DUPONT E I DE NEMOURS & CO | 2013 | FY | 3

STOCKHOLDERS' EQUITY
Share Repurchase Program
In January 2014, the company’s Board of Directors authorized a $5,000 share buyback plan that will replace the company’s 2011 plan. There is no required completion date for purchases under the 2014 plan.

In December 2012, the company's Board of Directors authorized a $1,000 share buyback plan. In February 2013, the company entered into an accelerated share repurchase (ASR) agreement with a financial institution under which the company used $1,000 of the proceeds from the sale of Performance Coatings for the purchase of shares of common stock. The 2012 $1,000 share buyback plan was completed in the second quarter 2013 through the ASR agreement, under which the company purchased and retired 20.4 million shares.

During 2012, the company purchased and retired 7.8 million shares at a total cost of $400. These purchases completed the 2001 $2,000 share buyback plan and began purchases under a $2,000 share buyback plan authorized by the company's Board of Directors in April 2011. Under the completed 2001 plan, the company purchased a total of 42.0 million shares. Under the 2011 plan, the company has purchased 5.5 million shares at a total cost of $284 as of December 31, 2013.

Common stock held in treasury is recorded at cost. When retired, the excess of the cost of treasury stock over its par value is allocated between reinvested earnings and additional paid-in capital.

Set forth below is a reconciliation of common stock share activity for the years ended December 31, 2013, 2012 and 2011:
Shares of common stock
Issued
Held In Treasury
Balance January 1, 2011
1,004,351,000

(87,041,000
)
Issued
22,650,000

—

Repurchased
—

(13,837,000
)
Retired
(13,837,000
)
13,837,000

Balance December 31, 2011
1,013,164,000

(87,041,000
)
Issued
14,671,000

—

Repurchased
—

(7,778,000
)
Retired
(7,778,000
)
7,778,000

Balance December 31, 2012
1,020,057,000

(87,041,000
)
Issued
14,370,000

—

Repurchased
—

(20,400,000
)
Retired
(20,400,000
)
20,400,000

Balance December 31, 2013
1,014,027,000

(87,041,000
)


Noncontrolling Interest
In May 2012, the company completed the acquisition of the remaining 28 percent interest in the Solae, LLC joint venture from Bunge Limited for $447. As the purchase of the remaining interest did not result in a change of control, the difference between the carrying value of the noncontrolling interest of $378 and the consideration paid, net of taxes of $78, was recorded as a $9 increase to additional paid-in capital.

Other Comprehensive Income
A summary of the pre-tax, tax, and after-tax effects of the components of other comprehensive income for the years ended December 31, 2013, 2012, and 2011 is provided as follows:
For the year ended December 31,
2013
2012
2011
Affected Line Item in Consolidated Income Statements1
 
Pre-Tax
Tax
After-Tax
Pre-Tax
Tax
After-Tax
Pre-Tax
Tax
After-Tax
Cumulative translation adjustment
$
25

$
—

$
25

$
77

$
—

$
77

$
(457
)
$
—

$
(457
)
 
Net revaluation and clearance of cash flow hedges to earnings:









 
Additions and revaluations of derivatives designated as cash flow hedges
(58
)
22

(36
)
8

(6
)
2

10

(5
)
5

See (2) below
Clearance of hedge results to earnings:
 
 
 
 
 
 
 
 
 
 
Foreign currency contracts
(1
)
—

(1
)
(21
)
8

(13
)
15

(5
)
10

Net sales
Commodity contracts
(24
)
10

(14
)
(44
)
20

(24
)
81

(31
)
50

Cost of goods sold
Net revaluation and clearance of cash flow hedges to earnings
(83
)
32

(51
)
(57
)
22

(35
)
106

(41
)
65

 
Pension benefit plans:









 
Net gain (loss)
3,293

(1,136
)
2,157

(1,433
)
437

(996
)
(4,069
)
1,402

(2,667
)
See (2) below
Prior service benefit (cost)
62

(22
)
40

22

(8
)
14

(2
)
—

(2
)
See (2) below
Reclassifications to net income:
 
 
 
 
 
 
 
 
 
 
Amortization of prior service cost
8

(2
)
6

13

(4
)
9

16

(5
)
11

See (3) below
Amortization of loss
957

(331
)
626

887

(305
)
582

613

(210
)
403

See (3) below
Curtailment loss
1

—

1

2

—

2

—

—

—

See (3) below
Settlement loss
152

(45
)
107

5

(2
)
3

—

—

—

See (3) below
Pension benefit plans, net
4,473

(1,536
)
2,937

(504
)
118

(386
)
(3,442
)
1,187

(2,255
)
 
Other benefit plans:









 
Net gain (loss)
513

(184
)
329

(60
)
17

(43
)
(437
)
151

(286
)
See (2) below
Prior service benefit (cost)
211

(72
)
139

857

(299
)
558

(11
)
4

(7
)
See (2) below
Reclassifications to net income:
 
 
 
 
 
 
 
 
 
 
Amortization of prior service benefit
(195
)
69

(126
)
(155
)
54

(101
)
(121
)
43

(78
)
See (3) below
Amortization of loss
76

(27
)
49

94

(33
)
61

60

(21
)
39

See (3) below
Curtailment (gain) loss
(154
)
54

(100
)
3

(1
)
2

—

—

—

See (3) below
Settlement loss
1

—

1

—

—

—

—

—

—

See (3) below
Other benefit plans, net
452

(160
)
292

739

(262
)
477

(509
)
177

(332
)
 
Net unrealized (loss) gain on securities
1

(1
)
—

(2
)
1

(1
)
2

(1
)
1

 
Other comprehensive income (loss)
$
4,868

$
(1,665
)
$
3,203

$
253

$
(121
)
$
132

$
(4,300
)
$
1,322

$
(2,978
)
 


1 
Represents the income statement line item within the Consolidated Income Statement affected by the pre-tax reclassification out of other comprehensive income (loss).
2 
These amounts represent changes in accumulated other comprehensive income excluding changes due to reclassifying amounts to the Consolidated Income Statements.
3 
These accumulated other comprehensive income components are included in the computation of net periodic benefit cost of the company's pension and other long-term employee benefit plans. See Note 18 for additional information.

Tax (expense) benefit recorded in Stockholders' Equity was $(1,617), $(70) and $1,365 for the years 2013, 2012 and 2011, respectively. Included in these amounts were tax benefits of $48, $51 and $43 for the years 2013, 2012 and 2011, respectively, associated with stock compensation programs. The remainder consists of amounts recorded within other comprehensive income (loss) as shown in the table above.

The changes and after-tax balances of components comprising accumulated other comprehensive income (loss) are summarized below:
 
Cumulative Translation Adjustment
Net Revaluation and Clearance of Cash Flow Hedges to Earnings
Pension Benefit Plans
Other Benefit Plans
Unrealized Gain (Loss) on Securities
Total
2011
 

 

 

 

 

 

Balance January 1, 2011
$
213

$
(31
)
$
(6,032
)
$
58

$
2

$
(5,790
)
Other comprehensive income (loss) before reclassifications
(457
)
12

(2,658
)
(293
)
1

(3,395
)
Amounts reclassified from accumulated other comprehensive income (loss)
—

60

414

(39
)
—

435

Balance December 31, 2011
$
(244
)
$
41

$
(8,276
)
$
(274
)
$
3

$
(8,750
)
2012
 

 

 

 

 

 

Other comprehensive income (loss) before reclassifications
77

(1
)
(1,006
)
514

(1
)
(417
)
Amounts reclassified from accumulated other comprehensive income (loss)
—

(37
)
596

(38
)
—

521

Balance December 31, 2012
$
(167
)
$
3

$
(8,686
)
$
202

$
2

$
(8,646
)
2013
 

 

 

 

 

 

Other comprehensive income (loss) before reclassifications
27

(36
)
2,197

468

—

2,656

Amounts reclassified from accumulated other comprehensive income (loss)
—

(15
)
740

(176
)
—

549

Balance December 31, 2013
$
(140
)
$
(48
)
$
(5,749
)
$
494

$
2

$
(5,441
)

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