DuPont 2013 Annual Report Download - page 20

Part II
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS, continued
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2013 versus 2012 Other operating charges decreased 6 percent to $3.8 billion, principally due to lower Imprelis® herbicide
claims, net of insurance recoveries, and other litigation charges. See Note 16 for additional information related to the Imprelis®
matter.
2012 versus 2011 Other operating charges increased 16 percent to $4.1 billion. This reflects increased charges of $537 million
related to Imprelis® and other litigation matters, partly offset by the absence of prior year charges related to the acquisition of
Danisco . See Note 16 for additional information related to the Imprelis® matter.
(Dollars in millions) 2013 2012 2011
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES $ 3,554 $ 3,527 $ 3,310
As a percent of net sales 10% 10% 10%
2013 versus 2012 The 2013 increase of $27 million was largely attributable to increased global commissions and selling and
marketing investments, primarily in the Agriculture segment, partially offset by cost savings in administrative functions as a result
of the 2012 restructuring program.
2012 versus 2011 The 2012 increase of $217 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.
(Dollars in millions) 2013 2012 2011
RESEARCH AND DEVELOPMENT EXPENSE $ 2,153 $ 2,123 $ 1,960
As a percent of net sales 6% 6% 6%
2013 versus 2012 The $30 million increase was primarily attributable to continued growth investments in the Agriculture segment
and increases in pre-commercial investment.
2012 versus 2011 The $163 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.
(Dollars in millions) 2013 2012 2011
INTEREST EXPENSE $ 448 $ 464 $ 447
The $16 million decrease in 2013 was due to lower average borrowings. 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.
(Dollars in millions) 2013 2012 2011
EMPLOYEE SEPARATION/ASSET RELATED CHARGES, NET $ 114 $ 493 $ 53
The $114 million in charges recorded during 2013 in employee separation / asset related charges, net consisted of a a net $15
million restructuring benefit and a $129 million asset impairment charge discussed below. The net $15 million restructuring benefit
consisted of a $24 million benefit associated with prior year restructuring programs offset by a $9 million charge resulting from
restructuring actions related to a joint venture within the Performance Materials segment. The majority of the $24 million benefit
was due to the achievement of work force reductions through non-severance programs associated with the 2012 restructuring
program.