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  "documentTitle": "E.I. du Pont de Nemours and Company (DuPont) (DD)",
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  "authorName": "Nelson Peltz",
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  "notes": "Uses a callout box to summarize the core accusation of lack of transparency.",
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      "kind": "callout",
      "text": "At DuPont’s 2013 Investor Day, management was not transparent about reducing margin targets, suggesting that reduced margin targets were correlated to the accounting change. Were DuPont’s independent directors aware of this? Trian’s nominees will seek to ensure that the board holds management accountable.",
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      "kind": "callout",
      "text": "At DuPont’s 2013 Investor Day, management was not transparent about reducing margin targets, suggesting that reduced margin targets were correlated to the accounting change.",
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      "text": "At its May 2013 Investor Day, DuPont gave long-term margin targets by business that differed from those given at its 2011 Investor Day",
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      "text": "In December 2012, DuPont introduced a new EPS reporting methodology, called “Operating EPS”, which adds back non-operating pension/other post-employment benefit (“OPEB”) costs to non-GAAP EPS",
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      "text": "It took prodding from a research analyst during the Q&A for DuPont to admit that certain margin targets were lowered: “...Safety and Protection margin [targets] that you show are 21% to 23% which is what they were 18 months ago. But you now exclude your pension cost...[which was] more than 500 basis points.” – JP Morgan analyst(1) DuPont responded: “...You're right, Jeff. The margin is lower between 400 and 500 basis points from that standpoint”",
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      "text": "The Company suggested the difference between these targets was merely an accounting difference (i.e. the non-operating pension / OPEB adjustment); responding to a question about the Industrial Biosciences and Performance Materials segments, management said the following: “In terms of margins, the accounting change really accounts for the shift that you're seeing. So we have not revised up or revised down our expectations”",
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      "text": "\"In terms of margins, the accounting change really accounts for the shift that you're seeing. So we have not revised up or revised down our expectations\" — DuPont Management. \"...Safety and Protection margin [targets] that you show are 21% to 23% which is what they were 18 months ago. But you now exclude your pension cost...[which was] more than 500 basis points.\" — Jeff Zeakauskas, JP Morgan. \"...You're right, Jeff. The margin is lower between 400 and 500 basis points from that standpoint\" — DuPont Management.",
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      "text": "Source: DuPont SEC filings, DuPont Investor Day transcript from May 2, 2013, Trian calculations, non-GAAP reconciliations. (1) Jeff Zekauskas, JP Morgan, DuPont 2013 Investor Day, 5/2/2013.",
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      "text": "DuPont Changed Its EPS Reporting Methodology In Late 2012; Then Suggested Reduced Margin Targets Were Correlated To Its Accounting Change",
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