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Table of Contents E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)
The company and/or its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various states and non-U.S. jurisdictions. With few
exceptions, the company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 1999. A
reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:
2011 2010 2009
Total unrecognized tax benefits as of January 1 $ 693 $ 739 $ 677
Gross amounts of decreases in unrecognized tax benefits as a result of tax positions
taken during the prior period (82) (155) (60)
Gross amounts of increases in unrecognized tax benefits as a result of tax positions
taken during the prior period 170 169 68
Gross amounts of increases in unrecognized tax benefits as a result of tax positions
taken during the current period 79 51 42
Amount of decreases in the unrecognized tax benefits relating to settlements with taxing
authorities (6) (90) (9)
Reduction to unrecognized tax benefits as a result of a lapse of the applicable statue of
limitations (32) (24) (10)
Exchange gain (loss) (22) 3 31
Total unrecognized tax benefits as of December 31 $ 800 $ 693 $ 739
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 683 $ 545 $ 566
Total amount of interest and penalties recognized in the Consolidated Income Statements $ 7 $ (70) $ 12
Total amount of interest and penalties recognized in the Consolidated Balance Sheets $ 113 $ 99 $ 125
6. EARNINGS PER SHARE OF COMMON STOCK
Set forth below is a reconciliation of the numerator and denominator for basic and diluted earnings per share calculations for the periods indicated:
2011 2010 2009
Numerator:
Net income attributable to DuPont $ 3,474 $ 3,031 $ 1,755
Preferred dividends (10) (10) (10)
Net income available to common stockholders $ 3,464 $ 3,021 $ 1,745
Denominator:
Weighted-average number of common shares outstanding – Basic 928,417,000 908,860,000 904,395,000
Dilutive effect of the company's employee compensation plans 12,612,000 12,795,000 4,317,000
Weighted average number of common shares outstanding – Diluted 941,029,000 921,655,000 908,712,000
The weighted-average number of common shares outstanding in 2011 and 2010 increased as a result of the issuance 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 16).
The following average number of stock options are antidilutive and therefore, are not included in the diluted earnings per share calculation:
2011 2010 2009
Average number of stock options 4,361,000 45,508,000 72,899,000
The change in the average number of stock options that were antidilutive in 2011 and 2010 was primarily due to changes in the company's average stock
price.
F-16