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RECONCILIATION
OF NON-GAAP MEASURES (UNAUDITED) RECONCILIATION OF ADJUSTED OPERATING EPS
2014 2008 GAAP EPS from continuing operations 3.90 2.28 Add: Significant
Items 0.01 0.42 Add: Non-Operating Pension & OPEB Costs / (Credits) 0.10
(0.28) Operating EPS (Non-GAAP) 4.01 2.42 Less: Performance Chemicals (a),(b)
0.82 0.59 Less: Pharma (c) 0.02 0.73 Adjusted Operating EPS (excluding
Performance Chemicals, Pharma) (Non-GAAP) 3.17 1.10 2 USE OF NON-GAAP
MEASURES: This document contains certain non-GAAP measurements that
management believes are meaningful to investors because they provide insight
with respect to operating results of the company and additional metrics for
use in comparison to competitors. These measures should not be viewed as an
alternative to GAAP measures of performance. Furthermore, these measures may
not be consistent with similar measures provided by other companies. This
data should be read in conjunction with previously published company reports
on Forms 10-K, 10-Q, and 8-K. These reports, along with reconciliations of
non-GAAP measures to GAAP are available on the Investor Center of
www.dupont.com under Key Financials & Filings. Reconciliations of
non-GAAP measures to GAAP are provided below. FORWARD LOOKING STATEMENTS This
document contains forwardlooking 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 companys 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 companys control. Some of the important factors
that could cause the companys 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 companys 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. ADDITIONAL INFORMATION AND WHERE TO FIND IT
DuPont has filed a definitive proxy statement with the U.S. Securities and
Exchange Commission (the SEC) with respect to the 2015 Annual Meeting.
DUPONT STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ THE DEFINITIVE PROXY
STATEMENT (INCLUDING ANY AMENDMENTS AND SUPPLEMENTS), THE ACCOMPANYING WHITE
PROXY CARD AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY
BECAUSE THEY CONTAIN IMPORTANT INFORMATION. DuPont, its directors, executive
officers and other employees may be deemed to be participants in the
solicitation of proxies from DuPont stockholders in connection with the
matters to be considered at DuPonts 2015 Annual Meeting. Information about
DuPonts directors and executive officers is available in DuPonts definitive
proxy statement, filed with the SEC on March 23, 2015, for its 2015 Annual
Meeting. To the extent holdings of DuPonts securities by such directors or
executive officers have changed since the amounts printed in the proxy
statement, such changes have been or will be reflected on Statements of
Change in Ownership on Form 4 filed with the SEC. Information regarding the
identity of potential participants, and their direct or indirect interests,
by security holdings or otherwise, is set forth in the definitive proxy
statement and, to the extent applicable, will be updated in other materials
to be filed with the SEC in connection with DuPonts 2015 Annual Meeting.
Stockholders will be able to obtain any proxy statement, any amendments or
supplements to the proxy statement and other documents filed by DuPont with
the SEC free of charge at the SECs website at www.sec.gov. Copies also will
be available free of charge at DuPonts website at www.dupont. com or by
contacting DuPont Investor Relations at (302) 774-4994. (a) Prior periods
reflect the reclassifications of Viton® fluoroelastomers from Performance
Materials to Performance Chemicals. (b) Performance Chemicals operating
earnings assumes a base income tax rate f rom continuing operations of 19.2%
and 20.4% for 2014 and 2008, respectively. (c) Pharma operating earnings
assumes a 35% tax rate. SEGMENT SALES 2014 2008 Total Segment Sales(a) 35,011
26,499 Less: Performance Chemicals(b) 6,497 6,245 Less: Other 5 160 Total
Segment Sales (excluding Performance 28,509 20,094 Chemicals and Other)
SEGMENT ADJUSTED OPERATING EARNINGS Segment Pre-tax Operating Income (PTOI)
(GAAP)(c) 6,356 3,373 Less: Performance Chemicals PTOI(b) 913 619 Less:
Other/Pharma PTOI (391) 839 Less: Corporate Expenses(d) 572 479 Add:
Significant Items(e) (444) 466 Segment Adjusted Operating Earnings 4,818
1,902 (excluding Performance Chemicals and Other/Pharma)(f ) (Non-GAAP)
RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (dollars in millions) (a)
Segment sales includes transfers. (b) Prior periods reflect the
reclassifications of Viton® fluoroelastomers from Performance Materials to
Performance Chemicals. (c) Segment PTOI is defined as income ( loss) f rom
continuing operations before income taxes excluding non-operating pension and
other postretirement employee benefit costs, exchange gains ( losses),
corporate expenses and interest. (d) Represents total corporate expenses
excluding significant items, an estimate of DuPont Performance Coatings
residual costs and an estimate for an amount that would be allocated to
Performance Chemicals. (e) Represents significant items included in Segment
PTOI, excluding those related to Performance Chemicals and Other/Pharma. (f )
Segment adjusted operating margin (non-GAAP) is based on total segment sales
and segment adjusted operating earnings, excluding Performance Chemicals and
Other/Pharma.
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