WILMINGTON, Del., July 28, 2015 /PRNewswire/ --
Second Quarter Highlights
- Delivered second-quarter operating earnings per share of
$1.18 versus $1.17 in prior year. Performance Chemicals
operating earnings were down $0.11
per share from prior year. GAAP earnings per share were
$1.03 versus $1.15 in prior year.
- Segment pre-tax operating earnings of $1,586 million included about $210 million, or $0.17 per share, of negative impact from
currency. Excluding the impact of currency, operating EPS would
have increased about 15 percent versus prior year.
- Operating margins improved in 5 of the 6 ongoing operating
segments which comprise the next generation DuPont including
Performance Materials, Electronics & Communications,
Agriculture, Nutrition & Health, and Safety & Protection.
Margin improvement was primarily driven by increased
productivity.
- Cost reductions from operational redesign contributed
$0.10 per share to second-quarter
operating earnings; on track to deliver approximately $0.40 per share in savings in 2015.
- On a continuing operations basis, DuPont expects full-year
2015 operating earnings to be about $3.10 per share, excluding $0.80 per share in previously anticipated full
year earnings from Performance Chemicals. Estimated negative
currency impact expected to be approximately $0.60 per share. Prior-year operating earnings
were $3.36 per share on a comparable
basis.
DuPont (NYSE: DD), a science company that brings world-class,
innovative products, materials, and services to the global
marketplace, today announced second quarter 2015 operating earnings
of $1.18 per share compared to
$1.17 per share in the prior
year. GAAP1 earnings were $1.03 per share, compared to $1.15 per share in the prior year.
Second quarter sales were $8.6
billion, down 11 percent versus prior year due to negative
impacts from currency (5 percent), portfolio changes (2 percent),
volume (2 percent) and local price and product mix (2
percent). Segment pre-tax operating earnings of $1,586 million included about $210 million, or $0.17 per share, of negative impact from
currency. Operating earnings included $0.09 per share of benefit related to exchange
gains and taxes, attributable to prior periods. Performance
Chemicals segment operating earnings were $113 million, or $0.10 per share, a 55 percent reduction versus
prior year.
DuPont's board of directors approved a third quarter dividend of
38 cents per share, the
444th consecutive quarterly dividend since the company's
first dividend in the fourth quarter of 1904. The third quarter
dividend of 38 cents per share of
common stock is payable on Sept. 11,
2015, to stockholders of record at the close of business on
Aug. 14, 2015. Regular quarterly
dividends of $1.125 per share on the $4.50 series
preferred stock and $0.875
cents per share on the $3.50 series preferred stock also were
declared, both payable on Oct. 23,
2015, to stockholders of record as of Oct. 9, 2015.
The separation of Chemours was completed on July 1, 2015. In the first quarter 2015, DuPont
announced its intention to buy back shares using the approximately
$4 billion of distribution proceeds
received from Chemours. In connection with the completion of the
spin, DuPont's board has authorized the company to purchase and
retire $2 billion of common stock by
Dec. 31, 2015 with the remainder to
be purchased and retired by Dec. 31,
2016. The company expects to use an accelerated share
repurchase plan in connection with the $2
billion buyback by year end.
"We continued to improve margins across most of our ongoing
businesses through our constant focus on productivity, even as we
address industrywide challenges in agriculture and ongoing
currency headwinds," said Ellen Kullman, DuPont Chair and
CEO. "With the separation of our Performance Chemicals
segment now complete, the next generation DuPont is leveraging our
innovation platform to drive greater growth and value, with a
continued emphasis on cost productivity, actively managing our
portfolio, and the disciplined return of capital."
Global Consolidated Net Sales – 2nd Quarter
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2015
|
|
Percent Change Due
to:
|
|
|
|
|
|
|
|
Local Price
and
|
|
|
|
|
|
Portfolio
/
|
|
|
|
$
|
|
% Change
|
|
Product
Mix
|
|
Currency
|
|
Volume
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. & Canada
|
|
$ 4,247
|
|
(8)
|
|
(2)
|
|
(1)
|
|
(3)
|
|
(2)
|
|
EMEA *
|
|
1,732
|
|
(18)
|
|
-
|
|
(17)
|
|
2
|
|
(3)
|
|
Asia
Pacific
|
|
1,883
|
|
(10)
|
|
(2)
|
|
(2)
|
|
(3)
|
|
(3)
|
|
Latin America
|
|
733
|
|
(18)
|
|
-
|
|
(9)
|
|
(7)
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consolidated
Sales
|
$ 8,595
|
|
(11)
|
|
(2)
|
|
(5)
|
|
(2)
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Europe,
Middle East & Africa
|
|
|
|
|
|
|
|
|
|
|
|
Segment Sales – 2nd Quarter
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2015
|
|
Percent Change Due
to:
|
|
|
|
|
|
|
|
Local Price
and
|
|
|
|
|
|
Portfolio
/
|
|
|
|
$
|
|
% Change
|
|
Product
Mix
|
|
Currency
|
|
Volume
|
|
Other
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agriculture
|
|
$ 3,218
|
|
(11)
|
|
1
|
|
(5)
|
|
(6)
|
|
(1)
|
|
Electronics &
Communications
|
534
|
|
(13)
|
|
(4)
|
|
(2)
|
|
(7)
|
|
-
|
|
Industrial
Biosciences
|
|
288
|
|
(9)
|
|
(3)
|
|
(8)
|
|
2
|
|
-
|
|
Nutrition &
Health
|
|
826
|
|
(11)
|
|
(1)
|
|
(9)
|
|
-
|
|
(1)
|
|
Performance
Chemicals
|
1,502
|
|
(11)
|
|
(6)
|
|
(4)
|
|
-
|
|
(1)
|
|
Performance
Materials
|
|
1,365
|
|
(14)
|
|
(4)
|
|
(7)
|
|
3
|
|
(6)
|
|
Safety &
Protection
|
|
925
|
|
(10)
|
|
-
|
|
(5)
|
|
-
|
|
(5)
|
|
Other
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
Total segment
sales
|
|
8,660
|
|
(11)
|
|
(2)
|
|
(5)
|
|
(2)
|
|
(2)
|
|
Elimination of
transfers
|
|
(65)
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net
sales
|
|
$ 8,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings – 2nd Quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change vs.
2014
|
|
(Dollars in
millions)
|
2Q15
|
|
2Q14
|
|
$
|
|
%
|
|
Agriculture
|
$ 778
|
|
$ 836
|
|
$ (58)
|
|
-7%
|
|
Electronics &
Communications
|
93
|
|
89
|
|
4
|
|
4%
|
|
Industrial
Biosciences
|
50
|
|
59
|
|
(9)
|
|
-15%
|
|
Nutrition &
Health
|
103
|
|
105
|
|
(2)
|
|
-2%
|
|
Performance
Chemicals
|
113
|
|
251
|
|
(138)
|
|
-55%
|
|
Performance
Materials
|
311
|
|
303
|
|
8
|
|
3%
|
|
Safety &
Protection
|
195
|
|
209
|
|
(14)
|
|
-7%
|
|
Other
|
(57)
|
|
(82)
|
|
25
|
|
30%
|
|
Total segment
operating earnings (1)
|
1,586
|
|
1,770
|
|
(184)
|
|
-10%
|
|
|
|
|
|
|
|
|
|
|
Exchange gains
(losses) (1), (2)
|
26
|
|
(51)
|
|
77
|
|
nm
|
|
Corporate expenses
(1)
|
(164)
|
|
(186)
|
|
22
|
|
-12%
|
|
Interest expense
(1)
|
(107)
|
|
(94)
|
|
(13)
|
|
14%
|
|
Operating earnings
before income taxes
|
1,341
|
|
1,439
|
|
(98)
|
|
-7%
|
|
Provision for income
taxes on operating earnings
|
(261)
|
|
(350)
|
|
89
|
|
|
|
Less: Net income
attributable to noncontrolling interests
|
5
|
|
4
|
|
1
|
|
|
|
Operating
earnings
|
$ 1,075
|
|
$ 1,085
|
|
$ (10)
|
|
-1%
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
per share
|
$ 1.18
|
|
$ 1.17
|
|
$ 0.01
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See Schedules B
and C for listing of significant items and their impact by
segment.
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) See Schedule D
for additional information on exchange gains and losses.
|
|
|
|
|
|
The following is a summary of business results for each of the
company's reportable segments comparing second quarter with the
prior year, unless otherwise noted.
Agriculture – Operating earnings of
$778 million decreased $58 million, or 7 percent, as improved
productivity and increases in price from new products were more
than offset by lower volumes and an $84
million negative currency impact. Decreased volumes
are due to reduced soybean sales, lower crop protection volumes and
reductions in global corn planted area. Excluding the impact
of currency, operating earnings would have increased by about 3
percent.
Electronics & Communications
– Operating earnings of $93
million increased $4 million,
or 4 percent, as productivity gains more than offset volume
decreases and a $3 million negative
impact from currency. Volume growth in Tedlar® film in
photovoltaics and consumer electronics was more than offset by
competitive pressures impacting Solamet® paste.
Excluding the impact of currency, operating earnings would have
increased by about 8 percent.
Industrial Biosciences – Operating earnings of
$50 million decreased $9 million, or 15 percent, as increased demand
for bioactives was more than offset by lower pricing and a
$6 million negative impact of
currency. Increased enzyme demand, principally in animal nutrition,
health and personal care, and food markets, was offset by lower
biomaterial sales. Excluding the impact of currency, operating
earnings would have been about 5 percent lower than prior year.
Nutrition & Health – Operating earnings of
$103 million decreased $2 million, or 2 percent, as productivity gains
were more than offset by a $12
million negative impact of currency. Volume growth in
probiotics, texturants, cultures, and ingredient systems were
offset by a decline in specialty proteins. Excluding the
impact of currency, operating earnings would have increased by
about 10 percent.
Performance Chemicals – Operating earnings of
$113 million decreased $138 million, or 55 percent, driven primarily by
lower prices for titanium dioxide, and $43
million from the negative impact of currency. Excluding the
impact of currency, operating earnings would have declined by about
38 percent.
Performance Materials – Operating earnings of
$311 million increased $8 million, or 3 percent, driven by broad based
improved product mix, productivity and volume growth for ethylene
as prior year ethylene sales were constrained due to the scheduled
outage at the Orange, Texas
ethylene unit. This was offset by $42
million of negative impact of currency, the portfolio change
from the sale of Glass Laminating Solutions/Vinyls, and a negative
impact from an unplanned ethylene outage. Excluding the
impact of currency, operating earnings would have increased by
about 17 percent.
Safety & Protection – Operating earnings of
$195 million decreased $14 million, or 7 percent, as productivity
improvements and volume growth in medical packaging and protective
garments were more than offset by $20
million of negative currency impact, the portfolio impact of
the Sontara® divestiture, and lower demand, particularly
from the oil & gas industry, for Nomex® thermal
resistant fiber and Sustainable Solutions offerings.
Excluding the impact of currency, operating earnings would
have increased by about 3 percent.
Outlook
Consistent with continuing weakness in global agricultural
markets, the company is reducing expectations for the year in its
Agriculture segment due to weaker demand in global crop protection
markets, reduced expectations for corn area in Latin America, and lower than expected soybean
volumes in North America. The
company continues to anticipate that the operational redesign will
deliver savings of approximately $0.40 per share in 2015. As a result, the
company expects operating earnings per share for 2015 to be about
$3.10 per share for the full year,
excluding $0.80 per share of
anticipated full-year earnings from the Performance Chemicals
segment. This represents a $0.10 per share reduction from the prior outlook
of $4.00 per share, which included
the Performance Chemicals segment.
DuPont will hold a conference call and webcast on Tuesday, July 28, 2015, at 9:00 AM EDT to discuss this news release.
The webcast and additional presentation materials can be accessed
by visiting the company's investor website (Events &
Presentations) at www.investors.dupont.com. A replay of the
conference call webcast will be available for 90 days by calling
1-630-652-3042, Passcode 38251527#. For additional
information see the investor center at http://www.dupont.com.
Use of Non-GAAP Measures
Management believes that certain non-GAAP measurements are
meaningful to investors because they provide insight with respect
to ongoing operating results of the company. Such
measurements are not recognized in accordance with GAAP and should
not be viewed as an alternative to GAAP measures of
performance. Reconciliations of non-GAAP measures to GAAP are
provided in schedules A, C and D.
About DuPont
DuPont (NYSE: DD) has been bringing world-class science and
engineering to the global marketplace in the form of innovative
products, materials, and services since 1802. The company
believes that by collaborating with customers, governments, NGOs,
and thought leaders we can help find solutions to such global
challenges as providing enough healthy food for people everywhere,
decreasing dependence on fossil fuels, and protecting life and the
environment. For additional information about DuPont and its
commitment to inclusive innovation, please visit
http://www.dupont.com.
Forward Looking Statements: This document contains
forward-looking statements which may be identified by their use of
words like "plans," "expects," "will," "believes," "intends,"
"estimates," "anticipates" 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, regulatory approval, market position,
anticipated benefits of recent acquisitions, timing of anticipated
benefits from restructuring actions, outcome of contingencies, such
as litigation and environmental matters, expenditures and financial
results, are forward looking statements. Forward-looking statements
are not guarantees of future performance and are based on certain
assumptions and expectations of future events which may not be
realized. Forward-looking statements also involve risks and
uncertainties, many of which are beyond the company's control. 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 are: fluctuations in energy and raw
material prices; failure to develop and market new products and
optimally manage product life cycles; ability to respond to market
acceptance, rules, regulations and policies affecting products
based on biotechnology; significant litigation and environmental
matters; failure to appropriately manage process safety and product
stewardship issues; changes in laws and regulations or political
conditions; global economic and capital markets conditions, such as
inflation, interest and currency exchange rates; business or supply
disruptions; security threats, such as acts of sabotage, terrorism
or war, weather events and natural disasters; ability to protect
and enforce the company's intellectual property rights; successful
integration of acquired businesses and separation of
underperforming or non-strategic assets or businesses, including
timely realization of the expected benefits from the separation of
Performance Chemicals. The company undertakes no duty to update any
forward-looking statements as a result of future developments or
new information.
E.I. du Pont de
Nemours and Company
Consolidated Income Statements
(Dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
SCHEDULE
A
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net sales
|
$
|
8,595
|
|
$
|
9,706
|
|
$
|
17,767
|
|
$
|
19,834
|
Other income, net
(1)
|
283
|
|
408
|
|
481
|
|
425
|
Total
|
8,878
|
|
10,114
|
|
18,248
|
|
20,259
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
5,280
|
|
5,999
|
|
10,833
|
|
11,999
|
Other operating
charges (1)
|
349
|
|
300
|
|
632
|
|
586
|
Selling, general and
administrative expenses
|
1,371
|
|
1,473
|
|
2,683
|
|
2,909
|
Research and
development expense
|
515
|
|
545
|
|
1,014
|
|
1,063
|
Interest expense
(1)
|
127
|
|
94
|
|
211
|
|
197
|
Employee separation /
asset related charges, net (1)
|
61
|
|
263
|
|
99
|
|
263
|
Total
|
7,703
|
|
8,674
|
|
15,472
|
|
17,017
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
1,175
|
|
1,440
|
|
2,776
|
|
3,242
|
Provision for income
taxes (1)
|
230
|
|
366
|
|
796
|
|
723
|
Net income
|
945
|
|
1,074
|
|
1,980
|
|
2,519
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to noncontrolling interests
|
5
|
|
4
|
|
9
|
|
10
|
|
|
|
|
|
|
|
|
Net income
attributable to DuPont
|
$
|
940
|
|
$
|
1,070
|
|
$
|
1,971
|
|
$
|
2,509
|
|
|
|
|
|
|
|
|
Basic earnings per
share of common stock
|
$
|
1.04
|
|
$
|
1.16
|
|
$
|
2.17
|
|
$
|
2.72
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock
|
$
|
1.03
|
|
$
|
1.15
|
|
$
|
2.15
|
|
$
|
2.70
|
|
|
|
|
|
|
|
|
Dividends per share
of common stock
|
$
|
0.49
|
|
$
|
0.45
|
|
$
|
0.96
|
|
$
|
0.90
|
|
|
|
|
|
|
|
|
Average number of
shares outstanding used in earnings per share (EPS)
calculation:
|
|
|
|
|
|
|
|
Basic
|
905,761,000
|
|
918,684,000
|
|
906,296,000
|
|
921,058,000
|
Diluted
|
911,681,000
|
|
925,587,000
|
|
912,748,000
|
|
928,145,000
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP Measures
|
|
|
|
|
|
|
|
|
|
|
|
Summary of
Earnings Comparison
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2015
|
|
2014
|
|
%
Change
|
|
2015
|
|
2014
|
|
%
Change
|
Net income
(GAAP)
|
$
|
945
|
|
$
|
1,074
|
|
(12)%
|
|
$
|
1,980
|
|
$
|
2,519
|
|
(21)%
|
Less: Significant
items (benefit) charge, after-tax, included in net income
(per
Schedule
B)
|
(85)
|
|
8
|
|
|
|
(211)
|
|
(4)
|
|
|
Non-operating
pension/OPEB costs, after-tax, included in net income
(2)
|
(50)
|
|
(23)
|
|
|
|
(121)
|
|
(44)
|
|
|
Net income
attributable to noncontrolling interest
|
5
|
|
4
|
|
|
|
9
|
|
10
|
|
|
Operating earnings
(Non-GAAP)
|
$
|
1,075
|
|
$
|
1,085
|
|
(1)%
|
|
$
|
2,303
|
|
$
|
2,557
|
|
(10)%
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS attributable to
DuPont (GAAP)
|
$
|
1.03
|
|
$
|
1.15
|
|
(10)%
|
|
$
|
2.15
|
|
$
|
2.70
|
|
(20)%
|
Less: Significant
items (benefit) charge included in EPS (per Schedule B)
|
(0.09)
|
|
0.01
|
|
|
|
(0.23)
|
|
—
|
|
|
Non-operating
pension/OPEB costs included in EPS (2)
|
(0.06)
|
|
(0.03)
|
|
|
|
(0.14)
|
|
(0.05)
|
|
|
Operating EPS
(Non-GAAP)
|
$
|
1.18
|
|
$
|
1.17
|
|
1%
|
|
$
|
2.52
|
|
$
|
2.75
|
|
(8)%
|
|
|
|
|
|
|
|
|
|
|
|
|
E.I. du Pont de
Nemours and Company
Condensed Consolidated Balance Sheets
(Dollars in millions, except per share amounts)
|
|
|
|
SCHEDULE A
(continued)
|
|
|
|
|
June
30,
2015
|
|
December
31,
2014
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
4,746
|
|
$
|
6,910
|
Marketable
securities
|
|
556
|
|
124
|
Accounts and notes
receivable, net
|
|
8,308
|
|
6,005
|
Inventories
|
|
6,514
|
|
7,841
|
Prepaid
expenses
|
|
296
|
|
279
|
Deferred income
taxes
|
|
625
|
|
589
|
Total current
assets
|
|
21,045
|
|
21,748
|
Property, plant
and equipment, net of accumulated depreciation
(June
30, 2015 - $20,256; December 31, 2014 - $19,942)
|
|
13,061
|
|
13,386
|
Goodwill
|
|
4,455
|
|
4,529
|
Other intangible
assets
|
|
4,286
|
|
4,580
|
Investment in
affiliates
|
|
895
|
|
886
|
Deferred income
taxes
|
|
3,223
|
|
3,349
|
Other
assets
|
|
1,141
|
|
1,058
|
Total
|
|
$
|
48,106
|
|
$
|
49,536
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$
|
3,399
|
|
$
|
4,822
|
Short-term borrowings
and capital lease obligations
|
|
647
|
|
1,423
|
Income
taxes
|
|
613
|
|
547
|
Other accrued
liabilities
|
|
4,046
|
|
5,848
|
Total current
liabilities
|
|
8,705
|
|
12,640
|
Long-term
borrowings and capital lease obligations
|
|
12,088
|
|
9,233
|
Other
liabilities
|
|
13,188
|
|
13,819
|
Deferred income
taxes
|
|
472
|
|
466
|
Total
liabilities
|
|
34,453
|
|
36,158
|
|
|
|
|
|
Commitments and
contingent liabilities
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Preferred
stock
|
|
237
|
|
237
|
Common stock, $0.30
par value; 1,800,000,000 shares authorized;
Issued
at June 30, 2015 - 991,875,000; December 31, 2014 -
992,020,000
|
|
298
|
|
298
|
Additional paid-in
capital
|
|
11,389
|
|
11,174
|
Reinvested
earnings
|
|
17,838
|
|
17,045
|
Accumulated other
comprehensive loss
|
|
(9,446)
|
|
(8,707)
|
Common stock held in
treasury, at cost (87,041,000 shares at June 30, 2015
and
December 31,
2014)
|
|
(6,727)
|
|
(6,727)
|
Total DuPont
stockholders' equity
|
|
13,589
|
|
13,320
|
Noncontrolling
interests
|
|
64
|
|
58
|
Total
equity
|
|
13,653
|
|
13,378
|
Total
|
|
$
|
48,106
|
|
$
|
49,536
|
E.I. du Pont de
Nemours and Company
Condensed Consolidated Statement of Cash Flows
(Dollars in millions)
|
|
|
SCHEDULE A
(continued)
|
|
|
Six Months
Ended
June
30,
|
|
2015
|
|
2014
|
Total
Company
|
|
|
|
Net income
|
$
|
1,980
|
|
$
|
2,519
|
Adjustments to
reconcile net income to cash used for operating
activities:
|
|
|
|
Depreciation
|
615
|
|
635
|
Amortization
of intangible assets
|
257
|
|
245
|
Net periodic
pension benefit cost
|
294
|
|
205
|
Contributions
to pension plans
|
(204)
|
|
(168)
|
Gain on sale
of businesses
|
(22)
|
|
(398)
|
Other
operating activities - net
|
59
|
|
430
|
Change in
operating assets and liabilities - net
|
(5,024)
|
|
(5,539)
|
Cash used for
operating activities
|
(2,045)
|
|
(2,071)
|
|
|
|
|
Investing
activities
|
|
|
|
Purchases of
property, plant and equipment
|
(938)
|
|
(781)
|
Investments in
affiliates
|
(50)
|
|
(23)
|
Payments for
businesses - net of cash acquired
|
(77)
|
|
—
|
Proceeds from sales
of businesses - net
|
34
|
|
639
|
Proceeds from sales
of assets - net
|
14
|
|
10
|
Net increase in
short-term financial instruments
|
(422)
|
|
(22)
|
Foreign currency
exchange contract settlements
|
443
|
|
(63)
|
Other investing
activities - net
|
13
|
|
8
|
Cash used for
investing activities
|
(983)
|
|
(232)
|
|
|
|
|
Financing
activities
|
|
|
|
Dividends paid to
stockholders
|
(875)
|
|
(836)
|
Net increase
(decrease) in borrowings
|
2,110
|
|
(631)
|
Repurchase of common
stock
|
(353)
|
|
(1,061)
|
Proceeds from
exercise of stock options
|
201
|
|
214
|
Other financing
activities - net
|
(81)
|
|
(76)
|
Cash provided by
(used for) financing activities
|
1,002
|
|
(2,390)
|
|
|
|
|
Effect of exchange
rate changes on cash
|
(138)
|
|
(74)
|
|
|
|
|
Decrease in cash
and cash equivalents
|
(2,164)
|
|
(4,767)
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
6,910
|
|
8,941
|
|
|
|
|
Cash and cash
equivalents at end of period
|
$
|
4,746
|
|
$
|
4,174
|
|
|
|
|
Reconciliation of
Non-GAAP Measure
|
|
|
|
Calculation of
Free Cash Flow
|
|
|
|
|
Six Months
Ended
June
30,
|
|
2015
|
|
2014
|
Cash used for
operating activities
|
$
|
(2,045)
|
|
$
|
(2,071)
|
Purchases of
property, plant and equipment
|
(938)
|
|
(781)
|
Free cash
flow
|
$
|
(2,983)
|
|
$
|
(2,852)
|
|
|
|
|
(1) See
Schedule B for detail of significant items.
|
(2) Year
to date June 30, 2015 includes a $23 after-tax exchange loss on
foreign pension balances.
|
E.I. du Pont de
Nemours and Company
Schedule of Significant Items
(Dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE
B
|
|
|
|
|
|
|
|
|
|
|
SIGNIFICANT
ITEMS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
|
|
After-tax
|
|
($ Per
Share)
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
1st
Quarter
|
|
|
|
|
|
|
|
|
|
|
|
Separation
transaction costs (1)
|
$
|
(81)
|
|
$
|
(16)
|
|
$
|
(80)
|
|
$
|
(12)
|
|
$
|
(0.09)
|
|
$
|
(0.01)
|
Customer claims
recovery (4)
|
35
|
|
—
|
|
22
|
|
—
|
|
0.02
|
|
—
|
Asset impairment
charge (5)
|
(37)
|
|
—
|
|
(30)
|
|
—
|
|
(0.03)
|
|
—
|
Ukraine devaluation
(6)
|
(40)
|
|
—
|
|
(38)
|
|
—
|
|
(0.04)
|
|
—
|
1st Quarter -
Total
|
$
|
(123)
|
|
$
|
(16)
|
|
$
|
(126)
|
|
$
|
(12)
|
|
$
|
(0.14)
|
|
$
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2nd
Quarter
|
|
|
|
|
|
|
|
|
|
|
|
Separation
transaction costs (1)
|
$
|
(139)
|
|
$
|
(35)
|
|
$
|
(115)
|
|
$
|
(26)
|
|
$
|
(0.13)
|
|
$
|
(0.03)
|
Restructuring
charges, net (2)
|
(61)
|
|
(263)
|
|
(42)
|
|
(182)
|
|
(0.04)
|
|
(0.20)
|
Litigation settlement
(3)
|
112
|
|
—
|
|
72
|
|
—
|
|
0.08
|
|
—
|
Venezuela
devaluation(7)
|
—
|
|
(58)
|
|
—
|
|
(57)
|
|
—
|
|
(0.06)
|
Gain on sale of
business (8)
|
—
|
|
391
|
|
—
|
|
273
|
|
—
|
|
0.30
|
2nd Quarter -
Total
|
$
|
(88)
|
|
$
|
35
|
|
$
|
(85)
|
|
$
|
8
|
|
$
|
(0.09)
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-date
Total(9)
|
$
|
(211)
|
|
$
|
19
|
|
$
|
(211)
|
|
$
|
(4)
|
|
$
|
(0.23)
|
|
$
|
—
|
E.I. du Pont de
Nemours and Company
Schedule of Significant Items
(Dollars in millions, except per share amounts)
|
|
SCHEDULE B
(continued)
|
|
(1)
|
Second quarter 2015
included charges of $(139) associated with transaction costs
related to the separation of the Performance Chemicals segment
consisting of $(119) recorded in other operating charges and $(20)
recorded in interest expense. First quarter 2015 included charges
of $(81) recorded in other operating charges associated with
transaction costs related to the separation of the Performance
Chemicals segment.
|
|
Second and first
quarter 2014 included charges of $(35) and $(16), respectively,
recorded in other operating charges associated with transaction
costs related to the separation of the Performance Chemicals
segment.
|
|
|
(2)
|
Second quarter 2015
included a $(61) restructuring charge recorded in employee
separation/asset related charges, net consisting entirely of
severance and related benefit costs in the Performance Chemicals
segment to achieve fixed cost and operational productivity
improvements for Chemours post-separation.
|
|
Second quarter 2015
included adjustments recorded in employee separation/asset related
charges, net, associated with the 2014 restructuring program. These
adjustments were primarily due to lower than estimated individual
severance costs and workforce reductions achieved through
non-severance programs, partially offset by identification of
additional projects in certain segments. There was no impact of
these adjustments to the company's interim Consolidated Income
Statements. The net reduction impacted segment earnings for the
three months ended as follows: Agriculture - $(4), Electronics
& Communications - $11, Industrial Biosciences - $(1),
Nutrition & Health - $(4), Performance Chemicals - $2,
Performance Materials - $(2), Safety & Protection $1, and Other
- $(3).
|
|
Second quarter 2014
included a $(263) restructuring charge recorded in employee
separation/asset related charges, net, consisting of $(166) of
severance and related benefit costs, $(94) of asset shut downs, and
$(3) of other non-personnel charges as a result of the company's
plan to reduce residual costs associated with the separation of the
Performance Chemicals segment and to improve productivity across
all businesses and functions. Pre-tax charges by segment are:
Agriculture - $(47), Electronics & Communications - $(68),
Industrial Biosciences - $(2), Nutrition & Health - $(8),
Performance Chemicals - $(19), Performance Materials - $(29),
Safety & Protection - $(31), Other - $(2), and Corporate
expenses - $(57).
|
|
|
(3)
|
Second quarter 2015
included a gain of $112, net of legal expenses, recorded in other
income, net related to the company's settlement of a legal claim.
This matter relates to the Safety & Protection
segment.
|
|
|
(4)
|
The company recorded
insurance recoveries of $35 in other operating charges, net, in the
first quarter 2015, in the Agriculture segment, for recovery of
costs for customer claims related to the use of the
Imprelis® herbicide. The company had accruals of $216
related to these customer claims at June 30, 2015.
|
|
|
(5)
|
During first quarter
of 2015, a $(37) pre-tax impairment charge was recorded
in employee separation / asset related charges, net for a cost
basis investment within the Other segment. The assessment
resulted from the venture's revised operating plan reflecting
underperformance of its European wheat based ethanol facility and
deteriorating European ethanol market conditions. One of the
primary investors has communicated they would not fund the revised
operating plan of the investee. As a result, the carrying
value of our 6% equity investment in this venture exceeds its
fair value.
|
|
|
(6)
|
First quarter 2015
included a charge of $(40) in other income, net associated with
remeasuring the company's Ukrainian hryvnia net monetary assets.
Ukraine's central bank adopted a decision to no longer set the
indicative hryvnia exchange rate. The hryvnia became a
free-floating exchange rate and lost approximately a third of its
value through the quarter.
|
|
|
(7)
|
Second quarter 2014
included a charge of $(58) recorded in other income, net associated
with remeasuring the company's Venezuelan net monetary assets from
the official exchange rate to the SICAD II exchange
system.
|
|
|
(8)
|
Second quarter 2014
included a gain of $391 recorded in other income, net associated
with the sale of Glass Laminating Solutions/Vinyls in the
Performance Materials segment.
|
|
|
(9)
|
Earnings per share
for the year may not equal the sum of quarterly earnings per share
due to the changes in average share calculations.
|
E.I. du Pont de
Nemours and Company
Consolidated Segment Information
(Dollars in millions)
|
|
|
|
|
|
|
|
|
SCHEDULE
C
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
SEGMENT SALES
(1)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Agriculture
|
$
|
3,218
|
|
$
|
3,615
|
|
$
|
7,155
|
|
$
|
8,009
|
Electronics &
Communications
|
534
|
|
617
|
|
1,055
|
|
1,197
|
Industrial
Biosciences
|
288
|
|
317
|
|
573
|
|
618
|
Nutrition &
Health
|
826
|
|
926
|
|
1,639
|
|
1,787
|
Performance
Chemicals
|
1,502
|
|
1,696
|
|
2,866
|
|
3,287
|
Performance
Materials
|
1,365
|
|
1,582
|
|
2,776
|
|
3,116
|
Safety &
Protection
|
925
|
|
1,029
|
|
1,834
|
|
1,976
|
Other
|
2
|
|
1
|
|
3
|
|
2
|
Total Segment
sales
|
8,660
|
|
9,783
|
|
17,901
|
|
19,992
|
|
|
|
|
|
|
|
|
Elimination of
transfers
|
(65)
|
|
(77)
|
|
(134)
|
|
(158)
|
Consolidated net
sales
|
$
|
8,595
|
|
$
|
9,706
|
|
$
|
17,767
|
|
$
|
19,834
|
|
|
|
|
|
|
|
|
E.I. du Pont de
Nemours and Company
Consolidated Segment Information
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
SCHEDULE C
(continued)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
INCOME BEFORE INCOME
TAXES (GAAP)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Agriculture
|
|
$
|
774
|
|
$
|
789
|
|
$
|
1,948
|
|
$
|
2,231
|
Electronics &
Communications
|
|
104
|
|
21
|
|
189
|
|
96
|
Industrial
Biosciences
|
|
49
|
|
57
|
|
105
|
|
113
|
Nutrition &
Health
|
|
99
|
|
97
|
|
188
|
|
190
|
Performance
Chemicals
|
|
54
|
|
232
|
|
183
|
|
438
|
Performance
Materials
|
|
309
|
|
665
|
|
636
|
|
958
|
Safety &
Protection
|
|
308
|
|
178
|
|
492
|
|
353
|
Other
|
|
(60)
|
|
(84)
|
|
(163)
|
|
(176)
|
Total Segment
PTOI
|
|
1,637
|
|
1,955
|
|
3,578
|
|
4,203
|
Corporate
expenses
|
|
(283)
|
|
(278)
|
|
(528)
|
|
(495)
|
Interest
expense
|
|
(127)
|
|
(94)
|
|
(211)
|
|
(197)
|
Non-operating
pension/OPEB costs
|
|
(78)
|
|
(34)
|
|
(153)
|
|
(64)
|
Net exchange gains
(losses)
|
|
26
|
|
(109)
|
|
90
|
|
(205)
|
Income before income
taxes
|
|
$
|
1,175
|
|
$
|
1,440
|
|
$
|
2,776
|
|
$
|
3,242
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
SIGNIFICANT ITEMS BY
SEGMENT (PRE-TAX) (2)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Agriculture
|
|
$
|
(4)
|
|
$
|
(47)
|
|
$
|
31
|
|
$
|
(47)
|
Electronics &
Communications
|
|
11
|
|
(68)
|
|
11
|
|
(68)
|
Industrial
Biosciences
|
|
(1)
|
|
(2)
|
|
(1)
|
|
(2)
|
Nutrition &
Health
|
|
(4)
|
|
(8)
|
|
(4)
|
|
(8)
|
Performance
Chemicals
|
|
(59)
|
|
(19)
|
|
(59)
|
|
(19)
|
Performance
Materials
|
|
(2)
|
|
362
|
|
(2)
|
|
362
|
Safety &
Protection
|
|
113
|
|
(31)
|
|
113
|
|
(31)
|
Other
|
|
(3)
|
|
(2)
|
|
(40)
|
|
(2)
|
Total significant
items by segment
|
|
51
|
|
185
|
|
49
|
|
185
|
Corporate
expenses
|
|
(119)
|
|
(92)
|
|
(200)
|
|
(108)
|
Interest
expense
|
|
(20)
|
|
—
|
|
(20)
|
|
—
|
Net exchange gains
(losses)
|
|
—
|
|
(58)
|
|
(40)
|
|
(58)
|
Total significant
items before income taxes
|
|
$
|
(88)
|
|
$
|
35
|
|
$
|
(211)
|
|
$
|
19
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
OPERATING EARNINGS
(NON-GAAP)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Agriculture
|
|
$
|
778
|
|
$
|
836
|
|
$
|
1,917
|
|
$
|
2,278
|
Electronics &
Communications
|
|
93
|
|
89
|
|
178
|
|
164
|
Industrial
Biosciences
|
|
50
|
|
59
|
|
106
|
|
115
|
Nutrition &
Health
|
|
103
|
|
105
|
|
192
|
|
198
|
Performance
Chemicals
|
|
113
|
|
251
|
|
242
|
|
457
|
Performance
Materials
|
|
311
|
|
303
|
|
638
|
|
596
|
Safety &
Protection
|
|
195
|
|
209
|
|
379
|
|
384
|
Other
|
|
(57)
|
|
(82)
|
|
(123)
|
|
(174)
|
Total segment
operating earnings
|
|
1,586
|
|
1,770
|
|
3,529
|
|
4,018
|
Corporate
expenses
|
|
(164)
|
|
(186)
|
|
(328)
|
|
(387)
|
Interest
expense
|
|
(107)
|
|
(94)
|
|
(191)
|
|
(197)
|
Operating earnings
before income taxes and exchange gains (losses)
|
|
1,315
|
|
1,490
|
|
3,010
|
|
3,434
|
Net exchange gains
(losses) (3)
|
|
26
|
|
(51)
|
|
153
|
|
(147)
|
Operating earnings
before income taxes
|
|
$
|
1,341
|
|
$
|
1,439
|
|
$
|
3,163
|
|
$
|
3,287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
E.I. du Pont de
Nemours and Company
Consolidated Segment Information
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE C
(continued)
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Operating Earnings excluding the impact of currency
(Non-GAAP)
|
|
|
|
|
Segment operating
earnings excluding the impact of currency assumes current operating
earnings results using foreign currency exchange rates in effect
for the comparable prior-year period.
|
|
|
|
|
|
|
|
|
Three
Months
Ended
June 30,
2014
|
|
Three Months
Ended
June 30,
2015
|
|
|
Segment
Operating
Earnings
|
|
Segment Operating
Earnings
|
|
Impact of
Currency
|
|
Segment
Operating
Earnings
Excluding
Currency
|
|
%
Change
|
Agriculture
|
|
$
|
836
|
|
$
|
778
|
|
$
|
(84)
|
|
$
|
862
|
|
3%
|
Electronics &
Communications
|
|
89
|
|
93
|
|
(3)
|
|
96
|
|
8
|
Industrial
Biosciences
|
|
59
|
|
50
|
|
(6)
|
|
56
|
|
(5)
|
Nutrition &
Health
|
|
105
|
|
103
|
|
(12)
|
|
115
|
|
10
|
Performance
Chemicals
|
|
251
|
|
113
|
|
(43)
|
|
156
|
|
(38)
|
Performance
Materials
|
|
303
|
|
311
|
|
(42)
|
|
353
|
|
17
|
Safety &
Protection
|
|
209
|
|
195
|
|
(20)
|
|
215
|
|
3
|
Other
|
|
(82)
|
|
(57)
|
|
—
|
|
(57)
|
|
(30)
|
Total segment
operating earnings
|
|
$
|
1,770
|
|
$
|
1,586
|
|
$
|
(210)
|
|
$
|
1,796
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Segment sales include transfers.
|
|
|
|
|
|
|
(2)
See Schedule B for detail of significant items.
|
|
|
|
|
|
|
(3)
See Schedule D for additional information on exchange gains
and losses. Year to date June 30, 2015 exchange gains, on an
operating earnings basis (Non-GAAP), excludes the impact of a $23
exchange loss on non-operating pension.
|
|
|
|
|
|
|
|
|
|
|
|
E.I. du Pont de
Nemours and Company
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE
D
|
|
|
|
|
|
|
|
|
|
Reconciliations of
Adjusted EBIT / EBITDA to Consolidated Income
Statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Income before income
taxes
|
|
$
|
1,175
|
|
$
|
1,440
|
|
$
|
2,776
|
|
$
|
3,242
|
Add: Significant
items benefit (charge) before income
taxes
|
|
88
|
|
(35)
|
|
211
|
|
(19)
|
Add: Non-operating
pension/OPEB costs (1)
|
|
78
|
|
34
|
|
176
|
|
64
|
Operating earnings
before income taxes
|
|
$
|
1,341
|
|
$
|
1,439
|
|
$
|
3,163
|
|
$
|
3,287
|
Less: Net income
attributable to noncontrolling interests
|
|
5
|
|
4
|
|
9
|
|
10
|
Add: Interest
expense
|
|
|
107
|
|
94
|
|
191
|
|
197
|
Adjusted EBIT from
operating earnings
|
|
1,443
|
|
1,529
|
|
3,345
|
|
3,474
|
Add: Depreciation and
amortization
|
|
426
|
|
443
|
|
872
|
|
880
|
Adjusted EBITDA from
operating earnings
|
|
$
|
1,869
|
|
$
|
1,972
|
|
$
|
4,217
|
|
$
|
4,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Earnings Per Share (EPS) Outlook
|
|
|
|
|
The reconciliation
below represents the company's outlook on an operating earnings
basis, defined as earnings excluding significant items and
non-operating pension/OPEB costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
|
|
|
|
|
2015 Outlook
(2)
|
|
2014 Actual
(2)
|
Operating EPS
(Non-GAAP)
|
|
|
|
|
|
|
$
|
3.10
|
|
$
|
3.36
|
|
|
|
|
|
|
|
|
|
|
Significant
items
|
|
|
|
|
|
|
|
|
|
Separation
transaction costs
|
|
|
|
|
|
|
(0.04)
|
|
(0.03)
|
Gain on sale of
business
|
|
|
|
|
|
|
—
|
|
0.47
|
Restructuring charge,
net
|
|
|
|
|
|
|
—
|
|
(0.40)
|
Venezuela
devaluation
|
|
|
|
|
|
|
—
|
|
(0.06)
|
Tax items
|
|
|
|
|
|
|
—
|
|
—
|
Customer claims
recovery
|
|
|
|
|
|
|
0.02
|
|
0.14
|
Litigation
settlement
|
|
|
|
|
|
|
0.08
|
|
—
|
Asset impairment
charge
|
|
|
|
|
|
|
(0.03)
|
|
—
|
Ukraine
devaluation
|
|
|
|
|
|
|
(0.04)
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Non-operating
pension/OPEB costs - estimate
|
|
|
|
|
|
|
(0.28)
|
|
(0.09)
|
|
|
|
|
|
|
|
|
|
|
EPS (GAAP)
|
|
|
|
|
|
|
$
|
2.81
|
|
$
|
3.39
|
|
|
|
|
|
|
|
|
|
|
E.I. du Pont de
Nemours and Company
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
SCHEDULE D
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange
Gains/Losses on Operating Earnings(3)
|
|
|
|
|
|
|
|
|
The company routinely
uses forward exchange contracts to offset its net exposures, by
currency, related to the foreign currency denominated monetary
assets and liabilities of its operations. 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. The net pre-tax exchange gains
and losses are recorded in other income, net and the related tax
impact is recorded in provision for (benefit from) income taxes on
the Consolidated Income Statements.
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Subsidiary
Monetary Position Gain (Loss)
|
|
|
|
|
|
|
|
|
Pre-tax exchange
gains (losses)
|
|
$
|
33
|
|
$
|
19
|
|
$
|
(87)
|
|
$
|
(31)
|
Local tax benefits
(expenses)
|
|
28
|
|
(28)
|
|
(95)
|
|
(16)
|
Net after-tax impact
from subsidiary exchange gains (losses)
|
|
$
|
61
|
|
$
|
(9)
|
|
$
|
(182)
|
|
$
|
(47)
|
|
|
|
|
|
|
|
|
|
Hedging Program
Gain (Loss)
|
|
|
|
|
|
|
|
|
Pre-tax exchange
(losses) gains
|
|
$
|
(7)
|
|
$
|
(70)
|
|
$
|
240
|
|
$
|
(116)
|
Tax benefits
(expenses)
|
|
2
|
|
25
|
|
(87)
|
|
41
|
Net after-tax impact
from hedging program exchange (losses) gains
|
|
$
|
(5)
|
|
$
|
(45)
|
|
$
|
153
|
|
$
|
(75)
|
|
|
|
|
|
|
|
|
|
Total Exchange
Gain (Loss)
|
|
|
|
|
|
|
|
|
Pre-tax exchange
gains (losses) (4)
|
|
$
|
26
|
|
$
|
(51)
|
|
$
|
153
|
|
$
|
(147)
|
Tax benefits
(expenses)
|
|
30
|
|
(3)
|
|
(182)
|
|
25
|
Net after-tax
exchange gains (losses)
|
|
$
|
56
|
|
$
|
(54)
|
|
$
|
(29)
|
|
$
|
(122)
|
|
|
|
|
|
|
|
|
|
As shown above, the
"Total Exchange Gain (Loss)" is the sum of the "Subsidiary Monetary
Position Gain (Loss)" and the "Hedging Program Gain
(Loss)."
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Base Income Tax Rate to Effective Income Tax Rate
|
|
|
|
|
Base income tax rate
is defined as the effective income tax rate less the effect of
exchange gains (losses), as defined above, significant items and
non-operating pension/OPEB costs.
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Income before income
taxes
|
|
$
|
1,175
|
|
$
|
1,440
|
|
$
|
2,776
|
|
$
|
3,242
|
Add:
Significant items - charge (benefit) (3)
|
|
88
|
|
(35)
|
|
211
|
|
(19)
|
Non-operating pension/OPEB costs (1)
|
|
78
|
|
34
|
|
176
|
|
64
|
Less: Net
exchange gains (losses) (4)
|
|
26
|
|
(51)
|
|
153
|
|
(147)
|
Income before income
taxes, significant items,
|
|
|
|
|
|
|
|
exchange gains (losses), and non-operating pension/OPEB
costs
|
|
$
|
1,315
|
|
$
|
1,490
|
|
$
|
3,010
|
|
$
|
3,434
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
$
|
230
|
|
$
|
366
|
|
$
|
796
|
|
$
|
723
|
Add: Tax
benefits (expenses) on significant items
|
|
3
|
|
(27)
|
|
—
|
|
(23)
|
Tax benefits on non-operating pension/OPEB costs
|
28
|
|
11
|
|
55
|
|
20
|
Tax benefits (expenses) on exchange gains/losses
|
30
|
|
(3)
|
|
(182)
|
|
25
|
Provision for income
taxes on operating earnings, excluding exchange gains
(losses)
|
$
|
291
|
|
$
|
347
|
|
$
|
669
|
|
$
|
745
|
|
|
|
|
|
|
|
|
|
Effective income tax
rate
|
|
19.6%
|
|
25.4%
|
|
28.7%
|
|
22.3%
|
Significant items
effect and non-operating pension/OPEB costs effect
|
|
(0.1)%
|
|
(1.1)%
|
|
(1.8)%
|
|
(0.4)%
|
Tax rate, before
significant items and non-operating pension/OPEB costs
|
19.5%
|
|
24.3%
|
|
26.9%
|
|
21.9%
|
Exchange gains
(losses) effect
|
|
2.6%
|
|
(1.0)%
|
|
(4.7)%
|
|
(0.2)%
|
Base income tax
rate
|
|
22.1%
|
|
23.3%
|
|
22.2%
|
|
21.7%
|
|
|
|
|
|
|
|
|
|
E.I. du Pont de
Nemours and Company
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
|
|
|
|
|
|
SCHEDULE D
(continued)
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Performance Chemicals Segment Pre-tax Operating Income (PTOI)
(GAAP) to Operating Earnings and
Operating Earnings
per Share (Non-GAAP)
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
Performance
Chemicals Segment
|
|
2015
|
|
2014
|
PTOI
(GAAP)
|
|
$
|
54
|
|
$
|
232
|
Less: Segment
significant items benefit (expense) (3)
|
|
(59)
|
|
(19)
|
Performance Chemicals
Segment Operating Earnings (Non-GAAP)
|
|
$
|
113
|
|
$
|
251
|
|
|
|
|
|
Performance Chemicals
Segment Operating Earnings - After-tax (Non-GAAP)
(5)
|
|
88
|
|
193
|
Quarter-to-date
weighted average diluted shares
|
|
912
|
|
926
|
|
|
|
|
|
Performance Chemicals
Segment Operating Earnings per share - After-tax
(Non-GAAP)
|
|
$
|
0.10
|
|
$
|
0.21
|
|
|
|
|
|
(1) Year
to date June 30, 2015, non-operating pension/OPEB costs includes a
$23 exchange loss on foreign pension balances.
|
|
|
(2)
Restated on a continuing operations basis after Performance
Chemicals has been reflected as a discontinued
operation.
|
(3)
See Schedule B for detail of significant items.
|
(4) Year
to date June 30, 2015 exchange gains, on an operating earnings
basis (Non-GAAP), excludes a $23 exchange loss on non-operating
pension.
|
(5)
Performance Chemicals operating earnings assumes a base income tax
rate from continuing operations of 22.1% and 23.3% for the three
months ended June 30, 2015 and June 30, 2014,
respectively.
|
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SOURCE DuPont