E I DU PONT DE NEMOURS AND CO 
By WILMINGTON, Del., April 17, 2014 /PRNewswire/ --
First Quarter Highlights
-- Substantial earnings increases and operating margin improvement across
most segments including: Safety & Protection; Electronics &
Communications; Nutrition & Health; and Industrial Biosciences.
-- Strong sales volume growth outside the Americas. Combined European and
Asian developing markets volume up 10 percent; Europe, Middle East, &
Africa volumes up 6 percent. Volume growth in the Americas constrained
by shifts in timing and planted area in agriculture and the impact of
harsh weather.
-- Adverse weather conditions reduced first quarter earnings by an
estimated $.07 per share reflecting increased operating costs and lost
sales.
-- Productivity initiatives, share repurchase program and Performance
Chemicals separation remain on track.
-- The company reaffirms full-year operating earnings guidance of $4.20 to
$4.45 per share.
DuPont (NYSE: DD), a science company that brings world-class, innovative products, materials, and services to the global marketplace, today announced first quarter 2014 operating earnings of $1.58 per share compared to $1.56 per share in the prior year. GAAP(1) EPS was $1.54 versus $1.47 last year. Consolidated sales were $10.1 billion, 3 percent below last year, principally due to differences in timing and planted area for Agriculture sales, negative currency impact, and adverse weather conditions in North America. However, volume grew in each of DuPont's industrial related segments and operating margins increased in 6 of 7 segments versus last year's first quarter.
"We achieved substantial earnings growth in most of our segments in the first quarter as we advanced our strategic and operational priorities," said Ellen Kullman, DuPont Chair and CEO. "We delivered near record earnings per share despite the challenges of harsh weather and differences in year-on-year comparisons in our Agriculture Segment, and our key initiatives remain on track. I'm pleased with the progress we are making to deliver further value to shareholders and strengthen DuPont's position as an engine of science-driven innovation."
"Looking ahead, we will continue to operate our businesses with focused discipline and increasing productivity. We expect steady growth in industrial production to continue to drive increases in demand for DuPont products worldwide. As a result, we are reaffirming our outlook for operating earnings per share growth in 2014," said Kullman.
(1)Generally Accepted
Accounting Principles
(GAAP)
Global Consolidated Net Sales - 1st Quarter
First quarter 2014 net sales were $10.1 billion, down 3 percent versus last year, reflecting 1 percent lower volume, 1 percent lower local selling prices and 1 percent negative currency impact. The table below shows first quarter regional sales and variances versus first quarter 2013.
Three Months Percentage
Ended Change Due to:
March 31, 2014
--------------
(Dollars in millions) $ % Change Local
Price Currency Effect Volume Portfolio/ Other
--- -------- ----- --------------- ------ ----------------
U.S. & Canada $4,456 (8) - - (7) (1)
EMEA* 2,952 8 1 1 6 -
Asia Pacific 1,749 - (3) (3) 6 -
Latin America 971 (10) (1) (4) (5) -
---
-
Total Consolidated Sales $10,128 (3) (1) (1) (1) -
* Europe, Middle East & Africa
Segment Sales - 1st Quarter
The table below shows first quarter 2014 segment sales with related variances versus first quarter 2013.
SEGMENT Three Percentage
SALES Months Change
Ended
(Dollars March 31,
in 2014
millions) Due to:
--------- -------
$ % Change USD Price Volume Portfolio/
Other
-----
Agriculture $4,394 (6) 1 (7) -
Electronics
&
Communications 580 (6) (12) 6 -
Industrial
Biosciences 301 4 (1) 5 -
Nutrition
& Health 861 (1) (1) - -
Performance
Chemicals 1,532 (3) (7) 6 (2)
Performance
Materials 1,593 2 - 2 -
Safety &
Protection 947 4 (1) 5 -
Other 1 -
---
Total
segment
sales 10,209
Elimination
of
transfers (81)
---
Consolidated
net sales $10,128
Operating Earnings - 1st Quarter
Change vs.
2013
-----------
(Dollars in
millions) 1Q14 1Q13 $ %
---- ---- --- ---
Agriculture $1,442 $1,516 $(74) -5%
Electronics &
Communications 75 49 26 53%
Industrial
Biosciences 56 41 15 37%
Nutrition &
Health 93 76 17 22%
Performance
Chemicals 200 251 (51) -20%
Performance
Materials 299 292 7 2%
Safety &
Protection 175 138 37 27%
Other (92) (87) (5) nm
--- --- ---
Total segment
operating
earnings (1) 2,248 2,276 (28) -1%
Exchange gains
& losses (2) $(96) $11 $(107) nm
Corporate
expenses (201) (214) 13 nm
Interest
expense (103) (117) 14 nm
---- ---- ---
Operating
earnings
before income
taxes 1,848 1,956 (108) -6%
Provision for
income taxes
on operating
earnings (370) (490) 120 nm
Net income
attributable
to
noncontrolling
interests (6) (7) 1 nm
--- --- ---
Operating
earnings $1,472 $1,459 13 1%
====== ====== ===
Operating
earnings per
share $1.58 $1.56 $0.02 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.
Agriculture - Operating earnings of $1,442 million declined $74 million, or 5 percent, on lower volumes due to the earlier timing of seed shipments realized in the fourth quarter of 2013 versus the first quarter, lower corn planted area in Brazil's Safrinha season and in North America, and lower herbicide volumes in North America. This was partially offset by pricing gains in seeds, higher insecticide volumes in Latin America, and lower seed input costs.
Electronics & Communications - Operating earnings of $75 million increased $26 million, or 53 percent, largely because of higher sales volumes, mainly in photovoltaic markets.
Industrial Biosciences - Operating earnings of $56 million increased $15 million, or 37 percent, from increased demand for enzymes for ethanol production and lower costs.
Nutrition & Health - Operating earnings of $93 million increased $17 million, or 22 percent, driven by improved product mix, productivity gains and lower raw material costs.
Performance Chemicals - Operating earnings of $200 million were down $51 million, or 20 percent, due primarily to lower prices in fluoroproducts, principally refrigerants. Higher raw material and energy costs as a result of the adverse weather and lower Ti02 prices were also contributors. Segment earnings benefitted from higher volumes and productivity improvements.
Performance Materials - Operating earnings of $299 million increased $7 million, or 2 percent, reflecting stronger volumes in automotive markets, largely offset by higher ethane and natural gas costs due primarily to weather related factors.
Safety & Protection - Operating earnings of $175 million increased $37 million, or 27 percent, primarily due to productivity gains and higher volumes.
Additional information is available on the DuPont Investor Center website at http://www.investors.dupont.com.
Outlook
The company reaffirms its outlook for full-year 2014 operating earnings of $4.20-$4.45 per share, an increase of 8-15 percent from $3.88 per share earned in 2013, based on anticipated growth in global industrial market demand. The company also expects it will earn about 70 percent of its full year operating earnings per share in the first half.
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 news release 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 growth strategy, product development, regulatory approval, market position, anticipated benefits of acquisitions, 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; 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 and successful completion of the proposed spinoff of the Performance Chemicals segment including ability to fully realize the expected benefits of the proposed spinoff. 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
March 31,
---------
2014 2013
---- ----
Net sales $10,128 $10,408
Other income, net 17 92
--- ---
Total 10,145 10,500
Cost of goods sold 6,000 6,193
Other operating charges (a) 797 912
Selling, general and administrative expenses 925 983
Research and development expense 518 521
Interest expense 103 117
--- ---
Total 8,343 8,726
Income from continuing operations before income taxes 1,802 1,774
Provision for income taxes on continuing operations (a) 357 387
--- ---
Income from continuing operations after income taxes 1,445 1,387
Income from discontinued operations after taxes - 1,968
--- -----
Net income 1,445 3,355
Less: Net income attributable to noncontrolling interests 6 7
--- ---
Net income attributable to DuPont $1,439 $3,348
====== ======
Basic earnings per share of common stock (b):
Basic earnings per share of common stock from continuing operations $1.56 $1.48
Basic earnings per share of common stock from discontinued operations - 2.12
--- ----
Basic earnings per share of common stock $1.56 $3.60
===== =====
Diluted earnings per share of common stock (b):
Diluted earnings per share of common stock from continuing operations $1.54 $1.47
Diluted earnings per share of common stock from discontinued operations - 2.10
--- ----
Diluted earnings per share of common stock $1.54 $3.58
===== =====
Dividends per share of common stock $0.45 $0.43
Average number of shares outstanding used in earnings per share (EPS) calculation:
Basic 923,461,000 928,348,000
Diluted 930,732,000 935,390,000
(a) See Schedule B for detail of significant items.
(b) The sum of the individual earnings per share amounts may not equal the total due to rounding.
Reconciliation of Non-GAAP Measures
-----------------------------------
Summary of Earnings Comparison
Three Months
Ended
March 31,
---------
2014 2013 %
Change
------
Income from continuing operations after income taxes (GAAP) $1,445 $1,387 4%
Less: Significant items (charge) benefit included in income from continuing (12) 20
operations after income taxes (per Schedule B)
Non-operating pension/OPEB costs included in income from continuing (21) (99)
operations after income taxes
Net income attributable to noncontrolling interest 6 7
Operating earnings $1,472 $1,459 1%
==== ====
EPS from continuing operations (GAAP) $1.54 $1.47 5%
Significant items (charge) benefit included in EPS (per Schedule B) (0.01) 0.02
Non-operating pension/OPEB costs included in EPS (0.03) (0.11)
Operating EPS $1.58 $1.56 1%
===== =====
E.I. du Pont de Nemours and Company
Condensed Consolidated Balance Sheets
(Dollars in millions, except per share amounts)
SCHEDULE A (continued)
March December
31, 31,
2014 2013
---- ----
Assets
Current assets
Cash and cash equivalents $3,782 $8,941
Marketable securities 67 145
Accounts and notes receivable, net 8,040 6,047
Inventories 7,610 8,042
Prepaid expenses 338 206
Deferred income taxes 795 775
Assets held for sale 202 228
Total current assets 20,834 24,384
Property, plant and equipment, net of accumulated depreciation 13,003 12,993
(March 31, 2014- $19,626; December 31, 2013 - $19,438)
Goodwill 4,698 4,713
Other intangible assets 4,975 5,096
Investment in affiliates 987 1,011
Deferred income taxes 2,394 2,353
Other assets 909 949
--- ---
Total $47,800 $51,499
===== =======
Liabilities and Equity
Current liabilities
Accounts payable $3,905 $5,180
Short-term borrowings and capital lease obligations 2,019 1,721
Income taxes 347 247
Other accrued liabilities 4,814 6,219
----- -----
Total current liabilities 11,085 13,367
Long-term borrowings and capital lease obligations 9,298 10,741
Other liabilities 10,032 10,179
Deferred income taxes 943 926
--- ---
Total liabilities 31,358 35,213
------ ------
Commitments and contingent liabilities
Stockholders' equity
Preferred stock 237 237
Common stock, $0.30 par value; 1,800,000,000 shares authorized; 301 304
Issued at March 31, 2014 - 1,004,738,000; December 31, 2013 - 1,014,027,000)
Additional paid-in capital 10,880 11,072
Reinvested earnings 17,091 16,784
Accumulated other comprehensive loss (5,402) (5,441)
Common stock held in treasury, at cost (87,041,000 shares (6,727) (6,727)
at March 31, 2014 and December 31, 2013)
Total DuPont stockholders' equity 16,380 16,229
------ ------
Noncontrolling interests 62 57
--- ---
Total equity 16,442 16,286
Total $47,800 $51,499
===== =======
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,
---------
2014 2013
---- ----
Total Company
Net income $1,445 $3,355
Adjustments to reconcile
net income to cash used
for operating activities:
Depreciation 312 327
Amortization 125 106
Other operating charges
and credits -net 313 (23)
Gain on sale of business - (2,683)
Contributions to pension
plans (101) (110)
Change in operating assets
and liabilities -net (4,515) (3,639)
------ ------
Cash used for operating
activities (2,421) (2,667)
Investing activities
Purchases of property,
plant and equipment (320) (321)
Investments in affiliates (22) (18)
Proceeds from sale of
business -net - 4,815
Proceeds from sales of
assets -net 7 83
Net decrease in short-
term financial
instruments 80 99
Forward exchange contract
settlements 15 (47)
Other investing activities
-net 4 (3)
--- ---
Cash (used for) provided
by investing activities (236) 4,608
Financing activities
Dividends paid to
stockholders (420) (405)
Net (decrease) increase in
borrowings (1,127) 1,558
Repurchase of common stock (1,061) (1,000)
Proceeds from exercise of
stock options 153 117
Other financing activities
-net (14) 61
--- ---
Cash (used for) provided
by financing activities (2,469) 331
Effect of exchange rate
changes on cash (33) (96)
--- ---
(Decrease) increase in
cash and cash equivalents (5,159) 2,176
Cash and cash equivalents
at beginning of period 8,941 4,379
----- -----
Cash and cash equivalents
at end of period $3,782 $6,555
====== ======
Reconciliation of Non-
GAAP Measure
----------------------
Calculation of Free Cash
Flow -Total Company
Three Months
Ended
March 31,
---------
2014 2013
---- ----
Cash used for operating
activities $(2,421) $(2,667)
Purchases of property,
plant and equipment (320) (321)
Free cash flow $(2,741) $(2,988)
===== =====
E.I. du Pont de Nemours and Company
Schedule of Significant Items from Continuing Operations
(Dollars in millions,
except per share amounts)
SCHEDULE B
SIGNIFICANT ITEMS FROM CONTINUING OPERATIONS
Pre-tax After- ($ Per
tax Share)
------- ------- -------
2014 2013 2014 2013 2014 2013
---- ---- ---- --- ---- ----
1st Quarter
-----------
Separation transaction costs (a) $(16) $ - $(12) $ - $(0.01) $ -
Customer claims charge (b) - (35) - (22) - (0.02)
Income tax items (c) - - - 42 - 0.04
1st Quarter - Total $(16) $(35) $(12) $20 $(0.01) $0.02
=== === === == ==== ===
(a) First
quarter
2014
included a
charge of
$(16)
recorded
in Other
operating
charges
associated
with
transaction
costs
related to
the
separation
of the
Performance
Chemicals
segment.
For full-
year 2014,
costs
associated
with the
separation
are
expected
to be
approximately
$(170),
$(0.13)
per share.
(b) First
quarter
2013
included a
charge of
$(35)
recorded
in Other
operating
charges
associated
with
resolving
claims
related to
the use of
the
Imprelis(R)
herbicide.
The
company
has an
applicable
insurance
program
with a
deductible
equal to
the first
$100 of
costs and
expenses.
The
insurance
program
limits are
$725 for
costs and
expenses
in excess
of the
$100. The
company
has
submitted
and will
continue
to submit
requests
for
payment to
its
insurance
carriers
for costs
associated
with this
matter. To
date, the
company
has
received
$73 of
insurance
recoveries
from its
insurance
carriers
and
continues
to seek
recovery
although
the timing
and
outcome
remain
uncertain.
The
company
had
accruals
of $426
related to
these
claims at
March 31,
2014.
These
charges
relate to
the
Agriculture
segment.
(c) First
quarter
2013
included a
net tax
benefit of
$42
consisting
of a $68
benefit
for the
2013
extension
of certain
U.S
business
tax
provisions
offset by
a ($26)
charge
related to
the global
distribution
of
Performance
Coatings
cash
proceeds.
E.I. du Pont de Nemours and Company
Consolidated Segment
Information
(Dollars in millions)
SCHEDULE C
Three Months
Ended
March 31,
---------
SEGMENT SALES (1) 2014 2013
---------------- ---- ----
Agriculture $4,394 $4,669
Electronics & Communications 580 616
Industrial Biosciences 301 289
Nutrition & Health 861 868
Performance Chemicals 1,532 1,585
Performance Materials 1,593 1,559
Safety & Protection 947 907
Other 1 1
Total Segment sales 10,209 10,494
Elimination of transfers (81) (86)
Consolidated net sales $10,128 $10,408
===== =====
(1) Sales for the reporting segments include transfers.
E.I. du Pont de Nemours and Company
Consolidated Segment
Information
(Dollars in millions)
SCHEDULE C (continued)
Three
Months
Ended
March 31,
---------
INCOME FROM CONTINUING
OPERATIONS (GAAP) 2014 2013
---------------------- ---- ----
Agriculture $1,442 $1,481
Electronics & Communications 75 49
Industrial Biosciences 56 41
Nutrition & Health 93 76
Performance Chemicals 200 251
Performance Materials 299 292
Safety & Protection 175 138
Other (92) (87)
--- ---
Total Segment PTOI 2,248 2,241
Corporate expenses (217) (214)
Interest expense (103) (117)
Non-operating pension/OPEB
costs (30) (147)
Net exchange (losses) gains
(1) (96) 11
--- ---
Income before income taxes
from continuing operations $1,802 $1,774
==== ====
Three
Months
Ended
March 31,
---------
SIGNIFICANT ITEMS BY SEGMENT
(PRE-TAX) (2) 2014 2013
---- ----
Agriculture $ - $(35)
Electronics & Communications - -
Industrial Biosciences - -
Nutrition & Health - -
Performance Chemicals - -
Performance Materials - -
Safety & Protection - -
Other - -
--- ---
Total significant items by
segment - (35)
Corporate expenses (16) -
Total significant items before
income taxes $(16) $(35)
==== ====
Three
Months
Ended
March 31,
---------
OPERATING EARNINGS 2014 2013
------------------ ---- ----
Agriculture $1,442 $1,516
Electronics & Communications 75 49
Industrial Biosciences 56 41
Nutrition & Health 93 76
Performance Chemicals 200 251
Performance Materials 299 292
Safety & Protection 175 138
Other (92) (87)
--- ---
Total segment operating
earnings 2,248 2,276
Corporate expenses (201) (214)
Interest expense (103) (117)
---- ----
Operating earnings before
income taxes and exchange
gains (losses) 1,944 1,945
Net exchange (losses) gains
(1) (96) 11
---
Operating earnings before
income taxes $1,848 $1,956
==== ====
(1) See Schedule D for additional information on
exchange gains and losses.
(2) See Schedule B for detail of significant items.
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,
---------
2014 2013
---- ----
Income from
continuing
operations
before income
taxes $1,802 $1,774
Add:
Significant
items before
income taxes 16 35
Add: Non-
operating
pension/OPEB
costs 30 147
--- ---
Operating
earnings
before income
taxes $1,848 $1,956
Less: Net
income
attributable
to
noncontrolling
interests 6 7
Add: Interest
expense 103 117
--- ---
Adjusted EBIT
from
operating
earnings 1,945 2,066
Add:
Depreciation
and
amortization 437 433
--- ---
Adjusted
EBITDA from
operating
earnings $2,382 $2,499
==== ====
Reconciliation of Operating Earnings Per
Share (EPS) Outlook
The reconciliation below represents the
company's outlook on an operating
earnings basis, defined as earnings from
continuing operations excluding
significant items and non-operating
pension/OPEB costs.
Year Ended
December
31,
-----------
2014 2013
Outlook Actual
------ -----
Operating EPS $4.20 - $4.45 $3.88
Significant
items
-----------
Separation
transaction
costs (0.13)
Tax items 0.02
Customer
claims
charges (0.24)
Restructuring
charge/
adjustments -
Litigation
settlement (0.05)
Asset
impairment
charge (0.18)
Non-operating
pension/OPEB
costs -
estimate (0.09) (0.39)
EPS from
continuing
operations
(GAAP) $3.98 - $4.23 $3.04
-----
2014 Operating EPS excludes the potential
gain on sale of Glass Laminating
Solutions/Vinyls.
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
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,
---------
2014 2013
---- ----
Subsidiary/Affiliate Monetary Position Gain (Loss)
--------------------------------------------------
Pre-tax exchange gains (losses) (includes equity affiliates) $(50) $(95)
Local tax benefits (expenses) 12 3
--- ---
Net after-tax impact from subsidiary exchange gains (losses) $(38) $(92)
==== ====
Hedging Program Gain (Loss)
--------------------------
Pre-tax exchange gains (losses) $(46) $106
Tax benefits (expenses) 16 (37)
--- ---
Net after-tax impact from hedging program exchange gains (losses) $(30) $69
==== ===
Total Exchange Gain (Loss)
-------------------------
Pre-tax exchange gains (losses) $(96) $11
Tax benefits (expenses) 28 (34)
--- ---
Net after-tax exchange gains (losses) (1) $(68) $(23)
==== ====
As shown above, the "Total Exchange Gain (Loss)" is the sum of the "Subsidiary/Affiliate Monetary Position Gain (Loss)" and the "Hedging Program Gain
(Loss)."
(1) The above Net after-tax exchange gains (losses) excludes gains (losses) attributable to discontinued operations of $0 and $(5) for the three months
ended March 31, 2014 and 2013.
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,
---------
2014 2013
---- ----
Income from continuing operations before income taxes $1,802 $1,774
Add: Significant items - (benefit) charge (2) 16 35
Non-operating pension/OPEB costs 30 147
Less: Net exchange (losses) gains (96) 11
--- ---
Income from continuing operations before income taxes, significant items,
exchange gains (losses), and non-operating pension/OPEB costs $1,944 $1,945
==== ====
Provision for income taxes on continuing operations $357 $387
Add: Tax benefits on significant items 4 55
Tax benefits on non-operating pension/OPEB costs 9 48
Tax benefits on exchange gains/losses 28 (34)
--- ---
Provision for income taxes on operating earnings, excluding exchange gains (losses) $398 $456
==== ====
Effective income tax rate 19.8% 21.8%
Significant items effect and non-operating pension/OPEB costs effect 0.2% 3.3%
--- ---
Tax rate, from continuing operations, before significant items and non-operating pension/OPEB costs 20.0% 25.1%
Exchange gains (losses) effect 0.5% (1.7)%
--- -----
Base income tax rate from continuing operations 20.5% 23.4%
==== ====
(2) See Schedule B for detail of significant items.
SOURCE DuPont
