DuPont 2013 Annual Report Download - page 77

E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)
F-30
Environmental
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, 2013, the Consolidated Balance Sheet
included a liability of $458, 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, 2013.
17. STOCKHOLDERS' EQUITY
Share Repurchase Program
In January 2014, the company’s Board of Directors authorized a $5,000 share buyback plan that will replace the company’s 2011
plan. There is no required completion date for purchases under the 2014 plan.
In December 2012, the company's Board of Directors authorized a $1,000 share buyback plan. In February 2013, the company
entered into an accelerated share repurchase (ASR) agreement with a financial institution under which the company used $1,000
of the proceeds from the sale of Performance Coatings for the purchase of shares of common stock. The 2012 $1,000 share buyback
plan was completed in the second quarter 2013 through the ASR agreement, under which the company purchased and retired 20.4
million shares.
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. Under the 2011 plan, the
company has purchased 5.5 million shares at a total cost of $284 as of December 31, 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.