DuPont (DD) Sees Additional Q4 Charge Stemming from Restructuring Plan
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On June 26, 2014, E. I. du Pont de Nemours and Company (NYSE: DD) filed a Current Report on Form 8-K regarding its redesign initiative. During the second quarter of 2014, the company recorded a pre-tax charge of $263 million, consisting of $166 million of employee separation costs, $94 million of asset related charges, and $3 million of other non-personnel charges for this restructuring plan.
DuPont is filing this Form 8-K/A to update the disclosure regarding this restructuring plan. The company expects to record an additional pre-tax charge to earnings of about $315 million in the fourth quarter of 2014, comprised of approximately $160 million of employee separation costs, $140 million of asset related charges, and $15 million of contract termination costs. The actions related to the fourth quarter charge are expected to be substantially complete by mid 2016 and will result in future cash payments of approximately $175 million, primarily related to the payment of severance and related benefits.
Additional charges and future cash payments in relation to this restructuring plan may occur in future periods. As permitted by Item 2.05 of Form 8-K, the company will file additional amendments to the June 26, 2014 Form 8-K upon the company's ability to make a good faith determination of an estimate of total amount or range of amounts required by paragraphs (b), (c) and (d) of Item 2.05 of Form 8-K in connection with this plan.
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