could have a significant impact on the company's ability to sustain and grow earnings. The company's manufacturing processes consume significant amounts of energy and raw materials, the costs of which are subject to worldwide supply and demand...

  • Page 8
    ... new and developing products and services and its ability to bring those products and services to market. The company plans to grow earnings by focusing on developing markets and solutions to meet increasing demand for food productivity, decrease dependency on fossil fuels and protect people, assets...

  • Page 9
    ...seeds. The company competes with major global companies that have strong intellectual property estates supporting the use of biotechnology to enhance products, particularly in the agricultural products and production markets. Speed in discovering and protecting new technologies and bringing products...

  • Page 10
    ... condition, and cash flows. The company's business and operating results may in the future be adversely affected by global economic conditions, including instability in credit markets, declining consumer and business confidence, fluctuating commodity prices, volatile exchange rates, and other...

  • Page 11
    Part I ITEM 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. ...

  • Page 12
    ...; Virgina Beach, VA The company's plants and equipment are well maintained and in good operating condition. Sales as a percent of capacity were 81, 70 and 78 percent in 2010, 2009 and 2008, respectively. Properties are primarily owned by the company; however, certain properties are leased. No title...

  • Page 13
    ... The U.S. Environmental Protection Agency (EPA) is investigating three chemical releases at DuPont's Belle facility in West Virginia which occurred in January 2010. One of the releases involved the death of a DuPont employee after exposure to phosgene. Chambers Works Plant, Deepwater, New Jersey In...

  • Page 14
    ... AND ISSUER PURCHASES 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 81,000...

  • Page 15
    ... The Procter & Gamble Company; and United Technologies Corporation. Stock Performance Graph $175 $150 $125 $100 DuPont $75 S&P 500 Peer Group $50 2005 2006 2007 2008 2009 2010 2FEB201100530384 12/31/2005 12/31/2006 12/31/2007 12/31/2008 12/31/2009 12/31/2010 DuPont S&P 500 Index Peer...

  • Page 16
    ... per share of common stock Financial position at year-end Working capital Total assets Borrowings and capital lease obligations Short-term Long-term Total equity General For the year Purchases of property, plant & equipment and investments in affiliates Depreciation Research and development expense...

  • Page 17
    ... key markets and improving productivity, the company met or surpassed its 2010 financial goals for sales growth, earnings per share, cash flow and working capital reductions. Consistent with its strong 2010 performance, the company announced a new five-year plan which includes compound annual growth...

  • Page 18
    ... on location of customers and percentage variances from prior year: Percent Change Due to: Percent Change vs. 2009 (Dollars in billions) 2010 Net Sales Local Price Currency Effect Volume Portfolio Worldwide United States Europe, Middle East, and Africa (EMEA) Asia Pacific Latin America Canada...

  • Page 19
    ... was partially offset by an increase of $23 million in asset sales. Additional information related to the company's other income, net is included in Note 2 to the Consolidated Financial Statements. (Dollars in millions) 2010 2009 2008 COST OF GOODS SOLD AND OTHER OPERATING CHARGES As a percent of...

  • Page 20
    ... Research and development expense (R&D) increased $273 million in 2010 as compared to 2009 due to continued growth investment aligned with the company's global trends, including resources to support agriculture productivity, alternative fuels and energy efficient materials, and safety and protection...

  • Page 21
    ... 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 22
    ...higher pre-tax non-cash pension costs. The company plans to partly offset these increases by fixed cost productivity programs totaling about $300 million. The company plans to continue a differential level of capital expenditures and funding for research & development for businesses expected to have...

  • Page 23
    ... Accounting for employee benefit plans involves numerous assumptions and estimates. Discount rate and expected return on plan assets are two critical assumptions in measuring the cost and benefit obligation of the company's pension and other long-term employee benefit plans. Management reviews...

  • Page 24
    ... to the company's pension and other long-term employee benefit plans, based on assets and liabilities at December 31, 2010: 1/2 Percentage Point Increase 1/2 Percentage Point Decrease Pre-tax Earnings Benefit (Charge) (Dollars in millions) Discount Rate Expected rate of return on plan assets $81...

  • Page 25
    ... tax planning strategies could result 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...

  • Page 26
    .... Information with respect to the company's significant accounting policies on long-lived assets is included in Note 1 to the Consolidated Financial Statements. Segment Reviews Segment sales include transfers to another business segment. Products are transferred between segments on a basis...

  • Page 27
    ... ended December 31, 2010, 2009 and 2008, respectively. Agricultural seed research requires long-term commitment, investment and innovation. Pioneer research is focused on results that deliver higher crop yields and a consistent per acre income advantage for its customers. New product innovation is...

  • Page 28
    ... United States dollar (USD) selling prices, which were partially offset by portfolio changes of 1 percent. Higher volume was primarily due to higher seed sales in North America with market share gains for corn and soybeans. Higher global sales of Crop Protection products were led by broad-based...

  • Page 29
    ... in developing a solution-process technology and material set to enable lower cost organic light-emitting diode (OLED) displays. In packaging graphics, DuPont is a leading supplier of flexographic printing systems, including Cyrelá"¼ photopolymer plates. The segment is investing in new products such...

  • Page 30
    ... and specialty chemical products for markets including plastics & coatings, textiles, mining, pulp and paper, water treatment and healthcare. The following are Performance Chemicals' operating businesses: DuPont Titanium Technologies is the world's largest manufacturer of titanium dioxide, and...

  • Page 31
    ..., partially offset by fixed costs reductions. Outlook Performance Chemicals' sales are expected to increase in 2011 as a result of the continued global economic recovery, higher global demand for titanium dioxide and specialty chemicals, and higher USD selling prices. Total segment earnings are...

  • Page 32
    ... automotive OEM markets as a result of higher global motor vehicle builds and strong demand in industrial coatings, particularly in the North American and European heavy duty truck markets. Higher USD selling prices primarily reflect pricing actions taken to offset the increase in raw material costs...

  • Page 33
    ...products and services to a large number of markets including, construction, transportation, communications, industrial chemicals, oil and gas, electric utilities, automotive, manufacturing, defense, homeland security and safety consulting. The following are Safety & Protection's operating businesses...

  • Page 34
    ...The acquisition allows the business to expand its clean technologies portfolio by strengthening the business' clean air and clean fuel offerings and provide the company with further access to high-growth market segments, particularly in developing regions like Asia Pacific. 2010 versus 2009 Sales of...

  • Page 35
    ... cost advantaged products with superior performance and a smaller environmental footprint that are based on a unique combination of biological, chemical and material science capabilities. Specific global growth projects across the company are consolidated within Applied BioSciences to capitalize...

  • Page 36
    ...credit lines, equity and long-term debt markets and asset sales. The company's current strong financial position, liquidity and credit ratings provide excellent access to the capital markets. In addition, cash generating actions have been implemented including spending and working capital reductions...

  • Page 37
    ... market and cost of capital. The company's long-term and short-term credit ratings are as follows: Long term Short term Outlook Standard & Poor's Moody's Investors Service Fitch Ratings (Dollars in millions) A A2 A 2010 A-1 P-1 F1 Watch negative Under review for possible downgrade Negative 2009...

  • Page 38
    ... of property, plant and equipment, and therefore indicates operating cash flow available for payment of dividends, other investing activities, and other financing activities. Free cash flow is useful to investors and management to evaluate the company's cash flow and financial performance, and...

  • Page 39
    ... third parties related to equity affiliates, customers, suppliers and other affiliated companies. At December 31, 2010, the company had directly guaranteed $544 million of such obligations, and $16 million relating to guarantees of obligations for divested subsidiaries. This represents the maximum...

  • Page 40
    ... timing of the agreement. Primarily represents raw material supply obligations. Primarily represents obligations associated with distribution, health care/benefit administration, research and development and other professional and consulting contracts. Pension and other long-term employee benefit...

  • Page 41
    ...to its employees and retirees. The company maintains retirement-related programs in many countries that have a long-term impact on the company's earnings and cash flows. These plans are typically defined benefit pension plans, as well as medical, dental and life insurance benefits for pensioners and...

  • Page 42
    ... in 2010 and 2009 primarily related to decreases in the market-related value of the assets in the principal U.S. pension plan. See ''Long-Term Employee Benefits'' under the Critical Accounting Estimates section beginning on page 22 of this report for additional information on determining annual...

  • Page 43
    ... to meet their obligations and, where they do not, or where PRPs cannot be located or have declared bankruptcy, the company's own share of liability has not materially increased. There are relatively few sites where the company is a major participant and the cost to the company of remediation...

  • Page 44
    ... 2009 due primarily to increased environmental research activities. Based on existing facts and circumstances, management does not believe that year over year changes, if any, in environmental expenses charged to current operations will have a material impact on the company's financial position...

  • 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
    ... ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, continued submission of additional data needed to determine the risk a chemical may pose. Also in 2009, EPA announced its ''Essential Principle for Reform of Chemicals Management Legislation.'' The company is monitoring these developments...

  • Page 47
    ...toxicity of PFOA and DuPont and other companies have outlined plans to continue research, emission reduction and product stewardship activities to help address EPA's questions. In January 2006, DuPont pledged its commitment to EPA's 2010/15 PFOA Stewardship Program. The EPA program asks participants...

  • Page 48
    Part II ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, continued Action Plans (the Plans) in December 2009 of which one covers long-chain perfluorinated chemicals (PFCs) including PFOA. The Plans outline the risks that the use of the specified ...

  • Page 49
    ... and cash flow volatility related to changes in foreign currency exchange rates. The following table summarizes the impacts of this program on the company's results of operations for the years ended December 31, 2010, 2009 and 2008, and includes the company's pro rata share of its equity affiliates...

  • Page 50
    ... change in market rates. Fair Value Asset/(Liability) (Dollars in millions) 2010 2009 2010 Fair Value Sensitivity 2009 Interest rate swaps Foreign currency contracts Energy feedstocks $ 40 53 (72) $ 97 (101) $ (51) (697) (79) $ (60) (752) (119) Since the company's risk management programs...

  • Page 51
    ... 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 procedures also give...

  • Page 52
    ... in 1994. In 1997, he was appointed regional director, North America and was appointed Vice President and General Manager-DuPont Crop Protection later that year. In January 2004, he was named Senior Vice President-DuPont Global Human Resources. He became Group Vice President in 2008 and was named...

  • Page 53
    ...and Chief Innovation Officer. In October 2009, he added responsibility for DuPont Performance Polymers, Packaging & Industrial Polymers, Applied BioSciences, Nutrition & Health as well as integrated operations. Nicholas C. Fanandakis joined DuPont in 1979 as an accounting and business analyst. Since...

  • Page 54
    ...lump sum or annual installments after separation from service. Shareholder approval of the MDCP was not required under the rules of the New York Stock Exchange. This column also includes the following: (i) options totaling 9,811 granted under the company's 2002 Corporate Sharing Program (see Note 22...

  • Page 55
    ... III ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE Information with respect to the company's policy and procedures for the review, approval or ratification of transactions with related persons is incorporated by reference herein to the Proxy and is included in...

  • Page 56
    ... funds is omitted because the restricted net assets 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, 2010. Separate financial statements of affiliated companies accounted...

  • Page 57
    ... 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 58
    Part IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES, continued Exhibit Number Description 10.12* Supplemental Deferral Terms for Deferred Long Term Incentive Awards and Deferred Variable Compensation Awards (incorporated by reference to Exhibit 10.15 to the company's Annual Report on ...

  • Page 59
    ... DE NEMOURS AND COMPANY By: /s/ NICHOLAS C. FANANDAKIS Nicholas C. Fanandakis Executive 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 by the following...

  • Page 60
    ... Consolidated Financial 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, 2010, 2009 and 2008 Consolidated...

  • Page 61
    ...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 62
    ... Nemours and Company and its subsidiaries at December 31, 2010 and 2009, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2010 in conformity with accounting principles generally accepted in the United States of America. In addition...

  • Page 63
    ... millions, except per share) For the year ended December 31, 2010 2009 2008 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...

  • Page 64
    ... per share) December 31, 2010 2009 Assets Current assets Cash and cash equivalents Marketable securities Accounts and notes receivable, net Inventories Prepaid expenses Deferred income taxes Total current assets Property, plant and equipment Less: Accumulated depreciation Net property, plant and...

  • Page 65
    ... clearance of cash flow hedges to earnings Pension benefit plans Other benefit plans Net unrealized gain on securities Total comprehensive income Common dividends ($1.64 per share) Preferred dividends Common stock Issued - compensation plans Balance December 31, 2009 2010 Acquisition of a majority...

  • Page 66
    ... Cash provided by operating activities Investing activities Purchases of property, plant and equipment Investments in affiliates Payments for businesses - net of cash acquired Proceeds from sale of assets - net of cash sold Net (increase) decrease in short-term financial instruments Forward exchange...

  • Page 67
    ..., an equivalent basis. Accruals are made for sales returns and other allowances based on the company's experience. The company accounts for cash sales incentives as a reduction in sales and noncash sales incentives as a charge to cost of goods sold or selling expense, depending on the nature of the...

  • Page 68
    ..., or market. Elements of cost in inventories include raw materials, direct labor and manufacturing overhead. 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 is...

  • Page 69
    ... on prices of similar assets or other valuation methodologies including present value techniques. Impairment losses are included in cost of goods sold and other operating charges. Definite-lived intangible assets, such as purchased and licensed technology, patents and customer lists are amortized...

  • Page 70
    ...per share) Insurance/Self-Insurance The company self-insures certain risks where permitted by law or regulation, including workers' compensation, vehicle liability and employee related benefits. Liabilities associated with these risks are estimated in part by considering historical claims experience...

  • Page 71
    ..., 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. Exchange gains (losses) related to earnings of affiliates was $(2), $13 and $(36) for 2010, 2009 and 2008, respectively. Miscellaneous...

  • Page 72
    ... - $8; Performance Chemicals - $10; Performance Coatings - $(16); Performance Materials - $13; and Safety & Protection - $5. There were $81 of employee separation cash payments related to the 2009 restructuring program during 2010. The actions related to the 2009 restructuring program were...

  • 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
    ... 2010 and 2009, are as follows: 2010 Asset Liability Asset 2009 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
    ... accounting for uncertainty in income taxes. It is reasonably possible that changes to the company's global unrecognized tax benefits could be significant, however, due to the uncertainty regarding the timing of completion of audits and possible outcomes, a current estimate of the range of increases...

  • Page 77
    ... of new shares from the company's equity compensation plans, partially offset by the company's repurchase and retirement of its common stock (see Note 20). The weighted-average number of common shares outstanding in 2009 increased as a result of the issuance of new shares from the company's equity...

  • Page 78
    ...,831,000 The change in the average number of stock options that were antidilutive in 2010 and 2009 was primarily due to changes in the company's average stock price. 7. FAIR VALUE MEASUREMENTS The company has determined that its financial assets and liabilities are level 1 and level 2 in the fair...

  • Page 79
    ...current economic and market conditions, and review of the current status of customer's accounts. Notes receivable - trade primarily consists of receivables within the Agriculture & Nutrition segment for deferred payment loan programs for the sale of seed products to customers. These loans have terms...

  • Page 80
    ... in goodwill in 2010 primarily related to acquisitions in the Agriculture & Nutrition and Safety & Protection segments. Changes in goodwill in 2009 resulted from acquisition accounting refinements and other acquisitions and divestitures. In 2010 and 2009, the company performed impairment tests for...

  • Page 81
    ...related to acquisitions in the Agriculture & Nutrition and Safety & Protection segments, which were partially offset by the write-off of fully amortized definite-lived intangible assets in the Agriculture & Nutrition segment. Primarily consists of sales and grower networks, customer lists, marketing...

  • Page 82
    ...$3,542 Trade payables includes $119 in 2010 and $71 for 2009 due to equity affiliates. Payables to banks represent checks issued on certain disbursement accounts but not presented to the banks for payment. The reported amounts shown above approximate fair value because of the short-term maturity of...

  • Page 83
    ... 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 84
    ... rate industrial development bonds at December 31, 2009 were 6.0 percent. Average interest rates on medium-term notes at December 31, 2010 and 2009, were 3.4 percent and 3.3 percent, respectively. Includes long-term debt due within one year. At December 31, 2010 and 2009, the company had outstanding...

  • Page 85
    ... 31, 2010 2009 Employee benefits: Accrued other long-term benefit costs (Note 21) Accrued pension benefit costs (Note 21) Accrued environmental remediation costs Miscellaneous $ 3,670 5,401 317 1,638 $11,026 $ 3,791 5,514 326 1,859 $11,490 Miscellaneous includes asset retirement obligations...

  • Page 86
    ... with third parties related to equity affiliates, customers, suppliers and other affiliated companies. At December 31, 2010, the company had directly guaranteed $544 of such obligations, and $16 relating to guarantees of historical obligations for divested subsidiaries. This represents the maximum...

  • Page 87
    ... customers in New Jersey, Ohio and West Virginia. The cases generally claim PFOA contamination of drinking water and seek a variety of relief including compensatory and punitive damages, testing, treatment, remediation and monitoring. In addition, the two New Jersey class actions and the Ohio action...

  • Page 88
    ... is to fund DuPont's obligations under agreements with the U. S. Environmental Protection Agency (EPA) and the New Jersey Department of Environmental Protection. In 2005, the company and EPA entered an agreement settling allegations that DuPont failed to comply with technical reporting requirements...

  • Page 89
    ... of its business. These lawsuits and claims include actions based on alleged exposures to products, intellectual property and environmental matters and contract and antitrust claims. Management has noted a nationwide trend in purported class actions against chemical manufacturers generally seeking...

  • Page 90
    ... are not at prices in excess of current market. 20. STOCKHOLDERS' EQUITY The company's Board of Directors authorized a $2,000 share buyback plan in June 2001. During 2010, the company purchased and retired 5.4 million shares at a total cost of $250 under this plan. During 2009 and 2008, there...

  • Page 91
    ...) recorded in Stockholders' Equity was $12, $144 and $2,476 for the years 2010, 2009 and 2008, respectively. Included in these amounts were tax (expense) benefits of $17, $(10) and $3 for the years 2010, 2009 and 2008, respectively, associated with stock compensation programs. The remainder consists...

  • Page 92
    ...or remain unfunded. Other Long-term Employee Benefits The parent company and certain subsidiaries 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...

  • Page 93
    ... on the company's pension and other long-term employee benefit plans is as follows: Pension Benefits Obligations and Funded Status at December 31, 2010 2009 Other Benefits 2010 2009 Change in benefit obligation Benefit obligation at beginning of year Service cost Interest cost Plan participants...

  • Page 94
    ... comprehensive income 2010 2009 2008 Net periodic benefit (credit) cost Service cost Interest cost Expected return on plan assets Amortization of loss Amortization of prior service cost Curtailment/settlement loss Net periodic benefit (credit) cost Changes in plan assets and benefit obligations...

  • Page 95
    ...costs, the discount rate, expected return on plan assets and the rate of compensation increase were 6.00 percent, 9.00 percent and 4.50 percent for 2010, 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. The company utilizes published long...

  • Page 96
    ... total of service and interest cost Increase (decrease) on post-retirement benefit obligation $ 6 72 $ (5) (76) Plan Assets All pension plan assets in the U.S. are invested through a single master trust fund. The strategic asset allocation for this trust fund is selected by management, reflecting...

  • Page 97
    ... The company's pension plans directly held $498 (3 percent of total plan assets) and $336 (2 percent of total plan assets) of DuPont common stock at December 31, 2010 and 2009, respectively. Primarily receivables for investment securities sold. Primarily payables for investment securities purchased...

  • Page 98
    ...2009 2008 Pension plans Other long-term employee benefit plans $782 321 $ 306 323 $252 326 The company made a voluntary contribution of $500 to its principal U.S. pension plan in the third quarter 2010. No contributions were required or made to the principal U.S. pension plan trust fund in 2009...

  • Page 99
    ...benefits related to stock-based compensation arrangements were $36, $38 and $37 for 2010, 2009 and 2008, respectively. In April 2007, the shareholders approved the DuPont Equity and Incentive Plan (EIP). The EIP consolidated several of the company's existing compensation plans (the Stock Performance...

  • Page 100
    ...fair market value of the company's stock. Total intrinsic value of options exercised for 2010, 2009 and 2008 were $109, $0 and $18, respectively. In 2010, the company realized a tax benefit of $35 from options exercised. As of December 31, 2010, $14 of total unrecognized compensation cost related to...

  • Page 101
    ... compensation expense related to nonvested awards. That cost is expected to be recognized over a weighted-average period of 1.67 years. The total fair value of stock units vested during 2010, 2009 and 2008 was $64, $74 and $60, respectively. Other Cash-based Awards Cash awards under the EIP plan...

  • Page 102
    ... 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. Interest Rate...

  • Page 103
    ... $277, respectively. The company contracts with independent growers to produce seed inventory. Under these contracts, growers are compensated with bushel equivalents that are sold to the company for the market price of grain for a period of time. Derivative instruments, such as commodity futures and...

  • Page 104
    ... 31, 2010 and 2009, the company did not maintain any hedges of net investment in a foreign operation. Derivatives not Designated in Hedging Relationships The company uses forward exchange contracts to reduce its net exposure, by currency, related to foreign currencydenominated monetary assets and...

  • Page 105
    ...other income, net, was partially offset by the related gain (loss) on the foreign currency-denominated monetary assets and liabilities of the company's operations, which were $(130) and $280 for 2010 and 2009, respectively. Loss was recognized in cost of goods sold and other operating charges. F-46

  • Page 106
    ... $ $ $ 3,720 $ $31,505 $ $ $ 3,182 $ $26,109 $ $ $ 3,562 $ $30,529 $ $ $11,339 $11,094 $11,154 Net sales are attributed to countries based on the location of the customer. Includes property, plant and equipment less accumulated depreciation. Europe, Middle East, and Africa (EMEA). F-47

  • Page 107
    ... exchange gains (losses), corporate expenses and interest. 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 rata share) excludes borrowing and other long-term liabilities...

  • Page 108
    ... Coatings Materials Protection ceuticals Other Total 2010 Segment sales Less transfers Net sales Pre-tax operating income (loss) Depreciation and amortization Equity in earnings of affiliates Segment net assets Affiliate net assets Purchases of property, plant and equipment 2009 Segment sales...

  • Page 109
    ... 8,836 7,804 $36,209 Pension assets are included in corporate assets. Segment Totals Consolidated Totals Other items Adjustments 2010 Depreciation and amortization Equity in earnings of affiliates Affiliate net assets Purchases of property, plant and equipment 2009 Depreciation and amortization...

  • Page 110
    ... (increase) in estimated restructuring costs related to the 2008 and 2009 programs impacting the segments as follows: Agriculture & Nutrition - $1; Electronics & Communications - $6; Performance Chemicals - $12; Performance Coatings - $50; Performance Materials - $52; Safety & Protection - $10...

  • Page 111
    ... for damaged facilities, inventory write-offs, clean-up costs, and other costs related to the hurricanes, in the following segments: Agriculture & Nutrition - $(4); Performance Chemicals - $(6); Performance Materials - $(216); and Safety & Protection - $(1). Includes a $51 benefit from a litigation...

  • Page 112
    ...investment write-offs, and $24 in insurance recoveries relating to the damage from Hurricane Ike in 2008. Includes a $55 net reduction in estimated costs recorded in employee separation / asset related charges, net related to the 2008 and 2009 restructuring program primarily due to overall workforce...

  • Page 113
    [email protected] 2011 Annual Meeting The annual meeting of the shareholders will be held at 10:30 a.m., Wednesday, April 27, in The DuPont Theatre in the DuPont Building, 1007 Market Street, Wilmington, Delaware. Stock Exchange Listings DuPont common stock (Symbol DD) is listed on the New York Stock...

  • Page 114
    ...; and Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. b) Date: By: February 8, 2011 /s/ ELLEN J. KULLMAN Ellen J. Kullman Chief Executive Officer and Chair of the Board

  • Page 115
    ... to record, process, summarize and report financial information; and Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. b) Date: By: February 8, 2011 /s/ NICHOLAS C. FANANDAKIS...

  • Page 116
    ...-Oxley Act of 2002 In connection with the Annual Report of E. I. du Pont de Nemours and Company (the ''Company'') on Form 10-K for the period ending December 31, 2010 as filed with the Securities and Exchange Commission on the date hereof (the ''Report''), Ellen J. Kullman, as Chief Executive...

  • Page 117
    ...-Oxley Act of 2002 In connection with the Annual Report of E. I. du Pont de Nemours and Company (the ''Company'') on Form 10-K for the period ending December 31, 2010 as filed with the Securities and Exchange Commission on the date hereof (the ''Report''), Nicholas C. Fanandakis, as Chief Financial...