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  "documentTitle": "E.I. du Pont de Nemours and Company (DuPont) (DD)",
  "authorId": "06_Trian_Partners",
  "authorName": "Nelson Peltz",
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  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2015-04-22 00:00:00",
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  "notes": "Uses a before-after-bridge style comparison to highlight the discrepancy in EBITDA reporting between DuPont and the new owners.",
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      "kind": "callout",
      "text": "DuPont transferred >$6bn of shareholder wealth to private equity owners by not running Coatings efficiently and selling the business for cash rather than doing a tax-free spin. We estimate that consolidated DuPont is burdened by $2-$4bn of excess corporate costs(5)",
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      "kind": "callout",
      "text": "DuPont transferred >$6bn of shareholder wealth to private equity owners by not running Coatings efficiently and selling the business for cash rather than doing a tax-free spin",
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      "text": "EBITDA comparison chart showing DuPont vs Axalta reporting",
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      "text": "EBITDA: >150%",
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      "kind": "paragraph",
      "text": "In 2012, DuPont announced the sale of Coatings to private equity buyers. At the time, Coatings generated $339m(1) of EBITDA (2011A). Today, that same business, renamed Axalta, generates $851m(2) of EBITDA, an improvement of >150%. In 2014, the new owners filed a Form S-1 to take Axalta public. The S-1 disclosed that Pro Forma EBITDA in 2011 was $568m(3), $229m higher than originally reported by DuPont in the same year – this implies that DuPont burdened the Coatings segment with $229m of excess corporate costs",
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      "kind": "source-note",
      "text": "Source: DuPont and Axalta SEC Filings. (1)-(5) footnotes detailing EBITDA adjustments.",
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      "text": "Excess Corporate Costs: The Coatings / Axalta Case Study",
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