DuPont 2012 Annual Report Download - page 21

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 continued
(Dollars in millions)   
 $3,567 $ 3,358 $ 2,912
As a percent of net sales 10%10%11%
2012 versus 2011 The 2012 increase of $209 million was due to increased global commissions and selling and marketing investments, primarily in the
Agriculture segment, and a full year of selling expense of acquired companies.
2011 versus 2010 The 2011 increase of $446 million was due to the additional selling expense of acquired companies and increased global commissions
and selling and marketing investments, primarily in the Agriculture segment.
(Dollars in millions)   
 $2,067 $1,910 $ 1,603
As a percent of net sales 6%6%6%
2012 versus 2011 The $157 million increase was primarily attributable to a full year of research and development expense from acquired companies and
continued growth investments in the Agriculture segment offset by the absence of a $50 million charge for a payment related to a Pioneer licensing agreement in
2011.
2011 versus 2010 The $307 million increase was primarily attributable to research and development expense from acquired companies and continued
growth investment in the Agriculture segment. Both periods include a $50 million charge for payments related to a Pioneer licensing agreement prior to the
business receiving regulatory approval in the third quarter 2011.
(Dollars in millions)   
 $464 $447 $590
The $17 million increase in 2012 was due primarily to higher average borrowings and lower capitalized interest partially offset by a lower average borrowing
rate. The $143 million decrease in 2011 was due primarily to the absence of a $179 million pre-tax charge on the early extinguishment of debt and lower
interest rates, partially offset by higher average debt resulting from financing for the Danisco acquisition.
(Dollars in millions)   
 $493 $ 53 $ (40)
The $493 million in charges recorded during 2012 in employee separation / asset related charges, net consisted of $234 million in charges related to the 2012
restructuring program, a $16 million net reduction in the estimated costs associated with 2011 and prior years restructuring programs, and $275 million in
asset impairment charges, as discussed below.
The net $53 million charge recorded during 2011 was primarily related to the 2011 restructuring program, as discussed below, and the $40 million credit
recorded during 2010 was due to a net reduction in the estimated costs for prior years restructuring programs.
2012 Restructuring Program
In 2012, the company commenced a restructuring plan to increase productivity, enhance competitiveness and accelerate growth. The plan is designed to
eliminate corporate costs previously allocated to the Performance Coatings business as well as utilize additional cost-cutting actions to improve
competitiveness. As a result, pre-tax charges of $234 million were recorded in employee separation / asset related charges, net. The 2012 restructuring program
charges consist of $157 million of employee separation costs, $8 million of other non-personnel charges, and $69 million of asset related charges, which
includes $30 million of asset impairments and $39 million of asset shut downs. The company expects this plan and all related payments to be substantially
complete by December 31, 2013. The actions related to this plan are expected to achieve pre-tax cost savings of approximately $300 million in 2013 increasing
to $450 million per year in subsequent years.
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