E.I. DuPont de Nemours & Co. (DD)

Inventory Accounting Policy

The majority of E.I. DuPont de Nemours & Co.'s inventories are valued at cost, as determined by the last-in, first-out (LIFO) method; in the aggregate, such valuations are not in excess of market. Seed inventories are valued at the lower of cost, as determined by the first-in, first-out (FIFO) method, or market.

Elements of cost in inventories include raw materials, direct labor and manufacturing overhead. Stores and supplies are valued at cost or market, whichever is lower; cost is generally determined by the average cost method.

Source: E.I. DuPont de Nemours & Co., Annual Report

Inventory Disclosure

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E.I. DuPont de Nemours & Co., Statement of Financial Position, Inventory

USD $ in millions

		Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007	Dec 31, 2006
	Finished products
	Semifinished products
	Raw materials, stores and supplies
	Inventories before LIFO adjustment
	Adjustment of inventories to a LIFO basis
	Inventories

Source: Based on data from E.I. DuPont de Nemours & Co. Annual Reports

Item	Description	The company
Finished products	Carrying amount as of the balance sheet date of merchandise or goods held by the company that are readily available for sale.	E.I. DuPont de Nemours & Co.'s finished products declined from 2008 to 2009 but then increased from 2009 to 2010 exceeding 2008 level.
Semifinished products	Carrying amount as of the balance sheet date of merchandise or goods which are partially completed, are generally comprised of raw materials, labor and factory overhead costs, and which require further materials, labor and overhead to be converted into finished goods, and which generally require the use of estimates to determine percentage complete and pricing.	E.I. DuPont de Nemours & Co.'s semifinished products declined from 2008 to 2009 but then increased from 2009 to 2010 exceeding 2008 level.
Raw materials, stores and supplies	Aggregated amount of unprocessed materials to be used in manufacturing or production process and supplies that will be consumed.	E.I. DuPont de Nemours & Co.'s raw materials, stores and supplies declined from 2008 to 2009 and from 2009 to 2010.
Inventories	Carrying amount (lower of cost or market) as of the balance sheet date of inventories less all valuation and other allowances. Excludes noncurrent inventory balances (expected to remain on hand past one year or one operating cycle, if longer).	E.I. DuPont de Nemours & Co.'s inventories declined from 2008 to 2009 but then increased from 2009 to 2010 exceeding 2008 level.

Adjustment to Inventory: from LIFO to FIFO

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Adjusting LIFO Inventory to FIFO (Current) Cost

USD $ in millions

		Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007	Dec 31, 2006
	Adjustment to Inventories
	Inventories at LIFO (as reported)
	Add: LIFO reserve, ending balance
	Inventories at FIFO (adjusted)
	Adjustment to Current Assets
	Current assets (as reported)
	Add: LIFO reserve, ending balance
	Current assets (adjusted)
	Adjustment to Total Assets
	Total assets (as reported)
	Add: LIFO reserve, ending balance
	Total assets (adjusted)
	Adjustment to DuPont Stockholders' Equity
	DuPont stockholders' equity (as reported)
	Add: LIFO reserve, ending balance
	DuPont stockholders' equity (adjusted)
	Adjustment to Net Income Attributable To DuPont
	Net income attributable to DuPont (as reported)
	Add: Increase (decrease) in LIFO reserve, ending balance
	Net income attributable to DuPont (adjusted)

E.I. DuPont de Nemours & Co.'s inventory value on Dec 31, 2010 would be $6,610 (in millions) if the FIFO inventory method was used instead of LIFO. E.I. DuPont de Nemours & Co.'s inventories, valued on a LIFO basis, on Dec 31, 2010 were $5,967 . E.I. DuPont de Nemours & Co.'s inventories would have been $643 higher than reported on Dec 31, 2010 if the FIFO method had been used instead.

Adjusted Ratios: LIFO vs. FIFO (Summary)

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E.I. DuPont de Nemours & Co., adjusted ratios

	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007	Dec 31, 2006
Current Ratio
Reported current ratio (LIFO)
Adjusted current ratio (FIFO)
Net Profit Margin
Reported net profit margin (LIFO)	%	%	%	%	%
Adjusted net profit margin (FIFO)	%	%	%	%	%
Total Asset Turnover
Reported total asset turnover (LIFO)
Adjusted total asset turnover (FIFO)
Financial Leverage
Reported financial leverage (LIFO)
Adjusted financial leverage (FIFO)
Return on Equity (ROE)
Reported ROE (LIFO)	%	%	%	%	%
Adjusted ROE (FIFO)	%	%	%	%	%
Return on Assets (ROA)
Reported ROA (LIFO)	%	%	%	%	%
Adjusted ROA (FIFO)	%	%	%	%	%

Ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	E.I. DuPont de Nemours & Co.'s adjusted current ratio improved from 2008 to 2009 and from 2009 to 2010.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	E.I. DuPont de Nemours & Co.'s adjusted net profit margin deteriorated from 2008 to 2009 but then improved from 2009 to 2010 exceeding 2008 level.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	E.I. DuPont de Nemours & Co.'s adjusted total asset turnover deteriorated from 2008 to 2009 but then improved from 2009 to 2010 not reaching 2008 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	E.I. DuPont de Nemours & Co.'s adjusted financial leverage increased from 2008 to 2009 but then declined significantly from 2009 to 2010.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders' equity.	E.I. DuPont de Nemours & Co.'s adjusted ROE deteriorated from 2008 to 2009 but then improved from 2009 to 2010 exceeding 2008 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	E.I. DuPont de Nemours & Co.'s adjusted ROA deteriorated from 2008 to 2009 but then improved from 2009 to 2010 exceeding 2008 level.

Adjusted Current Ratio

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		Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007	Dec 31, 2006
	As Reported
	Current assets (USD $ in millions)
	Current liabilities (USD $ in millions)

	Current ratio¹
	Adjusted: from LIFO to FIFO
	Adjusted current assets (USD $ in millions)
	Current liabilities (USD $ in millions)

	Adjusted current ratio²

2010 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= ÷ =

² Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= ÷ =

Ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	E.I. DuPont de Nemours & Co.'s adjusted current ratio improved from 2008 to 2009 and from 2009 to 2010.

Adjusted Net Profit Margin

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	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007	Dec 31, 2006
As Reported
Net income attributable to DuPont (USD $ in millions)
Net sales (USD $ in millions)

Net profit margin¹	%	%	%	%	%
Adjusted: from LIFO to FIFO
Adjusted net income attributable to DuPont (USD $ in millions)
Net sales (USD $ in millions)

Adjusted net profit margin²	%	%	%	%	%

2010 Calculations

¹ Net profit margin = 100 × Net income attributable to DuPont ÷ Net sales
= 100 × ÷ = %

² Adjusted net profit margin = 100 × Adjusted net income attributable to DuPont ÷ Net sales
= 100 × ÷ = %

Ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	E.I. DuPont de Nemours & Co.'s adjusted net profit margin deteriorated from 2008 to 2009 but then improved from 2009 to 2010 exceeding 2008 level.

Adjusted Total Asset Turnover

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		Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007	Dec 31, 2006
	As Reported
	Net sales (USD $ in millions)
	Total assets (USD $ in millions)

	Total asset turnover¹
	Adjusted: from LIFO to FIFO
	Net sales (USD $ in millions)
	Adjusted total assets (USD $ in millions)

	Adjusted total asset turnover²

2010 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= ÷ =

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= ÷ =

Ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	E.I. DuPont de Nemours & Co.'s adjusted total asset turnover deteriorated from 2008 to 2009 but then improved from 2009 to 2010 not reaching 2008 level.

Adjusted Financial Leverage

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		Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007	Dec 31, 2006
	As Reported
	Total assets (USD $ in millions)
	DuPont stockholders' equity (USD $ in millions)

	Financial leverage¹
	Adjusted: from LIFO to FIFO
	Adjusted total assets (USD $ in millions)
	Adjusted duPont stockholders' equity (USD $ in millions)

	Adjusted financial leverage²

2010 Calculations

¹ Financial leverage = Total assets ÷ DuPont stockholders' equity
= ÷ =

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted duPont stockholders' equity
= ÷ =

Ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	E.I. DuPont de Nemours & Co.'s adjusted financial leverage increased from 2008 to 2009 but then declined significantly from 2009 to 2010.

Adjusted Return On Equity (ROE)

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	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007	Dec 31, 2006
As Reported
Net income attributable to DuPont (USD $ in millions)
DuPont stockholders' equity (USD $ in millions)

ROE¹	%	%	%	%	%
Adjusted: from LIFO to FIFO
Adjusted net income attributable to DuPont (USD $ in millions)
Adjusted duPont stockholders' equity (USD $ in millions)

Adjusted ROE²	%	%	%	%	%

2010 Calculations

¹ ROE = 100 × Net income attributable to DuPont ÷ DuPont stockholders' equity
= 100 × ÷ = %

² Adjusted ROE = 100 × Adjusted net income attributable to DuPont ÷ Adjusted duPont stockholders' equity
= 100 × ÷ = %

Ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders' equity.	E.I. DuPont de Nemours & Co.'s adjusted ROE deteriorated from 2008 to 2009 but then improved from 2009 to 2010 exceeding 2008 level.

Adjusted Return On Assets (ROA)

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	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007	Dec 31, 2006
As Reported
Net income attributable to DuPont (USD $ in millions)
Total assets (USD $ in millions)

ROA¹	%	%	%	%	%
Adjusted: from LIFO to FIFO
Adjusted net income attributable to DuPont (USD $ in millions)
Adjusted total assets (USD $ in millions)

Adjusted ROA²	%	%	%	%	%

2010 Calculations

¹ ROA = 100 × Net income attributable to DuPont ÷ Total assets
= 100 × ÷ = %

² Adjusted ROA = 100 × Adjusted net income attributable to DuPont ÷ Adjusted total assets
= 100 × ÷ = %

Ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	E.I. DuPont de Nemours & Co.'s adjusted ROA deteriorated from 2008 to 2009 but then improved from 2009 to 2010 exceeding 2008 level.

E.I. DuPont de Nemours & Co. (DD) | Analysis of Inventory

Inventory Accounting Policy

Inventory Disclosure

Adjustment to Inventory: from LIFO to FIFO

Adjusted Ratios: LIFO vs. FIFO (Summary)

Adjusted Current Ratio

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return On Equity (ROE)

Adjusted Return On Assets (ROA)

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