LONG-TERM EMPLOYEE BENEFITS

The company offers various long-term benefits to its employees. Where permitted by applicable law, the company reserves the right to change, modify or discontinue the plans.

Defined Benefit Pensions

The company has both funded and unfunded noncontributory defined benefit pension plans covering a majority of the U.S. employees hired prior to January 1, 2007. The benefits under these plans are based primarily on years of service and employees' pay near retirement. The company's funding policy is consistent with the funding requirements of federal laws and regulations. Pension coverage for employees of the company's non-U.S. consolidated subsidiaries is provided, to the extent deemed appropriate, through separate plans. Obligations under such plans are funded by depositing funds with trustees, covered by insurance contracts, or remain unfunded.

Other Long-term Employee Benefits

The parent company and certain subsidiaries provide medical, dental and life insurance benefits to pensioners and survivors, and disability and life insurance protection to employees. The associated plans for retiree benefits are unfunded and the cost of the approved claims is paid from company funds. Essentially all of the cost and liabilities for these retiree benefit plans are attributable to the U.S. parent company plans. The non-Medicare eligible retiree medical plan is contributory with pensioners and survivors' contributions adjusted annually to achieve a 50/50 target sharing of cost increases between the company and pensioners and survivors. In addition, limits are applied to the company's portion of the retiree medical cost coverage. Beginning in 2013, the company is providing the Medicare eligible pensioners and survivors with a company-funded Health Reimbursement Arrangement (HRA). The majority of U.S. employees hired on or after January 1, 2007 are not eligible to participate in the post retirement medical, dental and life insurance plans.

Employee life insurance and disability benefit plans are insured in many countries. However, primarily in the U.S., such plans are generally self-insured or are fully experience-rated. Obligations and expenses for self-insured and fully experience-rated plans are reflected in the figures below.

Summarized information on the company's pension and other long-term employee benefit plans is as follows:



	Pension Benefits								Other Benefits
Obligations and Funded Status at December 31,	2012				2011				2012				2011
Change in benefit obligation
Benefit obligation at beginning of year	$	27,083			$	23,924			$	4,379			$	3,989
Service cost	277				249				37				33
Interest cost	1,165				1,253				174				212
Plan participants' contributions	24				21				110				112
Actuarial loss	2,245				3,062				60				441
Benefits paid	(1,593		)		(1,610		)		(371		)		(424		)
Amendments	(22		)		2				(857		)	¹	11
Net effects of acquisitions/divestitures	—				182				—				5
Benefit obligation at end of year	$	29,179			$	27,083			$	3,532			$	4,379
Change in plan assets
Fair value of plan assets at beginning of year	$	17,794			$	18,403			$	—			$	—
Actual gain on plan assets	2,326				471				—				—
Employer contributions	848				341				261				312
Plan participants' contributions	24				21				110				112
Benefits paid	(1,593		)		(1,610		)		(371		)		(424		)
Net effects of acquisitions/divestitures	—				168				—				—
Fair value of plan assets at end of year	$	19,399			$	17,794			$	—			$	—
Funded status
U.S. plans with plan assets	$	(6,625	)		$	(6,894	)		$	—			$	—
Non-U.S. plans with plan assets	(1,443		)		(901		)		—				—
All other plans	(1,712		)	²	(1,494		)	²	(3,532		)		(4,379		)
Total	$	(9,780	)		$	(9,289	)		$	(3,532	)		$	(4,379	)
Amounts recognized in the Consolidated Balance Sheets consist of:
Other assets	$	5			$	4			$	—			$	—
Other accrued liabilities (Note 13)	(110		)		(107		)		(257		)		(316		)
Other liabilities (Note 15)	(9,303		)		(9,186		)		(3,271		)		(4,063		)
Liabilities related to assets held for sale	(372		)		—				(4		)		—
Net amount recognized	$	(9,780	)		$	(9,289	)		$	(3,532	)		$	(4,379	)


^1.	Due to an amendment in 2012 to the company's U.S. parent company retiree medical and dental plans for Medicare eligible pensioners and survivors from the company sponsored group plans to a company-funded Health Reimbursement Arrangement (HRA), the benefit obligation decreased by $838 and prior service cost was credited by $838.


^2.	Includes pension plans maintained around the world where funding is not customary.

The pre-tax amounts recognized in accumulated other comprehensive loss are summarized below:



	Pension Benefits						Other Benefits
December 31,	2012			2011			2012			2011
Net loss	$	(13,042	)	$	(12,477	)	$	(1,233	)	$	(1,266	)
Prior service (cost) benefit	(62		)	(99		)	1,567			862
	$	(13,104	)	$	(12,576	)	$	334		$	(404	)

The accumulated benefit obligation for all pension plans was $27,243 and $25,116 at December 31, 2012 and 2011, respectively.



Information for pension plans with projected benefit obligation in excess of plan assets	2012		2011
Projected benefit obligation	$	29,043	$	27,002
Accumulated benefit obligation	27,130		25,049
Fair value of plan assets	19,258		17,710



Information for pension plans with accumulated benefit obligations in excess of plan assets	2012		2011
Projected benefit obligation	$	28,925	$	25,810
Accumulated benefit obligation	27,064		23,974
Fair value of plan assets	19,179		16,576



	Pension Benefits
Components of net periodic benefit cost (credit) and amounts recognized in other comprehensive income	2012			2011			2010
Net periodic benefit cost
Service cost	$	277		$	249		$	207
Interest cost	1,165			1,253			1,262
Expected return on plan assets	(1,517		)	(1,475		)	(1,435		)
Amortization of loss	887			613			507
Amortization of prior service cost	13			16			16
Curtailment / settlement loss	7			—			—
Net periodic benefit cost¹	$	832		$	656		$	557
Changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss	$	1,433		$	4,069		$	635
Amortization of loss	(887		)	(613		)	(507		)
Prior service (benefit) cost	(22		)	2			—
Amortization of prior service cost	(13		)	(16		)	(16		)
Curtailment / settlement loss	(7		)	—			—
Total loss recognized in other comprehensive income	$	504		$	3,442		$	112
Noncontrolling interest	(1		)	(11		)	(1		)
Accumulated other comprehensive income assumed from purchase of noncontrolling interest	25			—			—
Total loss recognized in other comprehensive income, attributable to DuPont	$	528		$	3,431		$	111
Total recognized in net periodic benefit cost and other comprehensive income	$	1,360		$	4,087		$	668


^1.	The above amounts include net periodic benefit cost relating to discontinued operations for 2012, 2011 and 2010 of $42, $41 and $38, respectively.

The estimated pre-tax net loss and prior service cost for the defined benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2013 are $972 and $12, respectively.



	Other Benefits
Components of net periodic benefit cost (credit) and amounts recognized in other comprehensive income	2012			2011			2010
Net periodic benefit cost
Service cost	$	37		$	33		$	29
Interest cost	174			212			238
Amortization of loss	94			60			58
Amortization of prior service benefit	(155		)	(121		)	(106		)
Curtailment loss	3			—			—
Net periodic benefit cost¹	$	153		$	184		$	219
Changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss	$	60		$	437		$	94
Amortization of loss	(94		)	(60		)	(58		)
Prior service (benefit) cost	(857		)	11			(189		)
Amortization of prior service benefit	155			121			106
Curtailment loss	(3		)	—			—
Total (benefit) loss recognized in other comprehensive income	$	(739	)	$	509		$	(47	)
Accumulated other comprehensive income assumed from purchase of noncontrolling interest	1			—			—
Total (benefit) loss recognized in other comprehensive income, attributable to DuPont	$	(738	)	$	509		$	(47	)
Total recognized in net periodic benefit cost and other comprehensive income	$	(585	)	$	693		$	172


^1.	The above amounts include net periodic benefit cost relating to discontinued operations for 2012, 2011 and 2010 of $2, $2 and $1, respectively.

The estimated pre-tax net loss and prior service credit for the other long-term employee benefit plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2013 are $107 and $(187), respectively.



	Pension Benefits				Other Benefits
Weighted-average assumptions used to determine benefit obligations at December 31,	2012		2011		2012		2011
Discount rate	3.89	%	4.49	%	3.85	%	4.50	%
Rate of compensation increase¹	4.13	%	4.18	%	4.40	%	4.40	%


^1.	The rate of compensation increase represents the single annual effective salary increase that an average plan participant would receive during the participant's entire career at the company.



	Pension Benefits						Other Benefits
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31,	2012		2011		2010		2012		2011		2010
Discount rate	4.32	%	5.32	%	5.80	%	4.49	%	5.50	%	6.00	%
Expected return on plan assets	8.61	%	8.73	%	8.64	%	—	%	—	%	—	%
Rate of compensation increase	4.18	%	4.24	%	4.24	%	4.40	%	4.50	%	4.50	%

In connection with the planned sale of the Performance Coatings business (See Note 2), the company updated the discount rate and expected return on plan assets for the U.S. pension plans during 2012. For determining the U.S. pension plans' net periodic benefit costs, the weighted discount rate, weighted expected return on plan assets and the rate of compensation increase were 4.38 percent, 8.96 percent and 4.40 percent for 2012. With the continuing challenges in the global economy, the company lowered its long-term expected return on plan assets during 2012.

For determining U.S. pension plans' net periodic benefit costs, the discount rate, expected return on plan assets and the rate of compensation increase were 5.50 percent, 9.00 percent and 4.50 percent for 2011 and 6.00 percent, 9.00 percent and 4.50 percent for 2010, respectively.

In the U.S., the discount rate is developed by matching the expected cash flow of the benefit plans to a yield curve constructed from a portfolio of high quality fixed-income instruments provided by the plan's actuary as of the measurement date. For non-U.S. benefit plans, the company utilizes prevailing long-term high quality corporate bond indices to determine the discount rate applicable to each country at the measurement date.

The long-term rate of return on assets in the U.S. was selected from within the reasonable range of rates determined by historical real returns (net of inflation) for the asset classes covered by the investment policy, expected performance, and projections of inflation over the long-term period during which benefits are payable to plan participants. Consistent with prior years, the long-term rate of return on plan assets in the U.S. reflects the asset allocation of the plan and the effect of the company's active management of the plans' assets. For non-U.S. plans, assumptions reflect economic assumptions applicable to each country.



Assumed health care cost trend rates at December 31,	2012		2011
Health care cost trend rate assumed for next year	8	%	8	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	5	%	5	%
Year that the rate reaches the ultimate trend rate	2016		2015

Assumed health care cost trend rates have a modest effect on the amount reported for the health care plan. A one-percentage point change in assumed health care cost trend rates would have the following effects:

Plan Assets

All pension plan assets in the U.S. are invested through a single master trust fund. The strategic asset allocation for this trust fund is selected by management, reflecting the results of comprehensive asset liability modeling. The general principles guiding U.S. pension asset investment policies are those embodied in the Employee Retirement Income Security Act of 1974 (ERISA). These principles include discharging the company's investment responsibilities for the exclusive benefit of plan participants and in accordance with the "prudent expert" standard and other ERISA rules and regulations. The company establishes strategic asset allocation percentage targets and appropriate benchmarks for significant asset classes with the aim of achieving a prudent balance between return and risk. Strategic asset allocations in other countries are selected in accordance with the laws and practices of those countries. Where appropriate, asset liability studies are utilized in this process. U.S. plan assets and a portion of non-U.S. plan assets are managed by investment professionals employed by the company. The remaining assets are managed by professional investment firms unrelated to the company. The company's pension investment professionals have discretion to manage the assets within established asset allocation ranges approved by senior management of the company. Additionally, pension trust funds are permitted to enter into certain contractual arrangements generally described as "derivatives." Derivatives are primarily used to reduce specific market risks, hedge currency and adjust portfolio duration and asset allocation in a cost-effective manner.

The weighted-average target allocation for plan assets of the company's U.S. and non-U.S. pension plan is summarized as follows:



Target allocation for plan assets at December 31,	2012		2011
U.S. equity securities	28	%	27	%
Non-U.S. equity securities	21		20
Fixed income securities	29		29
Hedge funds	2		2
Private market securities	13		14
Real estate	7		8
Total	100	%	100	%

Equity securities include varying market capitalization levels. U.S. equity investments are primarily large-cap companies. Fixed income investments include corporate-issued, government-issued and asset-backed securities. Corporate debt investments include a range of credit risk and industry diversification. U.S. fixed income investments are weighted heavier than non-U.S fixed income securities. Other investments include hedge funds, real estate and private market securities such as interests in private equity and venture capital partnerships.

Fair value calculations may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The tables below presents the fair values of the company's pension assets by level within the fair value hierarchy, as described in Note 1, as of December 31, 2012 and 2011, respectively.



	Fair Value Measurements at December 31, 2012
Asset Category	Total			Level 1			Level 2			Level 3
Cash and cash equivalents	$	2,613		$	2,584		$	29		$	—
U.S. equity securities¹	3,647			3,604			25			18
Non-U.S. equity securities	3,928			3,842			86			—
Debt – government-issued	1,714			443			1,271			—
Debt – corporate-issued	2,236			378			1,831			27
Debt – asset-backed	1,059			40			1,017			2
Hedge funds	389			—			2			387
Private market securities	2,926			—			4			2,922
Real estate	1,236			82			—			1,154
Derivatives – asset position	129			6			123			—
Derivatives – liability position	(80		)	(1		)	(79		)	—
	$	19,797		$	10,978		$	4,309		$	4,510
Pension trust receivables²	312
Pension trust payables³	(710		)
Total	$	19,399



	Fair Value Measurements at December 31, 2011
Asset Category	Total			Level 1			Level 2			Level 3
Cash and cash equivalents	$	2,085		$	1,962		$	123		$	—
U.S. equity securities¹	3,624			3,576			20			28
Non-U.S. equity securities	3,227			3,166			61			—
Debt – government-issued	1,596			391			1,205			—
Debt – corporate-issued	1,844			114			1,700			30
Debt – asset-backed	963			36			923			4
Hedge funds	396			—			4			392
Private market securities	2,959			—			—			2,959
Real estate	1,196			109			—			1,087
Derivatives – asset position	127			4			123			—
Derivatives – liability position	(90		)	(2		)	(88		)	—
	$	17,927		$	9,356		$	4,071		$	4,500
Pension trust receivables²	463
Pension trust payables³	(596		)
Total	$	17,794


^1.	The company's pension plans directly held $449 (2 percent of total plan assets) and $457 (3 percent of total plan assets) of DuPont common stock at December 31, 2012 and 2011, respectively.


^2.	Primarily receivables for investment securities sold.


^3.	Primarily payables for investment securities purchased.

The company's pension plans hold Level 3 assets which are primarily ownership interests in investment partnerships and trusts that own private market securities and real estate. Fair value is generally based on the company's units of ownership and net asset value of the investment entity or the company's share of the investment entity's total equity. The table below presents a rollforward of activity for these assets for the years ended December 31, 2012 and 2011:



	Level 3 Assets
	Total			U.S. Equity Securities			Debt- Corporate Issued			Debt- Asset- Backed			Hedge Funds			Private Market Securities			Real Estate
Beginning balance at December 31, 2010	$	3,920		$	20		$	34		$	4		$	—		$	2,931		$	931
Realized gain (loss)	11			—			(10		)	—			—			21			—
Change in unrealized gain (loss)	201			(3		)	9			—			(9		)	124			80
Purchases, sales and settlements	375			10			5			—			401			(117		)	76
Transfers (out) in of Level 3	(7		)	1			(8		)	—			—			—			—
Ending balance at December 31, 2011	$	4,500		$	28		$	30		$	4		$	392		$	2,959		$	1,087
Realized gain (loss)	14			(3		)	—			—			(6		)	23			—
Change in unrealized gain (loss)	253			(8		)	(10		)	—			17			179			75
Purchases, sales and settlements	(134		)	(1		)	7			(2		)	(16		)	(114		)	(8		)
Transfers (out) in of Level 3	(123		)	2			—			—			—			(125		)	—
Ending balance at December 31, 2012	$	4,510		$	18		$	27		$	2		$	387		$	2,922		$	1,154

Cash Flow

Contributions

The company made a contribution of $500 to its principal U.S. pension plan in 2010 and made another $500 contribution in 2012. No contributions were required or made to the principal U.S. pension plan trust fund in 2011. No contributions are expected to be made to the principal U.S. pension plan in 2013. The company expects to contribute approximately $340 in 2013 to its pension plans other than the principal U.S. pension plan and also expects to make cash payments of approximately $260 in 2013 under its other long-term employee benefit plans.

Estimated Future Benefit Payments

The following benefit payments, which reflect future service, as appropriate, are expected to be paid:



	Pension Benefits		Other Benefits
2013	$	1,629	$	260
2014	1,604		254
2015	1,629		252
2016	1,637		250
2017	1,667		246
Years 2018-2022	8,678		1,178

Defined Contribution Plan

The company sponsors several defined contribution plans, which cover substantially all U.S. employees. The most significant is the U.S. parent company's Retirement Savings Plan (the Plan), which reflects the 2009 merger of the Retirement Savings Plan and the Savings and Investment Plan. This Plan includes a non-leveraged Employee Stock Ownership Plan (ESOP). Employees are not required to participate in the ESOP and those who do are free to diversify out of the ESOP. The purpose of the Plan is to provide retirement savings benefits for employees and to provide employees an opportunity to become stockholders of the company. The Plan is a tax qualified contributory profit sharing plan, with cash or deferred arrangement and any eligible employee of the company may participate. The company contributes 100 percent of the first 6 percent of the employee's contribution election and also contributes 3 percent of each eligible employee's eligible compensation regardless of the employee's contribution.

The company's contributions to the U.S. parent company's defined contribution plans were $212, $210 and $195 for the years ended December 31, 2012, 2011 and 2010, respectively. The company's matching contributions vest immediately upon contribution. The 3 percent nonmatching company contribution vests for employees with at least three years of service. In addition, the company made contributions to other defined contribution plans of $124, $84 and $59 for the years ended December 31, 2012, 2011 and 2010, respectively. Included in the company's contributions are amounts related to discontinued operations of $30, $29 and $32 for the years ended December 31, 2012, 2011 and 2010, respectively. The company expects to contribute about $320 to its defined contribution plans in 2013.

1-Percentage
Point Increase

1-Percentage
Point Decrease

Increase (decrease) on total of service and interest cost

Increase (decrease) on post-retirement benefit obligation