Exhibit 99.2
E. I. DU PONT DE NEMOURS AND COMPANY
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
On February 1, 2013, E. I. du Pont de Nemours and Company (“DuPont”) completed the previously disclosed sale of its Performance Coatings business for $4.9 billion in cash (about $4.0 billion after-tax) and the assumption of certain liabilities to Flash Bermuda Co, Ltd., a Bermuda exempt limited liability company formed by the affiliates of The Carlyle Group.
The unaudited pro forma consolidated financial information of DuPont presented below was derived from DuPont’s historical consolidated financial statements and is being presented to give effect to the disposition of Performance Coatings. The unaudited pro forma consolidated balance sheet assumes the disposition of Performance Coatings occurred on December 31, 2012, including the expected use of proceeds to repurchase and retire $1 billion of common stock under the December 2012 share repurchase program. Unaudited pro forma consolidated income statements for the three most recently completed fiscal years are not presented as Performance Coatings has been reflected as discontinued operations in the company’s historical information.
The pro forma adjustments are based on the best information available and assumptions that management believes are factually supportable. The unaudited pro forma consolidated financial information is for illustrative and informational purposes only and is not intended to reflect what DuPont’s financial position would have been had the disposition occurred on the date indicated and is not necessarily indicative of DuPont’s future financial position.
The unaudited pro forma financial information should be read in conjunction with the historical financial statements and accompanying notes of DuPont included in its 2012 Annual Report filed on Form 10-K.
E. I. du Pont de Nemours and Company
Consolidated Balance Sheet
(In millions - unaudited)
|
| | | | | | | | | | | | |
| | December 31, 2012 |
| | As Reported | Disposition of Performance Coatings (a) | Pro Forma Adjustments (b) | Pro Forma |
| Assets | |
| | | |
|
| Current assets | |
| | | |
|
| Cash and cash equivalents | $ | 4,284 |
| | $ | 3,900 |
| $ | 8,184 |
|
| Marketable securities | 123 |
| | | 123 |
|
| Accounts and notes receivable, net | 5,452 |
| | (285 | ) | 5,167 |
|
| Inventories | 7,422 |
| | | 7,422 |
|
| Prepaid expenses | 204 |
| | | 204 |
|
| Deferred income taxes | 650 |
| | (35 | ) | 615 |
|
| Assets held for sale | 3,056 |
| (3,056 | ) | | — |
|
| Total current assets | 21,191 |
| (3,056 | ) | 3,580 |
| 21,715 |
|
| Property, plant and equipment | 31,826 |
| | | 31,826 |
|
| Less: Accumulated depreciation | 19,085 |
| | | 19,085 |
|
| Net property, plant and equipment | 12,741 |
| | | 12,741 |
|
| Goodwill | 4,616 |
| | | 4,616 |
|
| Other intangible assets | 5,126 |
| | | 5,126 |
|
| Investment in affiliates | 1,163 |
| | | 1,163 |
|
| Deferred income taxes | 3,939 |
| | | 3,939 |
|
| Other assets | 960 |
| | | 960 |
|
| Total | $ | 49,736 |
| $ | (3,056 | ) | $ | 3,580 |
| $ | 50,260 |
|
| Liabilities and Equity | |
| | | |
|
| Current liabilities | |
| | | |
|
| Accounts payable | $ | 4,853 |
| | | $ | 4,853 |
|
| Short-term borrowings and capital lease obligations | 1,275 |
| | | 1,275 |
|
| Income taxes | 340 |
| | 600 |
| 940 |
|
| Other accrued liabilities | 5,997 |
| | | 5,997 |
|
| Liabilities related to assets held for sale | 1,084 |
| (1,084 | ) | | — |
|
| Total current liabilities | 13,549 |
| (1,084 | ) | 600 |
| 13,065 |
|
| Long-term borrowings and capital lease obligations | 10,465 |
| | | 10,465 |
|
| Other liabilities | 14,687 |
| | | 14,687 |
|
| Deferred income taxes | 856 |
| | | 856 |
|
| Total liabilities | 39,557 |
| (1,084 | ) | 600 |
| 39,073 |
|
| Commitments and contingent liabilities | | | | |
| Stockholders' Equity | |
| | | |
|
Preferred stock, without par value – cumulative; 23,000,000 shares authorized; issued at December 31, 2012 and 2011: | |
| | | |
|
| $4.50 Series – 1,673,000 shares (callable at $120) | 167 |
| | | 167 |
|
| $3.50 Series – 700,000 shares (callable at $102) | 70 |
| | | 70 |
|
Common stock, $.30 par value; 1,800,000,000 shares authorized; issued at December 31, 2012 – 1,020,057,000; 2011 – 1,013,164,000 | 306 |
| | | 306 |
|
| Additional paid-in capital | 10,632 |
| | (1,000 | ) | 9,632 |
|
| Reinvested earnings | 14,286 |
| | 2,008 |
| 16,294 |
|
| Accumulated other comprehensive loss | (8,646 | ) | | | (8,646 | ) |
Common stock held in treasury, at cost (Shares: December 31, 2012 and 2011 – 87,041,000) | (6,727 | ) | | | (6,727 | ) |
| Total DuPont stockholders' equity | 10,088 |
| — |
| 1,008 |
| 11,096 |
|
| Noncontrolling interests | 91 |
| — |
| — |
| 91 |
|
| Total equity | 10,179 |
| — |
| 1,008 |
| 11,187 |
|
| Total | $ | 49,736 |
| $ | (1,084 | ) | $ | 1,608 |
| $ | 50,260 |
|
Notes to the Unaudited Pro Forma Consolidated Balance Sheet:
(a) - Represents the assets and liabilities related to the Performance Coatings business that were classified as held for sale as reported by DuPont in the 2012 Annual Report filed on Form 10-K.
(b) - Represents pro forma adjustments which include the following:
- Receipt of cash proceeds from the sale of Performance Coatings, reflecting the estimated gain and tax impacts of the transaction.
- Repurchase and retirement of $1 billion of common stock in connection with the December 2012 share repurchase program.
