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.
|
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/dupont-reports-2q-operating-eps-of-118-300119448.html
SOURCE DuPont