WILMINGTON, Del., April 25, 2016 /PRNewswire/ --
First-Quarter Highlights
- First-quarter operating earnings1
were $1.26 per share, equal to the
prior year. Excluding $0.10 per share
of negative impact from currency, operating
EPS1 increased 8 percent versus prior
year. GAAP2 earnings per share were $1.39 versus $1.11
in prior year.
- Operating costs3 declined by approximately
$135 million, a 7 percent reduction
versus prior year. Corporate expenses, on an operating
earnings1 basis, declined 44 percent
versus prior year.
- Local price and product mix gains of 2 percent in
Agriculture and 3 percent volume growth in Nutrition & Health
were more than offset by declines in most of the other segments,
resulting in sales declining 2 percent, excluding currency.
Currency negatively impacted sales by an additional 4
percent.
- Agriculture sales reflected benefits from local price and
product mix, higher corn area and a strong start to the North
American corn season more than offset by negative currency impact
and lower crop protection and soybean volumes.
- Segment pre-tax operating earnings1
of $1,717 million included
approximately $110 million of
negative impact from currency. Operating margins expanded in
Protection Solutions, Industrial Biosciences, Nutrition &
Health and Agriculture.
- DuPont now expects full-year 2016 operating
earnings1 to be in the range of
$3.05 – $3.20 per share, an increase of $0.10 per share from the previous
outlook.
DuPont (NYSE: DD), a science company that brings world-class,
innovative products, materials, and services to the global
marketplace, today announced first-quarter 2016 operating
earnings1 of $1.26
per share compared with $1.26 per
share in the prior year. GAAP2 earnings were
$1.39 per share, compared with
$1.11 per share in the prior
year. Refer to Schedule B for details of significant
items.
First-quarter sales totaled $7.4
billion, a decline of 6 percent versus prior year due to
negative impacts from currency (4 percent) and volume (2
percent).
Today, DuPont's board of directors approved a second-quarter
dividend of $0.38 per share, the
447th consecutive quarterly dividend since the company's first
dividend in the fourth quarter of 1904. The second-quarter dividend
of $0.38 per share of common stock is
payable on June 10, 2016, to
stockholders of record at the close of business on May 13, 2016. 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 July 25, 2016, to stockholders of record as of
July 8, 2016.
"Solid execution, local price and product mix gains, and higher
corn area led to a strong start to the year for our Ag business,"
said Ed Breen, Chair and CEO of
DuPont. "Our other businesses generally performed well, slightly
above our expectations. We made progress with our global cost
savings and restructuring plan and are on track for savings of
$730 million in 2016, including
significant improvements in our corporate cost performance." He
added, "We also continued to achieve key milestones in our
intended merger of equals with Dow and as we look ahead to the rest
of the year, we remain focused on accelerating our value-creation
work, investing in our core franchises, and closing the intended
merger of equals."
|
Global
Consolidated Net Sales – 1st Quarter
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
March 31,
2016
|
|
Percent Change Due
to:
|
|
|
|
|
%
|
|
Local Price
and
|
|
|
|
|
|
Portfolio
/
|
|
|
$
|
|
Change
|
|
Product
Mix
|
|
Currency
|
|
Volume
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. & Canada
|
|
$ 3,590
|
|
(3)
|
|
(1)
|
|
-
|
|
(1)
|
|
(1)
|
|
EMEA *
|
|
2,005
|
|
(8)
|
|
1
|
|
(6)
|
|
(3)
|
|
-
|
|
Asia
Pacific
|
|
1,280
|
|
(6)
|
|
(3)
|
|
(2)
|
|
(3)
|
|
2
|
|
Latin America
|
|
530
|
|
(12)
|
|
7
|
|
(17)
|
|
(1)
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consolidated
Sales
|
$ 7,405
|
|
(6)
|
|
-
|
|
(4)
|
|
(2)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Europe,
Middle East & Africa
|
|
|
|
|
|
|
|
|
|
|
|
Segment Net Sales
– 1st Quarter
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
March 31,
2016
|
|
Percent Change Due
to:
|
|
|
|
|
|
|
Local Price
and
|
|
|
|
|
|
Portfolio
/
|
|
|
$
|
|
% Change
|
|
Product
Mix
|
|
Currency
|
|
Volume
|
|
Other
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agriculture
|
|
$ 3,786
|
|
(4)
|
|
2
|
|
(5)
|
|
(1)
|
|
-
|
|
Electronics &
Communications
|
452
|
|
(13)
|
|
(3)
|
|
(1)
|
|
(9)
|
|
-
|
|
Industrial
Biosciences
|
|
352
|
|
1
|
|
2
|
|
(3)
|
|
1
|
|
1
|
|
Nutrition &
Health
|
|
801
|
|
(1)
|
|
-
|
|
(4)
|
|
3
|
|
-
|
|
Performance
Materials
|
|
1,249
|
|
(10)
|
|
(5)
|
|
(2)
|
|
(3)
|
|
-
|
|
Protection
Solutions
|
|
729
|
|
(8)
|
|
(1)
|
|
(2)
|
|
(5)
|
|
-
|
|
Other
|
|
36
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net
Sales
|
|
7,405
|
|
(6)
|
|
-
|
|
(4)
|
|
(2)
|
|
-
|
|
Operating
Earnings(1) – 1st Quarter
|
|
|
|
|
|
|
Change vs.
2015
|
|
(Dollars in
millions)
|
1Q16
|
|
1Q15
|
|
$
|
|
%
|
|
Agriculture
|
$ 1,101
|
|
$ 1,138
|
|
$ (37)
|
|
-3%
|
|
Electronics &
Communications
|
59
|
|
79
|
|
(20)
|
|
-25%
|
|
Industrial
Biosciences
|
63
|
|
54
|
|
9
|
|
17%
|
|
Nutrition &
Health
|
104
|
|
86
|
|
18
|
|
21%
|
|
Performance
Materials
|
273
|
|
317
|
|
(44)
|
|
-14%
|
|
Protection
Solutions
|
176
|
|
167
|
|
9
|
|
5%
|
|
Other
|
(59)
|
|
(31)
|
|
(28)
|
|
-90%
|
|
Total segment
operating earnings (2)
|
1,717
|
|
1,810
|
|
(93)
|
|
-5%
|
|
|
|
|
|
|
|
|
|
Exchange gains
(losses) (2),(3)
|
(121)
|
|
142
|
|
(263)
|
|
nm
|
|
Corporate expenses
(2)
|
(86)
|
|
(154)
|
|
68
|
|
-44%
|
|
Interest
expense
|
(92)
|
|
(84)
|
|
(8)
|
|
10%
|
|
Operating earnings
before income taxes
|
1,418
|
|
1,714
|
|
(296)
|
|
-17%
|
|
Provision for income
taxes on operating earnings
|
(303)
|
|
(557)
|
|
254
|
|
|
|
Less: Net income
attributable to noncontrolling interests
|
6
|
|
4
|
|
2
|
|
|
|
Operating
earnings
|
$ 1,109
|
|
$ 1,153
|
|
$ (44)
|
|
-4%
|
|
|
|
|
|
|
|
|
|
Operating earnings
per share
|
$ 1.26
|
|
$ 1.26
|
|
$
-
|
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See Schedules A,
C, and D for reconciliations of non-GAAP measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) See Schedules B
and C for listing of significant items and their impact by
segment.
|
|
|
|
|
|
|
|
|
|
|
|
(3) 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 first quarter with the
prior year, unless otherwise noted.
Agriculture – Operating earnings of $1,101 million decreased $37 million, or 3 percent, as local price and
product mix gains and cost savings were more than offset by an
$83 million negative currency impact,
lower volumes and about a $40 million
negative impact from the shutdown of the La Porte manufacturing
facility primarily due to lost sales and inventory write-offs.
Increased corn seed volume was more than offset by lower
insecticide and soybean volumes. Excluding the impact of currency,
operating earnings increased by 4 percent.
Electronics & Communications – Operating earnings of
$59 million decreased $20 million, or 25 percent, as cost savings and
increased demand for Tedlar® film were more than offset
by competitive pressures impacting Solamet® paste, lower
demand in consumer electronics, and a $16
million litigation expense.
Industrial Biosciences – Operating earnings of
$63 million increased $9 million, or 17 percent, reflecting pricing
gains on new product introductions in bioactives, increased demand
for biomaterials, and the absence of a prior year one-time cost in
CleanTech, partially offset by a $1
million negative impact from currency. Operating margins
expanded by 250 basis points. Excluding the impact of currency,
operating earnings increased 19 percent.
Nutrition & Health – Operating earnings of
$104 million increased $18 million, or 21 percent, on broad-based volume
growth in probiotics, cultures, ingredient systems, texturants, and
specialty proteins, and cost savings partially offset by a
$3 million negative currency impact.
Operating margins expanded by 240 basis points. Excluding the
impact of currency, operating earnings increased by 24 percent.
Performance Materials – Operating earnings of
$273 million decreased $44 million, or 14 percent. Lower costs and
increased demand in Asia Pacific
automotive markets, primarily China, were more than offset by lower demand
for ethylene and ethylene-based products, lower local price, and
$19 million of negative impact from
currency. Excluding the impact of currency, operating
earnings decreased by 8 percent.
Protection Solutions – Operating earnings of $176 million increased $9
million, or 5 percent, on lower costs and improved plant
utilization at the Chambers Works facility, partially offset by
lower volumes and a $6 million
negative currency impact. Operating margins expanded by 300 basis
points. Volume declines in Nomex® thermal-resistant
fiber, Kevlar® high-strength material and
Tyvek® protective material were driven by weakness in
the oil and gas industry, delays in military spending, and lower
industrial market demand. Excluding the impact of currency,
operating earnings increased by 9 percent.
2016 Outlook
The company now expects full-year 2016
operating earnings1 to be in the range of $3.05 to $3.20 per share, up from prior guidance
of $2.95 to $3.10 per share, an
increase of 10 to 16 percent over the prior year. The estimated
negative currency impact for full year 2016 is now expected to be
about $0.20 per share, versus a
previously communicated estimate of $0.30 per share. The U.S. dollar has
weakened against most currencies since the estimate provided on
January 26, 2016. The estimated
headwind from a higher base tax rate in 2016 is now expected to be
about $0.10 per share. In
addition, the company's guidance includes higher corn planted area
than previously forecast and a headwind from the impact of
Pioneer's transition to an agency-based route-to-market approach in
the southern U.S., which will shift some sales from 2016 to the
first quarter of 2017. The company continues to expect a
benefit of $0.64 per share from the
2016 global cost savings and restructuring plan. For the
first half 2016, the company expects operating earnings to be about
flat with the prior year. Seasonal timing benefits realized through
March from a stronger-than-expected start in Agriculture are
anticipated to be offset in the second quarter.
DuPont will hold a conference call and webcast on Tuesday, April 26, 2016, at 8:00 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 7861619#. 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 communication contains
"forward-looking statements" within the meaning of the federal
securities laws, including Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. In this context, forward-looking statements often
address expected future business and financial performance and
financial condition, and often contain words such as "expect,"
"anticipate," "intend," "plan," "believe," "seek," "see," "will,"
"would," "target," similar expressions, and variations or negatives
of these words.
Forward-looking statements by their nature address matters that
are, to different degrees, uncertain, such as statements about the
consummation of the proposed transaction and the anticipated
benefits thereof. 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 and, in general, for products for the agriculture
industry; outcome of significant litigation and environmental
matters, including realization of associated indemnification
assets, if any; 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, natural disasters and weather
events and patterns which could affect demand as well as
availability of products for the agriculture industry; 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; and risks
related to the agreement entered on December
11, 2015, with The Dow Chemical Company pursuant to which
the companies have agreed to effect an all-stock merger of equals,
including the completion of the proposed transaction on anticipated
terms and timing, the ability to fully and timely realize the
expected benefits of the proposed transaction and risks related to
the intended business separations contemplated to occur after the
completion of the proposed transaction. Important risk factors
relating to the proposed transaction and intended business
separations include, but are not limited to, (i) the
completion of the proposed transaction on anticipated terms and
timing, including obtaining shareholder and regulatory approvals,
anticipated tax treatment, unforeseen liabilities, future capital
expenditures, revenues, expenses, earnings, synergies, economic
performance, indebtedness, financial condition, losses, future
prospects, business and management strategies for the management,
expansion and growth of the new combined company's operations and
other conditions to the completion of the merger, (ii) the ability
of Dow and DuPont to integrate the business successfully and to
achieve anticipated synergies, risks and costs and pursuit and/or
implementation of the potential separations, including anticipated
timing, any changes to the configuration of businesses included in
the potential separation if implemented, (iii) the intended
separation of the agriculture, material science and specialty
products businesses of the combined company post-mergers in one or
more tax efficient transactions on anticipated terms and timing,
including a number of conditions which could delay, prevent or
otherwise adversely affect the proposed transactions, including
possible issues or delays in obtaining required regulatory
approvals or clearances, disruptions in the financial markets or
other potential barriers, (iv) potential litigation relating to the
proposed transaction that could be instituted against Dow, DuPont
or their respective directors, (v) the risk that disruptions from
the proposed transaction will harm Dow's or DuPont's business,
including current plans and operations, (vi) the ability of Dow or
DuPont to retain and hire key personnel, (vii) potential adverse
reactions or changes to business relationships resulting from the
announcement or completion of the merger, (viii) uncertainty as to
the long-term value of DowDuPont common stock, (ix) continued
availability of capital and financing and rating agency actions,
(x) legislative, regulatory and economic developments, (xi)
potential business uncertainty, including changes to existing
business relationships, during the pendency of the merger that
could affect Dow's and/or DuPont's financial performance, (xii)
certain restrictions during the pendency of the merger that may
impact Dow's or DuPont's ability to pursue certain business
opportunities or strategic transactions and (xiii) unpredictability
and severity of catastrophic events, including, but not limited to,
acts of terrorism or outbreak of war or hostilities, as well as
management's response to any of the aforementioned factors. These
risks, as well as other risks associated with the proposed merger,
are more fully discussed in the joint proxy statement/prospectus
included in the preliminary registration statement on Form S-4
filed with the SEC in connection with the proposed merger. While
the list of factors presented here is, and the list of factors
presented in the preliminary registration statement on Form S-4
are, considered representative, no such list should be considered
to be a complete statement of all potential risks and
uncertainties. Unlisted factors may present significant additional
obstacles to the realization of forward-looking statements.
Consequences of material differences in results as compared with
those anticipated in the forward-looking statements could include,
among other things, business disruption, operational problems,
financial loss, legal liability to third parties and similar risks,
any of which could have a material adverse effect on Dow's or
DuPont's consolidated financial condition, results of operations,
credit rating or liquidity. Neither Dow nor DuPont assumes any
obligation to publicly provide revisions or updates to any
forward-looking statements regarding the proposed transaction and
intended business separations, whether as a result of new
information, future developments or otherwise, should circumstances
change, except as otherwise required by securities and other
applicable laws. The company undertakes no duty to publicly revise
or update any forward-looking statements as a result of future
developments, or new information or otherwise, should circumstances
change, except as otherwise required by securities and other
applicable laws.
|
1Operating
earnings and operating earnings per share are defined as earnings
excluding significant items and non-operating pension/OPEB
costs. See schedules A, C, and D for reconciliations of
non-GAAP measures.
|
|
2Generally
Accepted Accounting Principles (GAAP)
|
|
3Operating
costs defined as other operating charges, selling, general &
administrative, and research & development costs, excluding
significant items and non-operating pension/OPEB costs. See
Schedule D for reconciliation of non-GAAP measures.
|
|
|
E. I. du Pont de
Nemours and Company
|
|
E.I. du Pont de
Nemours and Company
|
|
Consolidated Income
Statements
|
|
(Dollars in
millions, except per share amounts)
|
|
|
|
|
|
|
SCHEDULE
A
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
|
|
|
|
2016
|
|
2015
|
|
Net sales
|
|
|
|
|
$
|
7,405
|
|
|
$
|
7,837
|
|
|
Cost of goods
sold
|
|
|
|
|
4,242
|
|
|
4,516
|
|
|
Other operating
charges (1)
|
|
|
|
|
185
|
|
|
148
|
|
|
Selling, general and
administrative expenses (1)
|
|
|
|
|
1,128
|
|
|
1,220
|
|
|
Research and
development expense
|
|
|
|
|
418
|
|
|
479
|
|
|
Other income, net
(1)
|
|
|
|
|
(372)
|
|
|
(199)
|
|
|
Interest
expense
|
|
|
|
|
92
|
|
|
84
|
|
|
Employee separation /
asset related charges, net (1)
|
|
|
|
|
77
|
|
|
38
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
|
|
|
|
1,635
|
|
|
1,551
|
|
|
Provision for income
taxes on continuing operations (1)
|
|
|
|
|
406
|
|
|
530
|
|
|
Income from
continuing operations after income taxes
|
|
|
|
|
1,229
|
|
|
1,021
|
|
|
Income from
discontinued operations after income taxes
|
|
|
|
|
3
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
1,232
|
|
|
1,035
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to noncontrolling interests
|
|
|
|
|
6
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to DuPont
|
|
|
|
|
$
|
1,226
|
|
|
$
|
1,031
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share of common stock:
|
|
|
|
|
|
|
|
|
Basic earnings per
share of common stock from continuing operations
|
|
|
|
|
$
|
1.40
|
|
|
$
|
1.12
|
|
|
Basic earnings per
share of common stock from discontinued operations
|
|
|
|
|
—
|
|
|
.01
|
|
|
Basic earnings per
share of common stock (2)
|
|
|
|
|
$
|
1.40
|
|
|
$
|
1.13
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock:
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock from continuing operations
|
|
|
|
|
$
|
1.39
|
|
|
$
|
1.11
|
|
|
Diluted earnings per
share of common stock from discontinued operations
|
|
|
|
|
—
|
|
|
.01
|
|
|
Diluted earnings per
share of common stock (2)
|
|
|
|
|
$
|
1.39
|
|
|
$
|
1.13
|
|
|
|
|
|
|
|
|
|
|
Dividends per share
of common stock
|
|
|
|
|
$
|
0.38
|
|
|
$
|
0.47
|
|
|
|
|
|
|
|
|
|
|
Average number of
shares outstanding used in earnings per share (EPS)
calculation:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
873,546,000
|
|
|
906,835,000
|
|
|
Diluted
|
|
|
|
|
877,251,000
|
|
|
913,819,000
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP Measures
|
|
|
|
|
|
|
|
Summary of
Earnings Comparison
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2016
|
|
2015
|
|
%
Change
|
|
Income from
continuing operations after income taxes (GAAP)
|
$
|
1,229
|
|
|
$
|
1,021
|
|
|
20 %
|
|
Less: Significant
items benefit (charge) included in income from continuing
operations after income taxes (per Schedule B)
|
160
|
|
|
(57)
|
|
|
|
|
Non-operating
pension/OPEB costs included in income from continuing operations
after income taxes (3)
|
(46)
|
|
|
(79)
|
|
|
|
|
Net income
attributable to noncontrolling interest from continuing
operations
|
6
|
|
|
4
|
|
|
|
|
Operating earnings
(Non-GAAP)
|
$
|
1,109
|
|
|
$
|
1,153
|
|
|
(4)%
|
|
|
|
|
|
|
|
Earnings per share
from continuing operations (GAAP)
|
$
|
1.39
|
|
|
$
|
1.11
|
|
|
25 %
|
|
Less: Significant
items benefit (charge) included in EPS (per Schedule B)
|
0.18
|
|
|
(0.06)
|
|
|
|
|
Non-operating
pension/OPEB costs included in EPS (3)
|
(0.05)
|
|
|
(0.09)
|
|
|
|
|
Operating EPS
(Non-GAAP)
|
$
|
1.26
|
|
|
$
|
1.26
|
|
|
— %
|
|
|
|
|
|
|
|
E.I. du Pont de
Nemours and Company
|
|
Condensed
Consolidated Balance Sheets
|
|
(Dollars in
millions, except per share amounts)
|
|
|
SCHEDULE A
(continued)
|
|
|
|
|
March
31,
2016
|
|
December
31,
2015
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
4,166
|
|
|
$
|
5,300
|
|
|
Marketable
securities
|
|
623
|
|
|
906
|
|
|
Accounts and notes
receivable, net
|
|
6,917
|
|
|
4,643
|
|
|
Inventories
|
|
5,482
|
|
|
6,140
|
|
|
Prepaid
expenses
|
|
677
|
|
|
398
|
|
|
Total current
assets
|
|
17,865
|
|
|
17,387
|
|
|
Property, plant
and equipment, net of accumulated depreciation
(March 31, 2016- $14,621; December 31, 2015 -
$14,346)
|
|
9,649
|
|
|
9,784
|
|
|
Goodwill
|
|
4,256
|
|
|
4,248
|
|
|
Other intangible
assets
|
|
4,071
|
|
|
4,144
|
|
|
Investment in
affiliates
|
|
689
|
|
|
688
|
|
|
Deferred income
taxes
|
|
4,142
|
|
|
3,799
|
|
|
Other
assets
|
|
1,129
|
|
|
1,116
|
|
|
Total
|
|
$
|
41,801
|
|
|
$
|
41,166
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable
|
|
$
|
2,773
|
|
|
$
|
3,398
|
|
|
Short-term borrowings
and capital lease obligations
|
|
1,625
|
|
|
1,165
|
|
|
Income
taxes
|
|
171
|
|
|
173
|
|
|
Other accrued
liabilities
|
|
4,386
|
|
|
5,580
|
|
|
Total current
liabilities
|
|
8,955
|
|
|
10,316
|
|
|
Long-term
borrowings and capital lease obligations
|
|
8,126
|
|
|
7,642
|
|
|
Other
liabilities
|
|
13,700
|
|
|
12,591
|
|
|
Deferred income
taxes
|
|
422
|
|
|
417
|
|
|
Total
liabilities
|
|
31,203
|
|
|
30,966
|
|
|
|
|
|
|
|
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, 2016 - 960,450,000; December 31, 2015 -
958,388,000
|
|
288
|
|
|
288
|
|
|
Additional paid-in
capital
|
|
11,140
|
|
|
11,081
|
|
|
Reinvested
earnings
|
|
15,400
|
|
|
14,510
|
|
|
Accumulated other
comprehensive loss
|
|
(9,951)
|
|
|
(9,396)
|
|
|
Common stock held in
treasury, at cost (87,041,000 shares at March 31, 2016 and December
31, 2015)
|
|
(6,727)
|
|
|
(6,727)
|
|
|
Total DuPont
stockholders' equity
|
|
10,387
|
|
|
9,993
|
|
|
Noncontrolling
interests
|
|
211
|
|
|
207
|
|
|
Total
equity
|
|
10,598
|
|
|
10,200
|
|
|
Total
|
|
$
|
41,801
|
|
|
$
|
41,166
|
|
|
E.I. du Pont de
Nemours and Company
|
|
Condensed
Consolidated Statement of Cash Flows
|
|
(Dollars in
millions)
|
|
|
SCHEDULE A
(continued)
|
|
|
Three Months
Ended
March
31,
|
|
2016
|
|
2015
|
|
Total
Company
|
|
|
|
|
|
|
|
|
Net income
|
$
|
1,232
|
|
|
$
|
1,035
|
|
|
Adjustments to
reconcile net income to cash used for operating
activities:
|
|
|
|
|
Depreciation
|
238
|
|
|
306
|
|
|
Amortization
of intangible assets
|
122
|
|
|
140
|
|
|
Net periodic
pension benefit cost
|
146
|
|
|
147
|
|
|
Contributions
to pension plans
|
(88)
|
|
|
(124)
|
|
|
Gain on sale
of businesses and other assets
|
(374)
|
|
|
—
|
|
|
Other
operating activities - net
|
258
|
|
|
(1)
|
|
|
Change in
operating assets and liabilities - net
|
(3,378)
|
|
|
(3,626)
|
|
|
Cash used for
operating activities
|
(1,844)
|
|
|
(2,123)
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Purchases of
property, plant and equipment
|
(357)
|
|
|
(565)
|
|
|
Investments in
affiliates
|
(1)
|
|
|
(45)
|
|
|
Proceeds from sale of
businesses and other assets - net
|
193
|
|
|
25
|
|
|
Net decrease in
short-term financial instruments
|
282
|
|
|
—
|
|
|
Foreign currency
exchange contract settlements
|
(78)
|
|
|
442
|
|
|
Other investing
activities - net
|
(12)
|
|
|
3
|
|
|
Cash provided by
(used for) investing activities
|
27
|
|
|
(140)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Dividends paid to
stockholders
|
(334)
|
|
|
(429)
|
|
|
Net increase
(decrease) in borrowings
|
958
|
|
|
(309)
|
|
|
Repurchase of common
stock
|
—
|
|
|
(282)
|
|
|
Proceeds from
exercise of stock options
|
51
|
|
|
170
|
|
|
Other financing
activities - net
|
(12)
|
|
|
(1)
|
|
|
Cash provided by
(used for) financing activities
|
663
|
|
|
(851)
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
20
|
|
|
(174)
|
|
|
|
|
|
|
Decrease in cash
and cash equivalents
|
(1,134)
|
|
|
(3,288)
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
5,300
|
|
|
6,910
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
$
|
4,166
|
|
|
$
|
3,622
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP Measure
|
|
|
|
|
Calculation of
Free Cash Flow - Total Company
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2016
|
|
2015
|
|
Cash used for
operating activities (GAAP)
|
$
|
(1,844)
|
|
|
$
|
(2,123)
|
|
|
Purchases of
property, plant and equipment
|
(357)
|
|
|
(565)
|
|
|
Free cash flow
(Non-GAAP)
|
$
|
(2,201)
|
|
|
$
|
(2,688)
|
|
|
|
|
|
|
(1) See
Schedule B for detail of significant items.
|
|
(2) The
sum of the individual earnings per share amounts from continuing
operations and discontinued operations may not
equal the total company earnings per
share amounts due to rounding.
|
|
(3) First
quarter 2015 non-operating pension/OPEB costs includes an after-tax
exchange loss on foreign pension balances of $23.
|
|
E.I. du Pont de
Nemours and Company
|
|
Schedule of
Significant Items from Continuing Operations
|
|
(Dollars in
millions, except per share amounts)
|
|
|
SCHEDULE
B
|
|
|
|
|
|
|
|
|
|
|
|
SIGNIFICANT
ITEMS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
|
|
After-tax
|
|
($ Per
Share)
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
1st
Quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction costs
(1)
|
$
|
(24)
|
|
|
$
|
(12)
|
|
|
$
|
(21)
|
|
|
$
|
(11)
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.01)
|
|
|
Customer claims
adjustment/recovery (2)
|
23
|
|
|
35
|
|
|
15
|
|
|
22
|
|
|
0.02
|
|
|
0.02
|
|
|
Gain on sale of
entity (3)
|
369
|
|
|
—
|
|
|
214
|
|
|
—
|
|
|
0.24
|
|
|
—
|
|
|
Restructuring
charges, net (4)
|
(77)
|
|
|
—
|
|
|
(48)
|
|
|
—
|
|
|
(0.06)
|
|
|
—
|
|
|
Asset impairment
charge (5)
|
—
|
|
|
(37)
|
|
|
—
|
|
|
(30)
|
|
|
—
|
|
|
(0.03)
|
|
|
Ukraine devaluation
(6)
|
—
|
|
|
(40)
|
|
|
—
|
|
|
(38)
|
|
|
—
|
|
|
(0.04)
|
|
|
1st Quarter -
Total
|
$
|
291
|
|
|
$
|
(54)
|
|
|
$
|
160
|
|
|
$
|
(57)
|
|
|
$
|
0.18
|
|
|
$
|
(0.06)
|
|
|
|
|
(1)
|
First quarter 2016
included charges of $(24) recorded in selling, general and
administrative expenses related to costs associated with the
planned merger with the Dow Chemical Company and related
activities.
|
|
|
|
First quarter 2015
included charges of $(12) recorded in other operating charges
associated with transaction costs related to the separation of the
Performance Chemicals segment.
|
|
|
|
(2)
|
First quarter 2016
included a benefit of $23 in other operating charges for reduction
in accrual for customer claims related to the use of the
Agriculture segment's Imprelis® herbicide. At
March 31, 2016, the company had an accrual balance of $16 which
represents the company's best estimate associated with resolving
the remaining claims for this matter.
|
|
|
|
The company recorded
insurance recoveries of $35 in other operating charges, in the
first quarter 2015 in the Agriculture segment, for recovery of
costs for customer claims related to the use of the
Imprelis® herbicide.
|
|
|
|
(3)
|
First quarter 2016
included a gain of $369 recorded in other income, net associated
with the sale of the DuPont (Shenzhen) Manufacturing Limited
entity, which held certain buildings and other assets. The
gain is reflected as a Corporate item.
|
|
|
|
(4)
|
First quarter 2016
included a $(2) restructuring charge recorded in employee
separation/asset related charges, net associated with the 2016
Global Cost Savings and Restructuring Program. This charge
was primarily due to the identification of additional projects in
certain segments, offset by reduction in severance and related
benefit costs due to workforce reductions achieved through
non-severance programs. The net charge impacted segment
earnings as follows: Agriculture - $(21), Electronics &
Communications - $7, Industrial Biosciences - $1, Nutrition &
Health - $1, Performance Materials - $(4), Protection Solutions -
$3, Other - $(3), and Corporate expenses - $14.
|
|
|
|
First quarter 2016
included a $(75) restructuring charge recorded in employee
separation/asset related charges, net related to the decision to
not re-start the Agriculture segment's insecticide manufacturing
facility at the La Porte site located in La Porte, Texas. The
charge included $(41) of asset related charges, $(18) of contract
termination costs, and $(16) of employee severance and related
benefit costs.
|
|
|
|
(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.
|
|
|
|
|
|
E.I. du Pont de
Nemours and Company
|
|
Consolidated Segment
Information
|
|
(Dollars in
millions)
|
|
|
SCHEDULE
C
|
|
|
|
|
Three Months
Ended
March
31,
|
|
SEGMENT NET SALES
(1)
|
2016
|
|
2015
|
|
Agriculture
|
$
|
3,786
|
|
|
$
|
3,937
|
|
|
Electronics &
Communications
|
452
|
|
|
517
|
|
|
Industrial
Biosciences
|
352
|
|
|
350
|
|
|
Nutrition &
Health
|
801
|
|
|
813
|
|
|
Performance
Materials
|
1,249
|
|
|
1,381
|
|
|
Protection
Solutions
|
729
|
|
|
790
|
|
|
Other
|
36
|
|
|
49
|
|
|
Consolidated net
sales
|
$
|
7,405
|
|
|
$
|
7,837
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
SEGMENT OPERATING
EARNINGS (1)
|
2016
|
|
2015
|
|
Agriculture
|
$
|
1,101
|
|
|
$
|
1,138
|
|
|
Electronics &
Communications
|
59
|
|
|
79
|
|
|
Industrial
Biosciences
|
63
|
|
|
54
|
|
|
Nutrition &
Health
|
104
|
|
|
86
|
|
|
Performance
Materials
|
273
|
|
|
317
|
|
|
Protection
Solutions
|
176
|
|
|
167
|
|
|
Other
|
(59)
|
|
|
(31)
|
|
|
Total segment
operating earnings
|
1,717
|
|
|
1,810
|
|
|
Corporate
expenses
|
(86)
|
|
|
(154)
|
|
|
Interest
expense
|
(92)
|
|
|
(84)
|
|
|
Operating earnings
before income taxes and exchange (losses) gains
|
1,539
|
|
|
1,572
|
|
|
Net exchange (losses)
gains (2)
|
(121)
|
|
|
142
|
|
|
Operating earnings
before income taxes (Non-GAAP)
|
$
|
1,418
|
|
|
$
|
1,714
|
|
|
Non-operating
pension/OPEB costs (3)
|
(74)
|
|
|
(109)
|
|
|
Total significant
items before income taxes
|
291
|
|
|
(54)
|
|
|
Income from
continuing operations before income taxes (GAAP)
|
$
|
1,635
|
|
|
$
|
1,551
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
SIGNIFICANT ITEMS BY
SEGMENT (PRE-TAX) (1)(4)
|
2016
|
|
2015
|
|
Agriculture
|
$
|
(73)
|
|
|
$
|
35
|
|
|
Electronics &
Communications
|
7
|
|
|
—
|
|
|
Industrial
Biosciences
|
1
|
|
|
—
|
|
|
Nutrition &
Health
|
1
|
|
|
—
|
|
|
Performance
Materials
|
(4)
|
|
|
—
|
|
|
Protection
Solutions
|
3
|
|
|
—
|
|
|
Other
|
(3)
|
|
|
(37)
|
|
|
Total significant
items by segment
|
(68)
|
|
|
(2)
|
|
|
Corporate
expenses
|
359
|
|
|
(12)
|
|
|
Interest
expense
|
—
|
|
|
—
|
|
|
Net exchange gains
(losses)
|
—
|
|
|
(40)
|
|
|
Total significant
items before income taxes
|
$
|
291
|
|
|
$
|
(54)
|
|
|
E.I. du Pont de
Nemours and Company
|
|
Consolidated Segment
Information
|
|
(Dollars in
millions)
|
|
|
SCHEDULE C
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Operating Earnings and Operating Earnings EPS excluding the
impact of currency (Non-GAAP)
|
|
Segment operating
earnings and operating earnings per share 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
March 31,
2015
|
|
Three Months
Ended
March 31,
2016
|
|
|
Segment
Operating
Earnings
|
|
Segment
Operating
Earnings
|
|
Impact of
Currency
|
|
Segment
Operating
Earnings Excluding
Currency
|
|
%
Change
|
|
Agriculture
|
|
$
|
1,138
|
|
|
$
|
1,101
|
|
|
$
|
(83)
|
|
|
$
|
1,184
|
|
|
4
|
%
|
|
Electronics &
Communications
|
|
79
|
|
|
59
|
|
|
—
|
|
|
59
|
|
|
(25)
|
|
|
Industrial
Biosciences
|
|
54
|
|
|
63
|
|
|
(1)
|
|
|
64
|
|
|
19
|
|
|
Nutrition &
Health
|
|
86
|
|
|
104
|
|
|
(3)
|
|
|
107
|
|
|
24
|
|
|
Performance
Materials
|
|
317
|
|
|
273
|
|
|
(19)
|
|
|
292
|
|
|
(8)
|
|
|
Protection
Solutions
|
|
167
|
|
|
176
|
|
|
(6)
|
|
|
182
|
|
|
9
|
|
|
Other
|
|
(31)
|
|
|
(59)
|
|
|
(1)
|
|
|
(58)
|
|
|
(87)
|
|
|
Total segment
operating earnings
|
|
$
|
1,810
|
|
|
$
|
1,717
|
|
|
$
|
(113)
|
|
|
$
|
1,830
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
2015
|
|
Three Months
Ended
March 31,
2016
|
|
|
Operating
Earnings
per share
(Non-GAAP)
(5)
|
|
Operating
Earnings
per share
(Non-GAAP)
(5)
|
|
Impact
of
Currency
|
|
Operating
Earnings
per share excluding
currency
(Non-GAAP)
(5)
|
|
%
Change
|
|
Operating Earnings
per share (Non-GAAP) (5)
|
|
$
|
1.26
|
|
|
$
|
1.26
|
|
|
$
|
(0.10)
|
|
|
$
|
1.36
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
DuPont Sustainable Solutions, previously within the company's
Safety & Protection segment (now Protection Solutions) was
comprised of two business units: Clean Technologies
(CleanTech) and Consulting
Solutions. Effective January 1, 2016, the CleanTech business
is reported in the Industrial Biosciences segment and the
Consulting Solutions business
unit is reported within Other.
Reclassifications of prior year data have been made to conform to
current year classifications.
|
|
(2)
See Schedule D for additional information on exchange gains
and losses. Three months ended March 31, 2015 exchange gains,
on an operating earnings basis (Non-GAAP),
excludes the impact of a $23
exchange loss on non-operating pension.
|
|
(3)
First quarter 2015, non-operating pension/OPEB costs includes
a $23 exchange loss on foreign pension balances.
|
|
(4)
See Schedule B for detail of significant items.
|
|
(5)
See Schedule A for reconciliation of operating earnings per
share.
|
|
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
March
31,
|
|
|
|
2016
|
|
2015
|
|
Income from
continuing operations before income taxes (GAAP)
|
|
$
|
1,635
|
|
|
$
|
1,551
|
|
|
Add: Significant
items (benefit) charge before income taxes
|
|
(291)
|
|
|
54
|
|
|
Add: Non-operating
pension/OPEB costs (1)
|
|
74
|
|
|
109
|
|
|
Operating earnings
before income taxes (Non-GAAP)
|
|
$
|
1,418
|
|
|
$
|
1,714
|
|
|
Less: Net income
attributable to noncontrolling interests from continuing
operations
|
|
6
|
|
|
4
|
|
|
Add: Interest
expense
|
|
|
92
|
|
|
84
|
|
|
Adjusted EBIT from
operating earnings (Non-GAAP)
|
|
1,504
|
|
|
1,794
|
|
|
Add: Depreciation and
amortization
|
|
360
|
|
|
383
|
|
|
Adjusted EBITDA from
operating earnings (Non-GAAP)
|
|
$
|
1,864
|
|
|
$
|
2,177
|
|
|
Reconciliation of
Operating Costs to Consolidated Income Statement Line
Items
|
|
Operating costs is
defined as other operating charges, selling, general and
administrative expenses, and research and development costs,
excluding significant items and non-operating pension/OPEB
costs.
|
|
|
|
|
|
Three months ended
March 31, 2016
|
|
Three months ended
March 31, 2015
|
|
As
Reported
(GAAP)
|
Less:
Significant
Items (2)
|
Less: Non-
Operating
Pension/
OPEB Costs
|
Operating
Costs
(Non-GAAP)
|
|
As
Reported
(GAAP)
|
Less:
Significant
Items (2)
|
Less: Non-
Operating
Pension/
OPEB Costs
|
Operating
Costs
(Non-GAAP)
|
|
Other operating
charges
|
$
|
185
|
|
$
|
(23)
|
|
$
|
—
|
|
$
|
208
|
|
|
$
|
148
|
|
$
|
(23)
|
|
$
|
—
|
|
$
|
171
|
|
|
Selling, general and
administrative expenses
|
1,128
|
|
24
|
|
30
|
|
1,074
|
|
|
1,220
|
|
—
|
|
34
|
|
1,186
|
|
|
Research and
development expense
|
418
|
|
—
|
|
11
|
|
407
|
|
|
479
|
|
—
|
|
13
|
|
466
|
|
|
Total
|
$
|
1,731
|
|
$
|
1
|
|
$
|
41
|
|
$
|
1,689
|
|
|
$
|
1,847
|
|
$
|
(23)
|
|
$
|
47
|
|
$
|
1,823
|
|
|
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,
|
|
|
|
2016
Outlook
|
|
2015
Actual
|
|
Operating EPS
(Non-GAAP)
|
|
|
$ 3.05 -
3.20
|
|
$
|
2.77
|
|
|
|
|
|
|
|
|
Significant items
(2)
|
|
|
|
|
|
|
Transaction costs
(3)
|
|
|
(0.40)
|
|
|
(0.07)
|
|
|
Gain on sale of
entity
|
|
|
0.24
|
|
|
—
|
|
|
Restructuring
charges, net
|
|
|
(0.06)
|
|
|
(0.58)
|
|
|
Customer claims
adjustment/recovery
|
|
|
0.02
|
|
|
0.23
|
|
|
Litigation
settlement
|
|
|
—
|
|
|
0.10
|
|
|
Asset impairment
charge
|
|
|
—
|
|
|
(0.03)
|
|
|
Ukraine
devaluation
|
|
|
—
|
|
|
(0.04)
|
|
|
|
|
|
|
|
|
Non-operating
pension/OPEB costs - estimate (4)
|
|
|
(0.24)
|
|
|
(0.29)
|
|
|
|
|
|
|
|
|
EPS from continuing
operations (GAAP)
|
|
|
$ 2.61 -
2.76
|
|
$
|
2.09
|
|
|
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 (2)
|
|
|
|
|
|
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
March
31,
|
|
|
2016
|
|
2015
|
|
Subsidiary
Monetary Position Gain (Loss)
|
|
|
|
|
|
Pre-tax exchange
gains (losses)
|
|
$
|
33
|
|
|
$
|
(116)
|
|
|
Local tax benefits
(expenses)
|
|
13
|
|
|
(118)
|
|
|
Net after-tax impact
from subsidiary exchange gains (losses)
|
|
$
|
46
|
|
|
$
|
(234)
|
|
|
|
|
|
|
|
Hedging Program
Gain (Loss)
|
|
|
|
|
|
Pre-tax exchange
(losses) gains
|
|
$
|
(154)
|
|
|
$
|
258
|
|
|
Tax benefits
(expenses)
|
|
55
|
|
|
(93)
|
|
|
Net after-tax impact
from hedging program exchange (losses) gains
|
|
$
|
(99)
|
|
|
$
|
165
|
|
|
|
|
|
|
|
Total Exchange
Gain (Loss)
|
|
|
|
|
|
Pre-tax exchange
(losses) gains (5)
|
|
$
|
(121)
|
|
|
$
|
142
|
|
|
Tax benefits
(expenses)
|
|
68
|
|
|
(211)
|
|
|
Net after-tax
exchange losses
|
|
$
|
(53)
|
|
|
$
|
(69)
|
|
|
|
|
|
|
|
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
March
31,
|
|
|
2016
|
|
2015
|
|
Income from
continuing operations before income taxes (GAAP)
|
|
$
|
1,635
|
|
|
$
|
1,551
|
|
|
Add:
Significant items - (benefit) charge (2)
|
|
(291)
|
|
|
54
|
|
|
Non-operating pension/OPEB costs (1)
|
|
74
|
|
|
109
|
|
|
Less: Net
exchange (losses) gains (5)
|
|
(121)
|
|
|
142
|
|
|
Income from
continuing operations before income taxes, significant items,
exchange gains (losses), and non-operating
pension/OPEB costs (Non-GAAP)
|
$
|
1,539
|
|
|
$
|
1,572
|
|
|
|
|
|
|
|
Provision for income
taxes on continuing operations (GAAP)
|
|
$
|
406
|
|
|
$
|
530
|
|
|
Add: Tax
expenses on significant items
|
|
(131)
|
|
|
(3)
|
|
|
Tax benefits on non-operating pension/OPEB costs
|
|
28
|
|
|
30
|
|
|
Tax benefits (expenses) on exchange gains/losses
|
|
68
|
|
|
(211)
|
|
|
Provision for income
taxes on continuing earnings, excluding exchange gains (losses)
(Non-GAAP)
|
$
|
371
|
|
|
$
|
346
|
|
|
|
|
|
|
|
Effective income tax
rate (GAAP)
|
|
24.8
|
%
|
|
34.2
|
%
|
|
Significant items and
non-operating pension/OPEB costs effect
|
|
(3.4)
|
|
|
(1.7)
|
|
|
Tax rate, from
continuing operations before significant items and non-operating
pension/OPEB costs
|
21.4
|
%
|
|
32.5
|
%
|
|
Exchange gains
(losses) effect
|
|
2.7
|
|
|
(10.5)
|
|
|
Base income tax rate
from continuing operations (Non-GAAP)
|
|
24.1
|
%
|
|
22.0
|
%
|
|
|
|
|
|
|
(1) First
quarter 2015, non-operating pension/OPEB costs includes a $23
exchange loss on foreign pension balances.
|
|
(2) See
Schedule B for detail of significant items.
|
|
(3) The
2016 outlook for significant items includes the current estimate
for full year 2016 transaction costs associated with the planned
merger with The Dow Chemical Company and related
activities.
|
|
(4) The
2016 estimate for non-operating pension/OPEB costs does not include
additional settlements and curtailments expected during the
remainder of the year as a result of actions associated with the
2016 global cost savings and restructuring plan.
|
|
(5) First
quarter 2015 exchange gains, on an operating earnings basis
(Non-GAAP), excludes a $23 exchange loss on non-operating
pension.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/dupont-reports-1q-operating-eps1-of-126-and-gaap-eps-of-139-300257229.html
SOURCE DuPont