8-KRegulation FD

EIDP, Inc. 8-K Report, Regulation FD Disclosure (Apr 4, 2007)

Filed April 4, 2007For Securities:CTA-PBCTA-PA

Summary

E.I. du Pont de Nemours and Company (DuPont) filed this Form 8-K on April 4, 2007, primarily to provide historical segment reporting information consistent with changes implemented effective January 1, 2007. The company realigned certain businesses within its Agriculture & Nutrition and Performance Materials segments, and moved Bio-Based Materials into the 'Other' segment. These adjustments aim to enhance synergy and technology development. Notably, segment sales will no longer include a pro rata share of equity affiliates' sales, though this change does not impact total Pretax Operating Income (PTOI) for 2006. The report details the financial impact of these changes on various segments' PTOI for 2006 and restates historical segment data for 2006, 2005, and 2004 to reflect the new presentation. Investors should note that this information is furnished and not filed, meaning it doesn't carry the same legal implications as a formal filing under Section 18 of the Exchange Act.

Key Highlights

  • 1E.I. du Pont de Nemours and Company is providing historical segment data for 2004, 2005, and 2006 on a basis consistent with its updated segment structure effective January 1, 2007.
  • 2The company has realigned certain businesses within its Agriculture & Nutrition and Performance Materials segments, and Bio-Based Materials are now included in the 'Other' segment.
  • 3A key change is that segment sales will no longer include a pro rata share of equity affiliates' sales going forward.
  • 4While total PTOI for 2006 was unaffected, the segment reclassification impacted PTOI figures for Agriculture & Nutrition (+$97M), Coatings & Color Technologies (+$22M), Electronic & Communication Technologies (-$12M), Performance Materials (-$68M), and Other (+$39M increase in loss).
  • 5DuPont identifies six reportable segments: Agriculture & Nutrition, Coatings & Color Technologies, Electronic & Communication Technologies, Performance Materials, Safety & Protection (all considered growth platforms), and Pharmaceuticals (limited to income from Cozaar®/Hyzaar® interest).
  • 6The report details segment sales, pretax operating income, depreciation, equity in earnings of affiliates, net assets, and expenditures for long-lived assets for the years 2004-2006.
  • 7This 8-K filing is being furnished and not filed under Section 18 of the Exchange Act, meaning it is for informational purposes and does not subject the company to liability under that section.

Frequently Asked Questions

The primary purpose of this 8-K filing is to present historical segment financial data (for 2004, 2005, and 2006) on a basis consistent with the company's new segment reporting structure that became effective on January 1, 2007. This includes realigning certain businesses and changing how equity affiliate sales are reported.

The realignments affect how pretax operating income (PTOI) is allocated among segments. For 2006, PTOI was adjusted upwards for Agriculture & Nutrition (+$97M) and Coatings & Color Technologies (+$22M), and downwards for Electronic & Communication Technologies (-$12M) and Performance Materials (-$68M). The 'Other' segment's pretax operating loss increased by $39M. Importantly, total consolidated PTOI for 2006 was not impacted by these changes.

Certain businesses within the Agriculture & Nutrition and Performance Materials segments were realigned. Additionally, the Bio-Based Materials business, previously part of another segment, is now included within the 'Other' segment. The company also stated that its six reportable segments remain the same: Agriculture & Nutrition, Coatings & Color Technologies, Electronic & Communication Technologies, Performance Materials, Safety & Protection, and Pharmaceuticals.

When an 8-K is 'furnished' rather than 'filed' (as stated in Item 7.01), it means the information is being provided to the public for disclosure purposes but does not carry the same legal implications as a formally 'filed' document. Specifically, it means the information is not subject to liability under Section 18 of the Securities Exchange Act of 1934, which deals with misleading statements made in filed documents.