11-K 1 w62024ce11vk.htm FORM 11-K e11vk
 
 
United States Securities and Exchange Commission
Washington, DC 20549
FORM 11-K
(Mark One)
     
þ   ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2007
OR
     
o   TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 001-00815
DuPont 401(k) and Profit Sharing Plan
(Full title of plan)
E. I. du Pont de Nemours and Company
1007 Market Street
Wilmington, Delaware 19898
(Name and Address of Principal Executive Office of Issuer)
 
 

 

 

SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, E. I. du Pont de Nemours and Company has duly caused this Annual Report to be signed on its behalf by the undersigned hereunto duly authorized.
         
  DuPont 401(k) and Profit Sharing Plan

Dated: June 27, 2008
 		  
  By:   /s/ Robert Slone    
    Robert Slone   
    Director of Global Rewards,
     Policy & Strategy and US Delivery 		  
 

 

 

DuPont 401(k) and Profit Sharing Plan
Index to Financial Statements and Supplemental Schedule
         
    Page(s)
    1  
 
        
Financial Statements:
        
    2  
 
        
    3  
 
        
    4 — 9  
 
        
Supplemental Schedule*:
        
    10  
 
*   Other supplemental schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.

 

 

Report of Independent Registered Public Accounting Firm
To the Participants and Administrator of
DuPont 401(k) and Profit Sharing Plan
In our opinion, the accompanying statements of net assets available for benefits and the related statements of changes in net assets available for benefits present fairly, in all material respects, the net assets available for benefits of DuPont 401(k) and Profit Sharing Plan (the “Plan”) at December 31, 2007 and 2006, and the changes in net assets available for benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental Schedule of Assets (Held at End of Year) is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
/S/ PRICEWATERHOUSECOOPERS LLP
Philadelphia, Pennsylvania
June 27, 2008

 

 

DuPont 401(k) and Profit Sharing Plan
Statements of Net Assets Available for Benefits
December 31, 2007 and 2006
                 
    2007     2006  
Assets:
                
Investments at fair value:
                
Company stock fund
   $ 684,674     $ 597,110  
Mutual funds
     9,380,124       7,470,585  
Common/collective trust funds
     4,308,795       3,538,801  
Participant loans
     225,841       177,604  
 
            
 
                
Total investments
     14,599,434       11,784,100  
 
            
 
                
Receivables:
                
Participants’ contributions
     27,057       43,217  
Employer’s contributions
     241,032       207,452  
Dividends and interest
     533       231  
 
            
 
                
Total receivables
     268,622       250,900  
 
            
 
                
Cash
     194,227       160  
 
            
 
                
Net assets available for benefits, at fair value
     15,062,283       12,035,160  
 
            
Adjustment from fair value to contract value for interest in common/collective trust relating to fully benefit-responsive investment contacts
     28,073       47,640  
 
            
 
                
Net assets available for benefits
   $ 15,090,356     $ 12,082,800  
 
            
The accompanying notes are an integral part of these financial statements.

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DuPont 401(k) and Profit Sharing Plan
Statements of Changes in Net Assets Available for Benefits
December 31, 2007 and 2006
                 
    2007     2006  
Additions:
                
Investment income:
                
Net appreciation (depreciation) in fair value of investments
   $ (295,663 )   $ 643,064  
Interest Income
     17,340       10,690  
Dividend Income
     947,720       590,660  
 
            
 
                
Investment income
     669,397       1,244,414  
 
            
 
                
Contributions:
                
Participants
     2,055,393       1,997,973  
Employer
     1,229,854       1,172,346  
Rollover
     53,080       58,631  
 
            
 
                
Total contributions
     3,338,327       3,228,950  
 
            
 
                
Total additions
     4,007,724       4,473,364  
 
            
 
                
Deductions:
                
Benefits paid to participants
     997,028       358,084  
Administrative expenses
     3,140       800  
 
            
 
                
Total deductions
     1,000,168       358,884  
 
            
 
                
Net increase
     3,007,556       4,114,480  
 
            
 
                
Net assets available for benefits:
                
Beginning of year
     12,082,800       7,968,320  
 
            
 
                
End of year
   $ 15,090,356     $ 12,082,800  
 
            
The accompanying notes are an integral part of these financial statements.

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DuPont 401(k) and Profit Sharing Plan
Notes to Financial Statements
NOTE 1 — DESCRIPTION OF THE PLAN
The following description of the DuPont 401(k) and Profit Sharing Plan (the “Plan”) provides only general information. Participants should refer to the Plan document for a more complete description of the Plan’s provisions.
General
The Plan is a defined contribution plan subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended. The Plan, which became effective January 1, 2003, is sponsored by E. I. du Pont de Nemours and Company (“Plan Sponsor”). Eligible employees of the Plan Sponsor’s subsidiaries or general partnerships, which have adopted the Plan with the Plan Sponsor’s approval, are eligible to participate in the Plan. Currently, DuPont Holographics, Inc., DuPont Displays Enhancements, Inc., DuPont Displays, Inc., and DuPont Liqui-box Corporation (collectively the “Employer” or the “Company”) have adopted the Plan.
All employees of the Company are eligible to participate except any employee whose compensation and conditions of employment are covered by a collective bargaining agreement to which the Company is a party unless the agreement calls for the employee’s participation in the Plan or an employee whose services are leased from another company. Participation begins the first day of employment.
The designated trustee of the Plan is Merrill Lynch Trust Co., FSB, (“Merrill Lynch”).
Contributions
Each year, participants may contribute between 1 percent to 75 percent of their eligible earnings, as defined by the Plan. Participants who have attained age 50 before the end of the Plan year are eligible to make catch-up contributions. Participants may also contribute amounts representing distributions from other qualified defined benefit or defined contribution plans. The Company will make a matching contribution of 100 percent of the first 3 percent of eligible earnings that a participant contributes to the Plan plus an additional matching contribution of 50 percent of any contributions that exceed 3 percent but do not exceed 5 percent of the participant’s eligible compensation. Contributions to the Plan are subject to certain limits imposed by the Internal Revenue Service (“IRS”) and the Plan terms.
In addition, the Plan permits each participating Company to make a discretionary profit sharing contribution for the benefit of their eligible employees. Any employee of such participating company who is actively employed on the last day of the Plan year or who retired, died, or became disabled during the Plan year will receive an allocation based on the ratio that the participant’s compensation bears to the total compensation of all eligible participants. For the year ended December 31, 2007 and 2006, a contribution of $198,600 and $182,812, respectively, was made to the Plan for the benefit of eligible employees of DuPont Liqui-box Corporation.
Participants direct the investment of their contributions into various investment options offered by the Plan. The Plan currently offers fourteen mutual funds, four common/collective trust funds and a Company stock fund as investment options for participants.

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DuPont 401(k) and Profit Sharing Plan
Notes to Financial Statements
Participant Accounts
Each participant’s account is credited with the participant’s contributions and allocations of (a) the Company’s contributions and (b) Plan earnings, and charged with an allocation of administrative expenses. Allocations are based on participant earnings or account balance, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.
Vesting
Participants are immediately vested in their contributions and Company matching contributions plus actual earnings thereon. A participant’s vested interest in the Company’s profit sharing contributions and the related earnings are determined using the following table:
     
Years of Service   Vested Percent
immediately upon participation      0%
1     33%
2     66%
3 or more   100%
In addition, a participant becomes 100 percent vested in all contributions upon attainment of normal retirement age (age 59 1/2 ) or disability or death while employed by the Company.
Participant Loans
Participants may borrow from their 401(k) and matching fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 (less the participant’s highest outstanding loan balance during the previous twelve months) or 50 percent of their account balance. The loans are secured by the balance in the participant’s account and bear interest at rates that range from 5 percent to 11.5 percent, which are commensurate with local prevailing rates as determined by the Plan administrator. Principal and interest is paid ratably through payroll deductions. A maximum of one loan per participant may be outstanding at any time and loan maturities cannot exceed five years, except for loans made to purchase a primary residence, in which case the maturity cannot exceed ten years.
Payment of Benefits
A withdrawal of all or a portion of a participant’s account may be made by the participant after attaining age 591/2. Withdrawals of employee contributions for undue financial hardship are also permitted. Upon termination, retirement, death, or disability, a participant may elect to receive the value of their vested balances, in accordance with the provisions of the Plan, in a lump-sum distribution or in installments, payable in cash or in kind, or part in cash and part in kind.
Forfeited Accounts
Forfeitures will be used, as defined in the Plan, to pay administrative expenses and may reduce the amount of future Company contributions. There were no such forfeited amounts used during the Plan years ended December 31, 2007 and 2006. At December 31, 2007 and 2006, forfeited non-vested accounts totaled $17,463 and $9,627, respectively.

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DuPont 401(k) and Profit Sharing Plan
Notes to Financial Statements
Administrative Expenses
Reasonable expenses of administering the Plan, at the election of the Company, may be paid by the Plan. For the years ended December 31, 2007 and 2006, the Plan paid $3,140 and $800, respectively, in administrative expenses of the Plan including various recordkeeping services. Brokerage fees, transfer taxes, investment fees and other expenses incident to the purchase and sale of securities and investments can be included in the cost of such securities or investments or deducted from the sales proceeds.
NOTE 2 — SUMMARY OF ACCOUNTING POLICIES
Basis of Accounting
The financial statements of the Plan are prepared under the accrual method of accounting.
As described in Financial Accounting Standards Board Staff Position, FSP AAG INV-1, Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies subject to the AICPA Investment Company Audit Guide and Defined Contribution Health and Welfare and Pension Plans (the “FSP”), investment contracts held by a defined contribution plan are required to be reported at fair value. This applies even when the contracts are not held directly by the Plan but are underlying assets in Common/collective trust (“CCT”) investments held by the Plan. However, contract value is the relevant measurement of net assets available for benefits in a defined contribution plan that holds fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan. As required by the FSP, the Statement of Net Assets Available for Benefits presents the fair value of the interest in CCT’s relating to fully benefit-responsive investment contracts with an adjustment to contract value. The Statement of Changes in Net Assets Available for Benefits is prepared on a contract value basis.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates that affect the financial statements and accompanying notes. Actual results could differ from those estimates.
Investment Valuation and Income Recognition
The Plan’s investments are stated at fair value. Shares of registered investment companies (“mutual funds”) are valued at the net asset value of shares held by the Plan at year end. Shares of CCT’s are valued at net unit value as determined by the trustee at year end. The Company stock fund is valued at its year end unit closing price (defined as the year end market price of common stock plus uninvested cash position). Participant loans are valued at their outstanding balances, which approximate fair value.
The Plan holds shares of CCT’s that have investments in fully benefit-responsive investment contracts. For purposes of the Statement of Net Assets Available for Benefits, these CCT’s are stated at fair value. As provided in the FSP, an investment contract is generally required to be reported at fair value, rather than contract value, to the extent it is fully benefit-responsive. The fair value of such investment contracts held by the CCT’s are determined using the market price of the underlying securities and the value of the investment contract.

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DuPont 401(k) and Profit Sharing Plan
Notes to Financial Statements
Purchases and sales of investments are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date. Capital gain distributions are included in dividend income.
Payment of Benefits
Benefits are recorded when paid.
Accounting Standards Issued Not Yet Adopted
In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 157, “Fair Value Measurements,” (SFAS 157) which addresses how companies should measure fair value when required for recognition or disclosure purposes under GAAP. The standard’s provisions will be applied to existing accounting measurements and related disclosures that are based on fair value. SFAS 157 does not require any new fair value measurements. The standard applies a common definition of fair value to be used throughout GAAP, with emphasis on fair value as a “market-based” measurement versus an entity-specific measurement and establishes a hierarchy of fair value measurement methods. The disclosure requirements are expanded to include the extent to which companies use fair value measurements, the methods and assumptions used to measure fair value and the effect of fair value measurements on earnings. SFAS 157 is effective for fiscal years beginning after November 15, 2007. The new standard’s provisions applicable to the Plan will be applied to the Plan’s financial statements prospectively for the period beginning January 1, 2008. The Plan administrator expects that the adoption of SFAS 157 will not have a material effect on the Plan’s net assets available for benefits or changes in net assets available for benefits.
NOTE 3 — INVESTMENTS
The following table presents investments that represent 5% or more of the Plan’s net assets:
                 
    December 31,
    2007   2006
Merrill Lynch Retirement Preservation Trust
   $ 3,119,183     $ 2,555,940  
MFS Total Return Fund
     1,122,293       983,716  
Templeton Growth Fund
     1,115,862       935,305  
Franklin Balance Sheet Investment Fund Adv Class
     1,642,177       1,641,405  
Blackrock Basic Value Fund Class I
     996,001       811,854  
Franklin Small-Mid Cap Growth Fund Adv Class
     765,693       537,313 *
 
*   Investment represents less than 5% of Net Assets as of December 31, 2006

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DuPont 401(k) and Profit Sharing Plan
Notes to Financial Statements
During the years ended December 31, 2007, and 2006, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated (depreciated) in value by $(295,663) and $643,064 respectively, as follows:
                 
    2007     2006  
Company stock fund
   $ (73,502 )   $ 78,490  
Mutual funds
     (275,900 )     430,131  
Common/collective trust funds
     53,739       134,443  
 
            
 
   $ (295,663 )   $ 643,064  
 
            
NOTE 4 — TAX STATUS
At the Plan inception the Plan Sponsor adopted the Merrill Lynch Prototype Non-Standardized Profit Sharing Plan with Cash or Deferred Arrangement (the “Merrill Lynch Prototype Plan”). The Merrill Lynch Prototype Plan received an Opinion Letter from the Internal Revenue Service dated June 4, 2002 stating that the form of the Plan was acceptable under section 401 of the Internal Revenue Code (“IRC”) for use by employers for the benefit of their employees. In 2007, the Plan was amended and became a “Custom Plan” and therefore is not longer covered under the Merrill Lynch Prototype Plan Opinion Letter. However, the Plan administrator believes that the Plan is currently designed and operated in accordance with the applicable sections of the Code. Accordingly, no provision has been made for federal income taxes in the accompanying financial statements.
NOTE 5 — RELATED PARTY TRANSACTIONS
Certain Plan investments are shares of mutual funds and units of common/collective trust funds managed by Merrill Lynch, the Trustee. In addition, the Plan offers the DuPont Stock Fund as an investment option. At December 31, 2007 the Plan held 15,529.0077 shares of DuPont common stock valued at $684,674. At December 31, 2006 the Plan held 12,258.4697 shares of DuPont common stock valued at $597,110. The Plan purchased $217,008 and $212,981 of stock during the years ended December 31, 2007 and 2006, respectively. The Plan sold $78,513 and $57,289 of stock during the years ended December 31, 2007 and 2006, respectively. Transactions in these investments qualify as party-in-interest transactions which are exempt from the prohibited transaction rules of ERISA.
NOTE 6 — PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants would become 100 percent vested in the profit sharing contributions.

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DuPont 401(k) and Profit Sharing Plan
Notes to Financial Statements
NOTE 7 — RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits per the financial statements at December 31, 2007 and 2006 to the Form 5500:
                 
    December 31,  
    2007     2006  
Net assets available for benefits per the financial statements
   $ 15,090,356     $ 12,082,800  
 
Adjustment from fair value to contract value for interest in common/collective trust relating to fully benefit-responsive investment contacts
     (28,073 )     (47,640 )
 
            
 
Net assets available for benefits per the Form 5500
   $ 15,062,283     $ 12,035,160  
 
            
The following is a reconciliation of CCT gain per the financial statements for the year ended December 31, 2007 to the Form 5500:
         
    December 31,  
    2007  
Net gain from Common/collective trusts included in the financial statements
   $ 186,967  
2007 adjustment from contract value to fair value for fully benefit-responsive investment contacts
     (28,073 )
2006 adjustment from contract value to fair value for fully benefit-responsive investment contacts
     47,640  
 
      
Net gain from Common/collective trusts per the Form 5500
   $ 206,534  
 
      
NOTE 8 — RISKS AND UNCERTAINTIES
The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statement of net assets available for benefits.
NOTE 9 — SUBSEQUENT EVENTS
Effective January 28, 2008 all the Common/Collective Trust assets were transferred from Merrill Lynch to Northern Trust Corporation, which became the trustee of a Master Trust. Merrill Lynch remained as the trustee for the existing mutual funds and Company Stock Funds. As part of the transfer the Plan changed the investment choices offered to participants.

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Supplemental Schedule

 

 

DuPont 401(k) and Profit Sharing Plan
Schedule H, Line 4i — Schedule of Assets (Held at End of Year)
December 31, 2007
                     
                (e)  
    (b)   (c)   (d)   Current  
(a)   Identity of Issue   Description of Investment   Cost   Value  
*
  Merrill Lynch Small Cap Index CT Tier 2   Common/Collective Trusts   **   $ 335,415  
*
  Merrill Lynch Equity Index TR Tier 6   Common/Collective Trusts   **     549,013  
*
  Merrill Lynch International Index CT Tier 2   Common/Collective Trusts   **     333,257  
*
  Merrill Lynch Retirement Preservation Trust   Common/Collective Trusts   **     3,091,110  
 
                 
 
                    
 
  Total common/collective trust funds             4,308,795  
 
                 
 
                    
 
  AIM Charter Fund Instl CL   Registered Investment Company   **     284,497  
 
  Blackrock International Value Fund Class I   Registered Investment Company   **     453,413  
*
  Blackrock Fundamental Growth Fund Class I   Registered Investment Company   **     654,819  
*
  Blackrock Global Growth Fund Class I   Registered Investment Company   **     499,036  
 
  Franklin Growth Fund Adv Class   Registered Investment Company   **     293,909  
 
  Franklin Small-Mid Cap Growth Fund Adv Class   Registered Investment Company   **     765,693  
 
  MFS Total Return Fund   Registered Investment Company   **     1,122,293  
 
  Templeton Institutional Fund   Registered Investment Company   **     389,449  
 
  Templeton Growth Fund   Registered Investment Company   **     1,115,862  
 
  AIM Constellation Fund Institutional   Registered Investment Company   **     244,065  
 
  Franklin Balance Sheet Investment Fund Adv Class   Registered Investment Company   **     1,642,177  
 
  MFS Research Fund   Registered Investment Company   **     321,632  
*
  Blackrock Balanced Capital Fund Class I   Registered Investment Company   **     597,278  
*
  Blackrock Basic Value Fund Class I   Registered Investment Company   **     996,001  
 
                 
 
                    
 
  Total mutual funds             9,380,124  
 
                 
 
                    
*
  DuPont Company Stock Fund   Company Stock Fund   **     684,674  
 
                 
 
                    
*
  Participant loans   5% to 11.5% Maturing from January 2008 — December 2012   **     225,841  
 
                 
 
                    
 
  TOTAL ASSETS (Held at End of Year)           $ 14,599,434  
 
                 
 
                     
*
  Party-in-interest                
**
  Cost not required for participant directed investments                

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