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E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)
F-14
Recent Accounting Pronouncements
In May 2014, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) jointly
issued Accounting Standards Update (ASU) No. 2014-9, Revenue from Contracts with Customers (Topic 606), which clarifies
the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting
Standards (IFRS). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised
goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange
for those goods and services. The ASU is effective for public entities for annual and interim periods beginning after December
15, 2016. Early adoption is not permitted under GAAP and retrospective application is permitted, but not required. The company
is currently evaluating the impact of adopting this guidance on its financial position and results of operations.
In April 2014, the FASB issued authoritative guidance amending existing requirements for reporting discontinued operations.
Under the new guidance, discontinued operations reporting will be limited to disposal transactions that represent strategic shifts
having a major effect on operations and financial results. The amended guidance also enhances disclosures and requires assets
and liabilities of a discontinued operation to be classified as such for all periods presented in the financial statements. Public
entities will apply the amended guidance prospectively to all disposals occurring within annual periods beginning on or after
December 15, 2014 and interim periods within those years. The company will adopt this standard on January 1, 2015. Due to the
change in requirements for reporting discontinued operations described above, presentation and disclosures of future disposal
transactions after adoption may be different than under current standards.
2. DIVESTITURES AND OTHER TRANSACTIONS
Glass Laminating Solutions/Vinyls
In June 2014, the company sold Glass Laminating Solutions/Vinyls (GLS/Vinyls), a part of the Performance Materials segment,
to Kuraray Co. Ltd. The sale resulted in a pre-tax gain of $391 ($273 net of tax). The gain was recorded in other income, net in
the company's Consolidated Income Statements for the year ended December 31, 2014.
The assets classified as held for sale at December 31, 2013 related to GLS/Vinyls primarily consist of inventory and property,
plant and equipment.
Performance Chemicals
On October 24, 2013, DuPont announced that it intends to separate its Performance Chemicals segment through a U.S. tax-free
spin-off to shareholders, subject to customary closing conditions. The company expects to complete the separation about mid-2015.
During the year ended December 31, 2014, the company incurred $175 of costs associated with the transaction which were reported
in other operating charges in the company's Consolidated Income Statements. These transaction costs primarily relate to professional
fees associated with preparation of regulatory filings and separation activities within finance, legal and information system
functions.
Performance Coatings
In February 2013, the company sold its Performance Coatings business to Flash Bermuda Co. Ltd., a Bermuda exempted limited
liability company formed by affiliates of The Carlyle Group (collectively referred to as "Carlyle"). The sale resulted in
approximately $4,200 in after-tax proceeds and a pre-tax gain of $2,687 ($1,962 net of tax). The gain was recorded in income
from discontinued operations after income taxes in the company's Consolidated Income Statements for the year ended December 31,
2013. The results of discontinued operations are summarized below:
For the year ended December 31, 2014 2013 2012
Net sales $ — $ 331 $ 4,218
Income before income taxes $ — $ 2,717 $ 551
(Benefit from) provision for income taxes1(15) 718 243
Income from discontinued operations after income taxes $ 15 $ 1,999 $ 308
1. The year ended December 31, 2014 includes a tax benefit of $(15) related to a change in estimate of income taxes resulting from the filing of various tax
returns impacted by the sale of Performance Coatings. The year ended December 31, 2012 includes expense of $70 to accrue taxes associated with earnings
of certain Performance Coatings subsidiaries that were previously considered permanently reinvested as these entities have been reclassified as held for sale.