United States Securities and Exchange Commission
Washington, DC 20549
FORM 11-K
(Mark One)
x ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2009
OR
o TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 001-00815
DuPont Powder Coatings USA, Inc.
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, the Administrative Committee formed under the DuPont Powder Coatings USA, Inc. Profit Sharing Plan has duly caused this Annual Report to be signed on its behalf by the undersigned hereunto duly authorized.
|
DuPont Powder Coatings USA, Inc. |
|
Profit Sharing Plan |
|
|
|
Dated: June 29, 2010 |
|
|
|
|
|
/s/ William Rising |
|
William Rising |
|
Vice President, Finance |
DuPont Powder Coatings USA, Inc. Profit Sharing Plan
Index to Financial Statements and Supplemental Schedule
|
Page(s) |
|
|
1 |
|
|
|
Financial Statements: |
|
Statements of Net Assets Available for Benefits as of December 31, 2009 and 2008 |
2 |
|
|
3 |
|
|
|
4-12 |
|
|
|
|
|
Schedule of Assets (Held at End of Year) as of December 31, 2009 |
13 |
* 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 Powder Coatings USA, Inc. 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 Powder Coatings USA, Inc. Profit Sharing Plan (the Plan) at December 31, 2009 and 2008, 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 29, 2010 |
|
DuPont Powder Coatings USA, Inc. Profit Sharing Plan
Statements of Net Assets Available for Benefits
December 31, 2009 and 2008
|
|
2009 |
|
2008 |
|
||
Assets: |
|
|
|
|
|
||
Investments at fair value: |
|
|
|
|
|
||
Common/collective trust funds |
|
$ |
18,331,302 |
|
$ |
16,562,376 |
|
Mutual funds |
|
10,417,230 |
|
8,296,602 |
|
||
Company stock |
|
514,724 |
|
401,066 |
|
||
Participant loans |
|
1,773,994 |
|
2,082,970 |
|
||
Total investments |
|
31,037,250 |
|
27,343,014 |
|
||
|
|
|
|
|
|
||
Receivables: |
|
|
|
|
|
||
Employers contributions |
|
391,653 |
|
239,934 |
|
||
Participants contributions |
|
41,156 |
|
|
|
||
Dividends and interest |
|
3,773 |
|
3,733 |
|
||
|
|
|
|
|
|
||
Total receivables |
|
436,582 |
|
243,667 |
|
||
|
|
|
|
|
|
||
Cash |
|
120 |
|
240 |
|
||
|
|
|
|
|
|
||
Total Assets: |
|
31,473,952 |
|
27,586,921 |
|
||
|
|
|
|
|
|
||
Liabilities: |
|
|
|
|
|
||
Accounts payable |
|
78,132 |
|
|
|
||
|
|
|
|
|
|
||
Net assets available for benefits, at fair value |
|
31,395,820 |
|
27,586,921 |
|
||
|
|
|
|
|
|
||
Adjustment from fair value to contract value for interest in common/collective trusts relating to fully benefit-responsive investment contracts |
|
107,919 |
|
323,857 |
|
||
|
|
|
|
|
|
||
Net assets available for benefits |
|
$ |
31,503,739 |
|
$ |
27,910,778 |
|
The accompanying notes are an integral part of these financial statements.
DuPont Powder Coatings USA, Inc. Profit Sharing Plan
Statements of Changes in Net Assets Available for Benefits
For the Years Ended December 31, 2009 and 2008
|
|
2009 |
|
2008 |
|
||
Additions: |
|
|
|
|
|
||
Investment income: |
|
|
|
|
|
||
Net appreciation in fair value of investments |
|
$ |
5,027,758 |
|
$ |
|
|
Interest income |
|
98,063 |
|
151,946 |
|
||
Dividend income |
|
263,609 |
|
596,630 |
|
||
|
|
|
|
|
|
||
Total investment income |
|
5,389,430 |
|
748,576 |
|
||
|
|
|
|
|
|
||
Contributions: |
|
|
|
|
|
||
Participants contributions |
|
967,091 |
|
1,163,694 |
|
||
Employers contributions |
|
883,980 |
|
796,717 |
|
||
|
|
|
|
|
|
||
Total contributions |
|
1,851,071 |
|
1,960,411 |
|
||
|
|
|
|
|
|
||
Total additions |
|
7,240,501 |
|
2,708,987 |
|
||
|
|
|
|
|
|
||
Deductions: |
|
|
|
|
|
||
Net depreciation in fair value of investments |
|
|
|
11,256,988 |
|
||
Benefits paid to participants |
|
3,569,384 |
|
2,604,191 |
|
||
Administrative expenses |
|
78,156 |
|
62,656 |
|
||
|
|
|
|
|
|
||
Total deductions |
|
3,647,540 |
|
13,923,835 |
|
||
|
|
|
|
|
|
||
Net increase (decrease) |
|
3,592,961 |
|
(11,214,848 |
) |
||
|
|
|
|
|
|
||
Net assets available for benefits: |
|
|
|
|
|
||
Beginning of period |
|
27,910,778 |
|
39,125,626 |
|
||
|
|
|
|
|
|
||
End of period |
|
$ |
31,503,739 |
|
$ |
27,910,778 |
|
The accompanying notes are an integral part of these financial statements.
DuPont Powder Coatings USA, Inc. Profit Sharing Plan
December 31, 2009 and 2008
NOTE 1 - DESCRIPTION OF THE PLAN
The following description of the DuPont Powder Coatings USA, Inc. 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 is available to eligible employees of DuPont Powder Coatings USA, Inc. (the Company), a wholly owned subsidiary of E. I. du Pont de Nemours and Company (DuPont).
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.
For purposes of employee contributions and compliance contributions, participation begins the first day of the next payroll period after the date an employee completes one hour of service. For purposes of Company match and Company profit sharing contributions, participation begins on the first day of the next payroll period after the date an employee completes a 12 month eligibility period in which the employee is credited with at least 1,000 hours of service during that period. Each participant who was an eligible employee at any time during the period, even if such employee did not work 1,000 hours, will receive the compliance contribution.
The Plan is administered by the Company. Bank of America, N.A. (Bank of America), formerly Merrill Lynch Trust Company of America (Merrill Lynch), is the trustee of the assets of the Plan. As trustee, Bank of America has authority to hold, manage and protect the assets of the Plan in accordance with the provisions of the Plan and trust agreements.
Contributions
Each year, participants may contribute between 1 percent and 15 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. A participant may change their deferral contribution election four times a year. Participants may also contribute amounts representing distributions from other qualified defined benefit or defined contribution plans. The Company contributions consist of (a) compliance contributions equal to 3 percent of eligible compensation, (b) matching contributions equal to 100 percent of the first 3 percent of eligible earnings that a participant contributes, and (c) profit sharing contributions equal to 10 percent of the Companys net profit for the Plan year less compliance and matching contributions made for the year. For the years ended December 31, 2009 and 2008, the Company did not make a profit sharing contribution. Contributions to the Plan are subject to certain limitations.
Participants direct the investment of their contributions into various investment options offered by the Plan. The Plan currently offers eight mutual funds, four common/collective trust funds and DuPont company stock as investment options for participants.
DuPont Powder Coatings USA, Inc. Profit Sharing Plan
Notes to Financial Statements
December 31, 2009 and 2008
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 the portion of their accounts contributed by them, the Companys compliance contribution and in the earnings on such contributions. A participants vested interest in the Companys matching and profit sharing contributions and the related earnings are determined using the following table:
Years of Service |
|
Vested Percent |
|
|
|
|
|
1 - 2 |
|
20% |
|
2 - 3 |
|
40% |
|
3 - 4 |
|
60% |
|
4 - 5 |
|
80% |
|
5 or more |
|
100% |
|
One full year of service is defined as a twelve-month period of employment. A participant also becomes 100 percent vested upon normal retirement age (age 59½), death, and termination of employment due to disability.
Participant Loans
Participants may borrow from their vested accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50 percent of their vested account balance. The loans are secured by the balance in the participants account and bear interest at rates commensurate with local prevailing rates as determined by the Plan administrator. The loans are executed by promissory notes and have a minimum term of 1 year and a maximum term of 5 years, except for loans made to purchase a primary residence, which have a maximum term of 10 years. At December 31, 2009, the rates ranged from 4.25 percent to 10.50 percent. Principal and interest are paid ratably through payroll deductions.
Payment of Benefits
On termination of services due to death, disability or retirement, participants may elect to receive the value of their vested balances, in accordance with the provisions of the Plan, in a lump-sum distribution, partial distribution, or installments payments. In-service withdrawals may be made under certain conditions as permitted by the Plan. Required minimum distributions will begin in April of the calendar year following the later of the year in which the participant attains age 70 ½ or the year following retirement or termination of employment.
DuPont Powder Coatings USA, Inc. Profit Sharing Plan
Notes to Financial Statements
December 31, 2009 and 2008
Forfeited Accounts
Forfeitures of the Company matching and profit sharing contributions may occur if a participant terminates or withdraws his or her contributions prior to the full vesting period. These forfeitures may be used to restore accounts, as defined in the Plan, to pay administrative expenses or may decrease the amount of company and profit sharing contributions. At December 31, 2009 and 2008, forfeited non-vested accounts totaled $158,271 and $359,834, respectively. Forfeited accounts were used to pay for administrative expenses of the Plan totaling $48,896 and $56,060 for the years ended December 31, 2009 and 2008, respectively. For the years ended December 31, 2009 and 2008, employer contributions were reduced from forfeited non-vested accounts by $183,814 and $0, respectively.
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, 2009 and 2008, the Plan paid $78,156 and $62,656, respectively, in administrative expenses, including audit and various recordkeeping fees. Brokerage fees, transfer taxes, investment fees and other expenses incident to the purchase and sale of securities and investments shall 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 accompanying financial statements of the Plan have been prepared on the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America (GAAP).
As described in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 962, Plan Accounting - Defined Contribution Pension Plans (formerly known as FASB Staff Position (FSP) AAG INV-1 and Statement of Position 94-4-1, Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined-Contribution Health and Welfare and Pension Plans), 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 ASC 962, 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 GAAP 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 asset value as reported by the CCTs trustee at year-end. DuPont company stock is valued at
DuPont Powder Coatings USA, Inc. Profit Sharing Plan
Notes to Financial Statements
December 31, 2009 and 2008
the 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 by ASC 962, an investment contract is generally required to be valued 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.
Purchases and sales of investments are recorded on a trade-date basis. Realized gains and losses on the sale of DuPont company stock is based on average cost of the securities sold. 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.
New Accounting Standards Adopted
The accounting standards initially adopted in the 2009 financial statements described below affected certain note disclosures but did not impact the statements of net assets available for benefits or the statement of changes of net assets available for benefits.
Accounting Standards Codification
The FASB ASC became effective on July 1, 2009. At that date, the ASC became FASBs official source of authoritative GAAP applicable to all public and nonpublic nongovernmental entities, superseding existing guidance issued by the FASB, the American Institute of Certified Public Accountants (AICPA), the Emerging Issues Task Force and other related literature. The FASB also issues Accounting Standards Updates (ASU). An ASU communicates amendments to the ASC. An ASU also provides information to help a user of GAAP understand how and why GAAP is changing and when the changes will be effective.
Subsequent Events
In May 2009, the FASB issued ASC 855 (originally issued as FASB Statement No. 165, Subsequent Events) to establish general standards of accounting for and disclosing events that occur after the balance sheet date, but prior to the issuance of financial statements. ASC 855 provides guidance on when financial statements should be adjusted for subsequent events and requires companies to disclose subsequent events through the date the financial statements are issued. ASC 855 is effective for periods ending after June 15, 2009. The Plans management has evaluated subsequent events through June 29, 2010, the date on which the financials statements were issued.
Updates to Fair Value Measurements and Disclosures
In April 2009, FSP 157-4, Disclosures Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly, was issued and later codified into ASC 820, which expanded disclosures and required that major categories for debt and equity securities in the fair value hierarchy table be determined on the basis of the
DuPont Powder Coatings USA, Inc. Profit Sharing Plan
Notes to Financial Statements
December 31, 2009 and 2008
nature and risks of the investments. This guidance was effective for interim and annual reporting periods ending after June 15, 2009.
In September 2009, the FASB issued ASU No. 2009-12, Fair Value Measurements and Disclosures: Investments in Certain Entities That Calculate Net Asset per Share (or Its Equivalent) (ASU No. 2009-12), which amended ASC Subtopic 820-10, Fair Value Measurements and Disclosures - Overall. ASU No. 2009-12 is effective for the first reporting period ending after December 15, 2009. ASU No. 2009-12 expands the required disclosures for certain investments with a reported net asset value. ASU No. 2009-12 permits, as a practical expedient, an entity holding investments in certain entities that calculate net asset value per share or its equivalent for which the fair value is not readily determinable, to measure the fair value of such investments on the basis of that net asset value per share or its equivalent without adjustment. The ASU requires enhanced disclosures about the nature and risks of investments within its scope. Such disclosures include the nature of any restrictions on an investors ability to redeem its investments at the measurement date, any unfunded commitments, and the investment strategies of the investee. The Plan has adopted ASU No. 2009-12 on a prospective basis for the year ended December 31, 2009. The effect of the adoption of the ASU had no impact on the statements of net assets available for benefits and statement of changes in net assets available for benefits.
New Accounting Standards to Be Adopted
In January 2010, the FASB issued ASU No. 2010-06, Fair Value Measurements and Disclosures (ASU No. 2010-06), which amends ASC 820 (originally issued as FASB Statement No. 157, Fair Value Measurements), adding new disclosure requirements for Levels 1 and 2, separate disclosures of purchases, sales, issuances, and settlements relating to Level 3 measurements and clarification of existing fair value disclosures. ASU No. 2010-06 is effective for periods beginning after December 15, 2009, except for the requirement to provide Level 3 activity of purchases, sales, issuances, and settlements on a gross basis, which will be effective for fiscal years beginning after December 15, 2010. The Plan is currently evaluating the impact ASU No. 2010-06 will have on the financial statements.
NOTE 3 - INVESTMENTS
The following table presents investments that represent 5% or more of the Plans net assets available for benefits as of December 31, 2009 and 2008:
|
|
2009 |
|
2008 |
|
||
Bank of America Equity Index Trust Tier 6 |
|
$ |
14,727,405 |
|
$ |
12,357,530 |
|
The Oakman Equity & Income Fund |
|
3,318,955 |
|
2,875,935 |
|
||
Bank of America Retirement Preservation Trust |
|
1,595,668 |
|
2,329,906 |
|
||
Bank of America Retirement Reserves Fund |
|
1,443,739 |
* |
1,762,304 |
|
||
Pimco Total Return Fund |
|
2,191,959 |
|
1,886,361 |
|
||
American Amcap Fund |
|
1,664,826 |
|
1,279,524 |
** |
||
Participant Loans |
|
1,773,994 |
|
2,082,970 |
|
||
*Investment represents less than 5 percent of the net assets as of December 31, 2009.
**Investment represents less than 5 percent of the net assets as of December 31, 2008.
DuPont Powder Coatings USA, Inc. Profit Sharing Plan
Notes to Financial Statements
December 31, 2009 and 2008
For the years ended December 31, 2009 and 2008, the Plans investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated/(depreciated) in value as follows:
|
|
2009 |
|
2008 |
|
||
Common/collective trust funds |
|
$ |
3,160,485 |
|
$ |
(7,773,764 |
) |
Mutual funds |
|
1,727,467 |
|
(3,276,768 |
) |
||
DuPont company stock |
|
139,806 |
|
(206,456 |
) |
||
Net appreciation (depreciation) in fair value of investments |
|
$ |
5,027,758 |
|
$ |
(11,256,988 |
) |
NOTE 4 FAIR VALUE MEASUREMENTS
ASC 820, Fair Value Measurements and Disclosures, established a single authoritative definition of fair value, set a framework for measuring fair value, and requires additional disclosures about fair value measurements. The framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described as follows:
Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2 - Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly. Inputs on assets and liabilities with contractual terms must be observable for substantially the full contract term;
Level 3 - Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.
A financial instruments level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.
Fair value calculations may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
DuPont Powder Coatings USA, Inc. Profit Sharing Plan
Notes to Financial Statements
December 31, 2009 and 2008
The following presents the Plans financial instruments carried at fair value on a recurring basis as of December 31, 2009 and 2008, and indicates the ASC 820 fair value hierarchy levels described above:
|
|
Investments at Fair Value as of December 31, 2009 |
|
||||||||||
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total Fair |
|
||||
Assets: |
|
|
|
|
|
|
|
|
|
||||
Common/collective trusts |
|
$ |
|
|
$ |
18,331,302 |
|
$ |
|
|
$ |
18,331,302 |
|
|
|
|
|
|
|
|
|
|
|
||||
Mutual funds |
|
|
|
|
|
|
|
|
|
||||
Balanced fund |
|
3,318,955 |
|
|
|
|
|
3,318,955 |
|
||||
Bond fund |
|
2,191,959 |
|
|
|
|
|
2,191,959 |
|
||||
Domestic stock funds |
|
2,909,873 |
|
|
|
|
|
2,909,873 |
|
||||
International stock funds |
|
1,996,443 |
|
|
|
|
|
1,996,443 |
|
||||
Total mutual funds |
|
10,417,230 |
|
|
|
|
|
10,417,230 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
DuPont company stock |
|
514,724 |
|
|
|
|
|
514,724 |
|
||||
Participant loans |
|
|
|
|
|
1,773,994 |
|
1,773,994 |
|
||||
Total assets |
|
$ |
10,931,954 |
|
$ |
18,331,302 |
|
$ |
1,773,994 |
|
$ |
31,037,250 |
|
|
|
Investments at Fair Value as of December 31, 2008 |
|
||||||||||
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total Fair |
|
||||
Assets: |
|
|
|
|
|
|
|
|
|
||||
Common/collective trusts |
|
$ |
|
|
$ |
16,562,376 |
|
$ |
|
|
$ |
16,562,376 |
|
Mutual funds |
|
8,296,602 |
|
|
|
|
|
8,296,602 |
|
||||
DuPont company stock |
|
401,066 |
|
|
|
|
|
401,066 |
|
||||
Participant loans |
|
|
|
|
|
2,082,970 |
|
2,082,970 |
|
||||
Total assets |
|
$ |
8,697,668 |
|
$ |
16,562,376 |
|
$ |
2,082,970 |
|
$ |
27,343,014 |
|
The table below sets forth a summary of changes in the fair value of the Plans level 3 investment assets for the year ended December 31, 2009 and 2008:
|
|
Participant Loans |
|
||||
|
|
2009 |
|
2008 |
|
||
|
|
|
|
|
|
||
Balance, beginning of year |
|
$ |
2,082,970 |
|
$ |
2,096,293 |
|
Purchases, sales, issuances, and settlements, net |
|
(308,976 |
) |
(13,323 |
) |
||
Balance, end of year |
|
$ |
1,773,994 |
|
$ |
2,082,970 |
|
DuPont Powder Coatings USA, Inc. Profit Sharing Plan
Notes to Financial Statements
December 31, 2009 and 2008
NOTE 5 - RELATED PARTY TRANSACTIONS
Certain Plan investments are shares of mutual funds and units of common/collective trust funds managed by Bank of America, the Trustee. The Plan also offers DuPont company stocks as an investment option. At December 31, 2009, the Plan held 15,287 shares of DuPont common stock valued at $514,724. At December 31, 2008, the Plan held 15,852 shares of DuPont common stock valued at $401,066. The Plan purchased $242,872 and $238,913 of DuPont common stock during the years ended December 31, 2009 and 2008, respectively. The Plan sold $269,020 and $65,966 of DuPont common stock during the years ended December 31, 2009 and 2008, 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 Company matching and profit sharing contributions.
NOTE 7 - TAX STATUS
The Plan is a qualified plan pursuant to Section 401(a) of the Internal Revenue Code (the IRC) and the related trust is exempt from federal taxation under Section 501(a) of the Code. A favorable tax determination letter from the Internal Revenue Service dated July 16, 2003, covering the Plan and amendments through February 25, 2002, has been received by the Plan. Although the Plan has been amended since receiving the determination letter, the Plan Administrator believes the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC. Therefore, no provision for income taxes has been included in the Plans financial statements.
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.
DuPont Powder Coatings USA, Inc. Profit Sharing Plan
Notes to Financial Statements
December 31, 2009 and 2008
NOTE 9 - 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, 2009 and 2008 to the Form 5500:
|
|
2009 |
|
2008 |
|
||
Net assets available for benefits per the financial statements |
|
$ |
31,503,739 |
|
$ |
27,910,778 |
|
Adjustment from contract value to fair value for interest in common/collective trust relating to fully benefit-responsive investment contracts |
|
(107,919 |
) |
(323,857 |
) |
||
Loans balances considered deemed distributions |
|
(196,891 |
) |
|
|
||
Net assets available for benefits per the Form 5500 |
|
$ |
31,198,929 |
|
$ |
27,586,921 |
|
The following is a reconciliation of the CCT gain per the financial statements for the year ended December 31, 2009 to the Form 5500:
|
|
2009 |
|
|
Net gain from common/collective trusts included in the financial statements |
|
$ |
3,192,593 |
|
2009 adjustment from contract value to fair value for fully benefit-responsive investment contracts |
|
(107,919 |
) |
|
2008 adjustment from contract value to fair value for fully benefit-responsive investment contracts |
|
323,857 |
|
|
Net gain from common/collective trusts per the Form 5500 |
|
$ |
3,408,531 |
|
The following is a reconciliation of the benefits paid to participants per the financial statements for the year ended December 31, 2009 to the Form 5500:
|
|
2009 |
|
|
Benefits paid to participants per the financial statements |
|
$ |
3,569,384 |
|
Deemed distributions |
|
196,891 |
|
|
Benefits paid to participants per the Form 5500 |
|
$ |
3,766,275 |
|
DuPont Powder Coatings USA, Inc. Profit Sharing Plan
Schedule of Assets (Held at End of Year) as of December 31, 2009
Attachment to Form 5500, Schedule H, Part IV, line i
|
|
(b) |
|
(c) |
|
(d) |
|
(e) |
|
|
(a) |
|
Identity of Issue |
|
Description of Investment |
|
Cost |
|
Current Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Bank of America Equity Index Trust Tier 6 |
|
Common/Collective Trusts |
|
** |
|
$ |
14,727,405 |
|
* |
|
Bank of America International Index Trust |
|
Common/Collective Trusts |
|
** |
|
672,409 |
|
|
* |
|
Bank of America Retirement Reserves Fund |
|
Common/Collective Trusts |
|
** |
|
1,443,739 |
|
|
* |
|
Bank of America Retirement Preservation Trust |
|
Common/Collective Trusts |
|
** |
|
1,487,749 |
|
|
|
|
Total common/collective trust |
|
|
|
|
|
18,331,302 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thornburg International Value Fund |
|
Registered Investment Company |
|
** |
|
907,170 |
|
|
|
|
The Oakmark Equity & Income Fund |
|
Registered Investment Company |
|
** |
|
3,318,955 |
|
|
|
|
American Century Small Company Fund |
|
Registered Investment Company |
|
** |
|
394,854 |
|
|
|
|
American Amcap Fund |
|
Registered Investment Company |
|
** |
|
1,664,826 |
|
|
|
|
CRM Midcap Value Fund |
|
Registered Investment Company |
|
** |
|
850,193 |
|
|
|
|
AIM Developing Markets Fund |
|
Registered Investment Company |
|
** |
|
281,343 |
|
|
|
|
Pimco Total Return Fund |
|
Registered Investment Company |
|
** |
|
2,191,959 |
|
|
|
|
Van Kampen Comstock Fund |
|
Registered Investment Company |
|
** |
|
807,930 |
|
|
|
|
Total mutual funds |
|
|
|
|
|
10,417,230 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
DuPont Company Stock |
|
Company stock |
|
** |
|
514,724 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Participant loans |
|
4.25% to 10.50% Maturing from January 2010 - December 2014 |
|
** |
|
1,773,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets held at end of year |
|
|
|
|
|
$ |
31,037,250 |
|
* |
|
Party-in-interest |
|
|
|
|
|
|
|
** |
|
Cost not required for participant directed investments |
|
|
|
|
|
|
|