DuPont 2010 Annual Report Download - page 99

E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)
Estimated Future Benefit Payments
The following benefit payments, which reflect future service, as appropriate, are expected to be paid:
Pension Other
Benefits Benefits
2011 $1,593 $ 319
2012 1,528 315
2013 1,521 315
2014 1,527 313
2015 1,544 312
Years 2016-2020 8,002 1,548
Defined Contribution Plan
The company sponsors several defined contribution plans, which cover substantially all U.S. employees. The most
significant is the U.S. parent company’s Retirement Savings Plan (the Plan), which reflects the 2009 merger of the
Retirement Savings Plan and the Savings and Investment Plan. This Plan includes a non-leveraged Employee Stock
Ownership Plan (ESOP). Employees are not required to participate in the ESOP and those who do are free to diversify
out of the ESOP. The purpose of the Plan is to provide retirement savings benefits for employees and to provide
employees an opportunity to become stockholders of the company. The Plan is a tax qualified contributory profit
sharing plan, with cash or deferred arrangement and any eligible employee of the company may participate. The
company contributes 100 percent of the first 6 percent of the employee’s contribution election and also contributes
3 percent of each eligible employee’s eligible compensation regardless of the employee’s contribution.
The company’s contributions to the U.S. parent company’s defined contribution plans were $195, $191 and $189 for
the years ended December 31, 2010, 2009 and 2008, respectively. The company’s matching contributions vest
immediately upon contribution. The 3 percent nonmatching company contribution vests for employees with at least
three years of service. In addition, the company made contributions to other defined contribution plans of $59, $54 and
$45 for the years ended December 31, 2010, 2009 and 2008, respectively. The company expects to contribute about
$265 to its defined contribution plans in 2011.
22. COMPENSATION PLANS
The total stock-based compensation cost included in the Consolidated Income Statements was $108, $115 and $112
for 2010, 2009 and 2008, respectively. The income tax 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 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 and consultants. Currently, equity-based
compensation awards consist of stock options, time-vested restricted stock units (RSUs), performance-based
restricted stock units (PSUs) and stock appreciation rights.
The company satisfies stock option exercises and vesting of RSUs and PSUs with newly issued shares of DuPont
common stock. Under the EIP, the maximum number of shares reserved for the grant or settlement of awards is
60 million shares, provided that each share in excess of 20 million that is issued with respect to any award that is not an
option or stock appreciation right will be counted against the 60 million share limit as four shares. At December 31,
2010, approximately 23 million shares were authorized for future grants under the company’s EIP. Awards or grants
made in 2007, prior to shareholder approval of the EIP, were issued under the company’s previously existing
compensation plans. Awards outstanding under each of these plans have not been terminated. These awards remain
outstanding and are administered under the terms of the applicable existing plan. No further awards will be made under
the company’s previously existing compensation plans.
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