DuPont 2015 Annual Report Download - page 82

Download and view the complete annual report

Please find page 82 of the 2015 DuPont annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 124

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124

E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)
F-23
5. OTHER INCOME, NET
2015 2014 2013
Royalty income $ 138 $ 156 $ 163
Interest income 129 129 136
Equity in earnings (loss) of affiliates, net 49 (36) 22
Gain on sale of equity method investment — — 9
Net gains on sales of businesses and other assets 92 710 21
Net exchange gains (losses)130 196 (101)
Cozaar®/Hyzaar® income — — 14
Miscellaneous income and expenses, net2259 122 107
Other income, net $ 697 $ 1,277 $ 371
1. The $30 net exchange gain for the year ended December 31, 2015, includes $(58) and $(40) exchange loss associated with the devaluation of the Ukrainian
hryvnia and the Argentina peso, respectively. The $196 net exchange gain for the year ended December 31, 2014, includes a $(58), $(46), and $(14) exchange
losses, associated with the devaluation of the Venezuelan bolivar, Ukranian hryvnia, and Argentinian peso, respectively. The $(101) net exchange loss for
the year ended December 31, 2013, includes a $(33) exchange loss, associated with the devaluation of the Venezuelan bolivar.
2. Miscellaneous income and expenses, net, includes interest items, certain insurance recoveries, litigation settlements and other items.
The following table summarizes the impacts of the company's foreign currency hedging program on the company's results from
operations for the years ended December 31, 2015, 2014 and 2013. The company routinely uses foreign currency exchange
contracts to offset its net exposures, by currency, related to the foreign currency-denominated monetary assets and liabilities. The
objective of this program is to maintain an approximately balanced position in foreign currencies in order to minimize, on an after-
tax basis, the effects of exchange rate changes on net monetary asset positions. The hedging program gains are largely taxable in
the U.S., whereas the offsetting exchange losses on the re-measurement of the net monetary asset positions are often not tax
deductible in their local jurisdictions. The net pre-tax exchange gains (losses) are recorded in other income, net and the related
tax impact is recorded in provision for income taxes on continuing operations on the Consolidated Income Statements.
2015 2014 2013
Subsidiary/Affiliate Monetary Position Gain (Loss)
Pretax exchange loss1$(404) $ (410) $ (136)
Local tax (expenses) benefits (61)(207) $ 47
Net after-tax impact from subsidiary exchange loss $ (465) $ (617) $ (89)
Hedging Program Gain (Loss)
Pretax exchange gain $ 434 $ 607 $ 35
Tax expenses (157)(212) $ (12)
Net after-tax impact from hedging program exchange gain $ 277 $ 395 $ 23
Total Exchange Gain (Loss)
Pretax exchange gain (loss) $ 30 $ 196 $ (101)
Tax (expenses) benefits (218)(419) $ 35
Net after-tax exchange loss $ (188) $ (223) $ (66)
1. Excludes equity affiliates.