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8-K Filing
DuPont de Nemours (DD) 8-KOther Events
Filed: 26 Oct 17, 12:00am
• | EQUATE Petrochemicals Company K.S.C. ("EQUATE") - a Kuwait-based company that manufactures ethylene, polyethylene and ethylene glycol and markets monoethylene glycol, diethylene glycol and polyethylene terephthalate resins; owned 42.5 percent by the Company. |
• | The Kuwait Olefins Company K.S.C. - a Kuwait-based company that manufactures ethylene and ethylene glycol; owned 42.5 percent by the Company. |
• | Map Ta Phut Olefins Company Limited - effective ownership is 32.77 percent of which the Company directly owns 20.27 percent (aligned with Industrial Intermediates & Infrastructure) and indirectly owns 12.5 percent through its equity interest in Siam Polyethylene Company Limited and Siam Synthetic Latex Company Limited (both part of The SCG-Dow Group and aligned with Packaging & Specialty Plastics). This Thailand-based company manufactures propylene and ethylene. |
• | Sadara Chemical Company - a Saudi Arabian company that currently manufactures chlorine, ethylene and propylene for internal consumption and manufactures and sells polyethylene, high-value added chemical products and other performance plastics; currently owned 35 percent by the Company. |
• | The Kuwait Styrene Company K.S.C. - a Kuwait-based company that manufactures styrene monomer; owned 42.5 percent by the Company. |
• | The SCG-Dow Group consists of Siam Polyethylene Company Limited; Siam Polystyrene Company Limited; Siam Styrene Monomer Co., Ltd.; and Siam Synthetic Latex Company Limited. These Thailand-based companies manufacture polyethylene, polystyrene, styrene and latex; owned 50 percent by the Company. |
• | EQUATE - a Kuwait-based company that manufactures ethylene, polyethylene and ethylene glycol; and manufactures and markets monoethylene glycol, diethylene glycol and polyethylene terephthalate resins; owned 42.5 percent by the Company. |
• | The Kuwait Olefins Company K.S.C. - a Kuwait-based company that manufactures ethylene and ethylene glycol; owned 42.5 percent by the Company. |
• | Map Ta Phut Olefins Company Limited - effective ownership is 32.77 percent of which the Company directly owns 20.27 percent (aligned with Industrial Intermediates & Infrastructure) and indirectly owns 12.5 percent through its equity interest in Siam Polyethylene Company Limited and Siam Synthetic Latex Company Limited (both part of The SCG-Dow Group and aligned with Packaging & Specialty Plastics). This Thailand-based company manufactures propylene and ethylene. |
• | Sadara Chemical Company - a Saudi Arabian company that currently manufactures chlorine, ethylene and propylene for internal consumption and manufactures and sells polyethylene, high-value added chemical products and other performance plastics; currently owned 35 percent by the Company. |
Three Months Ended | Year Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||
In millions, except per share amounts | Mar 31, 2016 | Jun 30, 2016 | Sep 30, 2016 | Dec 31, 2016 | Dec 31, 2016 | Mar 31, 2017 | Jun 30, 2017 | Jun 30, 2017 | ||||||||||||||||
Net sales | $ | 17,660 | $ | 18,509 | $ | 16,991 | $ | 17,734 | $ | 70,894 | $ | 20,467 | $ | 20,717 | $ | 41,184 | ||||||||
Cost of sales | 12,138 | 13,230 | 12,940 | 13,688 | 51,996 | 14,493 | 14,937 | 29,430 | ||||||||||||||||
Research and development expenses | 738 | 791 | 770 | 762 | 3,061 | 794 | 800 | 1,594 | ||||||||||||||||
Selling, general and administrative expenses | 1,790 | 1,777 | 1,586 | 1,548 | 6,701 | 1,840 | 1,800 | 3,640 | ||||||||||||||||
Amortization of intangibles | 376 | 396 | 429 | 423 | 1,624 | 428 | 435 | 863 | ||||||||||||||||
Restructuring and asset related charges - net | 76 | 366 | 172 | 394 | 1,008 | 151 | 148 | 299 | ||||||||||||||||
Integration and separation costs | 23 | 70 | 160 | 223 | 476 | 242 | 296 | 538 | ||||||||||||||||
Asbestos-related charge | — | — | — | 1,113 | 1,113 | — | — | — | ||||||||||||||||
Equity in earnings of nonconsolidated affiliates | 43 | 104 | 86 | 283 | 516 | 208 | 73 | 281 | ||||||||||||||||
Sundry income (expense) - net | (916 | ) | 2,574 | (37 | ) | 139 | 1,760 | (244 | ) | 244 | — | |||||||||||||
Interest expense and amortization of debt discount | 263 | 271 | 283 | 291 | 1,108 | 273 | 295 | 568 | ||||||||||||||||
Income (Loss) from continuing operations before income taxes | $ | 1,383 | $ | 4,286 | $ | 700 | $ | (286 | ) | $ | 6,083 | $ | 2,210 | $ | 2,323 | $ | 4,533 | |||||||
Provision (Credit) for income taxes on continuing operations | 192 | 318 | 101 | (323 | ) | 288 | 281 | 440 | 721 | |||||||||||||||
Income from continuing operations, net of tax | $ | 1,191 | $ | 3,968 | $ | 599 | $ | 37 | $ | 5,795 | $ | 1,929 | $ | 1,883 | $ | 3,812 | ||||||||
Net income attributable to noncontrolling interests | 29 | 26 | 20 | 33 | 108 | 37 | 48 | 85 | ||||||||||||||||
Net income from continuing operations attributable to DowDuPont Inc. | $ | 1,162 | $ | 3,942 | $ | 579 | $ | 4 | $ | 5,687 | $ | 1,892 | $ | 1,835 | $ | 3,727 | ||||||||
Preferred stock dividends | 85 | 85 | 85 | 85 | 340 | — | — | — | ||||||||||||||||
Net income (loss) from continuing operations available for DowDuPont Inc. common stockholders | $ | 1,077 | $ | 3,857 | $ | 494 | $ | (81 | ) | $ | 5,347 | $ | 1,892 | $ | 1,835 | $ | 3,727 | |||||||
Per common share data: | ||||||||||||||||||||||||
Earnings (Loss) per common share from continuing operations - basic | $ | 0.48 | $ | 1.73 | $ | 0.22 | $ | (0.04 | ) | $ | 2.40 | $ | 0.82 | $ | 0.79 | $ | 1.60 | |||||||
Earnings (Loss) per common share from continuing operations - diluted | $ | 0.48 | $ | 1.68 | $ | 0.22 | $ | (0.04 | ) | $ | 2.37 | $ | 0.81 | $ | 0.78 | $ | 1.59 | |||||||
Weighted-average common shares outstanding - basic | 2,216.1 | 2,224.3 | 2,225.6 | 2,219.4 | 2,221.3 | 2,315.7 | 2,325.0 | 2,320.4 | ||||||||||||||||
Weighted-average common shares outstanding - diluted | 2,235.3 | 2,341.3 | 2,247.1 | 2,219.4 | 2,242.1 | 2,341.2 | 2,347.7 | 2,344.4 |
Adjustments | ||||||||||||||||||
In millions, except per share amounts | Historical Dow | Historical DuPont | Reclass 1 | Divestitures 2 | Pro Forma 3 | Pro Forma | ||||||||||||
Net sales | $ | 10,703 | $ | 7,405 | $ | 57 | $ | (443 | ) | $ | (62 | ) | $ | 17,660 | ||||
Cost of sales | 7,951 | 4,242 | 134 | (181 | ) | (8 | ) | 12,138 | ||||||||||
Other operating charges | — | 185 | (185 | ) | — | — | — | |||||||||||
Research and development expenses | 361 | 418 | (10 | ) | (38 | ) | 7 | 738 | ||||||||||
Selling, general and administrative expenses | 742 | 1,128 | (48 | ) | (43 | ) | 11 | 1,790 | ||||||||||
Other (loss) income, net | — | 372 | (372 | ) | — | — | — | |||||||||||
Amortization of intangibles | 103 | — | 51 | — | 222 | 376 | ||||||||||||
Restructuring and asset related charges - net | (2 | ) | 77 | — | 1 | — | 76 | |||||||||||
Integration and separation costs | — | — | 58 | — | (35 | ) | 23 | |||||||||||
Equity in earnings of nonconsolidated affiliates | 39 | — | 10 | — | (6 | ) | 43 | |||||||||||
Sundry income (expense) - net | (1,241 | ) | — | 330 | (5 | ) | — | (916 | ) | |||||||||
Interest income | 20 | — | (20 | ) | — | — | — | |||||||||||
Interest expense and amortization of debt discount | 201 | 92 | — | — | (30 | ) | 263 | |||||||||||
Income from continuing operations before income taxes | $ | 165 | $ | 1,635 | $ | 5 | $ | (187 | ) | $ | (235 | ) | $ | 1,383 | ||||
Provision (Credit) for income taxes on continuing operations | (110 | ) | 406 | 5 | (31 | ) | (78 | ) | 192 | |||||||||
Income from continuing operations, net of tax | $ | 275 | $ | 1,229 | $ | — | $ | (156 | ) | $ | (157 | ) | $ | 1,191 | ||||
Net income attributable to noncontrolling interests | 21 | 6 | — | — | 2 | 29 | ||||||||||||
Net income from continuing operations attributable to DowDuPont Inc. | $ | 254 | $ | 1,223 | $ | — | $ | (156 | ) | $ | (159 | ) | $ | 1,162 | ||||
Preferred stock dividends | 85 | 2 | — | — | (2 | ) | 85 | |||||||||||
Net income from continuing operations available for DowDuPont Inc. common stockholders | $ | 169 | $ | 1,221 | $ | — | $ | (156 | ) | $ | (157 | ) | $ | 1,077 | ||||
Per common share data: | ||||||||||||||||||
Earnings per common share from continuing operations - basic | $ | 0.48 | ||||||||||||||||
Earnings per common share from continuing operations - diluted | $ | 0.48 | ||||||||||||||||
Weighted-average common shares outstanding - basic 4 | 2,216.1 | |||||||||||||||||
Weighted-average common shares outstanding - diluted 4 | 2,235.3 |
1. | Certain reclassifications were made to conform to the presentation that will be used for DowDuPont. The reclassifications are consistent with those identified and disclosed in the Current Report on Form 8-K/A filed with the SEC on October 26, 2017. |
2. | Includes the following consummated or probable and identifiable divestitures agreed to with certain regulatory agencies as a condition of approval for the Merger, including: Dow’s global Ethylene Acrylic Acid ("EAA") copolymers and ionomers business; a portion of Dow AgroSciences’ corn seed business in Brazil; and DuPont’s cereal broadleaf herbicides and chewing insecticides portfolio as well as its crop protection research and development pipeline and organization. |
3. | Refer to Summary of Pro Forma Adjustments at the end of this section for additional details. |
4. | Refer to Pro Forma Common Shares Outstanding at the end of this section for additional details. |
Adjustments | ||||||||||||||||||
In millions, except per share amounts | Historical Dow | Historical DuPont | Reclass 1 | Divestitures 2 | Pro Forma 3 | Pro Forma | ||||||||||||
Net sales | $ | 11,952 | $ | 7,061 | $ | 24 | $ | (473 | ) | $ | (55 | ) | $ | 18,509 | ||||
Cost of sales | 9,275 | 3,990 | 139 | (210 | ) | 36 | 13,230 | |||||||||||
Other operating charges | — | 143 | (143 | ) | — | — | — | |||||||||||
Research and development expenses | 399 | 432 | (10 | ) | (37 | ) | 7 | 791 | ||||||||||
Selling, general and administrative expenses | 787 | 1,211 | (181 | ) | (51 | ) | 11 | 1,777 | ||||||||||
Other (loss) income, net | — | 51 | (51 | ) | — | — | — | |||||||||||
Amortization of intangibles | 122 | — | 52 | — | 222 | 396 | ||||||||||||
Restructuring and asset related charges - net | 454 | (90 | ) | — | 2 | — | 366 | |||||||||||
Integration and separation costs | — | — | 143 | — | (73 | ) | 70 | |||||||||||
Equity in earnings of nonconsolidated affiliates | 82 | — | 28 | — | (6 | ) | 104 | |||||||||||
Sundry income (expense) - net | 2,550 | — | 25 | (1 | ) | — | 2,574 | |||||||||||
Interest income | 18 | — | (18 | ) | — | — | — | |||||||||||
Interest expense and amortization of debt discount | 208 | 93 | — | — | (30 | ) | 271 | |||||||||||
Income from continuing operations before income taxes | $ | 3,357 | $ | 1,333 | $ | 8 | $ | (178 | ) | $ | (234 | ) | $ | 4,286 | ||||
Provision for income taxes on continuing operations | 130 | 306 | 8 | (42 | ) | (84 | ) | 318 | ||||||||||
Income from continuing operations, net of tax | $ | 3,227 | $ | 1,027 | $ | — | $ | (136 | ) | $ | (150 | ) | $ | 3,968 | ||||
Net income attributable to noncontrolling interests | 19 | 4 | — | — | 3 | 26 | ||||||||||||
Net income from continuing operations attributable to DowDuPont Inc. | $ | 3,208 | $ | 1,023 | $ | — | $ | (136 | ) | $ | (153 | ) | $ | 3,942 | ||||
Preferred stock dividends | 85 | 3 | — | — | (3 | ) | 85 | |||||||||||
Net income from continuing operations available for DowDuPont Inc. common stockholders | $ | 3,123 | $ | 1,020 | $ | — | $ | (136 | ) | $ | (150 | ) | $ | 3,857 | ||||
Per common share data: | ||||||||||||||||||
Earnings per common share from continuing operations - basic | $ | 1.73 | ||||||||||||||||
Earnings per common share from continuing operations - diluted 4 | $ | 1.68 | ||||||||||||||||
Weighted-average common shares outstanding - basic 5 | 2,224.3 | |||||||||||||||||
Weighted-average common shares outstanding - diluted 5 | 2,341.3 |
1. | Certain reclassifications were made to conform to the presentation that will be used for DowDuPont. The reclassifications are consistent with those identified and disclosed in the Current Report on Form 8-K/A filed with the SEC on October 26, 2017. |
2. | Includes the following consummated or probable and identifiable divestitures agreed to with certain regulatory agencies as a condition of approval for the Merger, including: Dow’s global EAA copolymers and ionomers business; a portion of Dow AgroSciences’ corn seed business in Brazil; and DuPont’s cereal broadleaf herbicides and chewing insecticides portfolio as well as its crop protection research and development pipeline and organization. |
3. | Refer to Summary of Pro Forma Adjustments at the end of this section for additional details. |
4. | Cumulative Convertible Perpetual Preferred Stock, Series A ("Preferred Stock") dividends were added back in the calculation of "Earnings per common share from continuing operations - diluted" for the three months ended June 30, 2016. |
5. | Refer to Pro Forma Common Shares Outstanding at the end of this section for additional details. |
Adjustments | ||||||||||||||||||
In millions, except per share amounts | Historical Dow | Historical DuPont | Reclass 1 | Divestitures 2 | Pro Forma 3 | Pro Forma | ||||||||||||
Net sales | $ | 12,483 | $ | 4,917 | $ | 27 | $ | (389 | ) | $ | (47 | ) | $ | 16,991 | ||||
Cost of sales | 9,841 | 3,090 | 141 | (166 | ) | 34 | 12,940 | |||||||||||
Other operating charges | — | 176 | (176 | ) | — | — | — | |||||||||||
Research and development expenses | 399 | 410 | (10 | ) | (36 | ) | 7 | 770 | ||||||||||
Selling, general and administrative expenses | 864 | 1,016 | (249 | ) | (56 | ) | 11 | 1,586 | ||||||||||
Other (loss) income, net | — | (16 | ) | 16 | — | — | — | |||||||||||
Amortization of intangibles | 162 | — | 45 | — | 222 | 429 | ||||||||||||
Restructuring and asset related charges - net | — | 172 | — | — | — | 172 | ||||||||||||
Integration and separation costs | — | — | 249 | — | (89 | ) | 160 | |||||||||||
Equity in earnings of nonconsolidated affiliates | 70 | — | 22 | — | (6 | ) | 86 | |||||||||||
Sundry income (expense) - net | (4 | ) | — | (32 | ) | (1 | ) | — | (37 | ) | ||||||||
Interest income | 26 | — | (26 | ) | — | — | — | |||||||||||
Interest expense and amortization of debt discount | 220 | 93 | — | — | (30 | ) | 283 | |||||||||||
Income (Loss) from continuing operations before income taxes | $ | 1,089 | $ | (56 | ) | $ | 7 | $ | (132 | ) | $ | (208 | ) | $ | 700 | |||
Provision (Credit) for income taxes on continuing operations | 271 | (69 | ) | 7 | (30 | ) | (78 | ) | 101 | |||||||||
Income from continuing operations, net of tax | $ | 818 | $ | 13 | $ | — | $ | (102 | ) | $ | (130 | ) | $ | 599 | ||||
Net income attributable to noncontrolling interests | 14 | 4 | — | — | 2 | 20 | ||||||||||||
Net income from continuing operations attributable to DowDuPont Inc. | $ | 804 | $ | 9 | $ | — | $ | (102 | ) | $ | (132 | ) | $ | 579 | ||||
Preferred stock dividends | 85 | 2 | — | — | (2 | ) | 85 | |||||||||||
Net income from continuing operations available for DowDuPont Inc. common stockholders | $ | 719 | $ | 7 | $ | — | $ | (102 | ) | $ | (130 | ) | $ | 494 | ||||
Per common share data: | ||||||||||||||||||
Earnings per common share from continuing operations - basic | $ | 0.22 | ||||||||||||||||
Earnings per common share from continuing operations - diluted | $ | 0.22 | ||||||||||||||||
Weighted-average common shares outstanding - basic 4 | 2,225.6 | |||||||||||||||||
Weighted-average common shares outstanding - diluted 4 | 2,247.1 |
1. | Certain reclassifications were made to conform to the presentation that will be used for DowDuPont. The reclassifications are consistent with those identified and disclosed in the Current Report on Form 8-K/A filed with the SEC on October 26, 2017. |
2. | Includes the following consummated or probable and identifiable divestitures agreed to with certain regulatory agencies as a condition of approval for the Merger, including: Dow’s global EAA copolymers and ionomers business; a portion of Dow AgroSciences’ corn seed business in Brazil; and DuPont’s cereal broadleaf herbicides and chewing insecticides portfolio as well as its crop protection research and development pipeline and organization. |
3. | Refer to Summary of Pro Forma Adjustments at the end of this section for additional details. |
4. | Refer to Pro Forma Common Shares Outstanding at the end of this section for additional details. |
Adjustments | ||||||||||||||||||
In millions, except per share amounts | Historical Dow | Historical DuPont | Reclass 1 | Divestitures 2 | Pro Forma 3 | Pro Forma | ||||||||||||
Net sales | $ | 13,020 | $ | 5,211 | $ | 62 | $ | (507 | ) | $ | (52 | ) | $ | 17,734 | ||||
Cost of sales | 10,574 | 3,147 | 145 | (226 | ) | 48 | 13,688 | |||||||||||
Other operating charges | — | 182 | (182 | ) | — | — | — | |||||||||||
Research and development expenses | 425 | 381 | (10 | ) | (42 | ) | 8 | 762 | ||||||||||
Selling, general and administrative expenses | 911 | 964 | (284 | ) | (53 | ) | 10 | 1,548 | ||||||||||
Other (loss) income, net | — | 301 | (301 | ) | — | — | — | |||||||||||
Amortization of intangibles | 157 | — | 46 | — | 220 | 423 | ||||||||||||
Restructuring and asset related charges - net | — | 393 | — | 1 | — | 394 | ||||||||||||
Integration and separation costs | — | — | 285 | — | (62 | ) | 223 | |||||||||||
Asbestos-related charge | 1,113 | — | — | — | — | 1,113 | ||||||||||||
Equity in earnings of nonconsolidated affiliates | 251 | — | 39 | — | (7 | ) | 283 | |||||||||||
Sundry income (expense) - net | (103 | ) | — | 245 | (3 | ) | — | 139 | ||||||||||
Interest income | 43 | — | (43 | ) | — | — | — | |||||||||||
Interest expense and amortization of debt discount | 229 | 92 | — | — | (30 | ) | 291 | |||||||||||
Income (Loss) from continuing operations before income taxes | $ | (198 | ) | $ | 353 | $ | 2 | $ | (190 | ) | $ | (253 | ) | $ | (286 | ) | ||
Provision (Credit) for income taxes on continuing operations | (282 | ) | 101 | 2 | (57 | ) | (87 | ) | (323 | ) | ||||||||
Income from continuing operations, net of tax | $ | 84 | $ | 252 | $ | — | $ | (133 | ) | $ | (166 | ) | $ | 37 | ||||
Net income (loss) attributable to noncontrolling interests | 32 | (2 | ) | — | — | 3 | 33 | |||||||||||
Net income from continuing operations attributable to DowDuPont Inc. | $ | 52 | $ | 254 | $ | — | $ | (133 | ) | $ | (169 | ) | $ | 4 | ||||
Preferred stock dividends | 85 | 3 | — | — | (3 | ) | 85 | |||||||||||
Net income (loss) from continuing operations available for DowDuPont Inc. common stockholders | $ | (33 | ) | $ | 251 | $ | — | $ | (133 | ) | $ | (166 | ) | $ | (81 | ) | ||
Per common share data: | ||||||||||||||||||
Loss per common share from continuing operations - basic | $ | (0.04 | ) | |||||||||||||||
Loss per common share from continuing operations - diluted 4 | $ | (0.04 | ) | |||||||||||||||
Weighted-average common shares outstanding - basic 5 | 2,219.4 | |||||||||||||||||
Weighted-average common shares outstanding - diluted 5 | 2,219.4 |
1. | Certain reclassifications were made to conform to the presentation that will be used for DowDuPont. The reclassifications are consistent with those identified and disclosed in the Current Report on Form 8-K/A filed with the SEC on October 26, 2017. |
2. | Includes the following consummated or probable and identifiable divestitures agreed to with certain regulatory agencies as a condition of approval for the Merger, including: Dow’s global EAA copolymers and ionomers business; a portion of Dow AgroSciences’ corn seed business in Brazil; and DuPont’s cereal broadleaf herbicides and chewing insecticides portfolio as well as its crop protection research and development pipeline and organization. |
3. | Refer to Summary of Pro Forma Adjustments at the end of this section for additional details. |
4. | For the three months ended December 31, 2016, the Company reported "Net loss from continuing operations available for DowDuPont Inc. common stockholders." In accordance with U.S. GAAP, "Weighted-average common shares outstanding - basic" was used in the calculation of "Loss per common share from continuing operations - diluted." |
5. | Refer to Pro Forma Common Shares Outstanding at the end of this section for additional details. |
Adjustments | ||||||||||||||||||
In millions, except per share amounts | Historical Dow | Historical DuPont | Reclass 1 | Divestitures 2 | Pro Forma 3 | Pro Forma | ||||||||||||
Net sales | $ | 48,158 | $ | 24,594 | $ | 170 | $ | (1,812 | ) | $ | (216 | ) | $ | 70,894 | ||||
Cost of sales | 37,641 | 14,469 | 559 | (783 | ) | 110 | 51,996 | |||||||||||
Other operating charges | — | 686 | (686 | ) | — | — | — | |||||||||||
Research and development expenses | 1,584 | 1,641 | (40 | ) | (153 | ) | 29 | 3,061 | ||||||||||
Selling, general and administrative expenses | 3,304 | 4,319 | (762 | ) | (203 | ) | 43 | 6,701 | ||||||||||
Other (loss) income, net | — | 708 | (708 | ) | — | — | — | |||||||||||
Amortization of intangibles | 544 | — | 194 | — | 886 | 1,624 | ||||||||||||
Restructuring and asset related charges - net | 452 | 552 | — | 4 | — | 1,008 | ||||||||||||
Integration and separation costs | — | — | 735 | — | (259 | ) | 476 | |||||||||||
Asbestos-related charge | 1,113 | — | — | — | — | 1,113 | ||||||||||||
Equity in earnings of nonconsolidated affiliates | 442 | — | 99 | — | (25 | ) | 516 | |||||||||||
Sundry income (expense) - net | 1,202 | — | 568 | (10 | ) | — | 1,760 | |||||||||||
Interest income | 107 | — | (107 | ) | — | — | — | |||||||||||
Interest expense and amortization of debt discount | 858 | 370 | — | — | (120 | ) | 1,108 | |||||||||||
Income from continuing operations before income taxes | $ | 4,413 | $ | 3,265 | $ | 22 | $ | (687 | ) | $ | (930 | ) | $ | 6,083 | ||||
Provision for income taxes on continuing operations | 9 | 744 | 22 | (160 | ) | (327 | ) | 288 | ||||||||||
Income from continuing operations, net of tax | $ | 4,404 | $ | 2,521 | $ | — | $ | (527 | ) | $ | (603 | ) | $ | 5,795 | ||||
Net income attributable to noncontrolling interests | 86 | 12 | — | — | 10 | 108 | ||||||||||||
Net income from continuing operations attributable to DowDuPont Inc. | $ | 4,318 | $ | 2,509 | $ | — | $ | (527 | ) | $ | (613 | ) | $ | 5,687 | ||||
Preferred stock dividends | 340 | 10 | — | — | (10 | ) | 340 | |||||||||||
Net income from continuing operations available for DowDuPont Inc. common stockholders | $ | 3,978 | $ | 2,499 | $ | — | $ | (527 | ) | $ | (603 | ) | $ | 5,347 | ||||
Per common share data: | ||||||||||||||||||
Earnings per common share from continuing operations - basic | $ | 2.40 | ||||||||||||||||
Earnings per common share from continuing operations - diluted | $ | 2.37 | ||||||||||||||||
Weighted-average common shares outstanding - basic 4 | 2,221.3 | |||||||||||||||||
Weighted-average common shares outstanding - diluted 4 | 2,242.1 |
1. | Certain reclassifications were made to conform to the presentation that will be used for DowDuPont. The reclassifications are consistent with those identified and disclosed in the Current Report on Form 8-K/A filed with the SEC on October 26, 2017. |
2. | Includes the following consummated or probable and identifiable divestitures agreed to with certain regulatory agencies as a condition of approval for the Merger, including: Dow’s global EAA copolymers and ionomers business; a portion of Dow AgroSciences’ corn seed business in Brazil; and DuPont’s cereal broadleaf herbicides and chewing insecticides portfolio as well as its crop protection research and development pipeline and organization. |
3. | Refer to Summary of Pro Forma Adjustments at the end of this section for additional details. |
4. | Refer to Pro Forma Common Shares Outstanding at the end of this section for additional details. |
Adjustments | ||||||||||||||||||
In millions, except per share amounts | Historical Dow | Historical DuPont | Reclass 1 | Divestitures 2 | Pro Forma 3 | Pro Forma | ||||||||||||
Net sales | $ | 13,230 | $ | 7,743 | $ | 45 | $ | (484 | ) | $ | (67 | ) | $ | 20,467 | ||||
Cost of sales | 10,197 | 4,371 | 133 | (199 | ) | (9 | ) | 14,493 | ||||||||||
Other operating charges | — | 204 | (204 | ) | — | — | — | |||||||||||
Research and development expenses | 416 | 416 | (10 | ) | (35 | ) | 7 | 794 | ||||||||||
Selling, general and administrative expenses | 867 | 1,260 | (249 | ) | (49 | ) | 11 | 1,840 | ||||||||||
Other (loss) income, net | — | 306 | (306 | ) | — | — | — | |||||||||||
Amortization of intangibles | 155 | — | 51 | — | 222 | 428 | ||||||||||||
Restructuring and asset related charges - net | (1 | ) | 152 | — | — | — | 151 | |||||||||||
Integration and separation costs | — | — | 279 | — | (37 | ) | 242 | |||||||||||
Equity in earnings of nonconsolidated affiliates | 196 | — | 18 | — | (6 | ) | 208 | |||||||||||
Sundry income (expense) - net | (470 | ) | — | 228 | (2 | ) | — | (244 | ) | |||||||||
Interest income | 25 | — | (25 | ) | — | — | — | |||||||||||
Interest expense and amortization of debt discount | 219 | 84 | — | — | (30 | ) | 273 | |||||||||||
Income from continuing operations before income taxes | $ | 1,128 | $ | 1,562 | $ | (40 | ) | $ | (203 | ) | $ | (237 | ) | $ | 2,210 | |||
Provision for income taxes on continuing operations | 213 | 224 | (40 | ) | (32 | ) | (84 | ) | 281 | |||||||||
Income from continuing operations, net of tax | $ | 915 | $ | 1,338 | $ | — | $ | (171 | ) | $ | (153 | ) | $ | 1,929 | ||||
Net income attributable to noncontrolling interests | 27 | 8 | — | — | 2 | 37 | ||||||||||||
Net income from continuing operations attributable to DowDuPont Inc. | $ | 888 | $ | 1,330 | $ | — | $ | (171 | ) | $ | (155 | ) | $ | 1,892 | ||||
Preferred stock dividends | — | 2 | — | — | (2 | ) | — | |||||||||||
Net income from continuing operations available for DowDuPont Inc. common stockholders | $ | 888 | $ | 1,328 | $ | — | $ | (171 | ) | $ | (153 | ) | $ | 1,892 | ||||
Per common share data: | ||||||||||||||||||
Earnings per common share from continuing operations - basic | $ | 0.82 | ||||||||||||||||
Earnings per common share from continuing operations - diluted | $ | 0.81 | ||||||||||||||||
Weighted-average common shares outstanding - basic 4 | 2,315.7 | |||||||||||||||||
Weighted-average common shares outstanding - diluted 4 | 2,341.2 |
1. | Certain reclassifications were made to conform to the presentation that will be used for DowDuPont. The reclassifications are consistent with those identified and disclosed in the Current Report on Form 8-K/A filed with the SEC on October 26, 2017. |
2. | Includes the following consummated or probable and identifiable divestitures agreed to with certain regulatory agencies as a condition of approval for the Merger, including: Dow’s global EAA copolymers and ionomers business; a portion of Dow AgroSciences’ corn seed business in Brazil; and DuPont’s cereal broadleaf herbicides and chewing insecticides portfolio as well as its crop protection research and development pipeline and organization. |
3. | Refer to Summary of Pro Forma Adjustments at the end of this section for additional details. |
4. | Refer to Pro Forma Common Shares Outstanding at the end of this section for additional details. |
Adjustments | ||||||||||||||||||
In millions, except per share amounts | Historical Dow | Historical DuPont | Reclass 1 | Divestitures 2 | Pro Forma 3 | Pro Forma | ||||||||||||
Net sales | $ | 13,834 | $ | 7,424 | $ | 28 | $ | (510 | ) | $ | (59 | ) | $ | 20,717 | ||||
Cost of sales | 10,764 | 4,192 | 138 | (218 | ) | 61 | 14,937 | |||||||||||
Other operating charges | — | 176 | (176 | ) | — | — | — | |||||||||||
Research and development expenses | 405 | 441 | (10 | ) | (43 | ) | 7 | 800 | ||||||||||
Selling, general and administrative expenses | 855 | 1,348 | (361 | ) | (53 | ) | 11 | 1,800 | ||||||||||
Other (loss) income, net | — | (21 | ) | 21 | — | — | — | |||||||||||
Amortization of intangibles | 157 | — | 57 | — | 221 | 435 | ||||||||||||
Restructuring and asset related charges - net | (12 | ) | 160 | — | — | — | 148 | |||||||||||
Integration and separation costs | — | — | 352 | (15 | ) | (41 | ) | 296 | ||||||||||
Equity in earnings of nonconsolidated affiliates | 54 | — | 24 | — | (5 | ) | 73 | |||||||||||
Sundry income (expense) - net | 299 | — | (46 | ) | (9 | ) | — | 244 | ||||||||||
Interest income | 22 | — | (22 | ) | — | — | — | |||||||||||
Interest expense and amortization of debt discount | 226 | 99 | — | — | (30 | ) | 295 | |||||||||||
Income from continuing operations before income taxes | $ | 1,814 | $ | 987 | $ | 5 | $ | (190 | ) | $ | (293 | ) | $ | 2,323 | ||||
Provision for income taxes on continuing operations | 455 | 128 | 5 | (46 | ) | (102 | ) | 440 | ||||||||||
Income from continuing operations, net of tax | $ | 1,359 | $ | 859 | $ | — | $ | (144 | ) | $ | (191 | ) | $ | 1,883 | ||||
Net income attributable to noncontrolling interests | 38 | 7 | — | — | 3 | 48 | ||||||||||||
Net income from continuing operations attributable to DowDuPont Inc. | $ | 1,321 | $ | 852 | $ | — | $ | (144 | ) | $ | (194 | ) | $ | 1,835 | ||||
Preferred stock dividends | — | 3 | — | — | (3 | ) | — | |||||||||||
Net income from continuing operations available for DowDuPont Inc. common stockholders | $ | 1,321 | $ | 849 | $ | — | $ | (144 | ) | $ | (191 | ) | $ | 1,835 | ||||
Per common share data: | ||||||||||||||||||
Earnings per common share from continuing operations - basic | $ | 0.79 | ||||||||||||||||
Earnings per common share from continuing operations - diluted | $ | 0.78 | ||||||||||||||||
Weighted-average common shares outstanding - basic 4 | 2,325.0 | |||||||||||||||||
Weighted-average common shares outstanding - diluted 4 | 2,347.7 |
1. | Certain reclassifications were made to conform to the presentation that will be used for DowDuPont. The reclassifications are consistent with those identified and disclosed in the Current Report on Form 8-K/A filed with the SEC on October 26, 2017. |
2. | Includes the following consummated or probable and identifiable divestitures agreed to with certain regulatory agencies as a condition of approval for the Merger, including: Dow’s global EAA copolymers and ionomers business; a portion of Dow AgroSciences’ corn seed business in Brazil; and DuPont’s cereal broadleaf herbicides and chewing insecticides portfolio as well as its crop protection research and development pipeline and organization. |
3. | Refer to Summary of Pro Forma Adjustments at the end of this section for additional details. |
4. | Refer to Pro Forma Common Shares Outstanding at the end of this section for additional details. |
Adjustments | ||||||||||||||||||
In millions, except per share amounts | Historical Dow | Historical DuPont | Reclass 1 | Divestitures 2 | Pro Forma 3 | Pro Forma | ||||||||||||
Net sales | $ | 27,064 | $ | 15,167 | $ | 73 | $ | (994 | ) | $ | (126 | ) | $ | 41,184 | ||||
Cost of sales | 20,961 | 8,563 | 271 | (417 | ) | 52 | 29,430 | |||||||||||
Other operating charges | — | 380 | (380 | ) | — | — | — | |||||||||||
Research and development expenses | 821 | 857 | (20 | ) | (78 | ) | 14 | 1,594 | ||||||||||
Selling, general and administrative expenses | 1,722 | 2,608 | (610 | ) | (102 | ) | 22 | 3,640 | ||||||||||
Other (loss) income, net | — | 285 | (285 | ) | — | — | — | |||||||||||
Amortization of intangibles | 312 | — | 108 | — | 443 | 863 | ||||||||||||
Restructuring and asset related charges - net | (13 | ) | 312 | — | — | — | 299 | |||||||||||
Integration and separation costs | — | — | 631 | (15 | ) | (78 | ) | 538 | ||||||||||
Equity in earnings of nonconsolidated affiliates | 250 | — | 42 | — | (11 | ) | 281 | |||||||||||
Sundry income (expense) - net | (171 | ) | — | 182 | (11 | ) | — | — | ||||||||||
Interest income | 47 | — | (47 | ) | — | — | — | |||||||||||
Interest expense and amortization of debt discount | 445 | 183 | — | — | (60 | ) | 568 | |||||||||||
Income from continuing operations before income taxes | $ | 2,942 | $ | 2,549 | $ | (35 | ) | $ | (393 | ) | $ | (530 | ) | $ | 4,533 | |||
Provision for income taxes on continuing operations | 668 | 352 | (35 | ) | (78 | ) | (186 | ) | 721 | |||||||||
Income from continuing operations, net of tax | $ | 2,274 | $ | 2,197 | $ | — | $ | (315 | ) | $ | (344 | ) | $ | 3,812 | ||||
Net income attributable to noncontrolling interests | 65 | 15 | — | — | 5 | 85 | ||||||||||||
Net income from continuing operations attributable to DowDuPont Inc. | $ | 2,209 | $ | 2,182 | $ | — | $ | (315 | ) | $ | (349 | ) | $ | 3,727 | ||||
Preferred stock dividends | — | 5 | — | — | (5 | ) | — | |||||||||||
Net income from continuing operations available for DowDuPont Inc. common stockholders | $ | 2,209 | $ | 2,177 | $ | — | $ | (315 | ) | $ | (344 | ) | $ | 3,727 | ||||
Per common share data: | ||||||||||||||||||
Earnings per common share from continuing operations - basic | $ | 1.60 | ||||||||||||||||
Earnings per common share from continuing operations - diluted | $ | 1.59 | ||||||||||||||||
Weighted-average common shares outstanding - basic 4 | 2,320.4 | |||||||||||||||||
Weighted-average common shares outstanding - diluted 4 | 2,344.4 |
1. | Certain reclassifications were made to conform to the presentation that will be used for DowDuPont. The reclassifications are consistent with those identified and disclosed in the Current Report on Form 8-K/A filed with the SEC on October 26, 2017. |
2. | Includes the following consummated or probable and identifiable divestitures agreed to with certain regulatory agencies as a condition of approval for the Merger, including: Dow’s global EAA copolymers and ionomers business; a portion of Dow AgroSciences’ corn seed business in Brazil; and DuPont’s cereal broadleaf herbicides and chewing insecticides portfolio as well as its crop protection research and development pipeline and organization. |
3. | Refer to Summary of Pro Forma Adjustments at the end of this section for additional details. |
4. | Refer to Pro Forma Common Shares Outstanding at the end of this section for additional details. |
Three Months Ended | Year Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||
In millions | Mar 31, 2016 | Jun 30, 2016 | Sep 30, 2016 | Dec 31, 2016 | Dec 31, 2016 | Mar 31, 2017 | Jun 30, 2017 | Jun 30, 2017 | ||||||||||||||||
Net sales | ||||||||||||||||||||||||
Intercompany transactions 1 | $ | (62 | ) | $ | (55 | ) | $ | (47 | ) | $ | (52 | ) | $ | (216 | ) | $ | (67 | ) | $ | (59 | ) | $ | (126 | ) |
Cost of sales | ||||||||||||||||||||||||
Intercompany transactions 1 | $ | (62 | ) | $ | (55 | ) | $ | (47 | ) | $ | (52 | ) | $ | (216 | ) | $ | (67 | ) | $ | (59 | ) | $ | (126 | ) |
Policy harmonization 2 | (27 | ) | 10 | — | 17 | — | (23 | ) | 38 | 15 | ||||||||||||||
Depreciation expense 3 | 81 | 81 | 81 | 83 | 326 | 81 | 82 | 163 | ||||||||||||||||
Total cost of sales | $ | (8 | ) | $ | 36 | $ | 34 | $ | 48 | $ | 110 | $ | (9 | ) | $ | 61 | $ | 52 | ||||||
Research and development expenses: | ||||||||||||||||||||||||
Depreciation expense 3 | $ | 7 | $ | 7 | $ | 7 | $ | 8 | $ | 29 | $ | 7 | $ | 7 | $ | 14 | ||||||||
Selling, general and administrative expenses | ||||||||||||||||||||||||
Depreciation expense 3 | $ | 11 | $ | 11 | $ | 11 | $ | 10 | $ | 43 | $ | 11 | $ | 11 | $ | 22 | ||||||||
Amortization of intangibles | ||||||||||||||||||||||||
Amortization expense 4 | $ | 222 | $ | 222 | $ | 222 | $ | 220 | $ | 886 | $ | 222 | $ | 221 | $ | 443 | ||||||||
Integration and separation costs | ||||||||||||||||||||||||
Transaction costs 5 | $ | (35 | ) | $ | (73 | ) | $ | (89 | ) | $ | (62 | ) | $ | (259 | ) | $ | (37 | ) | $ | (41 | ) | $ | (78 | ) |
Equity in earnings of nonconsolidated affiliates | ||||||||||||||||||||||||
Fair value of nonconsolidated affiliates 6 | $ | (6 | ) | $ | (6 | ) | $ | (6 | ) | $ | (7 | ) | $ | (25 | ) | $ | (6 | ) | $ | (5 | ) | $ | (11 | ) |
Interest expense and amortization of debt discount | ||||||||||||||||||||||||
Amortization of debt discount 7 | $ | (30 | ) | $ | (30 | ) | $ | (30 | ) | $ | (30 | ) | $ | (120 | ) | $ | (30 | ) | $ | (30 | ) | $ | (60 | ) |
Total pro forma adjustments to income from continuing operations before income taxes | $ | (235 | ) | $ | (234 | ) | $ | (208 | ) | $ | (253 | ) | $ | (930 | ) | $ | (237 | ) | $ | (293 | ) | $ | (530 | ) |
Provision for income taxes on continuing operations 8 | ||||||||||||||||||||||||
Policy harmonization 2 | $ | 9 | $ | (3 | ) | $ | — | $ | (6 | ) | $ | — | $ | 8 | $ | (14 | ) | $ | (6 | ) | ||||
Depreciation expense 3 | (33 | ) | (33 | ) | (33 | ) | (33 | ) | (132 | ) | (34 | ) | (34 | ) | (68 | ) | ||||||||
Amortization expense 4 | (70 | ) | (70 | ) | (70 | ) | (70 | ) | (280 | ) | (69 | ) | (69 | ) | (138 | ) | ||||||||
Transaction costs 5 | 7 | 13 | 16 | 13 | 49 | 2 | 6 | 8 | ||||||||||||||||
Fair value of nonconsolidated affiliates 6 | (2 | ) | (2 | ) | (2 | ) | (2 | ) | (8 | ) | (2 | ) | (2 | ) | (4 | ) | ||||||||
Amortization of debt discount 7 | 11 | 11 | 11 | 11 | 44 | 11 | 11 | 22 | ||||||||||||||||
Total provision for income taxes on continuing operations | $ | (78 | ) | $ | (84 | ) | $ | (78 | ) | $ | (87 | ) | $ | (327 | ) | $ | (84 | ) | $ | (102 | ) | $ | (186 | ) |
Total pro forma adjustments to income from continuing operations, net of tax | $ | (157 | ) | $ | (150 | ) | $ | (130 | ) | $ | (166 | ) | $ | (603 | ) | $ | (153 | ) | $ | (191 | ) | $ | (344 | ) |
Net income attributable to noncontrolling interests | ||||||||||||||||||||||||
Reclass historical dividends 9 | $ | 2 | $ | 3 | $ | 2 | $ | 3 | $ | 10 | $ | 2 | $ | 3 | $ | 5 | ||||||||
Net income from continuing operations attributable to DowDuPont Inc. | $ | (159 | ) | $ | (153 | ) | $ | (132 | ) | $ | (169 | ) | $ | (613 | ) | $ | (155 | ) | $ | (194 | ) | $ | (349 | ) |
Preferred stock dividends | ||||||||||||||||||||||||
Reclass historical dividends 9 | $ | (2 | ) | $ | (3 | ) | $ | (2 | ) | $ | (3 | ) | $ | (10 | ) | $ | (2 | ) | $ | (3 | ) | $ | (5 | ) |
Net income from continuing operations available for DowDuPont Inc. common stockholders | $ | (157 | ) | $ | (150 | ) | $ | (130 | ) | $ | (166 | ) | $ | (603 | ) | $ | (153 | ) | $ | (191 | ) | $ | (344 | ) |
1. | Elimination of intercompany transactions between Dow and DuPont. |
2. | Adjustment to conform DuPont's accounting policy of deferring and amortizing expense for planned major maintenance activities to Dow's accounting policy of directly expensing the costs as incurred. |
3. | Increase in depreciation expense for the fair value step-up of DuPont's property, plant and equipment. |
4. | Increase in amortization expense for the fair value step-up of DuPont's finite-lived intangibles. |
5. | Elimination of one-time transaction costs directly attributable to the Merger. |
6. | Decrease in equity in earnings of nonconsolidated affiliates for the fair value adjustment to DuPont's investment in nonconsolidated affiliates. |
7. | Decrease in interest expense related to amortization of the fair value adjustment to DuPont's long-term debt. |
8. | Represents the income tax effect of the pro forma adjustments related to the Merger calculated using a blended statutory income tax rate, inclusive of state taxes. Management believes the blended statutory income tax rate resulting from this calculation provides a reasonable basis for the pro forma adjustments, however the effective tax rate of DowDuPont could be significantly different depending on the mix of activities. |
9. | Reclassify historical dividends for DuPont preferred stock from "Preferred stock dividends" to "Net income attributable to noncontrolling interests." |
Three Months Ended | Year Ended | Three Months Ended | Six Months Ended | |||||||||||||
Shares in millions | Mar 31, 2016 | Jun 30, 2016 | Sep 30, 2016 | Dec 31, 2016 | Dec 31, 2016 | Mar 31, 2017 | Jun 30, 2017 | Jun 30, 2017 | ||||||||
Dow common shares outstanding - basic 1 | 1,102.9 | 1,111.1 | 1,112.4 | 1,106.2 | 1,108.1 | 1,202.5 | 1,211.8 | 1,207.2 | ||||||||
DuPont common shares outstanding - basic 2 | 1,113.2 | 1,113.2 | 1,113.2 | 1,113.2 | 1,113.2 | 1,113.2 | 1,113.2 | 1,113.2 | ||||||||
DowDuPont common shares outstanding - basic | 2,216.1 | 2,224.3 | 2,225.6 | 2,219.4 | 2,221.3 | 2,315.7 | 2,325.0 | 2,320.4 | ||||||||
Dilutive impact of Dow equity-based awards 1 | 14.4 | 14.9 | 15.0 | N/A 6 | 15.1 | 19.6 | 17.2 | 18.3 | ||||||||
Dilutive impact of Dow preferred stock 1,3,4 | — | 96.8 | — | N/A 6 | — | — | — | — | ||||||||
Dilutive impact of DuPont equity-based awards 5 | 4.8 | 5.3 | 6.5 | N/A 6 | 5.7 | 5.9 | 5.5 | 5.7 | ||||||||
DowDuPont common shares outstanding - diluted | 2,235.3 | 2,341.3 | 2,247.1 | 2,219.4 | 2,242.1 | 2,341.2 | 2,347.7 | 2,344.4 |
1. | Reflects share amounts as reported by Dow in its Quarterly Reports on Form 10-Q and Annual Report on Form 10-K for the periods presented. |
2. | DuPont common shares outstanding - basic for all periods presented reflects DuPont's common stock issued and outstanding at August 31, 2017, multiplied by the Merger Agreement conversion ratio of 1.2820. |
3. | On December 30, 2016, Dow converted 4 million shares of Preferred Stock into 96.8 million shares of Dow common stock. In accordance with U.S. GAAP, the basic share count for the three- and twelve-month periods ended December 31, 2016 reflects a two-day averaging effect related to this conversion, or 2.1 million shares for the three-month period ended December 31, 2016 and .5 million shares for the twelve-month period ended December 31, 2016. |
4. | Excludes 96.8 million shares for the three months ended March 31, 2016 and September 30, 2016 (excludes 96.3 million shares for the year ended December 31, 2016), because the effect of an assumed conversion of preferred stock into common stock for these periods would have been antidilutive. |
5. | The "Dilutive impact of DuPont equity-based awards" reflects share amounts as reported by DuPont in its Quarterly Reports on Form 10-Q and Annual Report on Form 10-K for the periods presented, multiplied by the Merger Agreement conversion ratio of 1.2820. |
6. | For the three months ended December 31, 2016, the Company reported "Net loss from continuing operations available for DowDuPont Inc. common stockholders." In accordance with U.S. GAAP, "Weighted-average common shares outstanding - basic" was used in the calculation of "Loss per common share from continuing operations - diluted." |
Three Months Ended | Year Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||
In millions | Mar 31, 2016 | Jun 30, 2016 | Sep 30, 2016 | Dec 31, 2016 | Dec 31, 2016 | Mar 31, 2017 | Jun 30, 2017 | Jun 30, 2017 | ||||||||||||||||
Pro forma net sales by segment | ||||||||||||||||||||||||
Agriculture | $ | 5,042 | $ | 4,356 | $ | 1,998 | $ | 2,664 | $ | 14,060 | $ | 5,049 | $ | 4,595 | $ | 9,644 | ||||||||
Performance Materials & Coatings | 954 | 1,440 | 2,046 | 1,922 | 6,362 | 2,063 | 2,255 | 4,318 | ||||||||||||||||
Industrial Intermediates & Infrastructure | 2,571 | 2,674 | 2,770 | 2,805 | 10,820 | 2,847 | 3,013 | 5,860 | ||||||||||||||||
Packaging & Specialty Plastics | 4,503 | 5,063 | 5,070 | 5,212 | 19,848 | 5,382 | 5,428 | 10,810 | ||||||||||||||||
Electronics & Imaging | 918 | 1,028 | 1,138 | 1,182 | 4,266 | 1,164 | 1,221 | 2,385 | ||||||||||||||||
Nutrition & Biosciences | 1,404 | 1,440 | 1,469 | 1,450 | 5,763 | 1,424 | 1,494 | 2,918 | ||||||||||||||||
Transportation & Advanced Polymers | 1,011 | 1,118 | 1,187 | 1,181 | 4,497 | 1,251 | 1,284 | 2,535 | ||||||||||||||||
Safety & Construction | 1,189 | 1,321 | 1,238 | 1,236 | 4,984 | 1,213 | 1,329 | 2,542 | ||||||||||||||||
Corporate | 68 | 69 | 75 | 82 | 294 | 74 | 98 | 172 | ||||||||||||||||
Total | $ | 17,660 | $ | 18,509 | $ | 16,991 | $ | 17,734 | $ | 70,894 | $ | 20,467 | $ | 20,717 | $ | 41,184 | ||||||||
Pro Forma Operating EBITDA 1 by segment | ||||||||||||||||||||||||
Agriculture | $ | 1,392 | $ | 1,002 | $ | (172 | ) | $ | 100 | $ | 2,322 | $ | 1,461 | $ | 1,165 | $ | 2,626 | |||||||
Performance Materials & Coatings | 168 | 323 | 345 | 392 | 1,228 | 481 | 540 | 1,021 | ||||||||||||||||
Industrial Intermediates & Infrastructure | 414 | 368 | 401 | 489 | 1,672 | 512 | 417 | 929 | ||||||||||||||||
Packaging & Specialty Plastics | 1,105 | 1,365 | 1,386 | 1,273 | 5,129 | 1,114 | 1,163 | 2,277 | ||||||||||||||||
Electronics & Imaging | 229 | 272 | 341 | 331 | 1,173 | 327 | 410 | 737 | ||||||||||||||||
Nutrition & Biosciences | 303 | 294 | 321 | 309 | 1,227 | 317 | 318 | 635 | ||||||||||||||||
Transportation & Advanced Polymers | 217 | 249 | 303 | 276 | 1,045 | 321 | 308 | 629 | ||||||||||||||||
Safety & Construction | 315 | 306 | 282 | 227 | 1,130 | 292 | 262 | 554 | ||||||||||||||||
Corporate | (194 | ) | (221 | ) | (185 | ) | (212 | ) | (812 | ) | (211 | ) | (190 | ) | (401 | ) | ||||||||
Total | $ | 3,949 | $ | 3,958 | $ | 3,022 | $ | 3,185 | $ | 14,114 | $ | 4,614 | $ | 4,393 | $ | 9,007 | ||||||||
Pro forma equity in earnings (losses) 2 of nonconsolidated affiliates by segment | ||||||||||||||||||||||||
Agriculture | $ | (3 | ) | $ | 3 | $ | (3 | ) | $ | 13 | $ | 10 | $ | 4 | $ | (1 | ) | $ | 3 | |||||
Performance Materials & Coatings | 51 | 44 | 31 | 176 | 302 | 91 | 41 | 132 | ||||||||||||||||
Industrial Intermediates & Infrastructure | (31 | ) | (11 | ) | (7 | ) | 31 | (18 | ) | 73 | (13 | ) | 60 | |||||||||||
Packaging & Specialty Plastics | — | 48 | 44 | 64 | 156 | 32 | 37 | 69 | ||||||||||||||||
Electronics & Imaging | 17 | 16 | 9 | 4 | 46 | 6 | 6 | 12 | ||||||||||||||||
Nutrition & Biosciences | 3 | 6 | 5 | 5 | 19 | 6 | 5 | 11 | ||||||||||||||||
Transportation & Advanced Polymers | 3 | 9 | 3 | — | 15 | — | 6 | 6 | ||||||||||||||||
Safety & Construction | 6 | 7 | 8 | 4 | 25 | 6 | 5 | 11 | ||||||||||||||||
Corporate | (3 | ) | (18 | ) | (4 | ) | (14 | ) | (39 | ) | (10 | ) | (13 | ) | (23 | ) | ||||||||
Total | $ | 43 | $ | 104 | $ | 86 | $ | 283 | $ | 516 | $ | 208 | $ | 73 | $ | 281 |
1. | The Company uses Pro Forma Operating EBITDA as its measure of profit/loss for segment reporting. Pro Forma Operating EBITDA is defined as earnings (“Pro Forma income from continuing operations before income taxes”) before interest, depreciation, amortization and foreign exchange gains (losses), excluding the impact of significant items. |
2. | Does not exclude the impact of significant items. |
Pro Forma Net Sales by Geographic Region | Three Months Ended | Year Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||
In millions | Mar 31, 2016 | Jun 30, 2016 | Sep 30, 2016 | Dec 31, 2016 | Dec 31, 2016 | Mar 31, 2017 | Jun 30, 2017 | Jun 30, 2017 | ||||||||||||||||
U.S. & Canada | $ | 7,686 | $ | 8,063 | $ | 6,113 | $ | 6,368 | $ | 28,230 | $ | 8,715 | $ | 8,898 | $ | 17,613 | ||||||||
EMEA 1 | 5,070 | 4,749 | 4,496 | 4,482 | 18,797 | 5,808 | 5,336 | 11,144 | ||||||||||||||||
Asia Pacific | 3,228 | 3,808 | 4,033 | 4,497 | 15,566 | 4,074 | 4,499 | 8,573 | ||||||||||||||||
Latin America | 1,676 | 1,889 | 2,349 | 2,387 | 8,301 | 1,870 | 1,984 | 3,854 | ||||||||||||||||
Total | $ | 17,660 | $ | 18,509 | $ | 16,991 | $ | 17,734 | $ | 70,894 | $ | 20,467 | $ | 20,717 | $ | 41,184 |
1. | Europe, Middle East and Africa. |
Reconciliation of "Pro forma income from continuing operations, net of tax" to Pro Forma Operating EBITDA In millions | Three Months Ended | Year Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||
Mar 31, 2016 | Jun 30, 2016 | Sep 30, 2016 | Dec 31, 2016 | Dec 31, 2016 | Mar 31, 2017 | Jun 30, 2017 | Jun 30, 2017 | |||||||||||||||||
Pro forma income from continuing operations, net of tax | $ | 1,191 | $ | 3,968 | $ | 599 | $ | 37 | $ | 5,795 | $ | 1,929 | $ | 1,883 | $ | 3,812 | ||||||||
+ Provision (Credit) for income taxes on continuing operations | 192 | 318 | 101 | (323 | ) | 288 | 281 | 440 | 721 | |||||||||||||||
Pro forma income (loss) from continuing operations before income taxes | $ | 1,383 | $ | 4,286 | $ | 700 | $ | (286 | ) | $ | 6,083 | $ | 2,210 | $ | 2,323 | $ | 4,533 | |||||||
+ Depreciation and amortization | 1,207 | 1,278 | 1,366 | 1,385 | 5,236 | 1,368 | 1,338 | 2,706 | ||||||||||||||||
- Interest income 1 | 35 | 44 | 56 | 74 | 209 | 49 | 55 | 104 | ||||||||||||||||
+ Interest expense and amortization of debt discount | 263 | 271 | 283 | 291 | 1,108 | 273 | 295 | 568 | ||||||||||||||||
- Foreign exchange gains (losses), net 1 | (156 | ) | (45 | ) | (113 | ) | 82 | (232 | ) | (85 | ) | (170 | ) | (255 | ) | |||||||||
- Adjusted significant items 2 | (975 | ) | 1,878 | (616 | ) | (1,951 | ) | (1,664 | ) | (727 | ) | (322 | ) | (1,049 | ) | |||||||||
Pro Forma Operating EBITDA (Non-GAAP) | $ | 3,949 | $ | 3,958 | $ | 3,022 | $ | 3,185 | $ | 14,114 | $ | 4,614 | $ | 4,393 | $ | 9,007 |
1. | Included in "Sundry income (expense) - net" in the Unaudited Pro Forma Combined Statements of Income. |
2. | Significant items, excluding the impact of one-time transactions costs directly attributable to the Merger and costs related to DuPont's cereal broadleaf herbicides and chewing insecticides portfolio and eliminated from the pro forma results. |
Three Months Ended | Year Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||
In millions | Mar 31, 2016 | Jun 30, 2016 | Sep 30, 2016 | Dec 31, 2016 | Dec 31, 2016 | Mar 31, 2017 | Jun 30, 2017 | Jun 30, 2017 | ||||||||||||||||
Pro forma significant items 1 | ||||||||||||||||||||||||
Impact of Dow Corning ownership restructure | $ | — | $ | 2,318 | $ | (212 | ) | $ | — | $ | 2,106 | $ | — | $ | — | $ | — | |||||||
Litigation related charges, awards and adjustments | (1,235 | ) | — | — | 27 | (1,208 | ) | (469 | ) | 137 | (332 | ) | ||||||||||||
Asbestos-related charge | — | — | — | (1,113 | ) | (1,113 | ) | — | — | — | ||||||||||||||
Asset impairments and other charges | — | — | (158 | ) | (598 | ) | (756 | ) | — | — | — | |||||||||||||
Integration and separation costs | (23 | ) | (70 | ) | (160 | ) | (223 | ) | (476 | ) | (242 | ) | (296 | ) | (538 | ) | ||||||||
Restructuring and asset related charges - net | (78 | ) | (366 | ) | (17 | ) | 41 | (420 | ) | (152 | ) | (148 | ) | (300 | ) | |||||||||
Curtailment gain 2 | — | — | — | 382 | 382 | — | — | — | ||||||||||||||||
Gain on sale of business/entity | 369 | 6 | — | — | 375 | 162 | 7 | 169 | ||||||||||||||||
Environmental charges | — | — | — | (295 | ) | (295 | ) | — | — | — | ||||||||||||||
Transaction costs and productivity actions | (31 | ) | (40 | ) | (69 | ) | (55 | ) | (195 | ) | (26 | ) | (22 | ) | (48 | ) | ||||||||
Charge for the termination of a terminal use agreement | — | — | — | (117 | ) | (117 | ) | — | — | — | ||||||||||||||
Customer claims adjustment/recovery | 23 | 30 | — | — | 53 | — | — | — | ||||||||||||||||
Total pro forma significant items before taxes 3 | $ | (975 | ) | $ | 1,878 | $ | (616 | ) | $ | (1,951 | ) | $ | (1,664 | ) | $ | (727 | ) | $ | (322 | ) | $ | (1,049 | ) | |
Tax impact of pro forma significant items 4 | (338 | ) | (304 | ) | (160 | ) | (671 | ) | (1,473 | ) | (240 | ) | (98 | ) | (338 | ) | ||||||||
Tax only significant items | — | 57 | — | (44 | ) | 13 | (100 | ) | 29 | (71 | ) | |||||||||||||
Total pro forma significant items after tax 5 | $ | (637 | ) | $ | 2,125 | $ | (456 | ) | $ | (1,236 | ) | $ | (204 | ) | $ | (387 | ) | $ | (253 | ) | $ | (640 | ) |
1. | Significant items, excluding the impact of one-time transactions costs directly attributable to the Merger and costs related to DuPont's cereal broadleaf herbicides and chewing insecticides portfolio and eliminated from the pro forma results. |
2. | The change in measure of profit/loss for segment reporting to Pro Forma Operating EBITDA resulted in a curtailment gain for DuPont to be recognized as a significant item. |
3. | Impact on "Income (Loss) from continuing operations before income taxes." |
4. | Impact on "Income from continuing operations, net of tax." The income tax effect for each adjustment was calculated based on the statutory tax rate for the jurisdiction(s) in which the adjustment was taxable or deductible. |
5. | Impact on "Net income (loss) from continuing operations available for DowDuPont Inc. common stockholders." |
Three Months Ended | Year Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||
In millions | Mar 31, 2016 | Jun 30, 2016 | Sep 30, 2016 | Dec 31, 2016 | Dec 31, 2016 | Mar 31, 2017 | Jun 30, 2017 | Jun 30, 2017 | ||||||||||||||||
Pro forma amortization of DuPont's intangible assets before income taxes | $ | 273 | $ | 274 | $ | 267 | $ | 266 | $ | 1,080 | $ | 273 | $ | 278 | $ | 551 | ||||||||
Tax impact of pro forma amortization of DuPont's intangible assets | 88 | 89 | 87 | 86 | 350 | 87 | 89 | 176 | ||||||||||||||||
Pro forma amortization of DuPont's intangible assets, after-tax | $ | 185 | $ | 185 | $ | 180 | $ | 180 | $ | 730 | $ | 186 | $ | 189 | $ | 375 |
Three Months Ended | Year Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||
Dollars per share | Mar 31, 2016 | Jun 30, 2016 | Sep 30, 2016 | Dec 31, 2016 | Dec 31, 2016 | Mar 31, 2017 | Jun 30, 2017 | Jun 30, 2017 | ||||||||||||||||
Pro forma earnings (loss) per common share from continuing operations - diluted 1 | $ | 0.48 | $ | 1.68 | $ | 0.22 | $ | (0.04 | ) | $ | 2.37 | $ | 0.81 | $ | 0.78 | $ | 1.59 | |||||||
- Earnings (Loss) per common share impact of pro forma significant items, after-tax | (0.29 | ) | 0.95 | (0.20 | ) | (0.55 | ) | (0.09 | ) | (0.16 | ) | (0.11 | ) | (0.27 | ) | |||||||||
- Earnings (Loss) per common share impact of pro forma amortization of DuPont's intangible assets, after-tax | (0.08 | ) | (0.09 | ) | (0.08 | ) | (0.08 | ) | (0.33 | ) | (0.08 | ) | (0.08 | ) | (0.16 | ) | ||||||||
+ Dilutive effect of assumed preferred stock conversion into shares of common stock 2 | — | 0.03 | — | — | — | — | — | — | ||||||||||||||||
Pro forma adjusted earnings per common share from continuing operations - diluted (Non-GAAP) 3,4 | $ | 0.85 | $ | 0.85 | $ | 0.50 | $ | 0.59 | $ | 2.79 | $ | 1.05 | $ | 0.97 | $ | 2.02 |
1. | For the three-month period ended December 31, 2016, the Company reported “Pro forma net loss from continuing operations available for DowDuPont Inc.common stockholders.” In accordance with U.S. GAAP, “Weighted-average common shares outstanding-basic” was used in the calculation of “Pro forma earnings (loss) per common share form continuing operations - diluted.” |
2. | For the three-month period ended June 30, 2016, an assumed conversion of the Preferred Stock into shares of the Company’s common stock was included in the calculation of “Pro forma earnings (loss) per common share from continuing operations - diluted.” |
3. | The dilutive effect of options and awards (22.2 million shares) was included in “Pro forma adjusted earnings per common share from continuing operations - diluted” for the three-month period ended December 31, 2016 as the Company had net income for this period on an operating basis (Non-GAAP). |
4. | Pro Forma Adjusted Earnings Per Share ("Pro Forma Adjusted EPS"), a non-GAAP measure, is defined as “Pro Forma earnings (loss) per common share from continuing operations - diluted,” excluding the after-tax impact of pro forma significant items and the after-tax impact of pro forma amortization expense associated with DuPont’s intangible assets. The Company’s management believes this measure provides useful information to investors by offering an additional way of viewing DowDuPont’s results that helps investors identify the underlying earnings of the Company as compared to prior and future periods and its peers. Although amortization of DuPont’s intangible assets is excluded from this non-GAAP measure, management believes it is important for investors to understand that such intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in amortization of additional intangible assets. Pro Forma Adjusted EPS is a financial measure not recognized in accordance with U.S. GAAP and should not be viewed as an alternative to U.S. GAAP financial measures of performance. |