DuPont 2013 Annual Report Download - page 7

Part I
ITEM 1. BUSINESS, continued
6
Sustainable Solutions continues to help organizations worldwide reduce workplace injuries and fatalities while improving operating
costs, productivity and quality. Sustainable Solutions is a leader in the safety consulting field, selling training products, as well
as consulting services. Additionally, Sustainable Solutions is dedicated to clean air, clean fuel and clean water with offerings that
help reduce sulfur and other emissions, formulate cleaner fuels, or dispose of liquid waste. Its goal is to help maintain business
continuity and environmental compliance for companies in the refining and petrochemical industries, as well as for government
entities. In addition, the business is a leading global provider of process technology, proprietary specialty equipment and technical
services to the sulfuric acid industry.
Building Innovations is committed to the building science behind increasing the performance of building systems, helping reduce
operating costs and creating more sustainable structures. The business is a market leader of solid surfaces through its DuPontTM
Corian® and Montelli® lines of products which offer durable and versatile materials for residential and commercial purposes.
DuPont™ Tyvek® offers industry leading solutions for the protection and energy efficiency of buildings and the business also
offers Geotextiles for Professional Landscaping applications.
The major commodities, raw materials and supplies for the Safety & Protection segment include: aluminum trihydrate, benzene,
high density polyethylene, isophthaloyl chloride, metaphenylenediamine, methyl methacrylate, paraphenylenediamine, polyester
fiber, terephthaloyl chloride and wood pulp.
Safety & Protection segment sales outside the U.S. accounted for 62 percent of the segment's total sales in 2013.
Pharmaceuticals
On October 1, 2001, DuPont Pharmaceuticals was sold to the Bristol-Myers Squibb Company. DuPont retained its interest in
Cozaar® (losartan potassium) and Hyzaar® (losartan potassium with hydrochlorothiazide), which are used in the treatment of
hypertension. DuPont has exclusively licensed worldwide marketing and manufacturing rights for Cozaar® and Hyzaar® to Merck
& Co., Inc. (Merck).
Pharmaceuticals' Cozaar®/Hyzaar® income is the sum of two parts: income related to a share of the profits from North American
sales and certain markets in Europe, and royalty income derived from worldwide contract net sales linked to the exclusivity term
in a particular country. Patents and exclusivity started to expire in prior years and the U.S. exclusivity for Cozaar® ended in April
2010. The worldwide agreement with Merck expired December 31, 2012. The company expects 2014 earnings to be insignificant
and will be reported within the Other segment.
Backlog
In general, the company does not manufacture its products against a backlog of orders and does not consider backlog to be a
significant indicator of the level of future sales activity. Production and inventory levels are based on the level of incoming orders
as well as projections of future demand. Therefore, the company believes that backlog information is not material to understanding
its overall business and should not be considered a reliable indicator of the company's ability to achieve any particular level of
revenue or financial performance.
Intellectual Property
As a science and technology based company, DuPont believes that securing intellectual property is an important part of protecting
its research. Some DuPont businesses operate in environments in which the availability and protection of intellectual property
rights affect competition. (Information on the importance of intellectual property rights to Pioneer is included in Item 1 Agriculture
business discussion beginning on page 2 of this report.)
Trade secrets are an important element of the company's intellectual property. Many of the processes used to make DuPont products
are kept as trade secrets which, from time to time, may be licensed to third parties. DuPont vigilantly protects all of its intellectual
property including its trade secrets. When the company discovers that its trade secrets have been unlawfully taken, it reports the
matter to governmental authorities for investigation and potential criminal action, as appropriate. In addition, the company takes
measures to mitigate any potential impact, which may include civil actions seeking redress, restitution and/or damages based on
loss to the company and/or unjust enrichment.
Patents & Trademarks: DuPont continually applies for and obtains U.S. and foreign patents and has access to a large patent
portfolio, both owned and licensed. DuPont’s rights under these patents and licenses, as well as the products made and sold under
them, are important to the company in the aggregate. The protection afforded by these patents varies based on country, scope of
individual patent coverage, as well as the availability of legal remedies in each country. This significant patent estate may be