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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)
4. EMPLOYEE SEPARATION/ASSET RELATED CHARGES, NET
At December 31, 2010, total liabilities relating to prior restructuring activities were $63.
2009 Restructuring Program
In the second quarter 2009, in response to the global economic recession, the company committed to an initiative to
address the steep and extended downturn in motor vehicle and construction markets, and the extension of the
downturn 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 the United States of America (U.S.). As a
result, a charge of $340 was recorded in employee separation/asset related charges, net, which pertains to the
following financial statement line items; cost of goods sold and other operating charges – 60 percent, selling, general
and administrative expenses – 30 percent, and research and development expense – 10 percent. This charge includes
$212 of severance and related benefits costs, $24 of other non-personnel charges and $104 of asset related charges,
including $77 for asset shut downs and write-offs, $11 for asset impairments and $16 for accelerated depreciation.
The 2009 restructuring program charge of $340 reduced segment earnings as follows: Electronics &
Communications – $43; Performance Chemicals – $66; Performance Coatings – $65; Performance Materials – $110;
Safety & Protection – $55; and Other – $1.
In the fourth quarter 2009, the company recorded a net reduction of $30 in the estimated costs associated with the 2009
restructuring program. This net reduction was primarily due to lower than estimated individual severance costs and
work force reductions through non-severance programs. The net reduction of $30 impacted segment earnings for the
twelve months ended December 31, 2009 as follows: Electronics & Communications – $6; Performance Chemicals –
$9; Performance Coatings – $(11); Performance Materials – $23; Safety & Protection – $8; and Other – $(5).
In the fourth quarter 2010, the company recorded a net reduction of $20 in the estimated costs associated with the 2009
restructuring program. This net reduction was primarily due to lower than estimated individual severance costs and
work force reductions through non-severance programs. The net reduction of $20 impacted segment earnings for the
twelve months ended December 31, 2010 as follows: Electronics & Communications – $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 substantially completed by the end of 2010 with payments
continuing into 2011, primarily in Europe.
F-13