DuPont 2012 Annual Report Download - page 76

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(Dollars in millions, except per share)
RE 39,247 patent. The company has never sold soybeans containing a combination of the Optimum ® GAT® and Roundup® Ready® traits and discontinued
in 2011 its commercialization efforts for such soybeans.
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The company is also subject to contingencies pursuant to environmental laws and regulations that in the future may require the company to take further action
to correct the effects on the environment of prior disposal practices or releases of chemical or petroleum substances by the company or other parties. The
company accrues for environmental remediation activities consistent with the policy set forth in Note 1. Much of this liability results from the Comprehensive
Environmental Response, Compensation and Liability Act (CERCLA, often referred to as Superfund), RCRA and similar state and global laws. These laws
require the company to undertake certain investigative, remediation and restoration activities at sites where the company conducts or once conducted operations
or at sites where company-generated waste was disposed. The accrual also includes estimated costs related to a number of sites identified by the company for
which it is probable that environmental remediation will be required, but which are not currently the subject of enforcement activities.
Remediation activities vary substantially in duration and cost from site to site. These activities, and their associated costs, depend on the mix of unique site
characteristics, evolving remediation technologies, diverse regulatory agencies and enforcement policies, as well as the presence or absence of potentially
responsible parties. At December 31, 2012, the Consolidated Balance Sheet included a liability of $436, relating to these matters and, in management's
opinion, is appropriate based on existing facts and circumstances. The average time frame, over which the accrued or presently unrecognized amounts may be
paid, based on past history, is estimated to be 15-20 years. Considerable uncertainty exists with respect to these costs and, under adverse changes in
circumstances, potential liability may range up to three times the amount accrued as of December 31, 2012.
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During 2012, the company purchased and retired 7.8 million shares at a total cost of $400. These purchases completed the 2001 $2,000 share buyback plan
and began purchases under a $2,000 share buyback plan authorized by the company's Board of Directors in April 2011. Under the completed 2001 plan, the
company purchased a total of 42.0 million shares. As of December 31, 2012, the company has purchased 5.5 million shares at a total cost of $284 under the
2011 plan. There is no required completion date for the purchases under the 2011 plan.
In December 2012, the company's Board of Directors authorized a $1,000 share buyback plan, subject to receiving the proceeds from the Performance
Coatings divestiture. On February 1, 2013, the sale of Performance Coating was completed. The 2012 share buyback plan is expected to be completed in the
first half 2013.
Common stock held in treasury is recorded at cost. When retired, the excess of the cost of treasury stock over its par value is allocated between reinvested
earnings and additional paid-in capital.
Set forth below is a reconciliation of common stock share activity for the years ended December 31, 2012, 2011 and 2010:
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Balance January 1, 2010 990,855,000 (87,041,000)
Issued 18,891,000 —
Repurchased — (5,395,000)
Retired (5,395,000) 5,395,000
Balance December 31, 2010 1,004,351,000 (87,041,000)
Issued 22,650,000 —
Repurchased —(13,837,000)
Retired (13,837,000)13,837,000
Balance December 31, 2011 1,013,164,000 (87,041,000)
Issued 14,671,000 —
Repurchased —(7,778,000)
Retired (7,778,000)7,778,000
Balance December 31, 2012 1,020,057,000 (87,041,000)
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