e11vk
United States Securities and Exchange Commission
Washington, DC 20549
FORM 11-K
(Mark
One)
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ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2007
OR
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TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 |
Commission file number 001-00815
DuPont
401(k) and Profit Sharing Plan
(Full title of plan)
E. I. du Pont de Nemours and Company
1007 Market Street
Wilmington, Delaware 19898
(Name and Address of Principal Executive Office of Issuer)
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, E. I. du Pont de Nemours
and Company has duly caused this Annual Report to be signed on its behalf by the undersigned
hereunto duly authorized.
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DuPont 401(k) and Profit Sharing Plan
Dated: June 27, 2008
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By: |
/s/ Robert Slone
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Robert Slone |
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Director of Global Rewards,
Policy & Strategy and US Delivery |
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DuPont 401(k) and Profit Sharing Plan
Index to Financial Statements and Supplemental Schedule
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Page(s) |
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1 |
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Financial Statements: |
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2 |
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3 |
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4 9 |
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Supplemental Schedule*: |
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10 |
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* |
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Other supplemental schedules required by Section 2520.103-10 of the Department of Labors
Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974 have been omitted because they are not applicable. |
Report of Independent Registered Public Accounting Firm
To the Participants and Administrator of
DuPont 401(k) and Profit Sharing Plan
In our opinion, the accompanying statements of net assets available for benefits and the related
statements of changes in net assets available for benefits present fairly, in all material
respects, the net assets available for benefits of DuPont 401(k) and Profit Sharing Plan (the
Plan) at December 31, 2007 and 2006, and the changes in net assets available for benefits for the
years then ended in conformity with accounting principles generally accepted in the United States
of America. These financial statements are the responsibility of the Plans management. Our
responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits of these statements in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles used and significant
estimates made by management, and evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements
taken as a whole. The supplemental Schedule of Assets (Held at End of Year) is presented for the
purpose of additional analysis and is not a required part of the basic financial statements but is
supplementary information required by the Department of Labors Rules and Regulations for Reporting
and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental
schedule is the responsibility of the Plans management. The supplemental schedule has been
subjected to the auditing procedures applied in the audits of the basic financial statements and,
in our opinion, is fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
/S/ PRICEWATERHOUSECOOPERS LLP
Philadelphia, Pennsylvania
June 27, 2008
DuPont 401(k) and Profit Sharing Plan
Statements of Net Assets Available for Benefits
December 31, 2007 and 2006
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2007 |
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2006 |
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Assets: |
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Investments at fair value: |
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Company stock fund |
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$ |
684,674 |
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$ |
597,110 |
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Mutual funds |
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9,380,124 |
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7,470,585 |
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Common/collective trust funds |
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4,308,795 |
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3,538,801 |
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Participant loans |
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225,841 |
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177,604 |
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Total investments |
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14,599,434 |
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11,784,100 |
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Receivables: |
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Participants contributions |
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27,057 |
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43,217 |
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Employers contributions |
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241,032 |
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207,452 |
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Dividends and interest |
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533 |
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231 |
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Total receivables |
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268,622 |
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250,900 |
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Cash |
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194,227 |
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160 |
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Net assets available for benefits, at fair value |
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15,062,283 |
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12,035,160 |
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Adjustment from fair value to contract value for
interest in common/collective trust relating to fully
benefit-responsive investment contacts |
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28,073 |
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47,640 |
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Net assets available for benefits |
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$ |
15,090,356 |
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$ |
12,082,800 |
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The accompanying notes are an integral part of these financial statements.
- 2 -
DuPont 401(k) and Profit Sharing Plan
Statements of Changes in Net Assets Available for Benefits
December 31, 2007 and 2006
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2007 |
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2006 |
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Additions: |
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Investment income: |
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Net appreciation (depreciation) in fair value of investments |
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$ |
(295,663 |
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643,064 |
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Interest Income |
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17,340 |
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10,690 |
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Dividend Income |
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947,720 |
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590,660 |
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Investment income |
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669,397 |
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1,244,414 |
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Contributions: |
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Participants |
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2,055,393 |
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1,997,973 |
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Employer |
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1,229,854 |
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1,172,346 |
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Rollover |
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53,080 |
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58,631 |
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Total contributions |
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3,338,327 |
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3,228,950 |
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Total additions |
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4,007,724 |
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4,473,364 |
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Deductions: |
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Benefits paid to participants |
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997,028 |
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358,084 |
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Administrative expenses |
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3,140 |
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800 |
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Total deductions |
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1,000,168 |
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358,884 |
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Net increase |
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3,007,556 |
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4,114,480 |
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Net assets available for benefits: |
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Beginning of year |
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12,082,800 |
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7,968,320 |
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End of year |
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$ |
15,090,356 |
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$ |
12,082,800 |
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The accompanying notes are an integral part of these financial statements.
- 3 -
DuPont 401(k) and Profit Sharing Plan
Notes to Financial Statements
NOTE 1 DESCRIPTION OF THE PLAN
The following description of the DuPont 401(k) and Profit Sharing Plan (the Plan) provides only
general information. Participants should refer to the Plan document for a more complete description
of the Plans provisions.
General
The Plan is a defined contribution plan subject to the provisions of the Employee Retirement Income
Security Act of 1974 (ERISA), as amended. The Plan, which became effective January 1, 2003, is
sponsored by E. I. du Pont de Nemours and Company (Plan Sponsor). Eligible employees of the Plan
Sponsors subsidiaries or general partnerships, which have adopted the Plan with the Plan Sponsors
approval, are eligible to participate in the Plan. Currently, DuPont Holographics, Inc., DuPont
Displays Enhancements, Inc., DuPont Displays, Inc., and DuPont Liqui-box Corporation (collectively
the Employer or the Company) have adopted the Plan.
All employees of the Company are eligible to participate except any employee whose compensation and
conditions of employment are covered by a collective bargaining agreement to which the Company is a
party unless the agreement calls for the employees participation in the Plan or an employee whose
services are leased from another company. Participation begins the first day of employment.
The designated trustee of the Plan is Merrill Lynch Trust Co., FSB, (Merrill Lynch).
Contributions
Each year, participants may contribute between 1 percent to 75 percent of their eligible earnings,
as defined by the Plan. Participants who have attained age 50 before the end of the Plan year are
eligible to make catch-up contributions. Participants may also contribute amounts representing
distributions from other qualified defined benefit or defined contribution plans. The Company will
make a matching contribution of 100 percent of the first 3 percent of eligible earnings that a
participant contributes to the Plan plus an additional matching contribution of 50 percent of any
contributions that exceed 3 percent but do not exceed 5 percent of the participants eligible
compensation. Contributions to the Plan are subject to certain limits imposed by the Internal
Revenue Service (IRS) and the Plan terms.
In addition, the Plan permits each participating Company to make a discretionary profit sharing
contribution for the benefit of their eligible employees. Any employee of such participating
company who is actively employed on the last day of the Plan year or who retired, died, or became
disabled during the Plan year will receive an allocation based on the ratio that the participants
compensation bears to the total compensation of all eligible participants. For the year ended
December 31, 2007 and 2006, a contribution of $198,600 and $182,812, respectively, was made to the
Plan for the benefit of eligible employees of DuPont Liqui-box Corporation.
Participants direct the investment of their contributions into various investment options offered
by the Plan. The Plan currently offers fourteen mutual funds, four common/collective trust funds
and a Company stock fund as investment options for participants.
- 4 -
DuPont 401(k) and Profit Sharing Plan
Notes to Financial Statements
Participant Accounts
Each participants account is credited with the participants contributions and allocations of (a)
the Companys contributions and (b) Plan earnings, and charged with an allocation of administrative
expenses. Allocations are based on participant earnings or account balance, as defined. The benefit
to which a participant is entitled is the benefit that can be provided from the participants
vested account.
Vesting
Participants are immediately vested in their contributions and Company matching contributions plus
actual earnings thereon. A participants vested interest in the Companys profit sharing
contributions and the related earnings are determined using the following table:
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Years of Service |
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Vested Percent |
immediately upon participation
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0% |
1
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33% |
2
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66% |
3 or more
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100% |
In addition, a participant becomes 100 percent vested in all contributions upon attainment of
normal retirement age (age 59 1/2 ) or disability or death while employed by the Company.
Participant Loans
Participants may borrow from their 401(k) and matching fund accounts a minimum of $1,000 up to a
maximum equal to the lesser of $50,000 (less the participants highest outstanding loan balance
during the previous twelve months) or 50 percent of their account balance. The loans are secured by
the balance in the participants account and bear interest at rates that range from 5 percent to
11.5 percent, which are commensurate with local prevailing rates as determined by the Plan
administrator. Principal and interest is paid ratably through payroll deductions. A maximum of one
loan per participant may be outstanding at any time and loan maturities cannot exceed five years,
except for loans made to purchase a primary residence, in which case the maturity cannot exceed ten
years.
Payment of Benefits
A withdrawal of all or a portion of a participants account may be made by the participant after
attaining age 591/2. Withdrawals of employee contributions for undue financial hardship are also
permitted. Upon termination, retirement, death, or disability, a participant may elect to receive
the value of their vested balances, in accordance with the provisions of the Plan, in a lump-sum
distribution or in installments, payable in cash or in kind, or part in cash and part in kind.
Forfeited Accounts
Forfeitures will be used, as defined in the Plan, to pay administrative expenses and may reduce the
amount of future Company contributions. There were no such forfeited amounts used during the Plan
years ended December 31, 2007 and 2006. At December 31, 2007 and 2006, forfeited non-vested
accounts totaled $17,463 and $9,627, respectively.
- 5 -
DuPont 401(k) and Profit Sharing Plan
Notes to Financial Statements
Administrative Expenses
Reasonable expenses of administering the Plan, at the election of the Company, may be paid by the
Plan. For the years ended December 31, 2007 and 2006, the Plan paid $3,140 and $800, respectively,
in administrative expenses of the Plan including various recordkeeping services. Brokerage fees,
transfer taxes, investment fees and other expenses incident to the purchase and sale of securities
and investments can be included in the cost of such securities or investments or deducted from the
sales proceeds.
NOTE 2 SUMMARY OF ACCOUNTING POLICIES
Basis of Accounting
The financial statements of the Plan are prepared under the accrual method of accounting.
As described in Financial Accounting Standards Board Staff Position, FSP AAG INV-1, Reporting of
Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies subject to the
AICPA Investment Company Audit Guide and Defined Contribution Health and Welfare and Pension Plans
(the FSP), investment contracts held by a defined contribution plan are required to be reported
at fair value. This applies even when the contracts are not held directly by the Plan but are
underlying assets in Common/collective trust (CCT) investments held by the Plan. However,
contract value is the relevant measurement of net assets available for benefits in a defined
contribution plan that holds fully benefit-responsive investment contracts because contract value
is the amount participants would receive if they were to initiate permitted transactions under the
terms of the Plan. As required by the FSP, the Statement of Net Assets Available for Benefits
presents the fair value of the interest in CCTs relating to fully benefit-responsive investment
contracts with an adjustment to contract value. The Statement of Changes in Net Assets Available
for Benefits is prepared on a contract value basis.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates that affect the financial statements and accompanying notes.
Actual results could differ from those estimates.
Investment Valuation and Income Recognition
The Plans investments are stated at fair value. Shares of registered investment companies (mutual
funds) are valued at the net asset value of shares held by the Plan at year end. Shares of CCTs
are valued at net unit value as determined by the trustee at year end. The Company stock fund is
valued at its year end unit closing price (defined as the year end market price of common stock
plus uninvested cash position). Participant loans are valued at their outstanding balances, which
approximate fair value.
The Plan holds shares of CCTs that have investments in fully benefit-responsive investment
contracts. For purposes of the Statement of Net Assets Available for Benefits, these CCTs are
stated at fair value. As provided in the FSP, an investment contract is generally required to be
reported at fair value, rather than contract value, to the extent it is fully benefit-responsive.
The fair value of such investment contracts held by the CCTs are determined using the market price
of the underlying securities and the value of the investment contract.
- 6 -
DuPont 401(k) and Profit Sharing Plan
Notes to Financial Statements
Purchases and sales of investments are recorded on a trade-date basis. Interest income is recorded
on the accrual basis. Dividend income is recorded on the ex-dividend date. Capital gain
distributions are included in dividend income.
Payment of Benefits
Benefits are recorded when paid.
Accounting Standards Issued Not Yet Adopted
In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial
Accounting Standards (SFAS) No. 157, Fair Value Measurements, (SFAS 157) which addresses how
companies should measure fair value when required for recognition or disclosure purposes under
GAAP. The standards provisions will be applied to existing accounting measurements and related
disclosures that are based on fair value. SFAS 157 does not require any new fair value
measurements. The standard applies a common definition of fair value to be used throughout GAAP,
with emphasis on fair value as a market-based measurement versus an entity-specific measurement
and establishes a hierarchy of fair value measurement methods. The disclosure requirements are
expanded to include the extent to which companies use fair value measurements, the methods and
assumptions used to measure fair value and the effect of fair value measurements on earnings. SFAS
157 is effective for fiscal years beginning after November 15, 2007. The new standards provisions
applicable to the Plan will be applied to the Plans financial statements prospectively for the
period beginning January 1, 2008. The Plan administrator expects that the adoption of SFAS 157
will not have a material effect on the Plans net assets available for benefits or changes in net
assets available for benefits.
NOTE 3 INVESTMENTS
The following table presents investments that represent 5% or more of the Plans net assets:
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December 31, |
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2007 |
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2006 |
Merrill Lynch Retirement Preservation Trust |
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$ |
3,119,183 |
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$ |
2,555,940 |
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MFS Total Return Fund |
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1,122,293 |
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983,716 |
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Templeton Growth Fund |
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1,115,862 |
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935,305 |
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Franklin Balance Sheet Investment Fund Adv
Class |
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1,642,177 |
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1,641,405 |
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Blackrock Basic Value Fund Class I |
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996,001 |
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811,854 |
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Franklin Small-Mid Cap Growth Fund Adv Class |
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765,693 |
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537,313 |
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Investment represents less than 5% of Net Assets as of December 31, 2006 |
- 7 -
DuPont 401(k) and Profit Sharing Plan
Notes to Financial Statements
During the years ended December 31, 2007, and 2006, the Plans investments (including gains and
losses on investments bought and sold, as well as held during the year) appreciated (depreciated)
in value by $(295,663) and $643,064 respectively, as follows:
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2007 |
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2006 |
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Company stock fund |
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$ |
(73,502 |
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$ |
78,490 |
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Mutual funds |
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(275,900 |
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430,131 |
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Common/collective trust funds |
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53,739 |
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134,443 |
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$ |
(295,663 |
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$ |
643,064 |
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NOTE 4 TAX STATUS
At the Plan inception the Plan Sponsor adopted the Merrill Lynch Prototype Non-Standardized Profit
Sharing Plan with Cash or Deferred Arrangement (the Merrill Lynch Prototype Plan). The Merrill
Lynch Prototype Plan received an Opinion Letter from the Internal Revenue Service dated June 4,
2002 stating that the form of the Plan was acceptable under section 401 of the Internal Revenue
Code (IRC) for use by employers for the benefit of their employees. In 2007, the Plan was amended
and became a Custom Plan and therefore is not longer covered under the Merrill Lynch Prototype
Plan Opinion Letter. However, the Plan administrator believes that the Plan is currently designed
and operated in accordance with the applicable sections of the Code. Accordingly, no provision has
been made for federal income taxes in the accompanying financial statements.
NOTE 5 RELATED PARTY TRANSACTIONS
Certain Plan investments are shares of mutual funds and units of common/collective trust funds
managed by Merrill Lynch, the Trustee. In addition, the Plan offers the DuPont Stock Fund as an
investment option. At December 31, 2007 the Plan held 15,529.0077 shares of DuPont common stock
valued at $684,674. At December 31, 2006 the Plan held 12,258.4697 shares of DuPont common stock
valued at $597,110. The Plan purchased $217,008 and $212,981 of stock during the years ended
December 31, 2007 and 2006, respectively. The Plan sold $78,513 and $57,289 of stock during the
years ended December 31, 2007 and 2006, respectively. Transactions in these investments qualify as
party-in-interest transactions which are exempt from the prohibited transaction rules of ERISA.
NOTE 6 PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the right under the Plan to
discontinue its contributions at any time and to terminate the Plan subject to the provisions of
ERISA. In the event of Plan termination, participants would become 100 percent vested in the
profit sharing contributions.
- 8 -
DuPont 401(k) and Profit Sharing Plan
Notes to Financial Statements
NOTE 7 RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits per the financial statements
at December 31, 2007 and 2006 to the Form 5500:
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December 31, |
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2007 |
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2006 |
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Net assets available for benefits per the
financial statements |
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$ |
15,090,356 |
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$ |
12,082,800 |
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Adjustment from
fair value to
contract value for
interest in
common/collective
trust relating to
fully
benefit-responsive
investment contacts |
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(28,073 |
) |
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(47,640 |
) |
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Net assets available for benefits per the Form 5500 |
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$ |
15,062,283 |
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$ |
12,035,160 |
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The following is a reconciliation of CCT gain per the financial statements for the year ended
December 31, 2007 to the Form 5500:
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December 31, |
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2007 |
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Net gain from Common/collective trusts included in the
financial statements |
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$ |
186,967 |
|
2007 adjustment from contract value to fair value for fully benefit-responsive investment contacts |
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(28,073 |
) |
2006 adjustment from contract value to fair value for
fully benefit-responsive investment contacts |
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47,640 |
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Net gain from Common/collective trusts per the Form 5500 |
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$ |
206,534 |
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NOTE 8 RISKS AND UNCERTAINTIES
The Plan invests in various investment securities. Investment securities are exposed to various
risks such as interest rate, market and credit risks. Due to the level of risk associated with
certain investment securities, it is at least reasonably possible that changes in the values of
investment securities will occur in the near term and that such changes could materially affect
participants account balances and the amounts reported in the statement of net assets available
for benefits.
NOTE 9 SUBSEQUENT EVENTS
Effective January 28, 2008 all the Common/Collective Trust assets were transferred from Merrill
Lynch to Northern Trust Corporation, which became the trustee of a Master Trust. Merrill Lynch
remained as the trustee for the existing mutual funds and Company Stock Funds. As part of the
transfer the Plan changed the investment choices offered to participants.
- 9 -
DuPont 401(k) and Profit Sharing Plan
Schedule H, Line 4i Schedule of Assets (Held at End of Year)
December 31, 2007
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(e) |
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(b) |
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(c) |
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(d) |
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Current |
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(a) |
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Identity of Issue |
|
Description of Investment |
|
Cost |
|
Value |
|
*
|
|
Merrill Lynch Small Cap Index CT Tier 2
|
|
Common/Collective Trusts
|
|
**
|
|
$ |
335,415 |
|
*
|
|
Merrill Lynch Equity Index TR Tier 6
|
|
Common/Collective Trusts
|
|
**
|
|
|
549,013 |
|
*
|
|
Merrill Lynch International Index CT Tier 2
|
|
Common/Collective Trusts
|
|
**
|
|
|
333,257 |
|
*
|
|
Merrill Lynch Retirement Preservation Trust
|
|
Common/Collective Trusts
|
|
**
|
|
|
3,091,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common/collective trust funds
|
|
|
|
|
|
|
4,308,795 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AIM Charter Fund Instl CL
|
|
Registered Investment
Company
|
|
**
|
|
|
284,497 |
|
|
|
Blackrock International Value Fund Class I
|
|
Registered Investment
Company
|
|
**
|
|
|
453,413 |
|
*
|
|
Blackrock Fundamental Growth Fund Class I
|
|
Registered Investment
Company
|
|
**
|
|
|
654,819 |
|
*
|
|
Blackrock Global Growth Fund Class I
|
|
Registered Investment
Company
|
|
**
|
|
|
499,036 |
|
|
|
Franklin Growth Fund Adv Class
|
|
Registered Investment
Company
|
|
**
|
|
|
293,909 |
|
|
|
Franklin Small-Mid Cap Growth Fund Adv Class
|
|
Registered Investment
Company
|
|
**
|
|
|
765,693 |
|
|
|
MFS Total Return Fund
|
|
Registered Investment
Company
|
|
**
|
|
|
1,122,293 |
|
|
|
Templeton Institutional Fund
|
|
Registered Investment
Company
|
|
**
|
|
|
389,449 |
|
|
|
Templeton Growth Fund
|
|
Registered Investment
Company
|
|
**
|
|
|
1,115,862 |
|
|
|
AIM Constellation Fund Institutional
|
|
Registered Investment
Company
|
|
**
|
|
|
244,065 |
|
|
|
Franklin Balance Sheet Investment Fund Adv Class
|
|
Registered Investment
Company
|
|
**
|
|
|
1,642,177 |
|
|
|
MFS Research Fund
|
|
Registered Investment
Company
|
|
**
|
|
|
321,632 |
|
*
|
|
Blackrock Balanced Capital Fund Class I
|
|
Registered Investment
Company
|
|
**
|
|
|
597,278 |
|
*
|
|
Blackrock Basic Value Fund Class I
|
|
Registered Investment
Company
|
|
**
|
|
|
996,001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total mutual funds
|
|
|
|
|
|
|
9,380,124 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
DuPont Company Stock Fund
|
|
Company Stock Fund
|
|
**
|
|
|
684,674 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
Participant loans
|
|
5% to 11.5%
Maturing from
January 2008 December 2012
|
|
**
|
|
|
225,841 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS (Held at End of Year)
|
|
|
|
|
|
$ |
14,599,434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
Party-in-interest |
|
|
|
|
|
|
|
|
**
|
|
Cost not required for participant directed
investments |
|
|
|
|
|
|
|
|
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