EIDP (CTA-PA) 10-Q 27 Apr 10 2010 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information
	3 Months Ended Mar. 31, 2010	Apr. 15, 2010
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2010-03-31
Entity Registrant Name	DUPONT E I DE NEMOURS & CO
Entity Central Index Key	0000030554
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		906,042,000

Consolidated Income Statements

Consolidated Income Statements (USD $)
In Millions, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Net sales	$8,484	$6,871
Other income, net	360	399
Total	8,844	7,270
Cost of goods sold and other operating charges	5,796	5,185
Selling, general and administrative expenses	993	907
Research and development expense	365	323
Interest expense	103	106
Total	7,257	6,521
Income before income taxes	1,587	749
Provision for income taxes	450	260
Net income	1,137	489
Less: Net income attributable to noncontrolling interests	8	1
Net income attributable to DuPont	$1,129	$488
Basic earnings per share of common stock	1.24	0.54
Diluted earnings per share of common stock	1.24	0.54
Dividends per share of common stock	0.41	0.41

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (USD $)
In Millions	3 Months Ended Mar. 31, 2010	12 Months Ended Dec. 31, 2009
Assets
Cash and cash equivalents	$2,911	$4,021
Marketable securities	1,599	2,116
Accounts and notes receivable, net	7,064	5,030
Inventories	5,062	5,380
Prepaid expenses	222	129
Income taxes	578	612
Total current assets	17,436	17,288
Property, plant and equipment, net of accumulated depreciation (March 31, 2010 - $18,052; December 31, 2009 - $17,821)	10,960	11,094
Goodwill	2,137	2,137
Other intangible assets	2,499	2,552
Investment in affiliates	1,050	1,014
Other assets	3,904	4,100
Total	37,986	38,185
Liabilities and Stockholders' Equity
Accounts payable	3,179	3,542
Short-term borrowings and capital lease obligations	1,484	1,506
Income taxes	432	154
Other accrued liabilities	3,501	4,188
Total current liabilities	8,596	9,390
Long-term borrowings and capital lease obligations	9,543	9,528
Other liabilities	11,295	11,490
Deferred income taxes	129	126
Total liabilities	29,563	30,534
Commitments and contingent liabilities
Stockholders' equity
Preferred stock	237	237
Common stock, $0.30 par value; 1,800,000,000 shares authorized; Issued at March 31, 2010 - 992,976,000; December 31, 2009 - 990,855,000	298	297
Additional paid-in capital	8,514	8,469
Reinvested earnings	11,463	10,710
Accumulated other comprehensive loss	(5,804)	(5,771)
Common stock held in treasury, at cost (87,041,000 shares at March 31, 2010 and December 31, 2009)	(6,727)	(6,727)
Total DuPont stockholders' equity	7,981	7,215
Noncontrolling interests	442	436
Total equity	8,423	7,651
Total	$37,986	$38,185

1_Condensed Consolidated Balanc

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data	Mar. 31, 2010	Dec. 31, 2009
Accumulated Depreciation	$18,052	$17,821
Common stock, par value	0.3	0.3
Common stock, shares authorized	1,800,000,000	1,800,000,000
Common stock, shares issued	992,976,000	990,855,000
Common stock held in treasury, shares	87,041,000	87,041,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Cash Flows (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Operating activities
Net income	$1,137	$489
Adjustments to reconcile net income to cash used for operating activities:
Depreciation	308	300
Amortization of intangible assets	58	99
Contributions to pension plans	(90)	(100)
Other noncash charges and credits - net	104	66
Change in operating assets and liabilities - net	(2,582)	(1,686)
Cash used for operating activities	(1,065)	(832)
Investing activities
Purchases of property, plant and equipment	(185)	(358)
Investments in affiliates	(12)	(8)
Proceeds from sales of assets - net of cash sold	14	15
Net decrease in short-term financial instruments	449	38
Forward exchange contract settlements	191	(76)
Other investing activities - net	(73)	(4)
Cash provided by (used for) investing activities	384	(393)
Financing activities
Dividends paid to stockholders	(374)	(375)
Net (decrease) increase in borrowings	(9)	433
Proceeds from exercise of stock options	21
Other financing activities - net	(8)	(38)
Cash (used for) provided by financing activities	(370)	20
Effect of exchange rate changes on cash	(59)	(54)
Decrease in cash and cash equivalents	(1,110)	(1,259)
Cash and cash equivalents at beginning of period	4,021	3,645
Cash and cash equivalents at end of period	$2,911	$2,386

Summary of Significant Accounti

Summary of Significant Accounting Policies
	3 Months Ended Mar. 31, 2010
Summary of Significant Accounting Policies	Note 1. Summary of Significant Accounting Policies Interim Financial Statements The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the results for interim periods have been included. Results for interim periods should not be considered indicative of results for a full year. These interim Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto contained in the companys Annual Report on Form 10-K for the year ended December 31, 2009, collectively referred to as the 2009 Annual Report. The Consolidated Financial Statements include the accounts of the company and all of its subsidiaries in which a controlling interest is maintained, as well as variable interest entities in which DuPont is considered the primary beneficiary. Certain reclassifications of prior years data have been made to conform to current year classifications. Recent Accounting Pronouncements In June 2009, the Financial Accounting Standards Board (FASB) issued authoritative guidance on accounting for transfers of financial assets, which is applied to financial asset transfers on or after the effective date, which is January 1, 2010 for the companys financial statements. The new requirement limits the circumstances in which a financial asset may be de-recognized when the transferor has not transferred the entire financial asset or has continuing involvement with the transferred asset. The concept of a qualifying special-purpose entity, which had previously facilitated sale accounting for certain asset transfers, is removed by the new requirement. The adoption of this guidance did not have a material effect on the companys financial position or results of operations. In June 2009, FASB issued authoritative guidance on accounting for variable interest entities, which is effective for reporting periods beginning after November 15, 2009. The amendments change the process for how an enterprise determines which party consolidates a variable interest entity (VIE) to a primarily qualitative analysis. The party that consolidates the VIE (the primary beneficiary) is defined as the party with (1) the power to direct activities of the VIE that most significantly affect the VIEs economic performance and (2) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE. Upon adoption, reporting enterprises must reconsider their conclusions on whether an entity should be consolidated. The adoption of this guidance did not have a material effect on the companys financial position or results of operations.

Fair Value Measurements

Fair Value Measurements
	3 Months Ended Mar. 31, 2010
Fair Value Measurements	Note 2. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The company uses the following valuation techniques to measure fair value for its financial assets and financial liabilities: Level 1 - Quoted market prices in active markets for identical assets or liabilities; Level 2 - Significant other observable inputs (e.g. quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and market-corroborated inputs); Level 3 - Unobservable inputs for the asset or liability, which are valued based on managements estimates of assumptions that market participants would use in pricing the asset or liability. The company has determined that its financial assets and liabilities are level 1 and level 2 in the fair value hierarchy. At March 31, 2010, the following financial assets and financial liabilities were measured at fair value on a recurring basis using the type of inputs shown: Fair Value Measurements at March31, 2010 Using March31, 2010 Level 1 Inputs Level 2 Inputs Financial assets Derivatives $ 150 $ $ 150 Available-for-sale securities 19 19 $ 169 $ 19 $ 150 Financial liabilities Derivatives $ 139 $ $ 139 At December 31, 2009, the following financial assets and liabilities were measured at fair value on a recurring basis using the type of inputs shown: December31, Fair Value Measurements at December31, 2009 Using 2009 Level 1 Inputs Level 2 Inputs Financial assets Derivatives $ 128 $ $ 128 Available-for-sale securities 27 27 $ 155 $ 27 $ 128 Financial liabilities Derivatives $ 132 $ $ 132 The estimated fair value of the companys outstanding debt, including interest rate financial instruments, based on quoted market prices for the same or similar issues or on current rates offered to the company for debt of the same remaining maturities, was $11,600 as of March 31, 2010 and December 31, 2009, as compared to a carrying value of approximately $11,000. See Note 22, Long-Term Employee Benefits to the companys 2009 Annual Report for information regarding the companys pension assets measured at fair value on a recurring basis.

Other Income, Net

Other Income, Net
	3 Months Ended Mar. 31, 2010
Other Income, Net	Note 3. Other Income, Net Three Months EndedMarch31, 2010 2009 Cozaar /Hyzaar income $ 219 $ 251 Royalty income 32 32 Interest income 19 21 Equity in earnings of affiliates 45 33 Net gains on sales of assets 5 4 Net exchange gains (1) 27 49 Miscellaneous income and expenses, net (2) 13 9 Total $ 360 $ 399 (1) The company routinely uses forward exchange contracts to offset its net exposures, by currency, related to its foreign currency-denominated monetary assets and liabilities. 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 on net monetary asset positions. The net pre-tax exchange gains and losses are partially offset by the associated tax impact. The $27 net exchange gain for the three months ended March 31, 2010 includes a $36 exchange loss associated with the devaluation of the Venezuelan bolivar. (2) Miscellaneous income and expenses, net, includes interest items, litigation settlements, and other items.

Employee Separation / Asset Rel

Employee Separation / Asset Related Charges, Net
	3 Months Ended Mar. 31, 2010
Employee Separation / Asset Related Charges, Net	Note 4. Employee Separation / Asset Related Charges, Net At March 31, 2010, total liabilities relating to prior restructuring activities were $213. A complete discussion of restructuring initiatives is included in the companys 2009 Annual Report in Note 5, Employee Separation / Asset Related Charges, Net. 2009 Restructuring Program Account balances and activity for the 2009 restructuring program are summarized below: Employee Separation Costs Other Non-personnel Charges (1) Total Balance at December31, 2009 $ 150 $ 24 $ 174 Payments (27 ) (2) (27 ) Net translation adjustment (4 ) (4 ) Balance at March31, 2010 $ 119 $ 24 $ 143 (1) Other non-personnel charges consist of contractual obligation costs. (2) Payments to U.S. based employees are generally paid over a period of time not to exceed twelve months. There were $27 of cash payments related to the 2009 restructuring program during the three months ended March 31, 2010. As of March 31, 2010, approximately 1,100 employees have been separated related to the 2009 restructuring program. The company expects this initiative and all related payments to be substantially complete by the end of 2010. 2008 Restructuring Program The account balances and activity for the companys 2008 global restructuring program are as follows: Employee Separation Costs Other Non-personnel Charges (1) Total Balance at December31, 2009 $ 105 $ 9 $ 114 Payments (45 ) (2) (5 ) (50 ) Net translation adjustment (6 ) (6 ) Balance at March31, 2010 $ 54 $ 4 $ 58 (1) Other non-personnel charges consist of contractual obligation costs. (2) Payments to employees of non-U.S. based subsidiaries are generally paid in lump sum amounts and are based on years of service. Payments to U.S. based employees are generally paid over a period of time not to exceed twelve months. There were $45 of employee separation cash payments related to the 2008 restructuring program during the three months ended March 31, 2010. As of March 31, 2010, approximately 1,800 employees have been separated related to the 2008 restructuring program. The program is estimated to be complete by the end of 2010.

Provision for Income Taxes

Provision for Income Taxes
	3 Months Ended Mar. 31, 2010
Provision for Income Taxes	Note 5. Provision for Income Taxes In the first quarter 2010, the company recorded a tax provision of $450, including $85 of tax expense primarily associated with hedging the foreign currency-denominated monetary assets and liabilities of the companys operations. In the first quarter 2009, the company recorded a tax provision of $260, including $103 of tax expense associated with hedging the foreign currency-denominated monetary assets and liabilities of the companys operations. Each year the company files hundreds of tax returns in the various national, state and local income taxing jurisdictions in which it operates. These tax returns are subject to examination and possible challenge by the taxing authorities. Positions challenged by the taxing authorities may be settled or appealed by the company. As a result, there is an uncertainty in income taxes recognized in the companys financial statements in accordance with accounting for income taxes and accounting for uncertainty in income taxes. It is reasonably possible that net reductions to the companys global unrecognized tax benefits could be in the range of $50 to $75 within the next twelve months with the majority due to the settlement of uncertain tax positions with various tax authorities.

Earnings Per Share of Common St

Earnings Per Share of Common Stock
	3 Months Ended Mar. 31, 2010
Earnings Per Share of Common Stock	Note 6. Earnings Per Share of Common Stock Set forth below is a reconciliation of the numerator and denominator for basic and diluted earnings per share calculations for the periods indicated: Three Months EndedMarch31, 2010 2009 Numerator: Net income attributable to DuPont $ 1,129 $ 488 Preferred dividends (3 ) (3 ) Net income available to DuPont common stockholders $ 1,126 $ 485 Denominator: Weighted-average number of common shares - Basic 905,486,000 903,893,000 Dilutive effect of the companys employee compensation plans 6,405,000 1,772,000 Weighted-average number of common shares - Diluted 911,891,000 905,665,000 The following average number of stock options were antidilutive, and therefore, were not in cluded in the diluted earnings per share calculations: Three Months EndedMarch31, 2010 2009 Average Number of Stock Options 64,343,000 81,260,000

Inventories

Inventories
	3 Months Ended Mar. 31, 2010
Inventories	Note 7. Inventories March31,2010 December31, 2009 Finished products $ 3,622 $ 2,893 Semifinished products 1,206 2,231 Raw materials and supplies 853 872 5,681 5,996 Adjustment of inventories to a last-in, first-out (LIFO) basis (619 ) (616 ) Total $ 5,062 $ 5,380

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets
	3 Months Ended Mar. 31, 2010
Goodwill and Other Intangible Assets	Note 8. Goodwill and Other Intangible Assets There were no significant changes in goodwill for the three-month period ended March 31, 2010. The gross carrying amounts and accumulated amortization of other intangible assets by major class are as follows: March31, 2010 December31, 2009 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible assets subject to amortization (Definite-lived): Purchased and licensed technology $ 1,623 $ (759 ) $ 864 $ 1,622 $ (716 ) $ 906 Patents 169 (61 ) 108 169 (57 ) 112 Trademarks 62 (23 ) 39 62 (22 ) 40 Other (1) 611 (277 ) 334 642 (302 ) 340 2,465 (1,120 ) 1,345 2,495 (1,097 ) 1,398 Intangible assets not subject to amortization (Indefinite-lived): Trademarks / tradenames 179 179 179 179 Pioneer germplasm (2) 975 975 975 975 1,154 1,154 1,154 1,154 Total $ 3,619 $ (1,120 ) $ 2,499 $ 3,649 $ (1,097 ) $ 2,552 (1) Primarily consists of sales and grower networks, customer lists, marketing and manufacturing alliances and noncompetition agreements. (2) Pioneer germplasm is the pool of genetic source material and body of knowledge gained from the development and delivery stage of plant breeding. The company recognized germplasm as an intangible asset upon the acquisition of Pioneer. This intangible asset is expected to contribute to cash flows beyond the foreseeable future and there are no legal, regulatory, contractual, or other factors which limit its useful life. The aggregate pre-tax amortization expense for definitive-lived intangible assets was $58 and $99 for the three-month period ended March 31, 2010 and 2009, respectively. The estimated aggregate pre-tax amortization expense for 2010 and each of the next five years is approximately $184, $188, $191, $190, $175 and $131.

Commitments and Contingent Liab

Commitments and Contingent Liabilities
	3 Months Ended Mar. 31, 2010
Commitments and Contingent Liabilities	Note 9. Commitments and Contingent Liabilities Guarantees Product Warranty Liability The company warrants that its products meet standard specifications. The companys product warranty liability was $19 and $17 as of March 31, 2010 and December 31, 2009, respectively. Estimates for warranty costs are based on historical claims experience. Indemnifications In connection with acquisitions and divestitures, the company has indemnified respective parties against certain liabilities that may arise in connection with these transactions and business activities prior to the completion of the transaction. The term of these indemnifications, which typically pertain to environmental, tax and product liabilities, is generally indefinite. In addition, the company indemnifies its duly elected or appointed directors and officers to the fullest extent permitted by Delaware law, against liabilities incurred as a result of their activities for the company, such as adverse judgments relating to litigation matters. If the indemnified party were to incur a liability or have a liability increase as a result of a successful claim, pursuant to the terms of the indemnification, the company would be required to reimburse the indemnified party. The maximum amount of potential future payments is generally unlimited. The carrying amount recorded for all indemnifications as of March 31, 2010 and December 31, 2009 was $97 and $100, respectively. Although it is reasonably possible that future payments may exceed amounts accrued, due to the nature of indemnified items, it is not possible to make a reasonable estimate of the maximum potential loss or range of loss. No assets are held as collateral and no specific recourse provisions exist. In connection with the 2004 sale of the majority of the net assets of Textiles and Interiors, the company indemnified the purchasers, subsidiaries of Koch Industries, Inc. (INVISTA), against certain liabilities primarily related to taxes, legal and environmental matters and other representations and warranties under the Purchase and Sale Agreement. The estimated fair value of the indemnity obligations under the Purchase and Sale Agreement was $70 and was included in the indemnifications balance of $97 at March 31, 2010. Under the Purchase and Sale Agreement, the companys total indemnification obligation for the majority of the representations and warranties cannot exceed $1,400. The other indemnities are not subject to this limit. In March 2008, INVISTA filed suit in the Southern District of New York alleging that certain representations and warranties in the Purchase and Sale Agreement were breached and, therefore, that DuPont is obligated to indemnify it. DuPont disagrees with the extent and value of INVISTAs claims. DuPont has not changed its estimate of its total indemnification obligation under the Purchase and Sale Agreement as a result of the lawsuit. Obligations for Equity Affiliates Others The company has directly guaranteed various debt obligations under agreements with third parties related to equity affiliates, customers, suppliers and other affiliated and unaffiliated companies. At

Stockholders' Equity

Stockholders' Equity
	3 Months Ended Mar. 31, 2010
Stockholders' Equity	Note 10. Stockholders Equity A summary of the changes in equity for the three months ended March 31, 2010 and 2009 is provided below: Consolidated Changes in Equity for theThree Months Ended March31, 2010 Total Comprehensive Income Preferred Stock Common Stock AdditionalPaid-in-Capital Reinvested Earnings Accumulated Other Comprehensive Loss Treasury Stock Noncontrolling Interests Beginning balance $ 7,651 $ 237 $ 297 $ 8,469 $ 10,710 $ (5,771 ) $ (6,727 ) $ 436 Comprehensive income: Net income 1,137 1,137 1,129 8 Other comprehensive loss, net of tax: Cumulative translation adjustment (61 ) (61 ) (61 ) Net revaluation and clearance of cash flow hedges to earnings (31 ) (31 ) (30 ) (1 ) Pension benefit plans 80 80 80 Other benefit plans (20 ) (20 ) (20 ) Net unrealized loss on securities (2 ) (2 ) (2 ) Other comprehensive loss (34 ) (34 ) Comprehensive income 1,103 1,103 (1) Common dividends (374 ) (373 ) (1 ) Preferred dividends (3 ) (3 ) Common stock issued - compensation plans 46 1 45 Total Equity as of March31, 2010 $ 8,423 $ 237 $ 298 $ 8,514 $ 11,463 $ (5,804 ) $ (6,727 ) $ 442 Consolidated Changes in Equity for the Three Months Ended March31, 2009 Total Comprehensive Income Preferred Stock Common Stock Additional Paid-in-Capital Reinvested Earnings Accumulated Other Comprehensive Loss Treasury Stock Noncontrolling Interests Beginning balance $ 7,552 $ 237 $ 297 $ 8,380 $ 10,456 $ (5,518 ) $ (6,727 ) $ 427 Acquisition of a majority interest in a consolidated subsidiary 1 1 Comprehensive income: Net income 489 489 488 1 Other comprehensive loss, net of tax: Cumulative translation adjustment (68 ) (68 ) (68 ) Net revaluation and clearance of cash flow hedges to earnings 2 2 2 Pension benefit plans 38 38 38 Other benefit plans (10 ) (10 ) (10 ) Net unrealized loss on securities (2 ) (2 ) (2 ) Other comprehensive loss (40 ) (40 ) Comprehensive income 44

Derivatives and Other Hedging I

Derivatives and Other Hedging Instruments
	3 Months Ended Mar. 31, 2010
Derivatives and Other Hedging Instruments	Note 11. Derivatives and Other Hedging Instruments Objectives and Strategies for Holding Derivative Instruments In the ordinary course of business, the company enters into contractual arrangements (derivatives) to reduce its exposure to foreign currency, interest rate and commodity price risks under established procedures and controls. The company has established a variety of approved derivative instruments to be utilized in each financial risk management program, as well as varying levels of exposure coverage and time horizons based on an assessment of risk factors related to each hedging program. Derivative instruments utilized during the period include forwards, options, futures and swaps. The company has not designated any nonderivatives as hedging instruments. The company established a financial risk management framework that incorporated the Corporate Financial Risk Management Committee and established financial risk management policies and guidelines that authorize the use of specific derivative instruments and further establishes procedures for control and valuation, counterparty credit approval and routine monitoring and reporting. The counterparties to these contractual arrangements are major financial institutions and major commodity exchanges. The company is exposed to credit loss in the event of nonperformance by these counterparties. The company manages this exposure to credit loss through the aforementioned credit approvals, limits and monitoring procedures and, to the extent possible, by restricting the period over which unpaid balances are allowed to accumulate. The company anticipates performance by counterparties to these contracts and therefore no material loss is expected. Market and counterparty credit risks associated with these instruments are regularly reported to management. The company hedges foreign currency denominated revenue and monetary assets and liabilities, certain business specific foreign currency exposures and certain energy feedstock purchases. In addition, the company enters into exchange traded agricultural commodity derivatives to hedge exposures relevant to agricultural feedstock purchases. Foreign Currency Risk The companys objective in managing exposure to foreign currency fluctuations is to reduce earnings and cash flow volatility associated with foreign currency rate changes. Accordingly, the company enters into various contracts that change in value as foreign exchange rates change to protect the value of its existing foreign currency-denominated assets, liabilities, commitments, and cash flows. 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 primary business objective of this hedging program is to maintain an approximately balanced position in foreign currencies so that exchange gains and losses resulting from exchange rate changes, net of related tax effects, are minimized. Interest Rate Risk The company uses interest rate swaps to manage the interest rate mix of the total debt portfolio and re

Long-Term Employee Benefits

Long-Term Employee Benefits
	3 Months Ended Mar. 31, 2010
Long-Term Employee Benefits	Note 12. Long-Term Employee Benefits The following sets forth the components of the companys net periodic benefit cost for pensions: Three Months EndedMarch31, 2010 2009 Service cost $ 51 $ 47 Interest cost 316 315 Expected return on plan assets (360 ) (398 ) Amortization of unrecognized loss 126 70 Amortization of prior service cost 4 4 Net periodic benefit cost $ 137 $ 38 The company disclosed in its Consolidated Financial Statements for the year ended December 31, 2009, that it expected to contribute approximately $270 to its pension plans, other than to the principal U.S. pension plan in 2010. As of March 31, 2010, contributions of $90 have been made to these pension plans and the company anticipates additional contributions during the remainder of 2010 to total approximately $180. The following sets forth the components of the companys net periodic benefit cost for other long-term employee benefits: Three Months EndedMarch31, 2010 2009 Service cost $ 7 $ 8 Interest cost 60 61 Amortization of unrecognized loss 15 12 Amortization of prior service benefit (27 ) (26 ) Net periodic benefit cost $ 55 $ 55 The company disclosed in its Consolidated Financial Statements for the year ended December 31, 2009, that it expected to make payments of approximately $341 to its other long-term employee benefit plans in 2010. Through March 31, 2010, the company has made benefit payments of $75 related to its other long-term employee benefit plans and anticipates additional payments during the remainder of 2010 to total approximately $266.

Segment Information

Segment Information
	3 Months Ended Mar. 31, 2010
Segment Information	Note 13. Segment Information Segment sales include transfers to another business segment. Products are transferred between segments on a basis intended to reflect, as nearly as practicable, the market value of the products. Segment pre-tax operating income/(loss) (PTOI) is defined as operating income/(loss) before income taxes, exchange gains/(losses), corporate expenses, interest and the cumulative effect of changes in accounting principles. Prior year data have been reclassified to reflect the current organizational structure. Three Months EndedMarch31, Agriculture Nutrition(2) Electronics Communications Performance Chemicals Performance Coatings Performance Materials Safety Protection Pharmaceuticals Other Total (1) 2010 Segment sales $ 3,242 $ 631 $ 1,414 $ 902 $ 1,534 $ 789 $ $ 48 $ 8,560 Less transfers (4 ) (50 ) (1 ) (19 ) (2 ) (76 ) Net sales 3,242 627 1,364 901 1,515 787 48 8,484 Pre-tax operating income (loss) 941 105 190 45 230 102 221 (31 ) 1,803 2009 Segment sales $ 3,062 $ 365 $ 1,070 $ 732 $ 942 $ 718 $ $ 28 $ 6,917 Less transfers (4 ) (26 ) (5 ) (2 ) (9 ) (46 ) Net sales 3,062 361 1,044 732 937 716 19 6,871 Pre-tax operating income (loss) 852 (34 ) 44 (75 ) (146 ) 64 252 (44 ) 913 (1) A reconciliation of the pre-tax operating income totals reported for the operating segments to the applicable line item on the Consolidated Financial Statements is as follows: Three Months Ended March31, 2010 2009 Total segment PTOI $ 1,803 $ 913 Net exchange gains, including affiliates 30 70 Corporate expenses and net interest (246 ) (234 ) Income before income taxes $ 1,587 $ 749 (2) As of March 31, 2010, Agriculture Nutrition net assets were $7,987, an increase of $1,775 from $6,112 at December 31, 2009. The increase was primarily due to higher trade receivables due to normal seasonality in the sales and cash collections cycle.