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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-18
The results of operations of the Performance Chemicals segment are presented as discontinued operations as summarized below:
For the year ended December 31, 2015 2014 2013
Net sales $ 2,810 $ 6,317 $ 6,736
Cost of goods sold 2,215 4,680 4,905
Other operating charges 386 422 338
Selling, general and administrative expenses (87) 453 491
Research and development expense 40 109 116
Other income, net (27)(46)(39)
Interest expense 32 — —
Employee separation / asset related charges, net 59 21 2
Income from discontinued operations before income taxes 192 678 923
Provision for income taxes 106 202 266
Income from discontinued operations after income taxes $ 86 $ 476 $ 657
As a result of the separation, the company recorded an other long-term employee benefit plan curtailment gain of $274 and a
pension curtailment gain of $7. See Note 18 for further discussion.
During the years ended December 31, 2015 and 2014, the company incurred $306 and $175 of costs, respectively, in connection
with the transaction primarily related to professional fees associated with preparation of regulatory filings and separation activities
within finance, tax, legal, and information system functions. Income from discontinued operations during the years ended
December 31, 2015 and 2014, includes $260 and $142 of these costs, respectively. Income from continuing operations during the
years ended December 31, 2015 and 2014, includes $26 and $33 of these costs, respectively, recorded in other operating charges
in the company's Consolidated Income Statements. Income from continuing operations during the year ended December 31, 2015
also included $20 of transaction costs incurred for a premium associated with the early retirement of DuPont debt. The company
exchanged notes received from Chemours in May 2015 (as part of a dividend payment) for DuPont debt that it then retired. These
costs were reported in interest expense in the company's Consolidated Income Statements.
Income from discontinued operations during the year ended December 31, 2015, included a restructuring charge of $59, consisting
of severance and related benefit costs associated with the Performance Chemicals segment to achieve fixed cost and operational
productivity improvements for Chemours post-spin.