Employee Separation / Asset Related Charges, Net

2017 Restructuring Program

During the first quarter 2017, DuPont committed to take actions to improve plant productivity and better position its businesses for productivity and growth before and after the anticipated closing of the Merger Transaction. In connection with these actions, the company expects to incur pre-tax charges of $326, comprised of $293 of asset-related charges and $33 in severance and related benefit costs (the 2017 restructuring program). The charges primarily relate to the closure of the Protection Solutions segment's Cooper River manufacturing site located near Charleston, South Carolina. The actions associated with this plan are expected to be substantially complete by the end of 2017.

Of the $326 of pre-tax charges discussed above, $152 was recognized during the three months ended March 31, 2017 in employee separation / asset related charges, net, in the company's interim Consolidated Financial Statement, consisting of $33 of severance and related benefit costs and $119 of asset-related charges. The asset-related charges mainly consist of accelerated depreciation associated with the closure of the Cooper River manufacturing site. Additional charges for accelerated depreciation are expected in 2017, the majority of which will be recognized in the second quarter.

The 2017 restructuring program charge related to the segments, as well as corporate expenses, was as follows:



	Three Months Ended March 31, 2017
Electronics & Communications	$	5
Industrial Biosciences	6
Nutrition & Health	2
Performance Materials	11
Protection Solutions	124
Corporate expenses	4
	$	152

Account balances and activity for the 2017 restructuring program are summarized below:



	Severance and Related Benefit Costs			Asset Related Charges¹			Total
Charges to income from continuing operations for the quarter ended March 31, 2017	$	33		$	119		$	152
Payments	(1		)	—			(1		)
Asset write-offs	—			(119		)	(119		)
Balance as of March 31, 2017	$	32		$	—		$	32


^1.	Includesaccelerated depreciation related to site closure. Charge for accelerated depreciation represents the difference between the depreciation expense to be recognized over the revised useful life of the site, based upon the anticipated date the site will be closed and depreciation expense as determined utilizing the useful life prior to the restructuring action.

La Porte Plant, La Porte, Texas

In March 2016, DuPont announced its decision to not re-start the Agriculture segment’s insecticide manufacturing facility at the La Porte site located in La Porte, Texas. The facility manufactures Lannate^® and Vydate^® insecticides and has been shut down since November 2014. As a result of this decision, during the three months ended March 31, 2016, a pre-tax charge of $75 was recorded in employee separation / asset related charges, net in the company's interim Consolidated Income Statement which included $41 of asset related charges, $18 of contract termination costs, and $16 of employee severance and related benefit costs.

2016 Global Cost Savings and Restructuring Plan

At March 31, 2017, total liabilities related to the program were $63. The restructuring actions associated with the charge were substantially completed in 2016. A complete discussion of restructuring initiatives is included in the company's 2016 Annual Report in Note 4, "Employee Separation / Asset Related Charges, Net."

Account balances and activity for the restructuring plan, which reflect timing of payments, are summarized below:



	Severance and Related Benefit Costs			Other Non-Personnel Charges¹			Total
Balance at December 31, 2016	$	100		$	22		$	122
Payments	(50		)	(10		)	(60		)
Net translation adjustment	1			—			1
Balance as of March 31, 2017	$	51		$	12		$	63

^1.Other non-personnel charges consist of contractual obligation costs.

During the three months ended March 31, 2016, a net charge of $2 was recorded associated with the 2016 global cost savings and restructuring plan in employee separation / asset related charges, net in the company's interim Consolidated Income Statement. This was primarily due to the identification of additional projects in certain segments, offset by lower than estimated workforce reductions achieved through non-severance programs. The net charge related to the segments for the three months ended March 31, 2016 was as follows: Agriculture - $21, Electronics & Communications - $(7), Industrial Biosciences - $(1), Nutrition & Health - $(1), Performance Materials - $4, Protection Solutions - $(3), Other - $3, as well as Corporate expenses $(14).