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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 'bottom-up' approach based on employee count allocation to validate the existence of excess costs even under conservative assumptions.",
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      "text": "The elimination of just these excess costs implies 26% to 55% of incremental shareholder value(5)",
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      "text": "The elimination of just these excess costs implies 26% to 55% of incremental shareholder value",
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      "text": "DuPont asserts that Trian has used “faulty extrapolations”(1) to arrive at the estimated $2-$4bn of excess costs\nDuPont might say that Trian’s methodology (Approach #1 and Approach #2) is flawed because\ni) DuPont allocates corporate costs by employee count, and\nii) Coatings had an oversized number of employees, thereby inflating the allocated / excess corporate costs at the business\nRegardless, by DuPont’s own methodology, there are $1.7bn of excess costs",
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      "text": "excess corporate costs: $1.7bn",
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      "text": "DuPont asserts that Trian has used “faulty extrapolations” — James Collins, Executive Vice President of DuPont at Bank of America Merrill Lynch US Basic Materials Conference (12/10/2014).",
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      "text": "(1) James Collins... (2) See page 71... (3) Estimated number... (4) DuPont 2011 Form 10-K. (5) Incremental value...",
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      "text": "Approach #3 - % of Employees\n($ in millions)\nAt Axalta / Coatings\n2011 Adj. EBITDA - DuPont, before Unallocated Corporate $420\n- Unallocated Corporate 80\n= 2011 Adj. EBITDA - DuPont, after Unallocated Corporate $339\n2011 Adjusted EBITDA - Axalta $568\n- 2011 Adj. EBITDA - DuPont, before Unallocated Corporate 420\nExcess Allocated Corporate $148\nAxalta Employees 13,000\nTotal 2011 DuPont Employees 70,000\n% of Employees 18.6%\nExtrapolation to DuPont\nExcess Allocated Corporate $148\n÷ % of Employees 18.6%\nImplied Excess Allocated Corp Costs $799\n+ 2014 Unallocated Corp 907\n= Total Excess Corporate Costs $1,706",
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