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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-38196

DUPONT DE NEMOURS, INC.
(Exact name of registrant as specified in its charter)
Delaware81-1224539
State or other jurisdiction of incorporation or organization(I.R.S. Employer Identification No.)
974 Centre Road
Building 730
Wilmington
Delaware
19805
(Address of Principal Executive Offices)
(Zip Code)

(302) 774-3034
(Registrant’s Telephone Number, Including Area Code)

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareDDNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
                                                 Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
                                 Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated FilerAccelerated filer¨
Non-accelerated filer¨Smaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨



Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No

The registrant had 508,526,549 shares of common stock, $0.01 par value, outstanding at May 4, 2022.


DuPont de Nemours, Inc.

QUARTERLY REPORT ON FORM 10-Q
For the quarterly period ended March 31, 2022

TABLE OF CONTENTS

PAGE
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 4.
Item 5.
Item 6.

3


DuPont de Nemours, Inc.

DuPontTM and all products, unless otherwise noted, denoted with TM, SM or ® are trademarks, service marks or registered trademarks of affiliates of DuPont de Nemours, Inc.

FORWARD-LOOKING STATEMENTS
This communication contains "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," "will," "would," "target," and similar expressions and variations or negatives of these words. Capitalized terms used in this section but not defined below have the meanings assigned in the Notes to the Consolidated Financial Statements of this Quarterly Report on Form 10-Q.

Forward-looking statements address matters that are, to varying degrees, uncertain and subject to risks, uncertainties, and assumptions, many of which that are beyond DuPont's control, that could cause actual results to differ materially from those expressed in any forward-looking statements. Forward-looking statements are not guarantees of future results. Some of the important factors that could cause DuPont's actual results to differ materially from those projected in any such forward-looking statements include, but are not limited to: (i) the parties’ ability to meet expectations regarding the timing, completion and accounting and tax treatments of the M&M Divestiture to Celanese, including (x) any failure to obtain necessary regulatory approvals, anticipated tax treatment or to satisfy any of the other conditions to the proposed transaction, (y) the possibility that unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies could impact the value, timing or pursuit of the proposed transaction, and (z) risks and costs and pursuit and/or implementation, timing and impacts to business operations of the separation of business lines in scope for the M&M Divestiture to Celanese, (ii) the timing and outcome of the Delrin® Business Divestiture, including entry into definitive agreements, and the risks, costs and ability to realize benefits from the pursuit of the Delrin® Business Divestiture; (iii) ability to achieve anticipated tax treatments in connection with mergers, acquisitions, divestitures and other portfolio changes actions and impact of changes in relevant tax and other laws; (iv) indemnification of certain legacy liabilities; (v) risks and costs related to each of the parties respective performance under and the impact of the arrangement to share future eligible PFAS costs by and between DuPont, Corteva and Chemours; (vi) failure to timely close on anticipated terms (or at all), realize expected benefits and effectively manage and achieve anticipated synergies and operational efficiencies in connection with mergers, acquisitions, divestitures and other portfolio changes including the Intended Rogers Acquisition and the M&M Divestitures; (vii) risks and uncertainties, including increased costs and the ability to obtain raw materials and meet customer needs, related to operational and supply chain impacts or disruptions, which may result from, among other events, the COVID-19 pandemic and actions in response to it, and geo-political and weather related events; (viii) ability to offset increases in cost of inputs, including raw materials, energy and logistics; (ix) risks, including ability to achieve, and costs associated with DuPont’s sustainability strategy including the actual conduct of the company’s activities and results thereof, and the development, implementation, achievement or continuation of any goal, program, policy or initiative discussed or expected; and (x) other risks to DuPont's business, operations; each as further discussed in DuPont’s most recent annual report and subsequent current and periodic reports filed with the U.S. Securities and Exchange Commission. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business or supply chain disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on DuPont’s consolidated financial condition, results of operations, credit rating or liquidity. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. DuPont assumes no obligation to publicly provide revisions or updates to any forward looking statements whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.
4


PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS
DuPont de Nemours, Inc.
Consolidated Statements of Operations

Three Months Ended March 31,
In millions, except per share amounts (Unaudited)20222021
Net sales$3,274 $3,017 
Cost of sales2,110 1,861 
Research and development expenses143 139 
Selling, general and administrative expenses389 395 
Amortization of intangibles153 125 
Restructuring and asset related charges - net101 2 
Acquisition, integration and separation costs8 6 
Equity in earnings of nonconsolidated affiliates26 23 
Sundry income (expense) - net3 19 
Interest expense120 146 
Income from continuing operations before income taxes279 385 
Provision for (benefit from) income taxes on continuing operations47 (1)
Income from continuing operations, net of tax232 386 
Income from discontinued operations, net of tax276 5,012 
Net income508 5,398 
Net income attributable to noncontrolling interests20 4 
Net income available for DuPont common stockholders$488 $5,394 
Per common share data:
Earnings per common share from continuing operations - basic$0.42 $0.64 
Earnings per common share from discontinued operations - basic0.54 8.28 
Earnings per common share - basic$0.95 $8.92 
Earnings per common share from continuing operations - diluted$0.42 $0.64 
Earnings per common share from discontinued operations - diluted0.53 8.26 
Earnings per common share - diluted$0.95 $8.90 
Weighted-average common shares outstanding - basic512.0 604.8 
Weighted-average common shares outstanding - diluted513.8 606.3 
See Notes to the Consolidated Financial Statements.
5



DuPont de Nemours, Inc.
Consolidated Statements of Comprehensive Income
Three Months Ended March 31,
In millions (Unaudited)20222021
Net income$508 $5,398 
Other comprehensive (loss) income, net of tax
Cumulative translation adjustments(272)(484)
Pension and other post-employment benefit plans(7)12 
Derivative instruments11  
Split-off of N&B 258 
Total other comprehensive loss(268)(214)
Comprehensive income240 5,184 
Comprehensive income (loss) attributable to noncontrolling interests, net of tax13 (3)
Comprehensive income attributable to DuPont$227 $5,187 
See Notes to the Consolidated Financial Statements.
6



DuPont de Nemours, Inc.
Condensed Consolidated Balance Sheets
In millions, except share amounts (Unaudited)March 31, 2022December 31, 2021
Assets
Current Assets
Cash and cash equivalents
$1,672 $1,972 
Accounts and notes receivable - net
2,327 2,159 
Inventories
2,238 2,086 
Prepaid and other current assets189 177 
Assets held for sale242 245 
Assets of discontinued operations7,775 7,664 
Total current assets
14,443 14,303 
Property, plant and equipment - net of accumulated depreciation (March 31, 2022 - $4,215; December 31, 2021 - $4,142)
5,668 5,753 
Other Assets
Goodwill
16,878 16,981 
Other intangible assets
6,040 6,222 
Restricted cash and cash equivalents53 53 
Investments and noncurrent receivables821 919 
Deferred income tax assets
127 116 
Deferred charges and other assets
1,363 1,360 
Total other assets
25,282 25,651 
Total Assets$45,393 $45,707 
Liabilities and Equity
Current Liabilities
Short-term borrowings$405 $150 
Accounts payable
2,176 2,102 
Income taxes payable
197 201 
Accrued and other current liabilities
978 1,040 
Liabilities related to assets held for sale31 25 
Liabilities of discontinued operations1,335 1,413 
Total current liabilities
5,122 4,931 
Long-Term Debt10,634 10,632 
Other Noncurrent Liabilities
Deferred income tax liabilities
1,276 1,459 
Pension and other post-employment benefits - noncurrent733 762 
Other noncurrent obligations
837 873 
Total other noncurrent liabilities
2,846 3,094 
Total Liabilities18,602 18,657 
Commitments and contingent liabilities
Stockholders' Equity
Common stock (authorized 1,666,666,667 shares of $0.01 par value each; issued 2022: 508,528,772 shares; 2021: 511,792,785 shares)
5 5 
Additional paid-in capital
49,487 49,574 
Accumulated deficit(23,096)(23,187)
Accumulated other comprehensive (loss) income(220)41 
Total DuPont stockholders' equity
26,176 26,433 
Noncontrolling interests
615 617 
Total equity
26,791 27,050 
Total Liabilities and Equity$45,393 $45,707 
See Notes to the Consolidated Financial Statements.
7



DuPont de Nemours, Inc.
Consolidated Statements of Cash Flows
Three Months Ended March 31,
In millions (Unaudited)20222021
Operating Activities
Net income$508 $5,398 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization342 391 
Credit for deferred income tax and other tax related items(252)(105)
Earnings of nonconsolidated affiliates less than (in excess of) dividends received18 (20)
Net periodic benefit (credit) cost(1)2 
Periodic benefit plan contributions(20)(28)
Net loss (gain) on sales and split-offs of assets, businesses and investments3 (4,982)
Restructuring and asset related charges - net101 4 
Other net loss24 53 
Changes in assets and liabilities, net of effects of acquired and divested companies:
Accounts and notes receivable(254)(228)
Inventories(277)(174)
Accounts payable304 92 
Other assets and liabilities, net(287)(25)
Cash provided by operating activities209 378 
Investing Activities
Capital expenditures(251)(283)
Proceeds from sales of property and businesses, net of cash divested15 31 
Acquisitions of property and businesses, net of cash acquired5 (11)
Purchases of investments (2,001)
Other investing activities, net2 4 
Cash used for investing activities(229)(2,260)
Financing Activities
Changes in short-term borrowings254  
Proceeds from issuance of long-term debt transferred to IFF at split-off 1,250 
Payments on long-term debt (3,000)
Purchases of common stock(375)(500)
Proceeds from issuance of Company stock83 90 
Employee taxes paid for share-based payment arrangements(22)(15)
Distributions to noncontrolling interests(18)(19)
Dividends paid to stockholders(169)(161)
Cash transferred to IFF and subsequent adjustments(11)(100)
Other financing activities, net (3)
Cash used for financing activities(258)(2,458)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(25)(37)
(Decrease) in cash, cash equivalents and restricted cash(303)(4,377)
Cash, cash equivalents and restricted cash from continuing operations, beginning of period2,037 8,733 
Cash, cash equivalents and restricted cash from discontinued operations, beginning of period39 42 
Cash, cash equivalents and restricted cash at beginning of period2,076 8,775 
Cash, cash equivalents and restricted cash from continuing operations, end of period1,734 4,364 
Cash, cash equivalents and restricted cash from discontinued operations, end of period39 34 
Cash, cash equivalents and restricted cash at end of period$1,773 $4,398 
See Notes to the Consolidated Financial Statements.
8


DuPont de Nemours, Inc.
Consolidated Statements of Equity
For the three months ended March 31, 2022 and 2021
In millions (Unaudited)Common StockAdditional Paid-in CapitalRetained Earnings (Accumulated Deficit)Accumulated Other Comp LossTreasury StockNon-controlling InterestsTotal Equity
Balance at December 31, 2020$7 $50,039 $(11,586)$44 $ $566 $39,070 
Net income— — 5,394 — — 4 5,398 
Other comprehensive income
— — — (207)— (7)(214)
Dividends ($0.30 per common share)
— (161)— — — — (161)
Common stock issued/sold— 90 — — — — 90 
Stock-based compensation— (4)— — — — (4)
Distributions to non-controlling interests
— — — — — (19)(19)
Purchases of treasury stock— — — — (500)— (500)
Retirement of treasury stock— — (500)— 500 —  
Split-off of N&B(2)— (15,926)— — (27)(15,955)
Balance at March 31, 2021$5 $49,964 $(22,618)$(163)$ $517 $27,705 
Balance at December 31, 2021$5 $49,574 $(23,187)$41 $ $617 $27,050 
Net income— — 488 — — 20 508 
Other comprehensive loss
— — — (261)— (7)(268)
Dividends ($0.33 per common share)
— (169)— — — — (169)
Common stock issued/sold
— 83 — — — — 83 
Stock-based compensation
— (1)— — — — (1)
Contributions from non-controlling interests— — — — — 2 2 
Distributions to non-controlling interests
— — — — — (18)(18)
Purchases of treasury stock
— — — — (375)— (375)
Retirement of treasury stock
— — (375)— 375 —  
Other
— — (22)— — 1 (21)
Balance at March 31, 2022$5 $49,487 $(23,096)$(220)$ $615 $26,791 
See Notes to the Consolidated Financial Statements.

9


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Table of Contents


10


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
In these notes, the terms "DuPont" or "Company" used herein mean DuPont de Nemours, Inc. and its consolidated subsidiaries. The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, the interim statements reflect all adjustments (including normal recurring accruals) which are considered necessary for the fair statement of the results for the periods presented. Results from interim periods should not be considered indicative of results for the full year. These interim Consolidated Financial Statements should also be read in conjunction with the audited Consolidated Financial Statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, collectively referred to as the "2021 Annual Report." The interim Consolidated Financial Statements include the accounts of the Company and all of its subsidiaries in which a controlling interest is maintained.

Mobility & Materials Intended Divestitures
On February 17, 2022, DuPont entered into a Transaction Agreement (the "Transaction Agreement") with Celanese Corporation ("Celanese") to divest a majority of the historic Mobility & Materials segment, including the Engineering Polymers business line and select product lines within the Advanced Solutions and Performance Resins business lines, (the “M&M Divestiture”). The transaction is expected to close around the end of 2022, subject to customary closing conditions and regulatory approvals. In addition, on February 18, 2022, the Company announced it is advancing the process to divest its Delrin® acetal homopolymer (H-POM) business, subject to entry into a definitive agreement and satisfaction of customary closing conditions. The Delrin® divestiture together with the M&M Divestiture discussed above (the "M&M Divestitures") represents a strategic shift that will have a major impact on DuPont's operations and results. See Note 4 for more information.

The financial position of DuPont as of March 31, 2022 and December 31, 2021 present the businesses to be divested as part of the M&M Divestiture and the divestiture of Delrin® (the "M&M Businesses") as discontinued operations. The results of operations for the three months ended March 31, 2022 and 2021 present the financial results of the M&M Businesses as discontinued operations. The cash flows and comprehensive income related to the M&M Businesses have not been segregated and are included in the interim Consolidated Statements of Cash Flows and interim Consolidated Statements of Comprehensive Income, respectively, for all periods presented. Unless otherwise indicated, the information in the notes to the interim Consolidated Financial Statements refer only to DuPont's continuing operations and do not include discussion of balances or activity of the M&M Businesses. See Note 4 to the interim Consolidated Financial Statements for additional information.

The Auto Adhesives & Fluids, MultibaseTM and Tedlar® product lines previously within the historic Mobility & Materials segment (the "Retained Businesses") are not included in the scope of the intended divestitures. The Retained Businesses are reported in Corporate & Other. The reporting changes have been retrospectively applied for all periods presented.

N&B Transaction
On February 1, 2021, DuPont completed the separation and distribution of the Nutrition & Biosciences business segment (the "N&B Business"), and the merger of Nutrition & Biosciences, Inc. (“N&B”), a DuPont subsidiary formed to hold the N&B Business, with a subsidiary of International Flavors & Fragrances Inc. ("IFF"). The distribution was effected through an exchange offer (the “Exchange Offer”) and the consummation of the Exchange Offer was followed by the merger of N&B with a wholly owned subsidiary of IFF, with N&B surviving the merger as a wholly owned subsidiary of IFF (the “N&B Merger” and, together with the Exchange Offer, the “N&B Transaction”). See Note 4 for more information.

The results of operations of DuPont for the three months ended March 31, 2021 present the historical financial results of N&B as discontinued operations. The cash flows and comprehensive income related to N&B have not been segregated and are included in the interim Consolidated Statements of Cash Flows and interim Consolidated Statements of Comprehensive Income, respectively, for the three months ended March 31, 2021. Unless otherwise indicated, the information in the notes to the interim Consolidated Financial Statements refer only to DuPont's continuing operations and do not include discussion of balances or activity of N&B.


11


NOTE 2 - RECENT ACCOUNTING GUIDANCE
Accounting Guidance Issued But Not Adopted at March 31, 2022
In October 2021, the FASB issued Accounting Standards Update No. 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”), which requires contract assets and contract liabilities (i.e., unearned revenue) acquired in a business combination to be recognized and measured in accordance with ASC 606, Revenue from Contracts with Customers. Historically, the Company has recognized contract assets and contract liabilities at the acquisition date based on fair value estimates in accordance with ASC 805, Business Combinations. ASU 2021-08 is effective for interim and annual periods beginning after December 15, 2022 on a prospective basis, with early adoption permitted. The Company is currently evaluating the potential impact of ASU 2021-08 to its Consolidated Financial Statements in connection with any future anticipated business combinations.


NOTE 3 - ACQUISITIONS
Intended Rogers Corporation Acquisition
On November 2, 2021, the Company announced that it had entered into a definitive agreement to acquire all the outstanding shares of Rogers Corporation (“Rogers”) for about $5.2 billion (the “Intended Rogers Acquisition”). The acquisition is expected to close late in the second quarter or early in the third quarter of 2022, pending receipt of regulatory approvals and satisfaction of customary closing conditions. When complete, the acquisition of Rogers is expected to broaden the Company’s presence in the electronic materials market. Rogers is complementary to and aligned strategically with the Company’s existing Electronics & Industrial business.

Laird Performance Materials Acquisition
On July 1, 2021, DuPont completed the acquisition (the "Laird PM Acquisition") of 100% of the ownership interest of Laird Performance Materials (“Laird PM”) from Advent International for aggregate, adjusted cash consideration of approximately $2,404 million. The cash consideration paid included a net upward adjustment of approximately $100 million for acquired cash and net working capital, amongst other items. Laird PM is reported within the Interconnect Solutions business of the Electronics & Industrial segment. The Company accounted for the acquisition in accordance with ASC 805, which requires the assets acquired and liabilities assumed to be recognized on the balance sheet at their fair values as of the acquisition date. The Company will finalize the amounts recognized as it obtains the information necessary to complete the analysis, but no later than one year from the date of the acquisition. There were no material updates to the purchase accounting and purchase price allocation for the three months ended March 31, 2022. For additional information regarding the acquisition of Laird PM, see Note 3, "Acquisitions," in the 2021 Annual Report.
12


NOTE 4 - DIVESTITURES
Mobility & Materials Intended Divestitures
On February 17, 2022, DuPont entered into the Transaction Agreement to divest a majority of its historic Mobility & Materials segment, specifically the Engineering Polymers business line and select product lines within the Advanced Solutions and Performance Resins business lines, to Celanese (the “M&M Divestiture”) for $11.0 billion in cash, subject to customary transaction adjustments in accordance with the Transaction Agreement. Closing is expected around the end of 2022, subject to customary closing conditions and regulatory approvals. The Company also announced on February 18, 2022 that its Board of Directors approved the divestiture of the Delrin® acetal homopolymer (H-POM) business, subject to entry into a definitive agreement and satisfaction of customary closing conditions, (the Delrin® business together with the M&M Divestiture businesses, the "M&M Businesses”). As of March 31, 2022, the Company anticipates a closing date for the sale of Delrin® within a year.

The Company has determined that the M&M Businesses meet the criteria to be classified as held for sale and that the sale represents a strategic shift that will have a major effect on the Company’s operations and results.

The results of operations of the M&M Businesses are presented as discontinued operations as summarized below:
Three Months Ended March 31,
In millions20222021
Net sales$1,042 $959 
Cost of sales782 651 
Research and development expenses15 17 
Selling, general and administrative expenses51 61 
Amortization of intangibles28 42 
Acquisition, integration and separation costs96  
Equity in earnings of nonconsolidated affiliates(1)3 
Sundry income (expense) - net  (3)
Income from discontinued operations before income taxes69 188 
(Benefit from) Provision for income taxes on discontinued operations(219)33 
Income from discontinued operations, net of tax288 155 
Net income from discontinued operations attributable to noncontrolling interests2 6 
Income from discontinued operations attributable to DuPont stockholders, net of tax$286 $149 

The following table presents depreciation, amortization, and capital expenditures of the discontinued operations related to the M&M Businesses:
Three Months Ended March 31,
In millions20222021
Depreciation and amortization$45 $73 
Capital expenditures 1
$27 $16 
1.Total capital expenditures are presented on a cash basis.



13


The following table summarizes the major classes of assets and liabilities of the M&M Businesses classified as held for sale presented as discontinued operations at March 31, 2022 and December 31, 2021:
In millionsMarch 31, 2022December 31, 2021
Assets
Cash and cash equivalents$39 $39 
Accounts and notes receivable - net632 552 
Inventories880 776 
Other current assets80 59 
Property, plant and equipment - net1,202 1,213 
Goodwill2,566 2,597 
Other intangible assets2,184 2,220 
Investments and noncurrent receivables56 62 
Deferred income tax assets24 27 
Deferred charges and other assets 112 119 
Total assets of discontinued operations$7,775 $7,664 
Liabilities
Accounts payable$569 $510 
Income taxes payable21 77 
Accrued and other current liabilities117 157 
Deferred income tax liabilities484 515 
Pension and other post employment benefits - noncurrent90 90 
Other noncurrent liabilities54 64 
Total liabilities of discontinued operations$1,335 $1,413 

M&M Divestiture to Celanese Transaction Agreement
In accordance with Transaction Agreement, consummation of the transaction is subject to the satisfaction or waiver of certain customary mutual closing conditions, including (i) the absence of an injunction in certain agreed jurisdictions that would prohibit consummation of the Transaction and (ii) the expiration or termination of the required waiting, notice or review periods and approvals or clearances under the Hart-Scott-Rodino Act, as amended, and certain other approvals under non-U.S. regulatory laws, as applicable, including, without limitation, the European Union, China, Brazil, Mexico, South Korea and Turkey. The Transaction Agreement contains certain termination rights, including, among others, for each of DuPont and Celanese, if the Transaction is not consummated on or before February 17, 2023, subject to two extensions of three months each if all closing conditions have been satisfied other than those related to the receipt of regulatory approvals and those to be satisfied at closing.

N&B Transaction
On February 1, 2021, DuPont completed the separation and distribution of the N&B Business, and merger of N&B, a subsidiary DuPont formed to hold the N&B Business, with a subsidiary of IFF. The distribution was effected through an exchange offer where, on the terms and subject to the conditions of the Exchange Offer, eligible participating DuPont stockholders had the option to tender all, some or none of their shares of common stock, par value $0.01 per share, of DuPont (the “DuPont Common Stock”) for a number of shares of common stock, par value $0.01 per share, of N&B (the “N&B Common Stock”) and which resulted in all shares of N&B Common Stock being distributed to DuPont stockholders that participated in the Exchange Offer. The consummation of the Exchange Offer was followed by the merger of N&B with a wholly owned subsidiary of IFF, with N&B surviving the merger as a wholly owned subsidiary of IFF (the “N&B Merger” and, together with the Exchange Offer, the “N&B Transaction”). The N&B Transaction was subject to IFF shareholder approval, customary regulatory approvals, tax authority rulings including a favorable private letter ruling from the U.S. Internal Revenue Service which confirms the N&B Transaction to be free of U.S. federal income tax, and expiration of the public exchange offer. DuPont does not have an ownership interest in IFF as a result of the N&B Transaction.

In the Exchange Offer, DuPont accepted approximately 197.4 million shares of its common stock in exchange for about 141.7 million shares of N&B Common Stock as of the date of the N&B Transaction. As a result, DuPont reduced its common stock outstanding by 197.4 million shares of DuPont Common Stock. In the N&B Merger, each share of N&B Common Stock was automatically converted into the right to receive one share of IFF common stock, par value $0.125 per share, based on the terms of the N&B Merger Agreement.

14


The results of operations of N&B are presented as discontinued operations as summarized below:
Three Months Ended March 31, 2021
In millions
Net sales$507 
Cost of sales352 
Research and development expenses21 
Selling, general and administrative expenses44 
Amortization of intangibles38 
Restructuring and asset related charges - net1 
Acquisition, integration and separation costs149 
Sundry income (expense) - net (2)
Interest expense13 
Loss from discontinued operations before income taxes(113)
Benefit from income taxes on discontinued operations(21)
Loss from discontinued operations, net of tax(92)
Non-taxable gain on split-off4,954 
Income from discontinued operations attributable to DuPont stockholders, net of tax$4,862 

The following table presents depreciation, amortization, and capital expenditures of the discontinued operations related to N&B:
Three Months Ended March 31, 2021
In millions
Depreciation and amortization$63 
Capital expenditures $27 

In connection with and in accordance with the terms of the N&B Transaction, prior to consummation of the Exchange Offer and the N&B Merger, DuPont received a one-time cash payment of approximately $7.3 billion, (the "Special Cash Payment").

The Company recognized a non-taxable gain of approximately $4,954 million on the N&B Transaction. The gain is recorded in "Income from discontinued operations, net of tax" in the Company's interim Consolidated Statements of Operations for the three months ended March 31, 2021.

N&B Transaction Agreements
In connection with the N&B Transaction, effective December 15, 2019, the Company, as previously discussed, entered into the following agreements: N&B Separation and Distribution Agreement, N&B Merger Agreement, and N&B Employee Matters Agreement. In connection with the closing of the N&B Transaction, and effective February 1, 2021, the Company entered into the following agreements: N&B IP Cross-License Agreement and N&B Tax Matters Agreement.

Acquisition, Integration and Separation Costs
Acquisition, integration and separation costs primarily consist of financial advisory, information technology, legal, accounting, consulting, and other professional advisory fees. The Company recorded costs of $8 million and $6 million for the three months ended March 31, 2022 and 2021, respectively. For the three months ended March 31, 2022, these costs were primarily associated with the execution of activities related to strategic initiatives including the acquisition of Laird PM and the Intended Rogers Acquisition. For the three months ended March 31, 2021, these costs were primarily associated with the execution of activities related to strategic initiatives, which primarily includes the sale of the Solamet® business unit and the planned divestiture of the Biomaterials business unit. These costs are recorded within "Acquisition, integration and separation costs" within the interim Consolidated Statements of Operations. Costs associated with the M&M Divestitures of $96 million for the three months ended March 31, 2022 are reported within discontinued operations as noted above.
15


Discontinued Operations Activity
The Company recorded income from discontinued operations, net of tax of $276 million and $5,012 million for the three months ended March 31, 2022 and 2021, respectively.

Discontinued operations activity consists of the following:
Income from discontinued operations, net of taxThree Months Ended March 31,
In millions20222021
M&M Divestitures $288 $155 
N&B Transaction 4,862 
Other 1
(12)(5)
Income from discontinued operations, net of tax$276 $5,012 
1.Primarily related to the binding Memorandum of Understanding (“MOU”) between Chemours, Corteva, E. I. du Pont de Nemours and Company ("EID") and the Company. For additional information on these matters, refer to Note 16.

Biomaterials
In October 2020, the Company entered into a definitive agreement to sell its Biomaterials business unit, which includes the Company's equity method investment in DuPont Tate & Lyle Bio Products, for $240 million. The sale of the Biomaterials business unit is subject to customary closing conditions and is expected to close mid-2022. The results of operations of the Biomaterials business unit are reported in Corporate & Other and the financial position is reflected as Held for Sale.

The following table summarizes the carrying value of the major assets and liabilities of the Biomaterials business unit as of March 31, 2022 and as of December 31, 2021:
In millionsMarch 31, 2022December 31, 2021
Assets
Accounts and notes receivable - net$23 $27 
Inventories56 48 
Investments and noncurrent receivables151 158 
Property, plant and equipment - net 12 12 
     Assets held for sale$242 $245 
Liabilities
Accounts payable$28 $21 
Accrued and other current liabilities2 3 
Other noncurrent obligations1 1 
     Liabilities related to assets held for sale$31 $25 
16


NOTE 5 - REVENUE
Revenue Recognition
Products
Substantially all of DuPont's revenue is derived from product sales. Product sales consist of sales of DuPont's products to supply manufacturers and distributors. DuPont considers purchase orders, which in some cases are governed by master supply agreements, to be a contract with a customer. Contracts with customers are considered to be short-term when the time between order confirmation and satisfaction of the performance obligations is equal to or less than one year.

Disaggregation of Revenue
The Company disaggregates its revenue from contracts with customers by segment and business or major product line and geographic region, as the Company believes it best depicts the nature, amount, timing and uncertainty of its revenue and cash flows.
Net Trade Revenue by Segment and Business or Major Product LineThree Months Ended March 31,
In millions20222021
Industrial Solutions$500 $458 
Interconnect Solutions460 330 
Semiconductor Technologies576 512 
Electronics & Industrial$1,536 $1,300 
Safety Solutions$654 $637 
Shelter Solutions422 360 
Water Solutions353 331 
Water & Protection$1,429 $1,328 
Retained Businesses 1
$266 $256 
Other 2
43 133 
Corporate & Other
$309 $389 
Total$3,274 $3,017 
1. Retained Businesses includes the Auto Adhesives & Fluids, MultibaseTM and Tedlar® businesses.
2. Net sales reflected in Other include activity of Biomaterials and previously divested businesses.

Net Trade Revenue by Geographic RegionThree Months Ended March 31,
In millions20222021
U.S. & Canada$1,049 $892 
EMEA 1
577 558 
Asia Pacific1,545 1,475 
Latin America103 92 
Total$3,274 $3,017 
1.Europe, Middle East and Africa.

Contract Balances
From time to time, the Company enters into arrangements in which it receives payments from customers based upon contractual billing schedules. The Company records accounts receivables when the right to consideration becomes unconditional. Contract liabilities primarily reflect deferred revenue from advance payment for product that the Company has received from customers. The Company classifies deferred revenue as current or noncurrent based on the timing of when the Company expects to recognize revenue.

Revenue recognized in the first three months of 2022 and 2021 from amounts included in contract liabilities at the beginning of the period was insignificant.
Contract BalancesMarch 31, 2022December 31, 2021
In millions
Accounts and notes receivable - trade 1
$1,789 $1,643 
Deferred revenue - current 2, 3
$34 $25 
1.Included in "Accounts and notes receivable - net" in the Condensed Consolidated Balance Sheets.
2.Included in "Accrued and other current liabilities" in the Condensed Consolidated Balance Sheets.
3.Noncurrent deferred revenue balances in the current and comparative periods were not material.


17


NOTE 6 - RESTRUCTURING AND ASSET RELATED CHARGES - NET
Charges for restructuring programs and asset related charges, which includes asset impairments, were $101 million for the three months ended March 31, 2022 and $2 million for the three months ended March 31, 2021. These charges were recorded in "Restructuring and asset related charges - net" in the interim Consolidated Statements of Operations. The total liability related to restructuring programs was $27 million at March 31, 2022 and $43 million at December 31, 2021, recorded in "Accrued and other current liabilities" in the Condensed Consolidated Balance Sheets. Restructuring activity consists of the following programs:

2021 Restructuring Actions
In October 2021, the Company approved targeted restructuring actions to capture near-term cost reductions (the "2021 Restructuring Actions"). The Company recorded pre-tax restructuring charges of $53 million inception-to-date, consisting of severance and related benefit costs of $31 million and asset related charges of $22 million.

Total liabilities related to the 2021 Restructuring Actions were $18 million at March 31, 2022 and $25 million at December 31, 2021, respectively, and recorded in "Accrued and other current liabilities" in the Condensed Consolidated Balance Sheets. The Company expects actions related to this program to be substantially complete by the first half of 2022.

2020 Restructuring Program
In the first quarter of 2020, the Company approved restructuring actions designed to capture near-term cost reductions and to further simplify certain organizational structures in anticipation of the N&B Transaction (the "2020 Restructuring Program"). The Company recorded pre-tax restructuring charges of $159 million inception-to-date, consisting of severance and related benefit costs of $107 million and asset related charges of $52 million.

Total liabilities related to the 2020 Restructuring Program were $5 million at March 31, 2022 and $11 million at December 31, 2021, respectively, and recorded in "Accrued and other current liabilities" in the Condensed Consolidated Balance Sheets. Actions related to the 2020 Restructuring Program are substantially complete.

Equity Method Investment Impairment Related Charges
In connection with the M&M Divestitures described in Note 4, a portion of an equity method investment was reclassified to “Assets of discontinued operations” within the Condensed Consolidated Balance Sheet. The reclassification served as a triggering event requiring the Company to perform an impairment analysis on the retained portion of the equity method investment held within “Investments and noncurrent receivables” on the Condensed Consolidated Balance Sheet. The fair value of the retained equity method investment was estimated using a discounted cash flow model (a form of the income approach). The Company's assumptions in estimating fair value utilize Level 3 inputs and include, but are not limited to, projected revenue, gross margins, EBITDA margins, the weighted average costs of capital, and terminal growth rates. The Company determined the fair value of the retained equity method investment was below the carrying value and had no expectation the fair value would recover in the short-term due to the current economic environment. As a result, management concluded the impairment was other-than-temporary and recorded an impairment charge of $94 million in “Restructuring and asset related charges - net” in the interim Consolidated Statements of Operations related to the Electronics & Industrial segment. No impairment was required to be recorded for the portion of the equity method investment included within “Assets of discontinued operations.”

18


NOTE 7 - SUPPLEMENTARY INFORMATION
Sundry Income (Expense) - NetThree Months Ended March 31,
In millions20222021
Non-operating pension and other post-employment benefit costs$7 $6 
Interest income1 4 
Net (loss) gain on divestiture and sales of other assets and investments 1
(1)27 
Foreign exchange losses, net
(5)(6)
Miscellaneous income (expenses) - net 2
1 (12)
Sundry income (expense) - net$3 $19 
1. The three months ended March 31, 2021 reflects income of $24 million related to the gain on sale of assets within the Electronics & Industrial segment.
2. The three months ended March 31, 2021 includes an impairment charge of approximately $15 million related to an asset sale, whose book value was adjusted to fair value when it was classified as held for sale.

Cash, Cash Equivalents and Restricted Cash
In connection with the cost sharing arrangement entered into as part of the MOU, as defined in Note 16, the Company is contractually obligated to make deposits into an escrow account to address potential future PFAS costs. At March 31, 2022, the Company had restricted cash of $53 million included within non-current “Restricted cash and cash equivalents” in the Condensed Consolidated Balance Sheets, the majority of which is attributable to the MOU cost sharing arrangement. Additional information regarding the MOU and the escrow account can be found in Note 16.

Accrued and Other Current Liabilities
"Accrued and other current liabilities" in the Condensed Consolidated Balance Sheets were $978 million at March 31, 2022 and $1,040 million at December 31, 2021. Accrued payroll, which is a component of "Accrued and other current liabilities," was $291 million at March 31, 2022 and $436 million at December 31, 2021. No other component of "Accrued and other current liabilities" was more than 5 percent of total current liabilities at March 31, 2022 and at December 31, 2021.


19


NOTE 8 - INCOME TAXES
Each year the Company files hundreds of tax returns in the various national, state and local income taxing jurisdictions in which it operates. These tax returns are subject to examination and possible challenge by the tax authorities. Positions challenged by the tax authorities may be settled or appealed by the Company. As a result, there is an uncertainty in income taxes recognized in the Company’s financial statements in accordance with accounting for income taxes and accounting for uncertainty in income taxes. The ultimate resolution of such uncertainties is not expected to have a material impact on the Company's results of operations.

The Company's effective tax rate fluctuates based on, among other factors, where income is earned and the level of income relative to tax attributes. The effective tax rate on continuing operations for the first quarter of 2022 was 16.8 percent, compared with an effective tax rate of (0.3) percent for the first quarter of 2021. The effective tax rate differential for the first quarter of 2022 was principally the result of a $94 million impairment charge of an equity method investment which resulted in a tax benefit of $29 million. The effective tax rate for the first quarter of 2021 was principally the result of a $59 million tax benefit related to the step-up in tax basis in the goodwill of the Company's European regional headquarters legal entity.

In connection with the integration of Laird PM, the Company completed certain internal restructurings that were determined to be tax free under the applicable sections of the Internal Revenue Code. If the aforementioned transactions were to fail to qualify for non-recognition treatment for U.S. federal income tax purposes, then the Company could be subject to significant tax liability.

Certain internal distributions and reorganizations that occurred during 2021 and 2020 in preparation for the N&B Transaction and the external distribution in 2021 qualified as tax-free transactions under the applicable sections of the Internal Revenue Code. If the aforementioned transactions were to fail to qualify for non-recognition treatment for U.S. federal income tax purposes, then the Company could be subject to significant tax liability. Under the N&B Tax Matters Agreement, the Company would generally be allocated such liability and not be indemnified, unless certain non-qualifying actions are undertaken by N&B or IFF. To the extent that the Company is responsible for any such liability, there could be a material adverse impact on the Company's business, financial condition, results of operations and cash flows in future reporting periods.

As a result of the M&M Businesses meeting the held for sale criteria in the first quarter of 2022, the Company recorded a net deferred tax benefit of $239 million in connection with certain anticipated internal stock restructurings. These restructurings involve both legal entities within the M&M Businesses and legal entities which are expected to remain with DuPont. The aforementioned net deferred tax benefit is included in “Income from discontinued operations, net of tax” in the interim Consolidated Statements of Operations. See Note 4 for additional information on the M&M Divestitures.
20


NOTE 9 - EARNINGS PER SHARE CALCULATIONS
The following tables provide earnings per share calculations for the three months ended March 31, 2022 and 2021:
Net Income for Earnings Per Share Calculations - Basic & DilutedThree Months Ended March 31,
In millions20222021
Income from continuing operations, net of tax$232 $386 
Net income (loss) from continuing operations attributable to noncontrolling interests18 (2)
Income from continuing operations attributable to common stockholders$214 $388 
Income from discontinued operations, net of tax276 5,012 
Net income from discontinued operations attributable to noncontrolling interests2 6 
Income from discontinued operations attributable to common stockholders274 5,006 
Net income attributable to common stockholders$488 $5,394 
Earnings Per Share Calculations - BasicThree Months Ended March 31,
Dollars per share20222021
Earnings from continuing operations attributable to common stockholders$0.42 $0.64 
Earnings from discontinued operations, net of tax0.54 8.28 
Earnings attributable to common stockholders 1
$0.95 $8.92 
Earnings Per Share Calculations - DilutedThree Months Ended March 31,
Dollars per share20222021
Earnings from continuing operations attributable to common stockholders$0.42 $0.64 
Earnings from discontinued operations, net of tax0.53 8.26 
Earnings attributable to common stockholders 1
$0.95 $8.90 
Share Count Information
Three Months Ended March 31,
Shares in millions20222021
Weighted-average common shares - basic 512.0 604.8 
Plus dilutive effect of equity compensation plans 1.8 1.5 
Weighted-average common shares - diluted513.8 606.3 
Stock options, restricted stock units, and performance-based restricted stock units excluded from EPS calculations 2
2.0 2.2 
1.Earnings per share amounts are computed independently for income from continuing operations, income from discontinued operations and net income attributable to common stockholders. As a result, the per share amounts from continuing operations and discontinued operations may not equal the total per share amounts for net income attributable to common stockholders.
2.These outstanding options to purchase shares of common stock, restricted stock units, and performance-based restricted stock units were excluded from the calculation of diluted earnings per share because the effect of including them would have been antidilutive.
21


NOTE 10 - ACCOUNTS AND NOTES RECEIVABLE - NET
In millionsMarch 31, 2022December 31, 2021
Accounts receivable – trade 1
$1,764 $