-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MGzh4LAOV7lBF4WL695bO2L4M17uEeU0pPd5zRTowpFnOIrkYqezHNr0OnTVv3xA gieXcajQD/dXqI6imVQhVA== 0000893220-08-001266.txt : 20080429 0000893220-08-001266.hdr.sgml : 20080429 20080429162429 ACCESSION NUMBER: 0000893220-08-001266 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 14 CONFORMED PERIOD OF REPORT: 20080331 FILED AS OF DATE: 20080429 DATE AS OF CHANGE: 20080429 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DUPONT E I DE NEMOURS & CO CENTRAL INDEX KEY: 0000030554 STANDARD INDUSTRIAL CLASSIFICATION: PLASTIC MAIL, SYNTH RESIN/RUBBER, CELLULOS (NO GLASS) [2820] IRS NUMBER: 510014090 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-00815 FILM NUMBER: 08785836 BUSINESS ADDRESS: STREET 1: 1007 MARKET ST CITY: WILMINGTON STATE: DE ZIP: 19898 BUSINESS PHONE: 3027741000 MAIL ADDRESS: STREET 1: 1007 MARKET ST CITY: WILMINGTON STATE: DE ZIP: 19898 10-Q 1 w56537e10vq.htm FORM 10-Q e10vq
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
     
þ   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2008
OR
     
o   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission File Number 1-815
E. I. du Pont de Nemours and Company
(Exact Name of Registrant as Specified in Its Charter)
     
Delaware   51-0014090
(State or other Jurisdiction of   (I.R.S. Employer
Incorporation or Organization)   Identification No.)
1007 Market Street, Wilmington, Delaware 19898
(Address of Principal Executive Offices)
(302) 774-1000
(Registrant’s Telephone Number)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes      þ      No      o
Indicate by check mark whether the Registrant is a shell company (as defined by Rule12b-2 of the Exchange Act).
Yes     o      No     þ
The Registrant has 900,706,000 shares (excludes 87,041,000 shares of treasury stock) of common stock, $0.30 par value, were outstanding at April 15, 2008.
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer þ        Accelerated filer o        Non-accelerated filer o        Smaller reporting company o
        (Do not check if a smaller reporting company)    
 
 

 


 

E. I. DU PONT DE NEMOURS AND COMPANY
Table of Contents
The terms “DuPont” or the “company” as used herein refer to E. I. du Pont de Nemours and Company and its consolidated subsidiaries, or to E. I. du Pont de Nemours and Company, as the context may indicate.
                 
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Part I   Financial Information        
       
 
       
         
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Part II   Other Information        
       
 
       
      26  
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      29  
      29  
       
 
       
Signature         30  
       
 
       
Exhibit Index         31  
 The DuPont Stock Accumulation and Deferred Compensation Plan for Directors
 Form of Award Terms for time-vested restricted stock units granted to non-employee directors under the company's Equity and Incentive Plan
 Form of Award Terms for stock appreciation rights granted under the company's Equity and Incentive Plan
 Form of Award Terms for stock options granted under the company's Equity and Incentive Plan
 Form of Award Terms for time-vested restricted stock units granted under the company's Equity and Incentive Plan
 Form of Award Terms for performance-based restricted stock units granted under the company's Equity and Incentive Plan
 Company's Salary Deferral & Savings Restoration Plan
 Company's Retirement Savings Restoration Plan
 Computation of Ratio of Earnings to Fixed Charges
 Rule 13a-14(a)/15d-14(a) Certification of the company's Principal Executive Officer
 Rule 13a-14(a)/15d-14(a) Certification of the company's Principal Financial Officer
 Section 1350 Certification of the company's Principal Executive Officer
 Section 1350 Certification of the company's Principal Financial Officer

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Part I. Financial Information
Item 1. CONSOLIDATED FINANCIAL STATEMENTS
E. I. du Pont de Nemours and Company
Consolidated Income Statements (Unaudited)
(Dollars in millions, except per share)
                 
    Three Months Ended  
    March 31,  
    2008     2007  
Net sales
  $ 8,575     $ 7,845  
Other income, net
    195       316  
 
           
Total
    8,770       8,161  
 
           
Cost of goods sold and other operating charges
    5,956       5,594  
Selling, general and administrative expenses
    934       846  
Research and development expense
    330       310  
Interest expense
    80       99  
 
           
Total
    7,300       6,849  
 
           
Income before income taxes and minority interests
    1,470       1,312  
Provision for income taxes
    273       365  
Minority interests in earnings of consolidated subsidiaries
    6       2  
 
           
 
               
Net income
  $ 1,191     $ 945  
 
           
 
               
Basic earnings per share of common stock
  $ 1.32     $ 1.02  
 
           
 
               
Diluted earnings per share of common stock
  $ 1.31     $ 1.01  
 
           
 
               
Dividends per share of common stock
  $ 0.41     $ 0.37  
 
           
See Notes to Consolidated Financial Statements.

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E. I. du Pont de Nemours and Company
Condensed Consolidated Balance Sheets (Unaudited)
(Dollars in millions, except per share)
                 
    March 31,     December 31,  
    2008     2007  
Assets
               
Current assets
               
Cash and cash equivalents
  $ 1,094     $ 1,305  
Marketable securities
    33       131  
Accounts and notes receivable, net
    7,645       5,683  
Inventories
    5,310       5,278  
Prepaid expenses
    212       199  
Income taxes
    567       564  
 
           
Total current assets
    14,861       13,160  
Property, plant and equipment, net of accumulated depreciation (March 31, 2008 - $16,036; December 31, 2007 - $15,733)
    10,905       10,860  
Goodwill
    2,074       2,074  
Other intangible assets
    2,781       2,856  
Investment in affiliates
    818       818  
Other assets
    4,789       4,363  
 
           
Total
  $ 36,228     $ 34,131  
 
           
Liabilities and Stockholders’ Equity
               
 
               
Current liabilities
               
Accounts payable
  $ 3,061     $ 3,172  
Short-term borrowings and capital lease obligations
    3,196       1,370  
Income taxes
    177       176  
Other accrued liabilities
    3,360       3,823  
 
           
Total current liabilities
    9,794       8,541  
 
               
Long-term borrowings and capital lease obligations
    5,784       5,955  
 
               
Other liabilities
    7,191       7,255  
 
               
Deferred income taxes
    894       802  
 
           
 
               
Total liabilities
    23,663       22,553  
 
           
Minority interests
    443       442  
 
           
 
               
Commitments and contingent liabilities
               
 
               
Stockholders’ equity
               
Preferred stock
    237       237  
 
Common stock, $0.30 par value; 1,800,000,000 shares authorized; Issued at March 31, 2008 - 987,566,000; December 31, 2007 - 986,330,000
    296       296  
Additional paid-in capital
    8,220       8,179  
Reinvested earnings
    10,764       9,945  
Accumulated other comprehensive loss
    (668 )     (794 )
Common stock held in treasury, at cost (87,041,000 shares at March 31, 2008 and December 31, 2007)
    (6,727 )     (6,727 )
 
           
Total stockholders’ equity
    12,122       11,136  
 
           
Total
  $ 36,228     $ 34,131  
 
           
See Notes to Consolidated Financial Statements.

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E. I. du Pont de Nemours and Company
Condensed Consolidated Statements of Cash Flows (Unaudited)
(Dollars in millions)
                 
    Three Months Ended  
    March 31,  
    2008     2007  
 
Operating activities
               
Net income
  $ 1,191     $ 945  
Adjustments to reconcile net income to cash used for operating activities:
               
Depreciation
    287       290  
Amortization of intangible assets
    93       56  
Contributions to pension plans
    (89 )     (84 )
Other noncash charges and credits — net
    80       73  
Change in operating assets and liabilities — net
    (2,513 )     (1,520 )
 
           
 
               
Cash used for operating activities
    (951 )     (240 )
 
           
 
               
Investing activities
               
Purchases of property, plant and equipment
    (410 )     (273 )
Investments in affiliates
    (3 )     (11 )
Payments for businesses — net of cash acquired
    (31 )      
Proceeds from sales of assets — net of cash sold
    5       27  
Net decrease in short-term financial instruments
    104       10  
Forward exchange contract settlements
    (187 )     (41 )
Other investing activities — net
    2       19  
 
           
 
               
Cash used for investing activities
    (520 )     (269 )
 
           
 
               
Financing activities
               
Dividends paid to stockholders
    (372 )     (347 )
Net increase in borrowings
    1,611       41  
Repurchase of common stock
          (300 )
Proceeds from exercise of stock options
    19       250  
Other financing activities — net
    4       (69 )
 
           
 
               
Cash provided by (used for) financing activities
    1,262       (425 )
 
           
 
               
Effect of exchange rate changes on cash
    (2 )     3  
 
           
 
               
Decrease in cash and cash equivalents
  $ (211 )   $ (931 )
 
               
Cash and cash equivalents at beginning of period
    1,305       1,814  
 
           
 
               
Cash and cash equivalents at end of period
  $ 1,094     $ 883  
 
           
See Notes to Consolidated Financial Statements.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share)
Note 1. Summary of Significant Accounting Policies
Interim Financial Statements
The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the results for interim periods have been included. Results for interim periods should not be considered indicative of results for a full year. These interim Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto contained in the company’s Annual Report on Form 10-K for the year ended December 31, 2007 as amended on Form 10-K/A (Amendment No. 1), collectively referred to as the ‘2007 Annual Report’. The Consolidated Financial Statements include the accounts of the company and all of its subsidiaries in which a controlling interest is maintained, as well as variable interest entities in which DuPont is considered the primary beneficiary. Certain reclassifications of prior year’s data have been made to conform to current year classifications.
Accounting Standards Issued Not Yet Adopted
In December 2007, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 141 (revised 2007) “Business Combinations” (SFAS 141R) which replaces SFAS No. 141. SFAS 141R addresses the recognition and measurement of identifiable assets acquired, liabilities assumed, and non-controlling interests in business combinations. SFAS 141R also requires disclosure that enables users of the financial statements to better evaluate the nature and financial effect of business combinations. SFAS 141R applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. SFAS 141R will be adopted by the company on January 1, 2009. The company is currently evaluating the impact of adoption on its Consolidated Financial Statements.
In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements—an amendment of Accounting Research Bulletin No. 51” (SFAS 160) which changes the accounting and reporting for minority interests and for the deconsolidation of a subsidiary. It also clarifies that a third-party, non-controlling interest in a consolidated subsidiary is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. SFAS 160 also requires disclosure that clearly identifies and distinguishes between the interests of the parent and the interests of the non-controlling owners. SFAS 160 is effective for fiscal years beginning after December 15, 2008. SFAS 160 will be adopted by the company on January 1, 2009. The company is currently evaluating the impact of adoption on its Consolidated Financial Statements.
In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement No. 133” (SFAS 161). Effective for fiscal years and interim periods beginning after November 15, 2008, the new standard requires enhanced disclosures about derivative and hedging activities that are intended to better convey the purpose of derivative use and the risks managed. A tabular format will display derivatives’ fair values and gain or loss recognized and the classification of those amounts within the financial statements. SFAS 161 will not affect the company’s financial position or results of operations because the new standard solely affects the disclosure of information.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share)
Note 2. Effect of Implementation of FASB Statement of Financial Accounting Standards No. 157 “Fair Value Measurements” (SFAS 157)
Effective January 1, 2008, the company prospectively implemented the provisions of SFAS 157 for financial assets and financial liabilities reported or disclosed at fair value. As permitted by FASB Staff Position No. FAS 157-2, the company elected to defer implementation of the provisions of SFAS 157 for non-financial assets and nonfinancial liabilities until January 1, 2009, except for non-financial items that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually).
SFAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. The disclosures focus on the inputs used to measure fair value.
SFAS 157 establishes the following hierarchy for categorizing these inputs:
     
Level 1 -
  Quoted market prices in active markets for identical assets or liabilities
 
   
Level 2 -
  Significant other observable inputs (e.g., quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and market-corroborated inputs)
 
   
Level 3 -
  Significant unobservable inputs
At March 31, 2008, the following financial assets and financial liabilities were measured at fair value on a recurring basis using the type of inputs shown:
Financial assets
                                 
    March 31,     Fair Value Measurements at March 31, 2008 Using  
    2008     Level 1 Inputs     Level 2 Inputs     Level 3 Inputs  
Derivatives
  $ 83     $     $ 83     $  
 
                               
Available-for-sale securities
    30       30              
 
                       
 
  $ 113     $ 30     $ 83     $  
 
                       
Financial liabilities
                                 
    March 31,     Fair Value Measurements at March 31, 2008 Using  
    2008     Level 1 Inputs     Level 2 Inputs     Level 3 Inputs  
Derivatives
  $ 138     $     $ 138     $  
 
                       

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share)
Note 3. Other Income, Net
                 
    Three Months Ended  
    March 31,  
    2008     2007  
 
CozaarÒ/HyzaarÒ income
  $ 233     $ 224  
Royalty income
    27       25  
Interest income
    27       34  
Equity in earnings of affiliates
    19       6  
Net gains on sales of assets
    2       10  
Net exchange losses 1
    (135 )     (21 )
Miscellaneous income and expenses, net 2
    22       38  
 
           
 
               
Total
  $ 195     $ 316  
 
           
 
1   The company routinely uses forward exchange contracts to offset its net exposures, by currency, related to its 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 net pretax exchange gains and losses are largely offset by the associated tax impact.
 
2   Miscellaneous income and expenses, net, includes interest items, insurance recoveries, litigation settlements, and other items.
Note 4. Restructuring Activities
During the three months ended March 31, 2008, there were no significant changes in estimates related to liabilities established for restructuring initiatives recorded in 2006. A complete discussion of all restructuring initiatives is included in the company’s 2007 Annual Report in Note 4, “Restructuring Activities.”
The account balances and activity for the company’s restructuring programs are as follows:
         
    2006  
    Programs  
Balance at December 31, 2007
  $ 70  
 
       
Employee separation payments
    (20 )
 
     
 
       
Balance at March 31, 2008
  $ 50  
 
     
As of March 31, 2008, approximately 1,170 employees were separated relating to the 2006 Agriculture & Nutrition refocus plan. There have been no additional employee separations under the Coatings & Color Technologies business transformation plan since December 31, 2007.
Note 5. Provision for Income Taxes
In the first quarter 2008, the company recorded a tax provision of $273, including $141 of tax benefit associated with the company’s policy of hedging the foreign currency-denominated monetary assets and liabilities of its operations.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share)
In the first quarter 2007, the company recorded a tax provision of $365, including $10 of tax benefit associated with the company’s policy of hedging the foreign currency-denominated monetary assets and liabilities of its operations.
Each year the company files hundreds of tax returns in the various national, state and local income taxing jurisdictions in which it operates. These tax returns are subject to examination and possible challenge by the taxing authorities. Positions challenged by the taxing authorities may be settled or appealed by the company. As a result, there is an uncertainty in income taxes recognized in the company’s financial statements in accordance with SFAS No. 109, “Accounting for Income Taxes” (SFAS 109) and FASB Interpretation No. 48 (FIN 48). It is reasonably possible that changes to the company’s global unrecognized tax benefits could be significant, however, due to the uncertainty regarding the timing of completion of audits and possible outcomes, a current estimate of the range of increases or decreases that may occur within the next twelve months can not be made.
Note 6. Earnings Per Share of Common Stock
Set forth below is a reconciliation of the numerator and denominator for basic and diluted earnings per share calculations for the periods indicated:
                 
    Three Months Ended  
    March 31,  
    2008     2007  
Numerator:
               
Net income
  $ 1,191     $ 945  
Preferred dividends
    (3 )     (3 )
 
           
 
               
Net income available to common stockholders
  $ 1,188     $ 942  
 
           
 
               
Denominator:
               
Weighted-average number of common shares — Basic
    900,646,000       924,020,000  
 
               
Dilutive effect of the company’s employee compensation plans
    5,547,000       9,247,000  
 
           
 
               
Weighted-average number of common shares — Diluted
    906,193,000       933,267,000  
 
           
The following average number of stock options were antidilutive, and therefore, were not included in the diluted earnings per share calculations:
                 
    Three Months Ended  
    March 31,  
    2008     2007  
Average Number of Stock Options
    26,526,000       21,774,000  

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share)
Note 7. Inventories
                 
    March 31,     December 31,  
    2008     2007  
 
Finished products
  $ 3,748     $ 3,043  
Semifinished products
    1,176       1,865  
Raw materials and supplies
    1,053       1,000  
 
           
 
               
 
    5,977       5,908  
Adjustment of inventories to a last-in, first-out (LIFO) basis
    (667 )     (630 )
 
           
 
               
Total
  $ 5,310     $ 5,278  
 
           
Note 8. Goodwill and Other Intangible Assets
There were no significant changes in goodwill for the three-month period ended March 31, 2008.
The gross carrying amounts and accumulated amortization in total and by major class of other intangible assets are as follows:
                                                 
    March 31, 2008     December 31, 2007  
            Accumulated                     Accumulated        
    Gross     Amortization     Net     Gross     Amortization     Net  
Intangible assets subject to amortization (Definite-lived):
                                               
Purchased and licensed technology
  $ 2,412     $ (1,220 )   $ 1,192     $ 2,410     $ (1,142 )   $ 1,268  
Patents
    150       (50 )     100       155       (56 )     99  
Trademarks
    55       (17 )     38       53       (17 )     36  
Other
    548       (251 )     297       536       (237 )     299  
 
                                   
 
                                               
 
    3,165       (1,538 )     1,627       3,154       (1,452 )     1,702  
 
                                   
 
                                               
Intangible assets not subject to amortization (Indefinite-lived):
                                               
Trademarks / tradenames
    179             179       179             179  
Pioneer germplasm
    975             975       975             975  
 
                                   
 
                                               
 
  $ 1,154     $     $ 1,154     $ 1,154     $     $ 1,154  
 
                                   
 
                                               
Total
  $ 4,319     $ (1,538 )   $ 2,781     $ 4,308     $ (1,452 )   $ 2,856  
 
                                   
The aggregate amortization expense for definite-lived intangible assets was $93 and $56 for the three-month periods ended March 31, 2008 and 2007, respectively. The estimated aggregate pretax amortization expense for 2008 and each of the next five years is approximately $280, $290, $275, $260, $210 and $180.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share)
Note 9. Commitments and Contingent Liabilities
Guarantees
Product Warranty Liability
The company warrants that its products meet standard specifications. The company’s product warranty liability was $25 and $23 as of March 31, 2008 and December 31, 2007, respectively. Estimates for warranty costs are based primarily on historical claim experience.
Indemnifications
In connection with acquisitions and divestitures, the company has indemnified respective parties against certain liabilities that may arise in connection with these transactions and business activities prior to the completion of the transaction. The term of these indemnifications, which typically pertain to environmental, tax and product liabilities, is generally indefinite. In addition, the company indemnifies its duly elected or appointed directors and officers to the fullest extent permitted by Delaware law, against liabilities incurred as a result of their activities for the company, such as adverse judgments relating to litigation matters. If the indemnified party were to incur a liability or have a liability increase as a result of a successful claim, pursuant to the terms of the indemnification, the company would be required to reimburse the indemnified party. The maximum amount of potential future payments is generally unlimited. The carrying amount recorded for all indemnifications as of March 31, 2008 and December 31, 2007 was $101. Although it is reasonably possible that future payments may exceed amounts accrued, due to the nature of indemnified items, it is not possible to make a reasonable estimate of the maximum potential loss or range of loss. No assets are held as collateral and no specific recourse provisions exist.
In connection with the sale of the majority of the net assets of Textiles and Interiors the company indemnified the purchasers, subsidiaries of Koch Industries, Inc. (INVISTA), against certain liabilities primarily related to taxes, legal and environmental matters and other representations and warranties under the Purchase and Sale Agreement. The estimated fair value of the indemnity obligations under the Purchase and Sale Agreement was $70 and was included in the indemnifications balance of $101 at March 31, 2008. Under the Purchase and Sale Agreement, the company’s total indemnification obligation for the majority of the representations and warranties cannot exceed $1,400. The other indemnities are not subject to this limit. In March 2008, INVISTA filed suit in the Southern District of New York alleging that certain representations and warranties in the Purchase and Sale Agreement were breached and, therefore, that DuPont is obligated to indemnify it. DuPont disagrees with the extent and value of INVISTA’s claims. DuPont has not changed its estimate of its total indemnification obligation under the Purchase and Sale Agreement as a result of the lawsuit.
Obligations for Equity Affiliates & Others
The company has directly guaranteed various debt obligations under agreements with third parties related to equity affiliates, customers, suppliers and other affiliated and unaffiliated companies. At March 31, 2008, the company had directly guaranteed $568 of such obligations, and $121 relating to guarantees of historical obligations for divested subsidiaries and affiliates. This represents the maximum potential amount of future (undiscounted) payments that the company could be required to make under the guarantees. The company would be required to perform on these guarantees in the event of default by the guaranteed party. At March 31, 2008 and December 31, 2007, a liability of $142 and $135, respectively, was recorded for these obligations, principally related to obligations of the company’s polyester films joint venture which are guaranteed by the company.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share)
In certain cases, the company has recourse to assets held as collateral, as well as personal guarantees from customers and suppliers. Assuming liquidation, these assets are estimated to cover approximately 35 percent of the $265 of guaranteed obligations of customers and suppliers. Set forth below are the company’s guaranteed obligations at March 31, 2008:
                                 
      Short-     Long-        
      Term     Term     Total  
                     
Obligations for customers, suppliers and other affiliated and unaffiliated companies1, 2:
                               
Bank borrowings (terms up to 5 years)
    $ 391       $ 127       $ 518    
Revenue bonds (less than 1 year)
      1                 1    
Leases on equipment and facilities (terms up to 3 years)
              17         17    
 
                               
Obligations for equity affiliates2:
                               
Bank borrowings (terms up to 5 years)
      6         21         27    
Leases on equipment and facilities (terms of 1 to 3 years)
              5         5    
                     
Total obligations for customers, suppliers, other affiliated and unaffiliated companies and equity affiliates
    $ 398       $ 170       $ 568    
                     
Obligations for divested subsidiaries and affiliates3:
                               
Conoco (terms from 1 to 19 years)
              18         18    
Consolidation Coal Sales Company (terms from 3 to 4 years)
              103         103    
                     
Total obligations for divested subsidiaries and affiliates
              121         121    
                     
 
                               
 
    $ 398       $ 291       $ 689    
                     
1   Existing guarantees for customers, suppliers, and other unaffiliated companies arose as part of contractual agreements.
 
2   Existing guarantees for equity affiliates and other affiliated companies arose for liquidity needs in normal operations.
 
3   The company has guaranteed certain obligations and liabilities related to divested subsidiaries, including Conoco and its subsidiaries and affiliates and Consolidation Coal Sales Company. The Restructuring, Transfer and Separation Agreement between DuPont and Conoco requires Conoco to use its best efforts to have Conoco, or any of its subsidiaries, substitute for DuPont. Conoco and Consolidation Coal Sales Company have indemnified the company for any liabilities the company may incur pursuant to these guarantees.
Residual Value Guarantees
As of March 31, 2008, the company had one master operating lease program relating to short-lived equipment. In connection with this master operating lease program, the company had residual value guarantees in the amount of $104 at March 31, 2008. The guarantee amounts are tied to the unamortized lease values of the assets under synthetic lease and are due should the company decide neither to renew these leases nor to exercise its purchase option. At March 31, 2008, the company had no liabilities recorded for these obligations. Any residual value guarantee amounts paid to the lessor may be recovered by the company from the sale of the assets to a third party.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share)
Litigation
Benlate®
In 1991, DuPont began receiving claims by growers that use of Benlate® 50 DF fungicide had caused crop damage. DuPont has since been served with thousands of lawsuits, most of which have been disposed of through trial, dismissal or settlement. The status of Benlate® cases is indicated in the table below:
         
    Number of Cases  
       
Balance at December 31, 2007
    14  
Filed
     
Resolved
    (1 )
 
     
Balance at March 31, 2008
    13  
 
     
At March 31, 2008, there were nine cases pending in Florida state court, involving allegations that Benlate® caused crop damage. Plaintiffs appealed the court’s 2006 dismissal of one of the nine cases for failure to prosecute. Two of the nine cases, involving twenty-seven Costa Rican fern growers, were tried during the second quarter of 2006 resulting in a $56 judgment against the company, which was reduced to $24 on DuPont’s motion. At trial, the plaintiffs sought damages in the range of $270 to $400. The plaintiffs and DuPont have appealed the verdict. DuPont believes that the appeal will be resolved in its favor and, therefore, has not established an accrual relating to the judgment.
At March 31, 2008, there was one case pending in Florida and one in Hawaii in which the plaintiffs seek to reopen settlements with the company by alleging that it committed fraud and misconduct, as well as violations of federal and state racketeering laws. In October 2007, the appeals court entered an order precluding the judge from taking further action effectively dismissing the case pending in Florida. Plaintiffs are seeking a discretionary review by the Florida Supreme Court. In 2005, the case pending in Hawaii was settled in part for $1.2. In November 2007, the Hawaii Supreme Court affirmed the state court’s dismissal of the remainder of the case. Plaintiffs are seeking review by the U.S. Supreme Court.
In the first quarter of 2008, the Supreme Court of Delaware dismissed the one case remaining that alleged that Benlate® caused birth defects to children exposed in utero.
At March 31, 2008, there were two shrimp cases in Florida pending against the company. These cases had been decided in DuPont’s favor, but in September 2007, the judge granted plaintiffs’ motion for new trial thus reinstating the cases. The company has appealed. The twenty-six other cases involving damage to shrimp pending against the company in state court in Florida were settled for $2.5 during the second quarter 2007. Separately, plaintiffs filed a motion seeking sanctions for alleged discovery defaults in all twenty-eight of the cases. The court denied most of the sanctions sought by plaintiffs, but did impose on DuPont the reasonable and necessary attorney fees incurred by plaintiffs in moving for sanctions. The company will appeal the ruling once it has been finalized.
The company does not believe that Benlate® caused the damages alleged in each of these cases and denies the allegations of fraud and misconduct. The company continues to defend itself in ongoing matters. As of March 31, 2008, the company has incurred costs and expenses of approximately $2 billion associated with these matters. The company has recovered approximately $275 of its costs and expenses through insurance and does not expect additional insurance recoveries, if any, to be significant. At March 31, 2008, the company does not have any remaining accruals related to Benlate®.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share)
PFOA
Environmental Actions Involving the Washington Works Site and Surrounding Area
In November 2006, DuPont entered into an Order on Consent under the Safe Drinking Water Act (SDWA) with the U.S. Environmental Protection Agency (EPA) establishing a precautionary interim screening level for PFOA (collectively, perfluorooctanoic acids and its salts, including the ammonium salt) of 0.5 parts per billion (ppb) in drinking water sources in the area around the DuPont Washington Works site located in Parkersburg, West Virginia. As part of the Order on Consent, DuPont conducted a two-part survey and performed sampling and analytical testing of certain public and private water systems in the area. DuPont is required under the agreement to offer to install water treatment systems or an EPA-approved alternative if PFOA levels are detected at or above 0.5 ppb. PFOA was detected at levels above 0.5 ppb in thirty-one private water wells, so the company is providing alternative or treated water to these homes.
In late 2005 DuPont and the EPA entered into a Memorandum of Understanding (EPA MOU) that required DuPont to monitor PFOA in the soil, air, water and biota around the Washington Works site. The data generated in the monitoring process is subject to a third party peer review. At March 31, 2008, DuPont has accruals of about $0.4 to fund its activities under the EPA MOU and Order on Consent.
EPA Administrative Complaints
In July and December 2004, the EPA filed administrative complaints against DuPont alleging that the company failed to comply with the technical reporting requirements of the Toxic Substances Control Act (TSCA) and the Resource Conservation and Recovery Act (RCRA) regarding PFOA. Under a 2005 agreement settling the matter, the company paid civil fines of $10.25 and will complete two Supplemental Environmental Projects at a total cost of $6.25.
Actions: Drinking Water
In August 2001, a class action, captioned Leach v. DuPont, was filed in West Virginia state court against DuPont and the Lubeck Public Service District. DuPont uses PFOA as a processing aid to manufacture fluoropolymer resins and dispersions at various sites around the world including its Washington Works plant in West Virginia. The complaint alleged that residents living near the Washington Works facility had suffered, or may suffer, deleterious health effects from exposure to PFOA in drinking water. The relief sought included damages for medical monitoring, diminution of property values and punitive damages plus injunctive relief to stop releases of PFOA. DuPont and attorneys for the class reached a settlement agreement in 2004 and as a result, the company established accruals of $108 in 2004. The agreement was approved by the Wood County Circuit Court on February 28, 2005 after a fairness hearing. The settlement binds a class of approximately 80,000 residents. As defined by the court, the class includes those individuals who have consumed, for at least one year, water containing 0.05 ppb or greater of PFOA from any of six designated public water sources or from sole source private wells.
In July 2005, the company paid the plaintiffs’ attorneys’ fees and expenses of $23 and made a payment of $70, which class counsel has designated to fund a community health project. The company is also funding a series of health studies by an independent science panel of experts in the communities exposed to PFOA to evaluate available scientific evidence on whether any probable link exists between exposure to PFOA and human disease. The independent science panel health studies are estimated to cost approximately $23, of which $5 was originally placed in an interest-bearing escrow account. As of January 2008, the expected timeframe to complete the studies is four to five years. In addition, the company is providing state-of-the art water treatment systems designed to reduce the level of PFOA in water to six area water districts, including the Little Hocking Water Association (LHWA), until the science panel determines that PFOA does not cause disease or until applicable water standards can be met without such treatment. The estimated cost of constructing, operating and maintaining these systems is about $20 of which $10 was originally placed in an interest-bearing escrow account. In the fourth quarter 2007, the water treatment system for the LHWA was brought online. At March 31, 2008, the accrual balance relating to the funding of the independent science panel health study and the water treatment systems was $24, including $13 in interest bearing escrow accounts.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share)
The settlement resulted in the dismissal of all claims asserted in the lawsuit except for personal injury claims. If the independent science panel concludes that no probable link exists between exposure to PFOA and any diseases, then the settlement would also resolve personal injury claims. If it concludes that a probable link does exist between exposure to PFOA and any diseases, then DuPont would also fund up to $235 for a medical monitoring program to pay for such medical testing. In this event, plaintiffs would retain their right to pursue personal injury claims. All other claims in the lawsuit would remain dismissed by the settlement. DuPont believes that it is remote that the panel will find a probable link. Therefore, at March 31, 2008, the company had not established any accruals related to medical monitoring or personal injury claims. However, there can be no assurance as to what the independent science panel will conclude.
In June 2007, the LHWA notified DuPont that it intends to file suit under RCRA alleging “imminent and substantial endangerment to health and or the environment” based on detection of PFOA in its wells. DuPont denies any such endangerment exists and intends to vigorously defend itself if a lawsuit is filed.
In September 2007, LHWA refiled the suit it originally filed in Ohio state court and voluntarily dismissed in 2006. The suit claims that perfluorinated compounds, including PFOA, allegedly released from the Washington Works plant contaminated LHWA’s well fields and underlying aquifer. LHWA’s complaint seeks a variety of relief including compensatory and punitive damages, and an injunction requiring DuPont to provide a new “pristine” well field and the infrastructure to deliver it.
In the second quarter 2006, three purported class actions were filed alleging that drinking water had been contaminated by PFOA in excess of 0.05 ppb due to alleged releases from certain DuPont plants. One of these cases was filed in West Virginia state court on behalf of customers of the Parkersburg City Water District, but was removed on DuPont’s motion to the U.S. District Court for the Southern District of West Virginia. The other two purported class actions were filed in New Jersey. One was filed in federal court on behalf of individuals who allegedly drank water contaminated by releases from DuPont’s Chambers Works plant in Deepwater, New Jersey. The second was filed in state court on behalf of customers serviced primarily by the Pennsville Township Water Department and was removed to New Jersey federal district court on DuPont’s motion. The New Jersey cases have been combined for purposes of discovery and the complaints have been amended to allege that drinking water had been contaminated by PFOA in excess of 0.04 ppb. The company intends to defend itself vigorously against these lawsuits alleging contamination of drinking water sources.
While DuPont believes that it is reasonably possible that it could incur losses related to PFOA matters in addition to those matters discussed above for which it has established accruals, a range of such losses, if any, cannot be reasonably estimated at this time.
Consumer Products Class Actions
         
    Number of Cases  
       
Balance at December 31, 2007
    23  
Filed
     
Resolved
     
 
     
Balance at March 31, 2008
    23  
 
     
As of March 31, 2008, twenty-three intrastate class actions have been filed on behalf of consumers who have purchased cookware with Teflon® non-stick coating in federal district courts against DuPont. The actions were filed on behalf of consumers in Colorado, Connecticut, Delaware, the District of Columbia, Florida, Illinois, Indiana, Iowa, Kentucky, Massachusetts, Michigan, Missouri, New Jersey, New Mexico, New York, Ohio, Oklahoma, Pennsylvania, South Carolina, Texas and West Virginia. Two of the 23 actions were filed in California. By order of the Judicial Panel on Multidistrict Litigation, all of these actions have been combined for coordinated and consolidated pre-trial proceedings in federal district court for the Southern District of Iowa. Under the court’s latest case management order, a ruling on whether these cases can proceed as class actions is expected in 2008.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share)
The actions allege that DuPont violated state laws by engaging in deceptive and unfair trade practices by failing “to disclose to consumers that products containing Teflon® were or are potentially harmful to consumers” and that DuPont has liability based on state law theories of negligence and strict liability. The actions allege that Teflon® contained or released harmful and dangerous substances; including a chemical (PFOA) alleged to have been determined to be “likely” to cause cancer in humans. The actions seek unspecified monetary damages for consumers who purchased cooking products containing Teflon®, as well as the creation of funds for medical monitoring and independent scientific research, attorneys’ fees and other relief. In December 2005, a motion was filed by a single named plaintiff in the Superior Court for the Province of Quebec, Canada seeking authorization to institute a class action on behalf of all Quebec consumers who have purchased or used kitchen items, household appliances or food-packaging containing Teflon® or Zonyl® non-stick coatings. A ruling on this motion is expected from the Court in 2008. Damages are not quantified, but are alleged to include the cost of replacement products as well as one hundred dollars per class member as exemplary damages.
The company believes that the twenty-three class actions and the motion filed in Quebec are without merit and, therefore, believes it is remote that it will incur losses related to these actions. At March 31, 2008, the company had not established any accruals related to these matters.
Elastomers Antitrust Matters
Since 2002, the U.S., European Union (EU) and Canadian antitrust authorities have investigated the synthetic rubber markets for possible violations. These investigations included DuPont Dow Elastomers, LLC (DDE), as a result of its participation in the polychloroprene (PCP) and ethylene propylene diene monomer (EPDM) markets. DDE was a joint venture between The Dow Chemical Company (Dow) and DuPont.
In April 2004, DuPont and Dow entered into a series of agreements under which DuPont obtained complete control over directing DDE’s response to these investigations and the related litigation and DuPont agreed to a disproportionate share of the venture’s liabilities and costs related to these matters. Consequently, DuPont bears any potential liabilities and costs up to the initial $150. Dow is obligated to indemnify DuPont for up to $72.5 by paying 15 to 30 percent toward liabilities and costs in excess of $150. On June 30, 2005, DDE became a wholly owned subsidiary of DuPont and was renamed DuPont Performance Elastomers, LLC (DPE).
In July 2007, DPE pled guilty to conspiring to fix prices and paid a fine of CDN $4, approximately $3.8 USD, resolving all criminal antitrust allegations against it related to PCP in Canada.
In late March 2007, the EU antitrust authorities issued a Statement of Objections that made antitrust allegations regarding the PCP market against DPE, relating to the joint venture’s activities, and DuPont, to which both responded. In December 2007, the EU antitrust authorities issued their decision, including the imposition of fines against DPE, Dow and DuPont totaling EURO 59.25. In February 2008, DuPont appealed the decision to the EU’s Court of First Instance which has jurisdiction to review the findings and adjust the fine. It is very unlikely that the fine would be increased as a result of the review. In March 2008, the company provisionally paid the fine of EURO 59.25 ($90.9 USD); a portion of the payment may be refunded if the appeal is successful.
DDE resolved all criminal antitrust allegations against it related to PCP in the U.S. through a plea agreement with the DOJ in January 2005 which was approved by the court on March 29, 2005. The agreement requires the subsidiary to pay a fine of $84 which, at its election, is being paid in six equal, annual installments. The annual installment payments for 2005, 2006, 2007 and 2008 have been made. The agreement also requires the subsidiary to provide ongoing cooperation with the DOJ’s investigation.
At March 31, 2008, the company has accruals of approximately $28 related to this matter and a receivable of about $18 for the amount it expects to be reimbursed by Dow.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share)
Spelter, West Virginia
In September 2006, a West Virginia state court certified a class action against DuPont that seeks relief including the provision of remediation services and property value diminution damages for 7,000 residential properties in the vicinity of a closed zinc smelter in Spelter, West Virginia. The action also seeks medical monitoring for an undetermined number of residents in the class area. The smelter was owned and operated by at least three companies between 1910 and 2001, including DuPont between 1928 and 1950. DuPont performed remedial measures at the request of the EPA in the late 1990s and in 2001 repurchased the site to facilitate and complete the remediation. The October 2007 trial was conducted in four phases: liability, medical monitoring, property and punitive damages. The jury found against DuPont in all four phases awarding $55.5 for property remediation and $196.2 in punitive damages. In post trial motions, the court adopted the plaintiffs’ forty-year medical monitoring plan estimated by plaintiffs to cost $130 and granted plaintiffs’ attorneys legal fees of $127 plus $8 in expenses. The company believes it has a strong basis for appeal and will file its petition seeking the right to appeal all four phases during the second quarter 2008. Effective with DuPont posting a bond, the execution of judgment against the company is stayed pending final disposition of DuPont’s appeal to the West Virginia Supreme Court of Appeals. As of March 31, 2008, the company had recorded accruals of $55, although given the uncertainties inherent in litigation, there can be no assurance as to the final outcome.
General
The company is subject to various lawsuits and claims arising out of the normal course of its business. These lawsuits and claims include actions based on alleged exposures to products, intellectual property and environmental matters and contract and antitrust claims. Management has noted a nationwide trend in purported class actions against chemical manufacturers generally seeking relief such as medical monitoring, property damages, off-site remediation and punitive damages arising from alleged environmental torts without claiming present personal injuries. Such cases may allege contamination from unregulated substances or remediated sites. Although it is not possible to predict the outcome of these various lawsuits and claims, management does not anticipate they will have a materially adverse effect on the company’s consolidated financial position or liquidity. However, the ultimate liabilities may be significant to results of operations in the period recognized. The company accrues for contingencies when the information available indicates that it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated.
Environmental
The company is also subject to contingencies pursuant to environmental laws and regulations that in the future may require the company to take further action to correct the effects on the environment of prior disposal practices or releases of chemical or petroleum substances by the company or other parties. The company accrues for environmental remediation activities consistent with the policy set forth in Note 1 in the company’s 2007 Annual Report. Much of this liability results from the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, often referred to as Superfund), the Resource Conservation and Recovery Act (RCRA) and similar state laws. These laws require the company to undertake certain investigative and remedial activities at sites where the company conducts or once conducted operations or at sites where company-generated waste was disposed. The accrual also includes estimated costs related to a number of sites identified by the company for which it is probable that environmental remediation will be required, but which are not currently the subject of CERCLA, RCRA or state enforcement activities.
Remediation activities vary substantially in duration and cost from site to site. These activities, and their associated costs, depend on the mix of unique site characteristics, evolving remediation technologies, diverse regulatory agencies and enforcement policies, as well as the presence or absence of potentially responsible parties. At March 31, 2008, the Condensed Consolidated Balance Sheet included a liability of $362 relating to these matters and, in management’s opinion, is appropriate based on existing facts and circumstances. The average time frame, over which the accrued or presently unrecognized amounts may be paid, based on past history, is estimated to be 15-20 years. Considerable uncertainty exists with

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share)
respect to these costs and, under adverse changes in circumstances, potential liability may range up to two to three times the amount accrued as of March 31, 2008.
Other
The company has various purchase commitments incident to the ordinary conduct of business. In the aggregate, such commitments are not at prices in excess of current market nor are they significantly different than amounts disclosed in the company’s 2007 Annual Report.
Note 10. Comprehensive Income
The following sets forth the company’s total comprehensive income for the periods shown:
                 
    Three Months Ended  
    March 31,  
    2008     2007  
 
Net income
  $ 1,191     $ 945  
Cumulative translation adjustment
    120       12  
Net revaluation and clearance of cash flow hedges to earnings
    7       (1 )
Pension benefit plans
    14       18  
Other benefit plans
    (11 )     (13 )
Net unrealized losses on available for sale securities
    (4 )      
 
           
 
Total
  $ 1,317     $ 961  
 
           
Note 11. Derivatives and Other Hedging Instruments
The company’s objectives and strategies for holding derivative instruments are included the company’s 2007 Annual Report, at Note 23, “Derivatives and Other Hedging Instruments.” Cash flow ineffectiveness reported in earnings for the three-month period ended March 31, 2008 was a pretax gain of $4. There were no hedge gains or losses excluded from the assessment of hedge effectiveness or reclassifications to earnings for forecasted transactions that did not occur related to cash flow hedges.
The following table summarizes the effect of cash flow hedges on accumulated other comprehensive income (loss) for the periods shown:
                         
    Three Months Ended  
    March 31, 2008  
    Pretax     Tax     After-
Tax
 
 
Balance at December 31, 2007
  $ 66     $ (25 )   $ 41  
 
Additions and revaluations of derivatives designated as cash flow hedges
    40       (14 )     26  
 
Clearance of hedge results to earnings
    (28 )     9       (19 )
 
                 
 
Balance at March 31, 2008
  $ 78     $ (30 )   $ 48  
 
                 
                         
Amounts expected to be reclassified into earnings over the next twelve months
  $ 30     $ (11 )   $ 19  
 
                 

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share)
Note 12. Employee Benefits
The following sets forth the components of the company’s net periodic benefit credit for pensions:
                 
    Three Months Ended  
    March 31,  
    2008     2007  
 
Service cost
  $ 52     $ 94  
Interest cost
    323       305  
Expected return on plan assets
    (485 )     (448 )
Amortization of unrecognized loss
    14       29  
Amortization of prior service cost
    5       5  
 
           
Net periodic benefit credit
  $ (91 )   $ (15 )
 
           
The company disclosed in its Consolidated Financial Statements for the year ended December 31, 2007, that it expected to contribute approximately $250 to its pension plans, other than to the principal U.S. pension plan in 2008. As of March 31, 2008, contributions of $89 have been made to these pension plans and the company anticipates additional contributions during the remainder of 2008 to total approximately $166.
The following sets forth the components of the company’s net periodic benefit cost for other long-term employee benefits:
                 
    Three Months Ended  
    March 31,  
    2008     2007  
Service cost
  $ 7     $ 8  
Interest cost
    57       61  
Amortization of unrecognized loss
    8       18  
Amortization of prior service benefit
    (27 )     (39 )
 
           
                 
Net periodic benefit cost
  $ 45     $ 48  
 
           
The company disclosed in its Consolidated Financial Statements for the year ended December 31, 2007, that it expected to make payments of approximately $315 to its other long-term employee benefit plans in 2008. Through March 31, 2008, the company has made benefit payments of $78 related to its long-term employee benefit plans and anticipates additional payments during the remainder of 2008 to total approximately $237.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share)
Note 13. Segment Information
Segment sales include transfers. Segment pretax operating income (PTOI) is defined as operating income before income taxes, minority interests, exchange gains/ (losses), corporate expenses and net interest.
                                                                 
                    Electronic &                                
            Coatings &     Communica-                                
Three Months Ended   Agriculture     Color     tion     Performance     Safety &     Pharma-              
March 31,   & Nutrition     Technologies     Technologies     Materials     Protection     ceuticals     Other     Total 1  
                                                                 
2008
                                                               
Segment sales
  $ 2,883     $ 1,645     $ 1,026     $ 1,713     $ 1,365     $     $ 40     $ 8,672  
Less transfers
          (17 )     (36 )     (14 )     (26 )           (4 )     (97 )
 
                                               
Net sales
    2,883       1,628       990       1,699       1,339             36       8,575  
Pretax operating income (loss)
    786       190       175       219       272       235       (26 )     1,851  
 
                                                               
2007
                                                               
Segment sales
  $ 2,450     $ 1,559     $ 920     $ 1,589     $ 1,370     $     $ 43     $ 7,931  
Less transfers
          (14 )     (35 )     (9 )     (23 )           (5 )     (86 )
 
                                               
Net sales
    2,450       1,545       885       1,580       1,347             38       7,845  
Pretax operating income (loss)
    651       194       124       150 2     291       225       (56 )     1,579  
1   A reconciliation of the pretax operating income totals reported for the operating segments to the applicable line item on the Consolidated Financial Statements is as follows:
                 
    Three Months Ended  
    March 31,  
    2008     2007  
 
Total segment PTOI
  $ 1,851     $ 1,579  
Net exchange gains/(losses), including affiliates
    (155 )     (28 )
Corporate expenses and net interest
    (226 )     (239 )
 
           
 
Income before income taxes and minority interests
  $ 1,470     $ 1,312  
 
           
2   Includes a $52 litigation related charge in connection with the elastomers antitrust matters. See Note 9 for more information.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS,
Continued
Item 2.   MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Cautionary Statements About Forward-Looking Statements
This report contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections about the future, including statements about the company’s strategy for growth, product development, market position, expenditures and financial results, are forward-looking statements.
Forward-looking statements are based on certain assumptions and expectations of future events. The company cannot guarantee that these assumptions and expectations are accurate or will be realized. For some of the important factors that could cause the company’s actual results to differ materially from those projected in any such forward-looking statements see the Risk Factors discussion set forth under Part II, Item 1A beginning on page 27. Additional risks and uncertainties not presently known to the company or that the company currently believes to be immaterial also could affect its businesses.
Results of Operations
Overview
The company’s growth strategies successfully generated a 9 percent sales and 26 percent net income growth. A significant portion of these increases are attributable to the Agriculture & Nutrition segment, which increased its segment sales 18 percent and pre-tax operating income 21 percent, and the Electronic & Communication Technologies segment, which increased segment sales 12 percent and pre-tax operating income 41 percent. Sales outside of the United States (U.S.) increased 16 percent, with double digit growth in all regions outside the U.S. Sales in the U.S. remained flat, as a 6 percent increase in local selling prices was offset by a 6 percent decrease in volume, principally reflecting the lower demand for the company’s products related to the construction and motor vehicle production markets.
Net Sales
Net sales for the first quarter 2008 were $8.6 billion versus $7.8 billion in the prior year, up 9 percent. The growth in sales was primarily due to a 16 percent increase in sales outside of the U.S., reflecting in part the benefit of a weaker U.S. dollar (USD), which added 5 percent to worldwide sales. Worldwide local selling prices increased 6 percent. Worldwide volumes declined 2 percent, primarily due to a 6 percent decrease in U.S. sales volume, which reflects lower demand for the company’s products related to the construction and motor vehicle production markets and a net reduction from portfolio changes.
The table below shows a regional breakdown of net sales based on location of customers and percentage variances from the prior year:
                                         
    Three Months Ended        
    March 31, 2008     Percent Change Versus 2007  
    2008     Percent                    
    Net Sales     Change     Local     Currency        
    ($ Billions)     vs. 2007     Price     Effect     Volume  
 
Worldwide
  $ 8.6       9       6       5       (2 )
U.S.
    3.3             6             (6 )
Europe
    2.9       18       5       9       4  
Asia Pacific
    1.3       11       4       4       3  
Canada & Latin America
    1.1       15       5       11       (1 )

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS,
Continued
Other Income, Net
First quarter 2008 other income, net, totaled $195 million as compared to $316 million in the prior year, a decrease of $121 million. The decrease is largely attributable to an increase in net pretax exchange losses of $114 primarily due to an increase in the foreign currency-denominated monetary asset position combined with a shift in remeasurement rates.
Additional information related to the company’s other income, net, is included in Note 3 to the interim Consolidated Financial Statements.
Cost of Goods Sold and Other Operating Charges (COGS)
COGS totaled $6.0 billion in the first quarter 2008 versus $5.6 billion in the prior year, an increase of 6 percent. COGS as a percent of net sales was 69 percent versus 71 percent for the first quarter 2007. The 2 percentage point reduction principally reflects the absence of a prior-year litigation charge and a current year benefit from the weaker U.S. dollar. Partly offsetting these factors were increases in energy, raw material and finished product distribution costs.
Selling, General and Administrative Expenses (SG&A)
SG&A totaled $934 million for the first quarter 2008 versus $846 million in the prior year. The increase in SG&A was primarily due to increased global commissions and selling and marketing investments related to the company’s seed business. As a percent of net sales, SG&A for the quarter was 11 percent, essentially unchanged from the prior year.
Research and Development Expense (R&D)
R&D totaled $330 million and $310 million for the first quarter of 2008 and 2007, respectively. The company’s expectation is for R&D to increase modestly in 2008 reflecting the growth investment in the seed business within the Agriculture & Nutrition segment. R&D was approximately 4 percent of net sales for the three-month periods in 2008 and 2007.
Interest Expense
Interest expense totaled $80 million in the first quarter of 2008 compared to $99 million in 2007. The decrease is due to lower average interest rates, partially offset by higher average borrowings.
Provision for Income Taxes
The company’s effective tax rate for the first quarter 2008 was 18.6 percent as compared to 27.8 percent in 2007. The lower effective tax rate in 2008 versus 2007 principally relates to the impact of tax associated with the company’s policy of hedging the foreign currency-denominated monetary assets and liabilities of its operations of $141 and $10, respectively.
Net Income
First quarter 2008 net income was $1,191 million compared to $945 million in the first quarter of 2007, a 26 percent increase. This increase reflects 9 percent revenue growth, principally from significantly higher seed sales, fixed cost productivity gains, a favorable foreign currency exchange impact, a lower effective income tax rate and the absence of a prior year $52 million litigation related charge. These increases were partially offset by a decrease in other income, net.
Corporate Outlook
The company’s current 2008 earnings outlook is a range of $3.40 to $3.55 per share based on the expectation of continued revenue growth in emerging markets and earnings growth across all of the growth platforms. This outlook reflects continued weakness in the U.S. construction and North American motor vehicle markets and continued escalation of energy, ingredient and transportation costs which will offset new product acceleration, mix enrichment, pricing discipline and continued cost and capital productivity gains.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS,
Continued
Accounting Standards Issued Not Yet Adopted
See Note 1 to the interim Consolidated Financial Statements for a description of recent accounting pronouncements.
Segment Reviews
Summarized below are comments on individual segment sales and PTOI for the three-month period ended March 31, 2008 compared with the same period in 2007. Segment sales include transfers. Segment PTOI is defined as operating income before income taxes, minority interests, exchange gains/ (losses), corporate expenses and interest.
Agriculture & Nutrition – First quarter 2008 sales of $2.9 billion were 18 percent higher than the same period in 2007, reflecting 15 percent higher USD selling prices and 3 percent volume growth. The volume growth was driven by higher soybean seed sales in North America due to an increase in planted soybean acreage, higher corn seed sales in Europe, higher safrinha corn seed sales in Brazil and strong demand for corn herbicides and cereal fungicides in Europe. This volume growth was partially offset by a decrease in corn seed sales in North America due to a decrease in planted corn acreage. The higher USD selling prices reflect higher value corn seed product mix, as well as favorable currency impacts in Europe and Latin America. PTOI for the first quarter was $786 million, an increase of 21 percent compared to the same period in the prior year. The improvement in PTOI for the quarter was primarily due to the higher sales, partially offset by higher production costs across most of the segment and the growth investment in the seed business.
Coatings & Color Technologies — First quarter 2008 sales of $1.6 billion were up 6 percent compared to the same period in 2007, reflecting 8 percent higher USD selling prices, partially offset by a 2 percent volume decrease. The decrease in volume was primarily due to lower sales of products sold to automotive original equipment manufacturers in North America and Europe and lower sales of titanium dioxide in North America. First quarter PTOI of $190 million decreased from $194 million in the first quarter 2007, which included a $16 million insurance recovery relating to Hurricane Katrina.
Electronic & Communication Technologies – Sales in the first quarter of $1.0 billion increased 12 percent from the first quarter 2007, reflecting 9 percent higher USD selling prices and 3 percent volume growth. The volume growth reflects increased demand for fluoroproducts, particularly in Europe and North America, and higher sales of electronic materials in Europe and Asia Pacific. First quarter 2008 PTOI increased 41 percent to $175 million, driven by higher sales, better product mix and improved fixed cost productivity.
Performance Materials – First quarter sales of $1.7 billion were up 8 percent compared to sales in the first quarter 2007, reflecting 12 percent higher USD selling prices, partially offset by a 4 percent volume decrease. The decrease in volume reflects lower sales of Neoprene due to the capacity reduction associated with the shutdown of the Louisville, Kentucky plant and lower sales of engineering polymer resins in North America due to the weak automotive market. First quarter 2008 PTOI was $219 million compared to $150 million in the first quarter 2007, which included a $52 million litigation related charge in connection with the elastomers antitrust matters. The improvement in PTOI was driven by higher sales and improved fixed cost productivity, partly offset by higher ingredient costs.
Safety & Protection — First quarter sales of $1.4 billion in 2008 were flat versus the same period in 2007, reflecting 7 percent higher USD selling prices offset by a 7 percent decline in volume. Lower volume primarily reflects lower sales of products for U.S. residential construction markets, as well as lower sales associated with a chemical business that was divested in 2007. First quarter 2008 PTOI was $272 million, a decrease of 7 percent compared to first quarter 2007. The decline in PTOI was primarily due to the impact of lower volumes related to U.S. residential construction markets, planned aramids growth investment, as well as the loss of PTOI associated with the divested chemical business.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS,
Continued
Pharmaceuticals – First quarter 2008 PTOI was $235 million compared to $225 million in the first quarter 2007.
Other - The company includes embryonic businesses not included in growth platforms, such as applied biosciences and nonaligned businesses in Other. Sales in the first quarter 2008 of $40 million decreased 7 percent from the first quarter 2007. Pretax operating loss for the first quarter 2008 was $26 million compared to a loss of $56 million in the first quarter 2007, which included litigation charges for divested businesses of $29 million.
Liquidity & Capital Resources
Management believes that the company’s ability to generate cash and access the capital markets will be adequate to meet anticipated future cash requirements to fund working capital, capital spending, dividend payments and other cash needs for the foreseeable future. The company’s liquidity needs can be met through a variety of sources, including: cash provided by operating activities, cash and cash equivalents, marketable securities, commercial paper, syndicated credit lines, bilateral credit lines, equity and long-term debt markets and asset sales. The company’s current strong financial position, liquidity and credit ratings provide excellent access to the capital markets.
Pursuant to its cash discipline policy, the company seeks first to maintain a strong balance sheet and second, to return excess cash to shareholders unless the opportunity to invest for growth is compelling. Cash and cash equivalents and marketable securities balances of $1.1 billion as of March 31, 2008, provide primary liquidity to support all short-term obligations. In the unlikely event that the company would not be able to meet its short-term liquidity needs, the company has access to approximately $4.3 billion in credit lines with several major financial institutions. These credit lines are primarily multi-year facilities.
The company continually reviews its debt portfolio for appropriateness and occasionally may rebalance it to ensure adequate liquidity and an optimum maturity debt schedule.
On April 29, 2008, Moody’s Investors Service changed the company’s credit outlook to “Stable” from “Negative”, as previously reported in the company’s 2007 Annual Report.
Cash used for operating activities was $951 million for the three months ended March 31, 2008 versus $240 million for the same period ended in 2007. The $711 million increase was primarily due to an increase in the cash used to fund working capital needs, primarily in the Agriculture & Nutrition segment, which was partially offset by higher earnings.
Cash used for investing activities was $520 million for the three months ended March 31, 2008 compared to $269 million for the same period last year. The $251 million increase was mainly due to increased capital expenditures and the impacts of a weakening U.S. dollar on forward exchange contract settlements. These increases were partially offset by a net increase in the sale of short-term financial instruments.
Purchases of property, plant and equipment for the three months ended March 31, 2008 totaled $410 million, an increase of $137 million compared to the prior year. The company expects full-year purchases of plant, property and equipment to be higher than the $1.6 billion spent in 2007.
Cash provided by financing activities was $1,262 million for the three months ended March 31, 2008 compared to cash used for financing activities of $425 million in the prior year. The $1,687 million difference was primarily due to the increase in the net proceeds from borrowings and the absence of the purchase of common stock, which were partly offset by the decrease in the proceeds from the exercise of stock options.
Dividends paid to shareholders during three months ended March 31, 2008 totaled $372 million. In January 2008, the company’s Board of Directors declared a first quarter common stock dividend of $0.41 per share. The first quarter dividend was the company’s 414th consecutive quarterly dividend since the company’s first dividend in the fourth quarter 1904.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS,
Continued
Cash and Cash Equivalents and Marketable Securities
Cash and cash equivalents and marketable securities were $1.1 billion at March 31, 2008 versus $1.4 billion at December 31, 2007. The $0.3 billion decrease, along with a $1.7 billion increase in total debt, was used to fund normal seasonal working capital needs, principally in the Agriculture & Nutrition segment.
Debt
Total debt at March 31, 2008 was $9.0 billion, an increase of $1.7 billion from the $7.3 billion at December 31, 2007. The proceeds from the increased borrowings were primarily used to fund normal seasonal working capital needs, principally in the Agriculture & Nutrition segment.
Guarantees and Off-Balance Sheet Arrangements
For detailed information related to Guarantees, Indemnifications, Obligations for Equity Affiliates and Others, Certain Derivative Instruments, and Master Operating Leases, see page 37 to the company’s 2007 Annual Report, and Note 9 to the interim Consolidated Financial Statements.
Contractual Obligations
Information related to the company’s contractual obligations at December 31, 2007 can be found on page 39 of the company’s 2007 Annual Report. There have been no significant changes to the company’s contractual obligations during the three months ended March 31, 2008.
PFOA
Information related to PFOA can be found on pages 44 and 45 in the company’s 2007 Annual Report and Note 9 to the company’s interim Consolidated Financial Statements under the heading PFOA.
Item 4. CONTROLS AND PROCEDURES
     
a)
  Evaluation of Disclosure Controls and Procedures
 
   
 
  The company maintains a system of disclosure controls and procedures for financial reporting to give reasonable assurance that information required to be disclosed in the company’s reports submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. These controls and procedures also give reasonable assurance that information required to be disclosed in such reports is accumulated and communicated to management to allow timely decisions regarding required disclosures.
 
   
 
  As of March 31, 2008, the company’s Chief Executive Officer (CEO) and Chief Financial Officer (CFO), together with management, conducted an evaluation of the effectiveness of the company’s disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) of the Exchange Act. Based on that evaluation, the CEO and CFO concluded that these disclosure controls and procedures are effective.
 
   
b)
  Changes in Internal Control over Financial Reporting
 
   
 
  There has been no change in the company’s internal control over financial reporting that occurred during the quarter ended March 31, 2008 that has materially affected or is reasonably likely to materially affect the company’s internal control over financial reporting.

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PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
BenlateÒ
Information related to this matter is included in Note 9 to the company’s interim Consolidated Financial Statements under the heading BenlateÒ.
PFOA: Environmental and Litigation Proceedings
Information related to this matter is included in Note 9 to the company’s interim Consolidated Financial Statements under the heading PFOA.
Elastomers Antitrust Matters
Information related to this matter is included in Note 9 to the company’s interim Consolidated Financial Statements under the heading Elastomers Antitrust Matters.
Environmental Proceedings
     Belle Spent Acid Plant New Source Review Notice of Violation
On August 2, 2007, the EPA issued a Notice and Finding of Violation to DuPont and Lucite International regarding the spent acid regeneration unit at the Belle Plant in South Charleston, West Virginia. DuPont sold the unit to Imperial Chemical Industries, Plc (ICI) in 1993, who sold it to Lucite in 1999. DuPont has operated the unit since it was built in 1964, including after the sale to ICI, through the present. The Notice alleges 5 projects in the time period 1988 to 1996 should have triggered the New Source Review or New Source Performance Standard requirements of CAA and, therefore, required the unit be shut down or retrofitted to “best available” technology. Lucite and DuPont are engaged in settlement discussions with EPA and the U.S. Department of Justice (DOJ) that if successful likely will require the unit to be shut down or retrofitted and payment of a penalty. DuPont believes that Lucite should bear the costs of any shutdown or retrofit and penalty. Lucite has notified the company that it will seek indemnity for such costs from DuPont.
     Gibson City, Illinois
Information related to this matter is included on page 12, Item 3 of the Company’s 2007 Annual Report.
     Pascagoula, Mississippi
Information related to this matter is included on page 12, Item 3 of the Company’s 2007 Annual Report.
     Registrations of Certain Crop Protection Products
In June of 2007, the EPA issued a notice of violation alleging that the amount of the active ingredient ethephon in Cotton Quik® and Super BOLL® crop protection chemical products was not within the registered legal limits for these products. Both products were part of the 1998 joint venture between Griffin Corporation and DuPont; the joint venture became a wholly-owned subsidiary of the company in November 2003.
The EPA’s notice also alleged that GX-465, a technical grade of ethephon, did not conform to the formula registered with the EPA. GX-465 was a product of Griffin Corporation. Changes, if any, to the composition of this product would have been made by Griffin Corporation without DuPont’s knowledge and before the formation of the joint venture in 1998. The revised formula of GX-465 has been approved by the EPA as safe and in compliance with the relevant regulatory requirements.
The EPA has indicated that it may seek a penalty of $2.2 million. The company contests the EPA’s allegations and is considering whether to engage in an administrative process to resolve the dispute or enter a consent decree which would include payment of a penalty.

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     TSCA Voluntary Audit
DuPont voluntarily undertook a self-audit concerning reporting of inhalation studies pursuant to Toxic Substances Control Act (TSCA) section 8(e). DuPont voluntarily reported the results of that audit to the EPA. The EPA has reviewed the information submitted under this self-audit and has indicated potential violations exist with respect to some of the submitted studies. Based upon initial communications with the EPA, the company believes the EPA will seek a penalty.
Item 1A. RISK FACTORS
The company’s operations could be affected by various risks, many of which are beyond its control. Based on current information, the company believes that the following identifies the most significant risk factors that could affect its businesses. Past financial performance may not be a reliable indicator of future performance and historical trends should not be used to anticipate results or trends in future periods.
Price increases for energy and raw materials could have a significant impact on the company’s ability to sustain and grow earnings.
The company’s manufacturing processes consume significant amounts of energy and raw materials, the costs of which are subject to worldwide supply and demand as well as other factors beyond the control of the company. Significant variations in the cost of energy, which primarily reflect market prices for oil and natural gas and raw materials affect the company’s operating results from period to period. When possible, the company purchases raw materials through negotiated long-term contracts to minimize the impact of price fluctuations. Additionally, the company enters into over-the-counter and exchange traded derivative commodity instruments to hedge its exposure to price fluctuations on certain raw material purchases. The company has taken actions to offset the effects of higher energy and raw material costs through selling price increases, productivity improvements and cost reduction programs. Success in offsetting higher raw material costs with price increases is largely influenced by competitive and economic conditions and could vary significantly depending on the market served. If the company is not able to fully offset the effects of higher energy and raw material costs, it could have a significant impact on the company’s financial results.
Failure to develop and market new products could impact the company’s competitive position and have an adverse effect on the company’s financial results.
The company’s operating results are largely dependent on its ability to renew its pipeline of new products and services and to bring those products and services to market. This ability could be adversely affected by difficulties or delays in product development such as the inability to identify viable new products, successfully complete research and development, obtain relevant regulatory approvals, obtain intellectual property protection, or gain market acceptance of new products and services. Because of the lengthy development process, technological challenges and intense competition, there can be no assurance that any of the products the company is currently developing, or could begin to develop in the future, will achieve substantial commercial success. Sales of the company’s new products could replace sales of some of its current products, offsetting the benefit of even a successful product introduction.
The company’s results of operations could be adversely affected by litigation and other commitments and contingencies.
The company faces risks arising from various unasserted and asserted litigation matters, including, but not limited to, product liability claims, patent infringement claims and antitrust claims. The company has noted a nationwide trend in purported class actions against chemical manufacturers generally seeking relief such as medical monitoring, property damages, off-site remediation and punitive damages arising from alleged environmental torts without claiming present personal injuries. Various factors or developments can lead to changes in current estimates of liabilities such as a final adverse judgment, significant settlement or changes in applicable law. A future adverse ruling or unfavorable development could result in future charges that could have a material adverse effect on the company. An adverse outcome in any one or more of these matters could be material to the company’s financial results.

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In the ordinary course of business, the company may make certain commitments, including representations, warranties and indemnities relating to current and past operations, including those related to divested businesses and issue guarantees of third party obligations. If the company were required to make payments as a result, they could exceed the amounts accrued, thereby adversely affecting the company’s results of operations.
As a result of the company’s current and past operations, including operations related to divested businesses, the company could incur significant environmental liabilities.
The company is subject to various laws and regulations around the world governing the environment, including the discharge of pollutants and the management and disposal of hazardous substances. As a result of its operations, including its past operations and operations of divested businesses, the company could incur substantial costs, including cleanup costs, third-party property damage or personal injury claims. The costs of complying with complex environmental laws and regulations, as well as internal voluntary programs, are significant and will continue to be so for the foreseeable future. The ultimate costs under environmental laws and the timing of these costs are difficult to predict. The company’s accruals for such costs and liabilities may not be adequate because the estimates on which the accruals are based depend on a number of factors including the nature of the allegation, the complexity of the site, site geology, the nature and extent of contamination, the type of remedy, the outcome of discussions with regulatory agencies and other Potentially Responsible Parties (PRPs) at multi-party sites and the number and financial viability of other PRPs.
The company’s ability to generate sales from genetically enhanced products, particularly seeds and other agricultural products, could be adversely affected by market acceptance, government policies, rules or regulations and competition.
The company is using biotechnology to create and improve products, particularly in its Agriculture & Nutrition segment. Demand for these products could be affected by market acceptance of genetically modified products as well as governmental policies, laws and regulations that affect the development, manufacture and distribution of products, including the testing and planting of seeds containing biotechnology traits and the import of crops grown from those seeds.
The company competes with major global companies that have strong intellectual property estates supporting the use of biotechnology to enhance products, particularly in the agricultural products and production markets. Speed in discovering and protecting new technologies and bringing products based on them to market is a significant competitive advantage. Failure to predict and respond effectively to this competition could cause the company’s existing or candidate products to become less competitive, adversely affecting sales.
Changes in government policies and laws could adversely affect the company’s financial results.
Sales outside the U.S. constitute more than half of the company’s revenue. The company anticipates that international sales will continue to represent a substantial portion of its total sales and that continued growth and profitability will require further international expansion, particularly in emerging markets. The company’s financial results could be affected by changes in trade, monetary and fiscal policies, laws and regulations, or other activities of U.S. and non-U.S. governments, agencies and similar organizations. These conditions include but are not limited to changes in a country’s or region’s economic or political conditions, trade regulations affecting production, pricing and marketing of products, local labor conditions and regulations, reduced protection of intellectual property rights in some countries, changes in the regulatory or legal environment, restrictions on currency exchange activities, burdensome taxes and tariffs and other trade barriers. International risks and uncertainties, including changing social and economic conditions as well as terrorism, political hostilities and war, could lead to reduced international sales and reduced profitability associated with such sales.

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Economic factors, including inflation and fluctuations in currency exchange rates, interest rates and commodity prices could affect the company’s financial results.
The company is exposed to fluctuations in currency exchange rates, interest rates and commodity prices. Because the company has significant international operations, there are a large number of currency transactions that result from international sales, purchases, investments and borrowings. The company actively manages currency exposures that are associated with monetary asset positions, committed currency purchases and sales and other assets and liabilities created in the normal course of business. Failure to successfully manage these risks could have an adverse impact on the company’s financial position, results of operations and cash flows.
Business disruptions could seriously impact the company’s future revenue and financial condition and increase costs and expenses.
Business disruptions, including supply disruptions, increasing costs for energy, temporary plant and/or power outages and information technology system and network disruptions, could seriously harm the company’s operations as well as the operations of its customers and suppliers. Although it is impossible to predict the occurrences or consequences of any such events, they could result in reduced demand for the company’s products, make it difficult or impossible for the company to deliver products to its customers or to receive raw materials from suppliers, and create delays and inefficiencies in the supply chain. The company actively manages the risks within its control that could cause business disruptions to mitigate any potential impact from business disruptions regardless of cause including acts of terrorism or war, and natural disasters. Despite these efforts, the impact from business disruptions could significantly increase the cost of doing business or otherwise adversely impact the company’s financial performance.
Inability to protect and enforce the company’s intellectual property rights could adversely affect the company’s financial results.
Intellectual property rights are important to the company’s business. The company endeavors to protect its intellectual property rights in jurisdictions in which its products are produced or used and in jurisdictions into which its products are imported. However, the company may be unable to obtain protection for its intellectual property in key jurisdictions. Additionally, the company has designed and implemented internal controls to restrict access to and distribution of its intellectual property, including confidential information and trade secrets. Despite these precautions, it is possible that unauthorized parties may access and use such property. When misappropriation is discovered, the company reports such situations to the appropriate governmental authorities for investigation and takes measures to mitigate any potential impact.
Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Issuer Purchases of Equity Securities
There were no purchases of the company’s common stock during the three months ended March 31, 2008.
Item 6. EXHIBITS
Exhibits: The list of exhibits in the Exhibit Index to this report is incorporated herein by reference.

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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
             
 
  E. I. DU PONT DE NEMOURS AND COMPANY    
 
      (Registrant)    
 
  Date:     April 29, 2008    
         
 
           
 
  By:       /s/Jeffrey L. Keefer    
         
 
      Jeffrey L. Keefer    
 
      Executive Vice President and    
 
      Chief Financial Officer    
 
      (As Duly Authorized Officer and    
 
      Principal Financial and Accounting Officer)    

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EXHIBIT INDEX
     
Exhibit    
Number   Description
 
   
3.1
  Company’s Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the company’s Annual Report on Form 10-K for the year ended December 31, 2007).
 
   
3.2
  Company’s Bylaws, as last revised January 1, 1999 (incorporated by reference to Exhibit 3.2 to the company’s Annual Report on Form 10-K for the year ended December 31, 2003).
 
   
4
  The company agrees to provide the Commission, on request, copies of instruments defining the rights of holders of long-term debt of the company and its subsidiaries.
 
   
10.1*
  The DuPont Stock Accumulation and Deferred Compensation Plan for Directors, as last amended effective January 1, 2008.
 
   
10.2*
  Form of Award Terms for time-vested restricted stock units granted to non-employee directors under the company’s Equity and Incentive Plan.
 
   
10.3*
  Company’s Supplemental Retirement Income Plan, as last amended effective June 4, 1996 (incorporated by reference to Exhibit 10.3 to the company’s Annual Report on Form 10-K for the year ended December 31, 2006).
 
   
10.4*
  Company’s Pension Restoration Plan, as restated effective July 17, 2006 (incorporated by reference to Exhibit 99.1 to the company’s Current Report on Form 8-K filed on July 20, 2006).
 
   
10.5*
  Company’s Rules for Lump Sum Payments adopted July 17, 2006 (incorporated by reference to Exhibit 99.2 to the company’s Current Report on Form 8-K filed on July 20, 2006).
 
   
10.6*
  Company’s Stock Performance Plan, as last amended effective January 25, 2007 (incorporated by reference to Exhibit 10.7 to the company’s Quarterly Report on Form 10-Q for the period ended March 31, 2007).
 
   
10.7*
  Company’s Equity and Incentive Plan as approved by the company’s shareholders on April 25, 2007 (incorporated by reference to pages C1-C13 of the company’s Annual Meeting Proxy Statement dated March 19, 2007).
 
   
10.8*
  Terms and conditions, as last amended effective January 1, 2007, of performance-based restricted stock units granted in 2005 under the company’s Stock Performance Plan (incorporated by reference to Exhibit 10.8 to the company’s Quarterly Report on Form 10-Q for the period ended March 31, 2007).
 
   
10.9*
  Terms and conditions, as last amended effective January 1, 2007, of performance-based restricted stock units granted in 2006 under the company’s Stock Performance Plan (incorporated by reference to Exhibit 10.9 to the company’s Quarterly Report on Form 10-Q for the period ended March 31, 2007).
 
   
10.10*
  Form of Award Terms for stock appreciation rights granted under the company’s Equity and Incentive Plan.
 
   
10.11*
  Form of Award Terms for stock options granted under the company’s Equity and Incentive Plan.
 
   
10.12*
  Terms and conditions of performance-based restricted stock units granted in 2007 under the company’s Stock Performance Plan (incorporated by reference to Exhibit 10.12 to the company’s Quarterly Report on Form 10-Q for the period ended March 31, 2007).
 
   
10.13*
  Form of Award Terms for time-vested restricted stock units granted under the company’s Equity and Incentive Plan.

31


Table of Contents

     
Exhibit    
Number   Description
 
   
10.14*
  Form of Award Terms for performance-based restricted stock units granted under the company’s Equity and Incentive Plan.
 
   
10.15*
  Company’s Salary Deferral & Savings Restoration Plan, as last amended effective January 1, 2008.
 
   
10.16*
  Company’s Retirement Savings Restoration Plan, as last amended effective January 1, 2008.
 
   
10.17*
  Company’s Retirement Income Plan for Directors, as last amended August 1995 (incorporated by reference to Exhibit 10.17 to the company’s Annual Report on Form 10-K for the year ended December 31, 2007).
 
   
10.18*
  Letter Agreement and Employee Agreement, dated as of July 30, 2004, as amended, between the company and R. R. Goodmanson (incorporated by reference to Exhibit 10.8 to the company’s Quarterly Report on Form 10-Q for the period ended June 30, 2004).
 
   
10.19
  Company’s Bicentennial Corporate Sharing Plan, adopted by the Board of Directors on December 12, 2001 and effective January 9, 2002 (incorporated by reference to Exhibit 10.19 to the company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2007).
 
   
12
  Computation of Ratio of Earnings to Fixed Charges.
 
   
31.1
  Rule 13a-14(a)/15d-14(a) Certification of the company’s Principal Executive Officer.
 
   
31.2
  Rule 13a-14(a)/15d-14(a) Certification of the company’s Principal Financial Officer.
 
   
32.1
  Section 1350 Certification of the company’s Principal Executive Officer. The information contained in this Exhibit shall not be deemed filed with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the registrant under the Securities Act of 1933, as amended.
 
   
32.2
  Section 1350 Certification of the company’s Principal Financial Officer. The information contained in this Exhibit shall not be deemed filed with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the registrant under the Securities Act of 1933, as amended.
*Management contract or compensatory plan or arrangement required to be filed as an exhibit to this Form 10-Q.

32

EX-10.1 2 w56537exv10w1.htm THE DUPONT STOCK ACCUMULATION AND DEFERRED COMPENSATION PLAN FOR DIRECTORS exv10w1
 

Exhibit 10.1
E. I. DU PONT DE NEMOURS AND COMPANY
STOCK ACCUMULATION AND DEFERRED
COMPENSATION PLAN FOR DIRECTORS
(Amended Effective January 1, 2008)
1. PURPOSE OF THE PLAN
The purpose of the DuPont Stock Accumulation and Deferred Compensation Plan for Directors (the “Plan”) is to permit Directors to defer the payment of all or a specified part of their compensation for services performed as Directors.
2. ELIGIBILITY
Members of the Board of Directors of the Company who are not employees of the Company or any of its subsidiaries or affiliates shall be eligible under this Plan to defer compensation for services performed as Directors.
3. ADMINISTRATION AND AMENDMENT
The Plan shall be administered by the Compensation Committee of the Board of Directors (the “Committee”). The decision of the Committee with respect to any questions arising as to the interpretation of this Plan, including the severability of any and all of the provisions thereof, shall be final, conclusive and binding. The Board of Directors of the Company reserves the right to modify the Plan from time to time, or to repeal the Plan entirely, provided, however, that (1) no modification of the Plan shall operate to annul an election already in effect for the current calendar year or any preceding calendar year; and (2) that the foregoing shall not preclude any amendment necessary or desirable to conform to changes in applicable law, including, but not limited to, changes in the Internal Revenue Code.
The Committee is authorized, subject to the provisions of the Plan, from time to time to establish such rules and regulations as it deems appropriate for the proper administration of the Plan, and to make such determinations and take such steps in connection therewith as it deems necessary or advisable.
4. COMPLIANCE WITH SECTION 16 OF THE EXCHANGE ACT / CHANGE IN LAW
It is the Company’s intent that the Plan comply in all respects with Rule 16b-3 of the Exchange Act, or its successor, and any regulations promulgated thereunder. If any provision of this Plan is found not to be in compliance with such rule and regulations, the provision shall be deemed null and void, and the remaining provisions of the Plan shall continue in full force and effect. All transactions under this Plan shall be executed in accordance with the requirements of Section 16 of the Exchange Act and the regulations promulgated thereunder.
The Board of Directors may, in its sole discretion, modify the terms and conditions of this Plan in response to and consistent with any changes in applicable law, rule or regulation.

 


 

5. ELECTION TO DEFER AND FORM OF PAYMENT
On or before December 31 of any year, a Director may elect to defer, until a specified year or retirement as a Director of the Company, the payment of all or a specified part of all fees payable to the Director for services as a Director during the calendar year following the election in the form of cash or stock units. Restricted stock units payable in cash may be deferred only in the form of cash. In addition, as part of such election, a Director shall elect the form of payment (lump sum or annual installments). Any person who shall become a Director during any calendar year, and who was not a Director of the Company on the preceding December 31, may elect, within thirty days after election to the Board, to defer in the same manner the receipt of the payment of all or a specified part of fees not yet earned for the remainder of that calendar year in the form of cash or stock units. Elections shall be made by written notice delivered to the Secretary of the Committee. All such elections as to deferral and form of payment are irrevocable.
6. DIRECTORS’ ACCOUNTS
Fees deferred in the form of cash shall be held in the general funds of the Company and shall be credited to an account in the name of the Director. Deferred cash will bear interest at a rate corresponding to the average 30-year Treasury securities rate applicable for the quarter (or at such other rate as may be specified by the Committee from time to time). Interest will be compounded quarterly and will also be deferred. If the rate changes, the new rate will apply to all deferred cash amounts beginning with the following quarter. Fees deferred in the form of stock units shall be allocated to each Director’s account based on the closing price of the Company’s common stock as reported on the Composite Tape of the New York Stock Exchange (“Stock Price”) on the date the fees would otherwise have been paid. The Company shall not be required to reserve or otherwise set aside shares of common stock for the payment of its obligations hereunder, but shall make available as and when required a sufficient number of shares of common stock to meet the needs of the Plan. An amount equal to any cash dividends (or the fair market value of dividends paid in property other than dividends payable in common stock of the Company) payable on the number of shares represented by the number of stock units in each Director’s account will be allocated to each Director’s account in the form of stock units based upon the Stock Price on the dividend payment date. Any stock dividends payable on such number of shares will be allocated in the form of stock units. If adjustments are made to outstanding shares of common stock as a result of split-ups, recapitalizations, mergers, consolidations and the like, an appropriate adjustment shall also be made in the number of stock units in a Director’s account. Stock units shall not entitle any person to rights of a stockholder unless and until shares of Company common stock have been issued to that person with respect to stock units as provided in Article 7.
7. PAYMENT FROM DIRECTORS’ ACCOUNTS
The aggregate amount of deferred fees, together with interest and dividend equivalents accrued thereon, shall be paid in accordance with the deferral and form of payment election made by the Director under paragraph 5. Amounts deferred to a specified year shall only be paid in a lump sum and shall be paid promptly at the beginning of that specified year. Amounts deferred to retirement payable in a lump sum shall be paid, promptly at the beginning of the calendar year following a Director’s retirement. Installment payments with respect to amounts deferred to retirement shall be paid

 


 

promptly at the beginning of the calendar year after a Director’s retirement and promptly after the beginning of each succeeding calendar year until the entire amount credited to the Director’s account shall have been paid. With respect to directors fees, amounts credited to a Director’s account in cash shall be paid in cash and amounts credited in stock units shall be paid in one share of common stock of the Company for each stock unit, except that a cash payment will be made with any final installment for any fraction of a stock unit remaining in the Director’s account. Such fractional share shall be valued at the closing Stock Price on the date of settlement. Restricted stock units payable in cash, and the dividend equivalents associated with such deferred units, shall be paid in cash, each unit to equal the value of one share of DuPont common stock based on the average of the high and low prices of DuPont common stock as reported on the Composite Tape of the New York Stock Exchange as of the effective date of payment.
8. PAYMENT IN EVENT OF DEATH
A Director may file with the Secretary of the Committee a written designation of a beneficiary for his or her account under the Plan on such form as may be prescribed by the Committee, and may, from time to time, amend or revoke such designation. If a Director should die before all deferred amounts credited to the Director’s account have been distributed, the balance of any deferred fees and interest and dividend equivalents then in the Director’s account shall be paid promptly to the Director’s designated beneficiary. If the Director did not designate a beneficiary, or in the event that the beneficiary designated by the Director shall have predeceased the Director, the balance in the Director’s account shall be paid promptly to the Director’s estate.
9. NONASSIGNABILITY
During a Director’s lifetime, the right to any deferred fees, including interest and dividend equivalents thereon, shall not be transferable or assignable, except as may otherwise be provided in rules established by the Committee.
10. GOVERNING LAW
The validity and construction of the Plan shall be governed by the laws of the State of Delaware.
11. EFFECTIVE DATE
This Plan, as amended, shall become effective as of January 1, 2008, and shall continue in full force and effect until amended or terminated by the Board of Directors.

 

EX-10.2 3 w56537exv10w2.htm FORM OF AWARD TERMS FOR TIME-VESTED RESTRICTED STOCK UNITS GRANTED TO NON-EMPLOYEE DIRECTORS UNDER THE COMPANY'S EQUITY AND INCENTIVE PLAN exv10w2
 

Exhibit 10.2
AWARD TERMS OF
TIME-VESTED RESTRICTED STOCK UNITS GRANTED TO A NONEMPLOYEE DIRECTOR UNDER THE
DUPONT EQUITY AND INCENTIVE PLAN
     
Introduction
  You have been granted time-vested restricted DuPont common stock units under the E.I. du Pont de Nemours and Company Equity and Incentive Plan (“Plan”), subject to the following Award Terms. This grant is also subject to the terms of the Plan, which is hereby incorporated by reference. However, to the extent that an Award Term conflicts with the Plan, the Plan shall govern. A copy of the Plan, and other Plan-related materials, such as the Plan prospectus, are available upon request or on the Merrill Lynch website.
 
   
Date of Grant
  [___]
 
   
Type of Awards
  Time-vested restricted DuPont common stock units
 
   
Dividend Equivalents
  Dividends payable on the shares represented by your units (including whole and fractional units) will be allocated to your account in the form of units (whole and fractional) based upon the closing stock price on the date of the dividend payment.
 
   
Restricted Period
  You may not sell, gift, or otherwise transfer or dispose of any of the units during the “Restricted Period.” The Restricted Period commences on the Date of Grant and lapses as set forth herein.
 
   
 
  On [FIRST ANNIVERSARY OF DATE OF GRANT], the Restricted Period will lapse with respect to one-third (1/3) of the units, including dividend equivalents (rounded down to the next full unit).
 
   
 
  On [SECOND ANNIVERSARY OF DATE OF GRANT], the Restricted Period will lapse with respect to one-third (1/3) of the units, including dividend equivalents (rounded down to the next full unit).
 
   
 
  On [THIRD ANNIVERSARY OF DATE OF GRANT], the Restricted Period will lapse with respect to the remaining units, including dividend equivalents.
 
   
 
  In the event of a Change of Control (as defined in the Plan) the Restricted Period with respect to all units will lapse.
Termination
of Services
         
 
  Due to Retirement from the Board   If you are a director for six months following the Date of Grant, the units will remain subject to the Restricted Period set forth above.

 


 

         
 
       
 
  Due to Total and Permanent Disability or Death   If you are a director for six months following the Date of Grant, the Restricted Period on all units will lapse.
     
Payment
  Units shall be paid to you or your beneficiary (or estate, if there is no beneficiary), as applicable, as soon as practicable after the Restricted Period on such units lapses, but in no event later than the last day of your first taxable year ending after the date on which the Restricted Period lapses. Units are payable in one share of DuPont common stock for each whole unit and a cash payment for any fraction of a unit. The value of each fractional unit will be based on the average high and low prices of DuPont common stock as reported on the Composite Tape of the New York Stock Exchange as of the effective date of payment.
 
   
Other Forfeiture
  If you engage in misconduct, the Company may demand that you repay this Award, or cash payments you received as a result of this Award, within ten (10) days following written demand by the Company. “Misconduct” is defined in the Plan, and includes, but is not limited to, termination for cause (also defined in the Plan) or the breach of a noncompete or confidentiality agreement.
 
   
Change of Control
  In the event of a Change of Control in which the consideration paid to the stockholders is solely cash, the Compensation Committee may provide that any units will be cancelled in exchange for a cash payment equal to the consideration paid per share of stock in the Change of Control multiplied by the number of your units.
 
   
Deferral
  You may defer the settlement of this Award in accordance with the procedures established by the Company for that purpose.
 
   
Withholding
  Proceeds from vesting of RSUs are subject to various income taxes, including but not limited to Federal, self-employment tax, and City of Wilmington. For U.S. residents, the Company is not required nor does it withhold taxes from your proceeds, however the Company will report proceeds on a Form 1099-MISC, Non-employee compensation. Grantees are encouraged to consult a tax professional on more specifics. For non-U.S. residents, unless the compensation is deferred or subject to a treaty exception, the Company is required to withhold taxes at a rate of 30%, and the Company will report such non-deferred proceeds on a Form 1042-S.

 

EX-10.10 4 w56537exv10w10.htm FORM OF AWARD TERMS FOR STOCK APPRECIATION RIGHTS GRANTED UNDER THE COMPANY'S EQUITY AND INCENTIVE PLAN exv10w10
 

Exhibit 10.10
AWARD TERMS OF
STOCK APPRECIATION RIGHTS GRANTED UNDER THE
DUPONT EQUITY AND INCENTIVE PLAN
     
Introduction
  You have been granted stock appreciation rights (SARs) under the E.I. du Pont de Nemours and Company Equity and Incentive Plan (“Plan”), subject to the following Award Terms. This grant is also subject to the terms of the Plan itself, which is hereby incorporated by reference. However, to the extent that an Award Term conflicts with the Plan, the Plan shall govern. A copy of the Plan, and other Plan-related materials, such as the Plan prospectus, are available at:
 
   
 
  www1.lvs.dupont.com/employeebenefits/sharesandstockoption. html.
 
   
Date of Grant
  [___]
 
   
Exercise Price
  [___]
 
   
Expiration Date
  SARs will expire no later than [DATE THAT IS THE DAY PRIOR TO THE SIXTH ANNIVERSARY OF THE DATE OF GRANT]. However, the SAR may expire sooner. Please refer to “Termination of Employment” below.
 
   
Vesting Schedule
  One-third (1/3) of the SARs (rounded down to the next full share) will become exercisable on [FIRST ANNIVERSARY OF DATE OF GRANT].
 
   
 
  One-third (1/3) of the SARs (rounded down to the next full share) will become exercisable on [SECOND ANNIVERSARY OF DATE OF GRANT].
 
   
 
  The remaining SARs will become exercisable on [THIRD ANNIVERSARY OF DATE OF GRANT].
 
   
 
  In the event of a Change of Control (as defined in the Plan) any unvested SARs will be automatically vested and will remain exercisable in accordance with these Award Terms.
Termination
of Employment
         
 
  Due to Retirement (as defined in the applicable pension or retirement plan or plan company policy)   If you are an active employee for six months following the date of the grant, the SARs will be exercisable through the Expiration Date set forth above. After that date, any unexercised SARs will expire. Any unvested SARs as of the date of

 


 

         
 
      termination will continue to vest in accordance with the Vesting Schedule set forth above.
 
       
 
  Due to Lack of Work, Divestiture to Entity Less Than 50% Owned by DuPont, or Total and Permanent Disability   If you are an active employee for six months following the date of the grant, the SARs will be exercisable through the date that is one year after the date of your termination of employment, or, if earlier, the Expiration Date set forth above. After that date, any unexercised SARs will expire. Any unvested SARs as of the date of termination will continue to vest in accordance with the Vesting Schedule set forth above.
 
       
 
  Due to Death   If you are an active employee for six months following the date of the grant, the SARs will be exercisable through the date that is two years after the date of your termination of employment or, if earlier, the Expiration Date set forth above. After that date, any unexercised SARs will expire. Any unvested SARs as of the date of termination will be automatically vested.
 
       
 
  Due to Any Other Reason (such as voluntary termination)   SARs must be exercised by the date on which you terminate employment.
     
Other Forfeiture
  If you engage in misconduct, the Company may demand that you repay this Award, or cash payments you received as a result of this Award, within 10 days following written demand by the Company. “Misconduct” is defined in the Plan, and includes, but is not limited to, termination for cause (also defined in the Plan) or the breach of a noncompete or confidentiality agreement in your employment agreement.
 
   
Exercise/Payment
  Requests to exercise SARs will be valued using that day’s average of the high and low price for Company common stock as determined on the NYSE-Composite Transactions Tape. This price will be used to determine the gross payment from the exercise transaction. If the exercise day is not a day the NYSE is open, the transaction will be valued at the average price on the next trading day the exchange is open. Proceeds of the exercise will be paid to you (or your beneficiary, as applicable) by your local payroll.
 
   
 
  Calculation of the gross payment will be done in U.S. dollars and then translated into local currency by your local payroll. Translation shall be done using the exchange rate quoted in The Wall Street Journal on the exercise day, or, if no rate is quoted, an

 


 

     
 
  appropriate published equivalent will be used. If the exercise day is not a business day, the exchange rate quoted for the next business day will be used.
 
   
 
  In the event of a Change of Control in which the consideration paid to the stockholders is solely cash, the Compensation Committee may provide that any unexercised SARs will be cancelled in exchange for a cash payment equal to the (i) excess consideration paid per share of stock in the Change of Control over the exercise price of your SARs multiplied by (ii) the number of your unexercised SARs.
 
   
Non-transferability
  You may not transfer these SARs, except by will or laws of descent and distribution. The SARs are exercisable during your lifetime only by you or your guardian or legal representative.
 
   
Withholding
  When withholding of national, social, and/or local taxes is required in a country, it will be withheld from the gross cash payment.

 

EX-10.11 5 w56537exv10w11.htm FORM OF AWARD TERMS FOR STOCK OPTIONS GRANTED UNDER THE COMPANY'S EQUITY AND INCENTIVE PLAN exv10w11
 

Exhibit 10.11
AWARD TERMS OF
OPTIONS GRANTED UNDER THE
DUPONT EQUITY AND INCENTIVE PLAN
     
Introduction
  You have been granted stock options under the E.I. du Pont de Nemours and Company Equity and Incentive Plan (“Plan”), subject to the following Award Terms. This grant is also subject to the terms of the Plan itself, which is hereby incorporated by reference. However, to the extent that an Award Term conflicts with the Plan, the Plan shall govern. A copy of the Plan, and other Plan-related materials, such as the Plan prospectus, are available at:
 
   
 
  www1.lvs.dupont.com/employeebenefits/sharesandstockoption. html.
 
   
Date of Grant
  [___]
 
   
Type of Options
  Non-qualified stock options (“NQSOs”)
 
   
Exercise Price
  [___]
 
   
Expiration Date
  Option will expire no later than [DATE THAT IS THE DAY PRIOR TO THE SIXTH ANNIVERSARY OF THE DATE OF GRANT]. However, the option may expire sooner. Please refer to “Termination of Employment” below.
 
   
Vesting Schedule
  One-third (1/3) of the options (rounded down to the next full share) will become exercisable on [FIRST ANNIVERSARY OF DATE OF GRANT].
 
   
 
  One-third (1/3) of the options (rounded down to the next full share) will become exercisable on [SECOND ANNIVERSARY OF DATE OF GRANT].
 
   
 
  The remaining options will become exercisable on [THIRD ANNIVERSARY OF DATE OF GRANT].
 
   
 
  In the event of a Change of Control (as defined in the Plan) any unvested options will be automatically vested and will remain exercisable in accordance with these Award Terms. If the consideration paid to the stockholders is solely cash, the Compensation Committee may provide that any unexercised options will be cancelled in exchange for a cash payment equal to the (i) excess consideration paid per share of stock in the Change of Control over the exercise price of your options multiplied by (ii) the number of your unexercised options.

 


 

Termination
of Employment
         
 
  Due to Retirement (as defined in the applicable pension or retirement plan or plan company policy)   If you are an active employee for six months following the date of the grant, the options will be exercisable through the Expiration Date set forth above. After that date, any unexercised options will expire. Any unvested options as of the date of termination will continue to vest in accordance with the Vesting Schedule set forth above.
 
       
 
  Due to Lack of Work, Divestiture to Entity Less Than 50% Owned by DuPont, or Total and Permanent Disability   If you are an active employee for six months following the date of the grant, the options will be exercisable through the date that is one year after the date of your termination of employment, or, if earlier, the Expiration Date set forth above. After that date, any unexercised options will expire. Any unvested options as of the date of termination will continue to vest in accordance with the Vesting Schedule set forth above.
 
       
 
  Due to Death   If you are an active employee for six months following the date of the grant, the options will be exercisable through the date that is two years after the date of your termination of employment or, if earlier, the Expiration Date set forth above. After that date, any unexercised options will expire. Any unvested options as of the date of termination will be automatically vested.
 
       
 
  Due to Any Other Reason (such as voluntary termination)   Options must be exercised by the date on which you terminate employment.
     
Other Forfeiture
  If you engage in misconduct, the Company may demand that you repay this Award, or cash payments you received as a result of this Award, within 10 days following written demand by the Company. “Misconduct” is defined in the Plan, and includes, but is not limited to, termination for cause (also defined in the Plan) or the breach of a noncompete or confidentiality agreement in your employment agreement.
 
   
Exercise Methods
  There are four exercise methods from which to choose. However, due to local legal requirements, some of those methods may not be available to you. For more information regarding exercise procedure, please refer to the Plan prospectus.

 


 

     
Withholding
  Withholding for federal, state and local taxes is required in connection with exercise of non-qualified stock options. When a non-qualified stock option is exercised, the difference between the option price and the value of the stock at time of exercise is compensation subject to withholding. For more information regarding withholding procedures, please refer to the Plan prospectus.
 
   
Non-transferability
  You may not transfer these options, except by will or laws of descent and distribution. The options are exercisable during your lifetime only by you or your guardian or legal representative.

 

EX-10.13 6 w56537exv10w13.htm FORM OF AWARD TERMS FOR TIME-VESTED RESTRICTED STOCK UNITS GRANTED UNDER THE COMPANY'S EQUITY AND INCENTIVE PLAN exv10w13
 

Exhibit 10.13
AWARD TERMS OF
TIME-VESTED RESTRICTED STOCK UNITS GRANTED UNDER THE
DUPONT EQUITY AND INCENTIVE PLAN
     
Introduction
  You have been granted time-vested restricted DuPont common stock units under the E.I. du Pont de Nemours and Company Equity and Incentive Plan (“Plan”), subject to the following Award Terms. This grant is also subject to the terms of the Plan, which is hereby incorporated by reference. However, to the extent that an Award Term conflicts with the Plan, the Plan shall govern. A copy of the Plan, and other Plan-related materials, such as the Plan prospectus, are available at:
 
   
 
  www1.lvs.dupont.com/employeebenefits/sharesandstockoption.html.
 
   
Date of Grant
  [___]
 
   
Type of Awards
  Time-vested restricted DuPont common stock units
 
   
Dividend Equivalents
  Dividends payable on the shares represented by your units (including whole and fractional units) will be allocated to your account in the form of units (whole and fractional) based upon the closing stock price on the date of the dividend payment.
 
   
Restricted Period
  You may not sell, gift, or otherwise transfer or dispose of any of the units during the “Restricted Period.” The Restricted Period commences on the Date of Grant and lapses as set forth herein.
 
   
 
  On [FIRST ANNIVERSARY OF DATE OF GRANT], the Restricted Period will lapse with respect to one-third (1/3) of the units, including dividend equivalents (rounded down to the next full unit).
 
   
 
  On [SECOND ANNIVERSARY OF DATE OF GRANT], the Restricted Period will lapse with respect to one-third (1/3) of the units, including dividend equivalents (rounded down to the next full unit).
 
   
 
  On [THIRD ANNIVERSARY OF DATE OF GRANT], the Restricted Period will lapse with respect to the remaining units, including dividend equivalents.
 
   
 
  In the event of a Change of Control (as defined in the Plan) the Restricted Period with respect to all units will lapse.

 


 

Termination
of Employment
         
 
  Due to Retirement (as defined in the applicable pension or retirement plan or plan company policy)   If you are an active employee for six months following the Date of Grant, the units will remain subject to the Restricted Period set forth above.
 
       
 
  Due to Lack of Work, Divestiture to Entity Less Than 50% Owned by DuPont, Total and Permanent Disability, or Death   If you are an active employee for six months following the Date of Grant, the Restricted Period on all units will lapse.
 
       
 
  Due to Any Other Reason (such as voluntary termination)   Units that are subject to a Restricted Period will be forfeited.
     
Payment
  Units shall be paid or your beneficiary (or estate, if there is no beneficiary), as applicable, as soon as practicable after the Restricted Period on such units lapses, but in no event later than the last day of your first taxable year ending after the date on which the Restricted Period lapses. Units are payable in one share of DuPont common stock for each whole unit and a cash payment for any fraction of a unit. The value of each fractional unit will be based on the average high and low prices of DuPont common stock as reported on the Composite Tape of the New York Stock Exchange as of the effective date of payment.
 
   
Code Section 409A
  This paragraph applies only if you are an officer of DuPont as of the December 31 preceding the date units are paid to you. Notwithstanding the foregoing to the contrary, any units payable pursuant to your termination of employment with DuPont shall not be paid earlier than the date that is six months after the date on which you terminate employment with DuPont.
 
   
Other Forfeiture
  If you engage in misconduct, the Company may demand that you repay this Award, or cash payments you received as a result of this Award, within ten (10) days following written demand by the Company. “Misconduct” is defined in the Plan, and includes, but is not limited to, termination for cause (also defined in the Plan) or the breach of a noncompete or confidentiality agreement in your employment agreement.
 
   
Change of Control
  In the event of a Change of Control in which the consideration paid to the stockholders is solely cash, the Compensation Committee may provide that any units will be cancelled in exchange for a cash payment equal to the consideration paid per share of stock in the Change of Control multiplied by the number of your units.

 


 

     
Deferral
  If you are an officer of the Company, you may defer the settlement of this Award in accordance with the procedures established by the Company for that purpose.
 
   
Withholding
  Shares of DuPont common stock otherwise deliverable in settlement of the units will be automatically used to satisfy withholding for federal, state, and local taxes. Where share withholding is not permitted by local law, the Company is authorized to withhold from other amounts due you (or your beneficiary, as applicable) or require payment of the same from you (or your beneficiary, as applicable). For more information regarding withholding procedures, please refer to the Plan prospectus.

 

EX-10.14 7 w56537exv10w14.htm FORM OF AWARD TERMS FOR PERFORMANCE-BASED RESTRICTED STOCK UNITS GRANTED UNDER THE COMPANY'S EQUITY AND INCENTIVE PLAN exv10w14
 

Exhibit 10.14
AWARD TERMS OF
PERFORMANCE-BASED RESTRICTED STOCK UNITS GRANTED UNDER THE
DUPONT EQUITY AND INCENTIVE PLAN
     
Introduction
  You have been granted performance-based restricted DuPont common stock units under the E.I. du Pont de Nemours and Company Equity and Incentive Plan (“Plan”), subject to the following Award Terms. This grant is also subject to the terms of the Plan, which is hereby incorporated by reference. However, to the extent that an Award Term conflicts with the Plan, the Plan shall govern. A copy of the Plan, and other Plan-related materials, such as the Plan prospectus, are available at:
 
   
 
  www1.lvs.dupont.com/employeebenefits/sharesandstockoption.html.
 
   
Date of Grant
  [___]
 
   
Type of Award
  Performance-based restricted DuPont common stock units
 
   
Dividend Equivalents
  Dividends payable on the total number of shares represented by your units (including whole and fractional units) will be allocated to your account in the form of units (whole and fractional) based upon the closing stock price on the date of the dividend payment. Dividend equivalent units will be determined after the end of the Performance Period and credited to your account at that time based on the performance-adjusted number of units in your account. Dividend equivalent units will be calculated by taking the final performance-adjusted units and calculating the dividend equivalent units for the first dividend payment date for the Performance Period. The resulting number of dividend equivalent units from the first dividend payment date will be added to the final performance-adjusted number of units before calculating the dividend equivalent units for the second dividend payment date during the Performance Period. This process will be repeated for each subsequent dividend payment date during the Performance Period.
 
   
Performance Period
  January 1, 2008- December 31, 2010
 
   
Vesting Terms
  You may not sell, gift, or otherwise transfer or dispose of any of the units.
 
   
 
  If you remain an active employee of DuPont from the Date of Grant through the last day of the Performance Period, the number of units that have vested as of the end of the Performance Period, if any, will be based on the achievement of the Performance Metrics set forth below. Except as set forth below, if you terminate employment with DuPont after the Date of Grant but prior to the last day of the Performance Period, unvested units will be forfeited. In the event of a Change of Control (as defined in the Plan), the Performance Metrics set forth below will be deemed to be achieved at the target level (100% of target award earned) and prorated for the portion of the Performance Period preceding the Change of Control.

 


 

     
Performance
   
Metrics
  The final number of units earned is based upon our revenue growth and total shareholder return relative to a group of our peer companies.
 
   
 
  Performance and payout are determined independently for each metric. The final overall award is the sum of the two elements
                 
Revenue Payout %
x Target Award
x 50%
  +
TSR Payout %
x Target Award
x 50%
  =  
 
Final Award
 
             
         
           
     
 
  1. Revenue growth
 
   
 
  Revenue growth is measured based on revenue/sales as reported in company filings and adjusted for major acquisitions/divestitures, but only if the aggregate of major acquisitions/divestitures totals 15% or more of total revenue in a fiscal year. A major acquisition/divestiture is one that accounts for at least 5% of total revenue.
           
  Revenue Growth
Percentile Ranking
    Percent of Target Award
Earned
 
  £ 25th     0%  
  25th*     25% (threshold)  
  50th*     100% (target)  
  75th*     200% (maximum)  
 
 
*   Interim points are interpolated on a straight-line basis
     
 
¨ For each peer company, revenue growth is based on revenue for the fiscal year preceding the Performance Period (e.g., 12/31/2007) compared to revenue for the last fiscal year of the Performance Period (e.g., 12/31/2010)
 
   
 
¨ Based on the table above, DuPont’s percentile rank in revenue growth against its peer companies is translated into a percentage (of target) payout for 50% of the Award.
 
   
 
2. Total Shareholder Return (TSR)
 
   
 
  TSR represents the total return on a company’s common stock to an investor (stock price appreciation plus dividends).
           
  TSR Percentile Ranking
Goal
    Percent of Target Award
Earned
 
  £ 25th     0%  
  25th*     25% (threshold)  
  50th*     100% (target)  
  75th*     200% (maximum)  
 
 
*   Interim points are interpolated on a straight-line basis

 


 

     
 
For this purpose, TSR is determined as follows:
     
 
TSR =
Change in Stock Price + Dividends Paid
 
 
 
 
  Beginning Stock Price
     
 
¨ Beginning Stock Price: average closing price of the stock over the 20 trading days immediately prior to the first day of the Performance Period.
 
 
¨ Ending Stock Price: average closing price of the stock over the last 20 trading days of the Performance Period.
 
 
¨ Change in Stock Price: difference between the Beginning Stock Price and the Ending Stock Price.
 
 
¨ Dividends Paid: total of all dividends paid on one share of stock during the applicable calendar quarter(s) during the Performance Period, provided that dividends shall be treated as though they are reinvested on day of payment based on closing price of the stock on that day.
 
 
¨ Based on the table above, the Company’s percentile rank in TSR against its peer companies is translated into a percentage (of target) payout for 50% of the Award.
 
   
Payment
  As soon as practicable during your first taxable year ending after the last day of the Performance Period, vested units (including dividend equivalents accruing after the end of the Performance Period and prior to the payment date), if any, will be paid to you or your beneficiary (or estate, if there is no beneficiary), as applicable, in one share of DuPont common stock for each whole unit and a cash payment for any fraction of a unit. The value of each fractional unit will be based on the average high and low prices of DuPont common stock as reported on the Composite Tape of the New York Stock Exchange as of the effective date of payment.
Termination
of Employment
         
 
  Due to Retirement (as defined in the applicable pension or retirement plan or plan company policy), Lack of Work, Divestiture to Entity Less Than 50% Owned by DuPont, Total and Permanent Disability, or Death   If you are an active employee for six months following the Date of Grant and are an active employee through the date of retirement, disability, death or termination of employment, the units will remain subject to the Vesting Terms. However, the number of units will be prorated based on the number of months you were employed by DuPont from the Date of Grant through the end of the Performance Period.

 


 

         
 
       
 
  Due to Any Other Reason (such as voluntary termination)   Units will be forfeited as of the date on which you terminate employment.
     
Other Forfeiture
  If you engage in misconduct, the Company may demand that you repay this Award, or
cash payments you received as a result of this Award, within ten (10) days following written demand by the Company. “Misconduct” is defined in the Plan, and includes, but is not limited to, termination for cause (also defined in the Plan) or the breach of a noncompete or confidentiality agreement in your employment agreement.
 
   
Change of Control
  In the event of a Change of Control in which the consideration paid to the stockholders is solely cash, the Compensation Committee may provide that any units will be cancelled in exchange for a cash payment equal to the consideration paid per share of stock in the Change of Control multiplied by the number of your units.
 
   
Deferral
  If you are an officer of the Company, you may defer the settlement of this Award in accordance with the procedures established by the Company for that purpose.
 
   
Withholding
  Shares of DuPont common stock otherwise deliverable in settlement of the units will be automatically used to satisfy withholding for federal, state, and local taxes. Where share withholding is not permitted by local law, the Company is authorized to withhold from other amounts due you (or your beneficiary, as applicable) or require payment of the same from you (or your beneficiary, as applicable). For more information regarding withholding procedures, please refer to the Plan prospectus.

 

EX-10.15 8 w56537exv10w15.htm COMPANY'S SALARY DEFERRAL & SAVINGS RESTORATION PLAN exv10w15
 

Exhibit 10.15
SALARY DEFERRAL & SAVINGS RESTORATION
PLAN
Originally Adopted — April 26, 1994
Last Amended – January 1, 2008
E. I. du Pont de Nemours and Company


 

-2-

SALARY DEFERRAL & SAVINGS RESTORATION PLAN
I. PURPOSE
     The purpose of this Plan is to provide an eligible employee with the opportunity to defer, until termination of employment, receipt of salary that, because of compensation limits imposed by law, is ineligible to be considered in calculating benefits within the Company’s tax-qualified defined contribution plan(s) and thereby recover benefits lost because of that restriction.
II. ADMINISTRATION
     The administration of this Plan is vested in the Board of Benefits and Pensions appointed by the Company. The Board may adopt such rules as it may deem necessary for the proper administration of the Plan, and may appoint such person(s) or group(s) as may be judged necessary to assist in the administration of the Plan. The Board’s decision in all matters involving the interpretation and application of this Plan shall be final. The Board shall have the discretionary right to determine eligibility for benefits hereunder and to construe the terms and conditions of this Plan.


 

-3-

III. ELIGIBILITY
     An employee of the Company who is participating in the Company’s tax-qualified defined contribution plans(s) and whose annual base compensation exceeds the amount prescribed in Internal Revenue Code Section 401(a)(17) shall be eligible to make Participant Contributions and have matching Company Contributions credited to his Account under this Plan. An employee of the company who is eligible to participate in the Company’s tax-qualified defined contribution plan(s) and whose compensation (as defined in the tax-qualified defined contribution plan in which the individual participates) exceeds the amount prescribed in Internal Revenue Code Section 401(a)(17) shall be eligible to share in Company Non-elective Contributions under this Plan. Effective January 1, 2007 employees eligible to participate in the Retirement Savings Plan shall not be eligible to participate in this Plan.
     For purposes of this Plan, the term “Company” means E.I. du Pont de Nemours and Company, any wholly-owned subsidiary or part thereof and any joint venture, partnership, or other entity in which E.I. du Pont de Nemours and Company has an ownership interest, provided that such entity (1) adopts this Plan with the approval of the E.I. du Pont de Nemours and Company and (2) agrees to make the necessary financial commitment in respect of any of its employees who become Participants in this Plan.


 

-4-

IV. PARTICIPANTS’ ACCOUNTS
  (A)             Participant Contributions. A Participant may elect to defer receipt of a percentage of compensation (as defined in the tax-qualified defined contribution in which the individual participates) in excess of the amount prescribed in Internal Revenue Code Section 401(a)(17), and have the dollar equivalent of the deferral percentage credited to a Participant Account under this Plan. The deferral percentage elected under this Plan shall not exceed 22%. Except as provided below, such deferral election will be made prior to the beginning of each calendar year and will be irrevocable for that calendar year.
 
                For purposes of a Participant’s first year of participation in this Plan, the compensation deferral election must be made within 30 days of the date the employee first becomes eligible to participate in the Plan, and no later than 30 days prior to the first day of the month for which compensation is deferred, and will be irrevocable for the remainder of that calendar year.
 
  (B)             Company Contributions. To the extent that a Participant makes a deferral election under the terms of subparagraph (A) above, the Company will credit to that Participant’s Account in this Plan an amount equivalent to the company matching contribution that would be provided to that Participant under the terms of the Company’s tax-qualified defined contribution plan(s) in which (s)he is participating.


 

-5-

  (C)             Company Non-elective Contributions. For each employee eligible to participate in this Plan, who is eligible to participate in the Savings and Investment Plan, whether or not he or she makes a deferral election under the terms of subparagraph (A) above, the Company will credit to that Participant’s Account in this Plan an amount equal to 3% of the employee’s compensation (as defined in the Savings and Investment Plan) in excess of the amount prescribed in Internal Revenue code Section 401(a) (17).
 
  (D)             Earnings Equivalents. Credits for Participant Contributions and Company Contributions shall be treated as having been invested in one or more of the investment options available for the ongoing deposit of new employee contributions in the Savings & Investment Plan of E. I. du Pont de Nemours and Company. Additional credit (or debit) amounts will be posted to the Participant’s Account in this Plan based on the performance of those investment options.
 
                The Participant shall have the right to:
  (1)   designate which of the available investment options are to be used in valuing his/her Account under this Plan, subject to the rules governing investment direction in the Savings & Investment Plan of E. I. du Pont de Nemours and Company; and/or
 
  (2)   change the designated investment options used in valuing his/her Account under this Plan, subject to the rules governing investment direction and/or


 

-6-

      transfers among funds in the Savings & Investment Plan of E. I. du Pont de Nemours and Company.
(E) Credits to Accounts. Participant Contributions, Company Contributions and Earnings Equivalents shall be credited (or debited) to the Participant’s Account under this Plan as unfunded book entries stated as cash balances, and will not be payable to Participants until such time as employment with the Company terminates. The cash balances in Participant Accounts shall be unfunded general obligations of the Company, and no Participant shall have any claim to or security interest in any asset of the Company on account thereof.
V. VESTING
     Participant Contributions and Company Contributions and Earnings Equivalents shall be vested at the time such amounts are credited to the Participant’s Account. Company Non-elective Contributions and Earnings Equivalents thereto shall be vested after the employee completes 3 years of service, as defined in the Savings and Investment Plan.
VI. PAYMENT OF BENEFITS
     Amounts payable under this Plan shall be delivered in a cash lump sum as soon as practical after termination of employment unless the Participant irrevocably elects under rules prescribed by the Board of Benefits and Pensions to receive payments in a series of annual


 

-7-

installments. Notwithstanding any provision of this Plan to the contrary, amounts payable to an officer of the Company shall be paid no sooner than the sixth month anniversary of the employee’s termination date. All payments under this Plan shall be made by, and all expenses of administering this Plan shall be borne by, the Company.
VII. NON-ASSIGNMENT
No assignment or alienation of the rights and interests of participants, beneficiaries and survivors under this Plan will be permitted or recognized under any circumstances. Plan benefits can be paid only to participants, beneficiaries or survivors.
VIII. RIGHT TO MODIFY
     The Company reserves the right to change or discontinue this Plan in its discretion by action of the Compensation & Benefits Committee.

EX-10.16 9 w56537exv10w16.htm COMPANY'S RETIREMENT SAVINGS RESTORATION PLAN exv10w16
 

Exhibit 10.16
RETIREMENT SAVINGS RESTORATION
PLAN
Originally Adopted – January 1, 2007
Last Amended January 1, 2008
E. I. du Pont de Nemours and
Company


 

-2-

RETIREMENT SAVINGS RESTORATION PLAN
I. PURPOSE
     The purpose of this Plan is to provide an eligible employee with the opportunity to defer, until termination of employment, receipt of salary that, because of compensation limits imposed by law, is ineligible to be considered in calculating benefits within the Company’s tax-qualified defined contribution plan(s) and thereby recover benefits lost because of that restriction.
II. ADMINISTRATION
     The administration of this Plan is vested in the Board of Benefits and Pensions appointed by Company. The Board may adopt such rules as it may deem necessary for the proper administration of the Plan, and may appoint such person(s) or group(s) as may be judged necessary to assist in the administration of the Plan. The Board’s decision in all matters involving the interpretation and application of this Plan shall be final. The Board shall have the discretionary right to determine eligibility for benefits hereunder and to construe the terms and conditions of this Plan.
III. ELIGIBILITY
     An employee of the Company who is participating in the E. I. du Pont de Nemours and Company Retirement Savings Plan and who is Grade 7 or above (or equivalent level for a participating subsidiary) shall be eligible to participate in this Plan (hereinafter “Participant”).
     For purposes of this Plan, the term “Company” means E.I. du Pont de Nemours and Company, any wholly-owned subsidiary or part thereof and any joint venture, partnership, or other entity in which E.I. du Pont de Nemours and Company has an ownership interest, provided that such entity (1) adopts this Plan with the approval of


 

-3-

E.I. du Pont de Nemours and Company and (2) agrees to make the necessary financial commitment in respect of any of its employees who become Participants in this Plan.
IV. PARTICIPANTS’ ACCOUNTS
(A) Participant Contributions. A Participant may elect to defer receipt of a percentage of compensation (as defined in the Retirement Savings Plan) in excess of the amount prescribed in Internal Revenue Code Section 401(a)(17), and have the dollar equivalent of the deferral percentage credited to a Participant Account under this Plan. The deferral percentage elected under this Plan shall not exceed 6%. Except as provided below, such deferral election will be made prior to the beginning of each calendar year and will be irrevocable for that calendar year.
For purposes of a Participant’s first year of participation in this Plan, the compensation deferral election must be made within 30 days of the date the employee becomes eligible to participate in the Plan, and no later than 30 days prior to the first day of the month for which compensation is deferred and will be irrevocable for the remainder of that calendar year.
(B) Company Matching Contributions. To the extent that a Participant makes a deferral election under the terms of subparagraph (A) above, the Company will credit to that Participant’s Account in this Plan an amount equivalent to 100% of the Participant Contribution.
(C) Company Non-elective Contributions. For each employee eligible to participate in this Plan, whether or not he or she makes a deferral election under the terms of subparagraph (A) above, the Company will credit to that Participant’s Account in this Plan an amount equal to 3% of the employee’s compensation (as defined in the Retirement Savings Plan) in excess of the amount prescribed in Internal Revenue Code Section 401(a)(17).
(D) Earnings Equivalents. Credits for Participant Contributions and Company Matching and Non-elective Contributions shall be treated as having been invested in one or more of the investment options available for the ongoing deposit of new


 

-4-

employee contributions in the Retirement Savings Plan. Additional credit (or debit) amounts will be posted to the Participant’s Account in this Plan based on the performance of those investment options.
The Participant shall have the right to:
  (1)   designate which of the available investment options are to be used in valuing his/her Account under this Plan, subject to the rules governing investment direction in the Retirement Savings Plan; and/or
 
  (2)   change the designated investment options used in valuing his/her Account under this Plan, subject to the rules governing investment direction and/or transfers among funds in the Retirement Savings Plan.
(E) Credits to Accounts. Participant Contributions, Company Matching and Non-elective Contributions and Earnings Equivalents shall be credited (or debited) to the Participant’s Account under this Plan as unfunded book entries stated as cash balances, and will not be payable to Participants until such time as employment with the Company terminates. The cash balances in Participant Accounts shall be unfunded general obligations of the Company, and no Participant shall have any claim to or security interest in any asset of the Company on account thereof.
V. VESTING
     Participant Contributions and Company Matching and Earnings Equivalents attributable thereto shall be vested at the time such amounts are credited to the Participant’s Account. Company Non-elective Contributions and Earnings Equivalents thereto shall be vested after the employee completes 3 years of service, as defined in the Retirement Savings Plan.
VI. PAYMENT OF BENEFITS
     Amounts payable under this Plan shall be paid in a lump sum as soon as practical following termination of employment, unless a Participant irrevocably elects under rules prescribed by the Board of Benefits and Pensions to receive payments at a later commencement date or in a series of annual installments. Any such election shall be made by the Participant at the time the deferral election is made.


 

-5-

Notwithstanding any provision of this Plan to the contrary, amounts payable to an officer of the Company shall be paid no sooner than the sixth month anniversary of the employee’s termination date. All payments under this Plan shall be made by, and all expenses of administering this Plan shall be borne by, the Company.
VII. NON-ASSIGNMENT
     No assignment or alienation of the rights and interests of participants, beneficiaries and survivors under this Plan will be permitted or recognized under any circumstances. Plan benefits can be paid only to participants, beneficiaries or survivors.
VIII. RIGHT TO MODIFY
     The Company reserves the right to change or discontinue this Plan in its discretion by action of the Compensation & Benefits Committee or its delegate.

EX-12 10 w56537exv12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exv12
 

Exhibit 12
E. I. DU PONT DE NEMOURS AND COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
                                                 
    Three Months        
    Ended        
    March 31,     Years Ended December 31,  
    2008     2007     2006     2005     2004     2003  
 
Income before cumulative effect of changes in accounting principles
  $ 1,191     $ 2,988     $ 3,148     $ 2,056     $ 1,780     $ 1,002  
Provision for (benefit from) income taxes
    273       748       196       1,470       (329 )     (930 )
Minority interests in earnings (losses) of consolidated subsidiaries
    6       7       (15 )     37       (9 )     71  
 
                                               
Adjustment for companies accounted for by the equity method
    (1 )     218       11       (1 )     99       360  
Capitalized interest
    (13 )     (45 )     (37 )     (23 )     (17 )     (29 )
Amortization of capitalized interest
    9       34       33       33       365 a     119 a
 
                                   
 
 
    1,465       3,950       3,336       3,572       1,889       593  
 
                                   
 
                                               
Fixed charges:
                                               
Interest and debt expense
    80       430       460       518       362       347  
Capitalized interest
    13       45       37       23       17       29  
Rental expense representative of interest factor
    27       107       94       88       91       90  
 
                                   
 
 
    120       582       591       629       470       466  
 
                                   
 
                                               
Total adjusted earnings available for payment of fixed charges
  $ 1,585     $ 4,532     $ 3,927     $ 4,201     $ 2,359     $ 1,059  
 
                                   
 
Number of times fixed charges earned
    13.2       7.8       6.6       6.7       5.0       2.3  
 
                                   
 
a   Includes write-off of capitalized interest associated with exiting certain businesses.

 

EX-31.1 11 w56537exv31w1.htm RULE 13A-14(A)/15D-14(A) CERTIFICATION OF THE COMPANY'S PRINCIPAL EXECUTIVE OFFICER exv31w1
 

Exhibit 31.1
CERTIFICATIONS
          I, Charles O. Holliday, Jr., certify that:
1.   I have reviewed this report on Form 10-Q for the period ended March 31, 2008 of E. I. du Pont de Nemours and Company;
 
2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
4.   The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
  a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
  b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
  c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
  d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.   The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):
  a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
  b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
         
 
  Date:   April 29, 2008
     
 
 
  By:   /s/Charles O. Holliday, Jr.
     
 
      Charles O. Holliday, Jr.
 
      Chief Executive Officer and
 
      Chairman of the Board

 

EX-31.2 12 w56537exv31w2.htm RULE 13A-14(A)/15D-14(A) CERTIFICATION OF THE COMPANY'S PRINCIPAL FINANCIAL OFFICER exv31w2
 

Exhibit 31.2
CERTIFICATIONS
          I, Jeffrey L. Keefer, certify that:
1.   I have reviewed this report on Form 10-Q for the period ended March 31, 2008 of E. I. du Pont de Nemours and Company;
 
2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
4.   The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
  a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
  b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
  c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
  d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.   The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):
  a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
  b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
         
 
  Date:   April 29, 2008
     
 
 
  By:   /s/Jeffrey L. Keefer
     
 
      Jeffrey L. Keefer
 
      Executive Vice President and
 
      Chief Financial Officer

 

EX-32.1 13 w56537exv32w1.htm SECTION 1350 CERTIFICATION OF THE COMPANY'S PRINCIPAL EXECUTIVE OFFICER exv32w1
 

Exhibit 32.1
Certification of CEO Pursuant to
18 U.S.C. Section 1350,
As Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002
     In connection with the Quarterly Report of E. I. du Pont de Nemours and Company (the “Company”) on Form 10-Q for the period ending March 31, 2008 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Charles O. Holliday, Jr., as Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
  (1)   The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
 
  (2)   The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
     
 
  /s/Charles O. Holliday, Jr.
 
   
 
  Charles O. Holliday, Jr.
 
  Chief Executive Officer
 
  April 29, 2008

 

EX-32.2 14 w56537exv32w2.htm SECTION 1350 CERTIFICATION OF THE COMPANY'S PRINCIPAL FINANCIAL OFFICER exv32w2
 

Exhibit 32.2
Certification of CFO Pursuant to
18 U.S.C. Section 1350,
As Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002
     In connection with the Quarterly Report of E. I. du Pont de Nemours and Company (the “Company”) on Form 10-Q for the period ending March 31, 2008 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Jeffrey L. Keefer, as Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
  (1)   The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
 
  (2)   The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
     
 
  /s/Jeffrey L. Keefer
 
   
 
  Jeffrey L. Keefer
 
  Chief Financial Officer
 
  April 29, 2008

 

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