8-KOther Events

EIDP, Inc. 8-K Report, Corporate Update (May 3, 2007)

Filed May 3, 2007For Securities:CTA-PBCTA-PA

Summary

E.I. du Pont de Nemours and Company (DuPont) filed this 8-K to provide historical segment financial data for 2006, 2005, and 2004, restated on a basis consistent with the company's first quarter 2007 segment presentation. The primary driver for this restatement is the realignment of certain businesses within the Agriculture & Nutrition and Performance Materials segments, as well as Bio-Based Materials within Other, effective January 1, 2007. Management believes these changes will foster greater synergy and technology development opportunities. This filing also clarifies the company's six reportable segments, identifying five as growth platforms (Agriculture & Nutrition, Coatings & Color Technologies, Electronic & Communication Technologies, Performance Materials, and Safety & Protection) and one, Pharmaceuticals, which is limited to income from specific drug interests. Notably, the company will no longer include a pro rata share of equity affiliates' sales in segment sales reporting, though pretax operating income was not directly impacted by this change in 2006. Investors should note the significant "Additional Segment Details" which outline various pretax charges and benefits across segments for 2006, 2005, and 2004, including restructuring charges, litigation settlements, asset impairments, and insurance recoveries, which can significantly impact reported segment profitability.

Key Highlights

  • 1DuPont is restating historical segment data for 2004-2006 to align with a new segment reporting structure implemented in 2007.
  • 2Effective January 1, 2007, businesses were realigned within Agriculture & Nutrition and Performance Materials segments, and Bio-Based Materials moved to Other.
  • 3Segment sales will no longer include a pro rata share of equity affiliates' sales going forward.
  • 4The company has six reportable segments: five growth platforms and a Pharmaceuticals segment focused on specific drug income.
  • 5Significant pretax charges and benefits were detailed for 2006, 2005, and 2004, impacting segment profitability (e.g., restructuring, litigation, impairments, insurance recoveries).
  • 6The filing provides detailed segment-level financial data including sales, pretax operating income, depreciation, equity in affiliates, net assets, and capital expenditures for the specified years.

Frequently Asked Questions

DuPont is filing this 8-K to provide historical segment financial data for 2004, 2005, and 2006 on a consistent basis with the company's updated segment reporting structure, which became effective January 1, 2007. This updated structure involves realigning certain businesses and changes in how equity affiliate sales are reported.

The key changes include the realignment of certain businesses within the Agriculture & Nutrition and Performance Materials segments, and the relocation of Bio-Based Materials to the 'Other' segment. Additionally, DuPont will no longer include a pro rata share of equity affiliates' sales in its reported segment sales figures.

The restatement of historical data aims to improve comparability by presenting past results under the new structure. However, investors should pay close attention to the 'Additional Segment Details' section, which outlines significant charges and benefits in prior years (e.g., restructuring, litigation, asset impairments) that affected reported segment profitability and may require careful consideration when analyzing trends.

DuPont has six reportable segments. Five are considered growth platforms: Agriculture & Nutrition, Coatings & Color Technologies, Electronic & Communication Technologies, Performance Materials, and Safety & Protection. The sixth, Pharmaceuticals, is limited to income from specific drug interests (Cozaar® and Hyzaar®).