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. Most employees hired on or after January 1, 2007 are not eligible to participate in the U.S. defined benefit pension plans. 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. 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. For Medicare eligible pensioners and survivors, the company provides a company-funded Health Reimbursement Arrangement (HRA). Beginning January 1, 2015, eligible employees who retire on and after that date will receive the same life insurance benefit payment, regardless of age.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.

The company also provides disability benefits to employees. Employee disability benefit plans are insured in many countries. However, primarily in the U.S., such plans are generally self-insured. Obligations and expenses for self-insured 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,	2014				2013				2014			2013
Change in benefit obligation
Benefit obligation at beginning of year	$	26,289			$	29,179			$	2,754		$	3,532
Service cost	241				271				17			29
Interest cost	1,162				1,088				121			130
Plan participants' contributions	21				23				37			33
Actuarial loss (gain)	3,672				(2,104		)		280			(515		)
Benefits paid	(1,651		)		(1,626		)		(270		)	(240		)
Amendments	(44		)		(62		)		(50		)	(211		)	¹
Net effects of acquisitions/divestitures	(21		)		(480		)		—			(4		)
Benefit obligation at end of year	$	29,669			$	26,289			$	2,889		$	2,754
Change in plan assets
Fair value of plan assets at beginning of year	$	20,614			$	19,399			$	—		$	—
Actual gain on plan assets	1,163				2,714				—			—
Employer contributions	311				313				233			207
Plan participants' contributions	21				23				37			33
Benefits paid	(1,651		)		(1,626		)		(270		)	(240		)
Net effects of acquisitions/divestitures	(12		)		(209		)		—			—
Fair value of plan assets at end of year	$	20,446			$	20,614			$	—		$	—
Funded status
U.S. plans with plan assets	$	(7,072	)		$	(3,546	)		$	—		$	—
Non-U.S. plans with plan assets	(709		)		(686		)		—			—
All other plans	(1,442		)	²	(1,443		)	²	(2,889		)	(2,754		)
Total	$	(9,223	)		$	(5,675	)		$	(2,889	)	$	(2,754	)
Amounts recognized in the Consolidated Balance Sheets consist of:
Other assets	$	64			$	11			$	—		$	—
Other accrued liabilities (Note 12)	(120		)		(111		)		(223		)	(224		)
Other liabilities (Note 14)	(9,167		)		(5,575		)		(2,666		)	(2,530		)
Net amount recognized	$	(9,223	)		$	(5,675	)		$	(2,889	)	$	(2,754	)


^1.	Primarily due to amendments in 2013 to the company's U.S. parent company retiree life insurance plan for employees retiring on and after January 1, 2015 and subsidiaries retiree health care plans.


^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,	2014			2013			2014			2013
Net loss	$	(12,164	)	$	(8,640	)	$	(870	)	$	(647	)
Prior service benefit	59			9			1,269			1,433
	$	(12,105	)	$	(8,631	)	$	399		$	786

The accumulated benefit obligation for all pension plans was $27,923 and $24,685 at December 31, 2014 and 2013, respectively.



Information for pension plans with projected benefit obligation in excess of plan assets	2014		2013
Projected benefit obligation	$	28,079	$	26,158
Accumulated benefit obligation	26,498		24,574
Fair value of plan assets	18,792		20,472



Information for pension plans with accumulated benefit obligations in excess of plan assets	2014		2013
Projected benefit obligation	$	27,892	$	25,350
Accumulated benefit obligation	26,367		23,906
Fair value of plan assets	18,638		19,744



	Pension Benefits
Components of net periodic benefit cost (credit) and amounts recognized in other comprehensive income	2014			2013			2012
Net periodic benefit cost
Service cost	$	241		$	271		$	277
Interest cost	1,162			1,088			1,165
Expected return on plan assets	(1,611		)	(1,524		)	(1,517		)
Amortization of loss	601			957			887
Amortization of prior service cost	2			8			13
Curtailment loss	4			1			2
Settlement loss	7			152			5
Net periodic benefit cost¹	$	406		$	953		$	832
Changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss (gain)	$	4,131		$	(3,293	)	$	1,433
Amortization of loss	(601		)	(957		)	(887		)
Prior service benefit	(44		)	(62		)	(22		)
Amortization of prior service cost	(2		)	(8		)	(13		)
Curtailment loss	(4		)	(1		)	(2		)
Settlement loss	(7		)	(152		)	(5		)
Total loss (benefit) recognized in other comprehensive income	$	3,473		$	(4,473	)	$	504
Noncontrolling interest	1			—			(1		)
Accumulated other comprehensive income assumed from purchase of noncontrolling interest	—			—			25
Total loss (benefit) recognized in other comprehensive income, attributable to DuPont	$	3,474		$	(4,473	)	$	528
Total recognized in net periodic benefit cost and other comprehensive income	$	3,880		$	(3,520	)	$	1,360


^1.	The above amounts include net periodic benefit cost relating to discontinued operations for 2014, 2013 and 2012 of $0, $3 and $42, respectively.

The estimated pre-tax net loss and prior service benefit for the defined benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2015 are $838 and $(7), respectively.



	Other Benefits
Components of net periodic benefit cost (credit) and amounts recognized in other comprehensive income	2014			2013			2012
Net periodic benefit cost
Service cost	$	17		$	29		$	37
Interest cost	121			130			174
Amortization of loss	57			76			94
Amortization of prior service benefit	(214		)	(195		)	(155		)
Curtailment (gain) loss	—			(154		)	3
Settlement loss	—			1			—
Net periodic benefit (credit) cost¹	$	(19	)	$	(113	)	$	153
Changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss (gain)	$	280		$	(513	)	$	60
Amortization of loss	(57		)	(76		)	(94		)
Prior service benefit	(50		)	(211		)	(857		)
Amortization of prior service benefit	214			195			155
Curtailment gain (loss)	—			154			(3		)
Settlement loss	—			(1		)	—
Total loss (benefit) recognized in other comprehensive income	$	387		$	(452	)	$	(739	)
Accumulated other comprehensive income assumed from purchase of noncontrolling interest	—			—			1
Total loss (benefit) recognized in other comprehensive income, attributable to DuPont	$	387		$	(452	)	$	(738	)
Total recognized in net periodic benefit cost and other comprehensive income	$	368		$	(565	)	$	(585	)


^1.	The above amounts include net periodic benefit cost relating to discontinued operations for 2014, 2013 and 2012 of $0, $0 and $2, respectively.

The estimated pre-tax net loss and prior service benefit for the other long-term employee benefit plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2015 are $76 and $(208), respectively.



	Pension Benefits				Other Benefits
Weighted-average assumptions used to determine benefit obligations at December 31,	2014		2013		2014		2013
Discount rate	3.78	%	4.58	%	3.95	%	4.60	%
Rate of compensation increase¹	4.00	%	4.22	%	—	%	—	%


^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,	2014		2013		2012		2014		2013		2012
Discount rate	4.55	%	3.90	%	4.32	%	4.60	%	3.85	%	4.49	%
Expected return on plan assets	8.35	%	8.39	%	8.61	%	—	%	—	%	—	%
Rate of compensation increase	4.22	%	4.14	%	4.18	%	—	%	4.40	%	4.40	%

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 4.90 percent, 8.75 percent and 4.50 percent for 2014.

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 4.10 percent, 8.75 percent and 4.40 percent for 2013.

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.

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.

In October 2014, the Society of Actuaries released final reports of new mortality tables and a mortality improvement scale for measurement of retirement program obligations in the U.S. The company has adopted these tables in measuring the 2014 long-term employee benefits.



Assumed health care cost trend rates at December 31,	2014		2013
Health care cost trend rate assumed for next year	7	%	7	%
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	2022		2022

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 approved by management. 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 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 plans is summarized as follows:



Target allocation for plan assets at December 31,	2014		2013
U.S. equity securities	28	%	27	%
Non-U.S. equity securities	21		21
Fixed income securities	32		33
Hedge funds	2		2
Private market securities	9		10
Real estate	5		7
Cash and cash equivalents	3		—
Total	100	%	100	%

Global equity securities include varying market capitalization levels. U.S. equity investments are primarily large-cap companies. Global 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 cash and cash equivalents, 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, 2014 and 2013, respectively.



	Fair Value Measurements at December 31, 2014
Asset Category	Total			Level 1		Level 2			Level 3
Cash and cash equivalents	$	2,310		$	2,310	$	—		$	—
U.S. equity securities¹	4,610			4,566		15			29
Non-U.S. equity securities	3,870			3,813		53			4
Debt – government-issued	2,649			990		1,659			—
Debt – corporate-issued	2,600			370		2,215			15
Debt – asset-backed	914			46		867			1
Hedge funds	445			—		—			445
Private market securities	2,296			—		11			2,285
Real estate	1,065			76		3			986
Derivatives – asset position	106			7		99			—
Derivatives – liability position	(79		)	—		(79		)	—
	$	20,786		$	12,178	$	4,843		$	3,765
Pension trust receivables²	413
Pension trust payables³	(753		)
Total	$	20,446



	Fair Value Measurements at December 31, 2013
Asset Category	Total			Level 1			Level 2			Level 3
Cash and cash equivalents	$	3,076		$	3,073		$	3		$	—
U.S. equity securities¹	4,432			4,383			22			27
Non-U.S. equity securities	4,005			3,965			37			3
Debt – government-issued	2,275			701			1,574			—
Debt – corporate-issued	1,961			376			1,566			19
Debt – asset-backed	925			51			870			4
Hedge funds	435			—			1			434
Private market securities	2,577			—			5			2,572
Real estate	1,179			73			—			1,106
Derivatives – asset position	97			18			79			—
Derivatives – liability position	(78		)	(7		)	(71		)	—
	$	20,884		$	12,633		$	4,086		$	4,165
Pension trust receivables²	200
Pension trust payables³	(470		)
Total	$	20,614


^1.	The company's pension plans directly held $737 (4 percent of total plan assets) and $648 (3 percent of total plan assets) of DuPont common stock at December 31, 2014 and 2013, 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, 2014 and 2013:



	Level 3 Assets
	Total			U.S. Equity Securities			Non-U.S. Equity Securities			Debt- Corporate Issued			Debt- Asset- Backed			Hedge Funds			Private Market Securities			Real Estate
Beginning balance at December 31, 2012	$	4,212		$	18		$	—		$	27		$	2		$	387		$	2,624		$	1,154
Realized gain	42			—			—			—			—			3			39			—
Change in unrealized gain (loss)	185			5			1			(8		)	—			22			88			77
Purchases, sales and settlements, net	(278		)	6			1			(1		)	—			22			(181		)	(125		)
Transfers in (out) of Level 3	4			(2		)	1			1			2			—			2			—
Ending balance at December 31, 2013	$	4,165		$	27		$	3		$	19		$	4		$	434		$	2,572		$	1,106
Realized gain (loss)	101			(5		)	—			11			—			12			83			—
Change in unrealized (loss) gain	(68		)	(14		)	(2		)	(2		)	(1		)	8			(71		)	14
Purchases, sales and settlements, net	(425		)	24			3			(10		)	—			(9		)	(299		)	(134		)
Transfers (out) in of Level 3	(8		)	(3		)	—			(3		)	(2		)	—			—			—
Ending balance at December 31, 2014	$	3,765		$	29		$	4		$	15		$	1		$	445		$	2,285		$	986

Cash Flow

Contributions

The company made a contribution of $500 to its principal U.S. pension plan in 2012. No contributions to its principal U.S. pension plan were made in 2013 or 2014. In 2015, contributions to the principal U.S. pension plan are expected to be less than $50. The company contributed $190, $121 and $233 to its pension plans other than the principal U.S. pension plan, its remaining plans with no plan assets and its other long-term employee benefit plans, respectively, in 2014. The company contributed $197, $116 and $207 to its pension plans other than the principal U.S. pension plan, its remaining plans with no plan assets and its other long-term employee benefit plans, respectively, in 2013. In 2015, the company expects to contribute about the same as 2014 to its pension plans other than the principal U.S. pension plan, its remaining plans with no plan assets and 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
2015	$	1,636	$	224
2016	1,608		215
2017	1,622		207
2018	1,633		201
2019	1,656		194
Years 2020-2024	8,455		880

Defined Contribution Plan

The company sponsors several defined contribution plans, which cover substantially all U.S. employees. The most significant is the U.S. Retirement Savings Plan (the 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. Currently, 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 Plan were $262, $208 and $212 for the years ended December 31, 2014, 2013 and 2012, 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 $66, $105 and $124 for the years ended December 31, 2014, 2013 and 2012, respectively. Included in the company's contributions are amounts related to discontinued operations of $0, $2 and $30 for the years ended December 31, 2014, 2013 and 2012, respectively. The company expects to contribute about $340 to its defined contribution plans in 2015.

1-Percentage
Point Increase

1-Percentage
Point Decrease

Increase (decrease) on total of service and interest cost

Increase (decrease) on post-retirement benefit obligation