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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, 2024

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) 295-5783
(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 418,104,390 shares of common stock, $0.01 par value, outstanding at April 29, 2024.


DuPont de Nemours, Inc.

QUARTERLY REPORT ON FORM 10-Q
For the quarterly period ended March 31, 2024

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," “stabilization,” “confident,” “preliminary,” “initial,” and similar expressions and variations or negatives of these words. All statements, other than statements of historical fact, are forward-looking statements, including statements regarding outlook, expectations and guidance.

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 possibility that the Company may fail to realize the anticipated benefits of the $1 billion share repurchase program announced on February 6, 2024 and that the program may be suspended, discontinued or not completed prior to its termination on June 30, 2025; (ii) risks and uncertainties related to the settlement agreement concerning PFAS liabilities reached June 2023 with plaintiff water utilities by Chemours, Corteva, EIDP and DuPont; (iii) 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, including the outcome of any pending or future litigation related to PFAS or PFOA, including personal injury claims and natural resource damages claims; the extent and cost of ongoing remediation obligations and potential future remediation obligations; changes in laws and regulations applicable to PFAS chemicals; (iv) ability to achieve anticipated tax treatments in connection with completed and future, if any, divestitures, mergers, acquisitions and other portfolio changes actions and impact of changes in relevant tax and other laws; (v) indemnification of certain legacy liabilities; (vi) failure to realize expected benefits and effectively manage and achieve anticipated synergies and operational efficiencies in connection with completed and future, if any, divestitures, mergers, acquisitions, and other portfolio management, productivity and infrastructure actions; (vii) risks and uncertainties, including increased costs and the ability to obtain raw materials and meet customer needs from, among other events, pandemics and responsive actions; timing and recovery from demand declines in consumer-facing markets, including in China; adverse changes in worldwide economic, political, regulatory, international trade, geopolitical, capital markets and other external conditions; and other factors beyond the Company's control, including inflation, recession, military conflicts, natural and other disasters or weather related events, that impact the operations of the Company, its customers and/or suppliers; (viii) ability to offset increases in cost of inputs, including raw materials, energy and logistics; (ix) risks associated with demand and market conditions in the semiconductor industry and associated end markets, including from continuing or expanding trade disputes or restrictions, including on exports to China of U.S.-regulated products and technology; (x) 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 (xi) other risks to DuPont's business and operations, including the risk of impairment; 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)20242023
Net sales$2,931 $3,018 
Cost of sales1,918 1,983 
Research and development expenses125 127 
Selling, general and administrative expenses384 340 
Amortization of intangibles149 147 
Restructuring and asset related charges - net39 14 
Acquisition, integration and separation costs3  
Equity in earnings of nonconsolidated affiliates12 15 
Sundry income (expense) - net38 29 
Interest expense96 95 
Income from continuing operations before income taxes$267 $356 
Provision for income taxes on continuing operations84 83 
Income from continuing operations, net of tax$183 $273 
Income (loss) from discontinued operations, net of tax14 (8)
Net income$197 $265 
Net income attributable to noncontrolling interests8 8 
Net income available for DuPont common stockholders$189 $257 
Per common share data:
Earnings per common share from continuing operations - basic$0.41 $0.58 
Earnings (loss) per common share from discontinued operations - basic0.03 (0.02)
Earnings per common share - basic$0.45 $0.56 
Earnings per common share from continuing operations - diluted$0.41 $0.58 
Earnings (loss) per common share from discontinued operations - diluted0.03 (0.02)
Earnings per common share - diluted$0.45 $0.56 
Weighted-average common shares outstanding - basic422.8 458.8 
Weighted-average common shares outstanding - diluted424.3 460.2 
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)20242023
Net income$197 $265 
Other comprehensive (loss) income, net of tax
Cumulative translation adjustments(244)82 
Pension and other post-employment benefit plans(3)(4)
Derivative instruments11 (3)
Total other comprehensive (loss) income$(236)$75 
Comprehensive (loss) income $(39)$340 
Comprehensive income attributable to noncontrolling interests, net of tax1 9 
Comprehensive (loss) income attributable to DuPont$(40)$331 
See Notes to the Consolidated Financial Statements.
6



DuPont de Nemours, Inc.
Condensed Consolidated Balance Sheets

In millions, except share amounts (Unaudited)March 31, 2024December 31, 2023
Assets
Current Assets
Cash and cash equivalents
$1,934 $2,392 
Restricted cash and cash equivalents413 411 
Accounts and notes receivable - net
2,365 2,370 
Inventories
2,175 2,147 
Prepaid and other current assets180 194 
Total current assets
$7,067 $7,514 
Property, plant and equipment - net of accumulated depreciation (March 31, 2024 - $4,949; December 31, 2023 - $4,841)
5,772 5,884 
Other Assets
Goodwill
16,613 16,720 
Other intangible assets
5,640 5,814 
Investments and noncurrent receivables1,086 1,071 
Deferred income tax assets
288 312 
Deferred charges and other assets
1,251 1,237 
Total other assets
$24,878 $25,154 
Total Assets$37,717 $38,552 
Liabilities and Equity
Current Liabilities
Accounts payable
1,624 1,675 
Income taxes payable
153 154 
Accrued and other current liabilities
1,255 1,269 
Total current liabilities
$3,032 $3,098 
Long-Term Debt7,776 7,800 
Other Noncurrent Liabilities
Deferred income tax liabilities
1,098 1,130 
Pension and other post-employment benefits - noncurrent549 565 
Other noncurrent obligations
1,250 1,234 
Total other noncurrent liabilities
$2,897 $2,929 
Total Liabilities$13,705 $13,827 
Commitments and contingent liabilities
Stockholders' Equity
Common stock (authorized 1,666,666,667 shares of $0.01 par value each; issued 2024: 418,074,174 shares; 2023: 430,110,140 shares)
4 4 
Additional paid-in capital
48,238 48,059 
Accumulated deficit(23,519)(22,874)
Accumulated other comprehensive loss(1,139)(910)
Total DuPont stockholders' equity
$23,584 $24,279 
Noncontrolling interests
428 446 
Total equity
$24,012 $24,725 
Total Liabilities and Equity$37,717 $38,552 
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)20242023
Operating Activities
Net income$197 $265 
Income (loss) from discontinued operations14 (8)
Net income from continuing operations$183 $273 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization291 277 
Credit for deferred income tax and other tax related items(13)(5)
Earnings of nonconsolidated affiliates in excess of dividends received(7)(10)
Net periodic benefit costs2 10 
Periodic benefit plan contributions(19)(21)
Net gain on sales of assets, businesses and investments(2)(6)
Restructuring and asset related charges - net39 14 
Other net loss20 27 
Changes in assets and liabilities, net of effects of acquired and divested companies:
Accounts and notes receivable(74)59 
Inventories(42)(117)
Accounts payable84 (31)
Other assets and liabilities, net31 (65)
Cash provided by operating activities - continuing operations$493 $405 
Investing Activities
Capital expenditures(207)(232)
Proceeds from sales of property and businesses, net of cash divested5  
Purchases of investments (17)
Other investing activities, net (1)
Cash used for investing activities - continuing operations$(202)$(250)
Financing Activities
Purchases of common stock and forward contracts(500) 
Proceeds from issuance of Company stock5 12 
Employee taxes paid for share-based payment arrangements(17)(26)
Distributions to noncontrolling interests(20)(34)
Dividends paid to stockholders(159)(165)
Cash used for financing activities - continuing operations$(691)$(213)
Cash Flows from Discontinued Operations
Cash used for operations - discontinued operations (31)(62)
Cash used for investing activities - discontinued operations  (9)
Cash used in discontinued operations$(31)$(71)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(25)(7)
Decrease in cash, cash equivalents and restricted cash$(456)$(136)
Cash, cash equivalents and restricted cash from continuing operations, beginning of period2,803 3,772 
Cash, cash equivalents and restricted cash from discontinued operations, beginning of period  
Cash, cash equivalents and restricted cash at beginning of period$2,803 $3,772 
Cash, cash equivalents and restricted cash from continuing operations, end of period2,347 3,636 
Cash, cash equivalents and restricted cash from discontinued operations, end of period  
Cash, cash equivalents and restricted cash at end of period$2,347 $3,636 
See Notes to the Consolidated Financial Statements.
8


DuPont de Nemours, Inc.
Consolidated Statements of Equity
For the three months ended March 31, 2024 and 2023

In millions (Unaudited)Common StockAdditional Paid-in CapitalRetained Earnings
(Accumulated Deficit)
Accumulated Other Comp LossTreasury StockNon-controlling InterestsTotal Equity
Balance at December 31, 2022$5 $48,420 $(21,065)$(791)$ $448 $27,017 
Net income— — 257 — — 8 265 
Other comprehensive loss— — — 74 — 1 75 
Dividends ($0.36 per common share)
— (165)— — — — (165)
Common stock issued/sold— 12 — — — — 12 
Stock-based compensation— (9)— — — — (9)
Distributions to non-controlling interests
— — — — — (34)(34)
Other— (2)1 — — 1  
Balance at March 31, 2023$5 $48,256 $(20,807)$(717)$ $424 $27,161 
Balance at December 31, 2023$4 $48,059 $(22,874)$(910)$ $446 $24,725 
Net income— — 189 — — 8 197 
Other comprehensive loss— — — (229)— (7)(236)
Dividends ($0.38 per common share)
— (159)— — — — (159)
Common stock issued/sold
— 5 — — — — 5 
Stock-based compensation
— 7 — — — — 7 
Distributions to non-controlling interests
— — — — — (20)(20)
Purchases of treasury stock
— — — — (400)— (400)
Excise tax on purchases of treasury stock— — (8)— — — (8)
Retirement of treasury stock
— — (826)— 826 —  
Forward contracts for share repurchase— (100)— — — — (100)
Settlement of forward contracts for share repurchase— 426 — — (426)—  
Other
— — — — — 1 1 
Balance at March 31, 2024$4 $48,238 $(23,519)$(1,139)$ $428 $24,012 
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, 2023, collectively referred to as the "2023 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.

Beginning in the second quarter of 2023, the Company has segregated the cash flows from discontinued operations from the cash flows from continuing operations in accordance with ASC 230, Statement of Cash Flows. The interim Consolidated Statements of Cash Flows have been recast for all periods to reflect the change in presentation.

M&M Transactions
On November 1, 2022, DuPont completed the previously announced divestiture of the majority of its 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”), to Celanese Corporation (“Celanese”) for cash proceeds of $11.0 billion. On November 1, 2023, the Company closed the sale of the Delrin® business to TJC LP ("TJC"), (the “Delrin® Divestiture”). The Delrin® Divestiture and together with the M&M Divestiture, collectively the "M&M Divestitures” and the businesses in scope of the M&M Divestitures collectively the "M&M Businesses". See Note 4 for more information.

The interim Consolidated Statements of Operations and the interim Consolidated Statements of Cash Flows for the three months ended March 31, 2023, present the financial results and cash flows of Delrin® as discontinued operations. The comprehensive income of Delrin® has not been segregated and is included in the interim Consolidated Statements of Comprehensive Income 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.


11


NOTE 2 - RECENT ACCOUNTING GUIDANCE
Recently Adopted Accounting Guidance
In September 2022, the FASB issued Accounting Standards Update No. 2022-04, "Liabilities-Supplier Finance Programs (Subtopic 405-50)" ("ASU 2022-04") to enhance transparency about the use of supplier finance programs. The new guidance requires that a buyer in a supplier finance program provides additional qualitative and quantitative disclosures about its program including the nature of the program, activity during the period, changes from period to period, and the potential magnitude of the program. The amendments in ASU 2022-04 are effective for fiscal years beginning after December 15, 2022 on a retrospective basis, including interim periods within those fiscal years, except for the amendment on rollforward information which is effective prospectively for fiscal years beginning after December 15, 2023. The Company implemented the new disclosures, other than the rollforward information, as required in the first quarter of 2023. The disclosures around rollforward information will be implemented as required for the Annual Report on Form 10-K for the year-ended December 31, 2024. See Note 13 for more information.

Accounting Guidance Issued But Not Adopted at March 31, 2024
In November 2023, the FASB issued Accounting Standards Update No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07") to improve disclosure requirements about reportable segments and address requests from investors for additional, more detailed information about a reportable segment’s expenses. The new guidance requires disclosures of significant segment expenses provided to the Chief Operating Decision Maker ("CODM") and included in reported measures of segment profit and loss. Disclosure of the title and position of the CODM is required. The guidance requires interim and annual disclosures about a reportable segment's profit or loss and assets. Additionally, the guidance requires disclosure of other segment items by reportable segment including a description of its composition. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis. The disclosures will be implemented as required for the year-ended December 31, 2024. The Company is currently evaluating the impact of adopting this guidance.

In December 2023, the FASB issued Accounting Standards Update No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09") to improve transparency and disclosure requirements for the rate reconciliation, income taxes paid and other tax disclosures. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, on a prospective basis. The disclosures will be implemented as required for the year-ended December 31, 2025. The Company is currently evaluating the impact of adopting this guidance.


12


NOTE 3 - ACQUISITIONS
Spectrum Acquisition
On August 1, 2023, the Company completed the previously announced acquisition of Spectrum Plastics Group (“Spectrum”) from AEA Investors (the “Spectrum Acquisition”). Spectrum manufactures flexible packaging products, plastic and silicone extrusions, and components for the industrial, food and medical business sectors throughout the United States and international markets. Spectrum is part of the Electronics & Industrial segment. The net purchase price was approximately $1,792 million, including a net upward adjustment of approximately $43.1 million for acquired cash and net working capital, among other items. The Company accounted for the acquisition in accordance with ASC 805, which requires the assets acquired and liabilities assumed to be recognized on interim Consolidated Balance Sheets at their fair values as of the acquisition date.

The table below presents the provisional fair values allocated to the assets acquired and liabilities assumed. The purchase accounting and purchase price allocation for Spectrum are substantially complete. However, the Company continues to refine the preliminary valuation of certain acquired assets and liabilities assumed, principally working capital settlements, which could impact the amount of residual goodwill recorded. 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. Final determination of the fair values may result in further adjustments to the values presented in the following table:

Spectrum Assets Acquired and Liabilities Assumed on August 1, 2023
Estimated
fair value as previously reported 1
Measurement period adjustments 2
Estimated fair value adjusted
(In millions)
Fair value of assets acquired
Cash and cash equivalents$31 $— $31 
Accounts and notes receivable68 — 68 
Inventories52 — 52 
Property, plant and equipment125 — 125 
Other intangible assets916 — 916 
Deferred charges and other assets 34 — 34 
Total Assets Acquired$1,226 $— $1,226 
Fair value of liabilities assumed
Accounts payable$21 $— $21 
Income taxes payable17 — 17 
Deferred income tax liabilities177 — 177 
Other noncurrent liabilities37 7 44 
Total Liabilities Assumed$252 $7 $259 
Goodwill818 7 825 
Total Consideration$1,792 $— $1,792 
1.As previously reported in the Company’s Annual Report on Form 10-K for the period ended December 31, 2023.
2.The Company recorded measurement period adjustments to reflect changes in preliminary valuation assumptions for tax accounts. The measurement period adjustment was offset against goodwill.

The significant fair value estimates included in the allocation of purchase price are discussed below.

Other Intangible Assets
Other intangible assets with definite lives include acquired customer-related intangible assets of $772 million, developed technology of $126 million and trademark/tradename of $18 million. Acquired customer-related intangible assets, developed technology, and trademark/tradename have useful lives of 20 years, 15 years and 5 years, respectively. The preliminary customer-related intangible assets' fair value was determined using the multi-period excess earnings method while the developed technology and trademark/tradename fair values were determined utilizing the relief from royalty method.

Goodwill
The excess of the consideration for Spectrum over the preliminary net fair value of assets acquired and liabilities assumed resulted in the provisional recognition of $825 million of goodwill, which has been assigned to the Electronics & Industrial segment. Goodwill is primarily attributable to the optimization of the combined Electronics & Industrial segment and Spectrum businesses’ global activities across sales and manufacturing, as well as expected future customer relationships. Spectrum goodwill will not be deductible for U.S. tax purposes.


13


NOTE 4 - DIVESTITURES
Delrin® Divestiture
On November 1, 2023, the Company closed the Delrin® Divestiture. DuPont received cash proceeds of approximately $1.28 billion, which includes certain customary transaction adjustments, a note receivable in the amount of $350 million, (the "Delrin® Note Receivable") and acquired a 19.9 percent non-controlling equity interest in Derby Group Holdings LLC, (“Derby”). The customary transaction adjustments primarily relate to $27 million of cash transferred with the Delrin® Divestiture for which DuPont was reimbursed at closing resulting in net cash proceeds of $1.25 billion. TJC, through its subsidiaries, holds the 80.1 percent controlling interest in Derby. The Company accounts for its equity interest in Derby as an equity method investment based upon its non-controlling equity interest, its $350 million par value intra-entity note receivable owed by an indirect, wholly owned subsidiary of Derby and its representation on the Derby board of directors. The note receivable has a maturity date of November 2031. The Company has limited continuing involvement with Derby including short term transition service agreements and insignificant sales to the Delrin® business.

As a result of the Delrin® Divestiture, and included as part of the $419 million gain on the sale, the Company initially recognized the 19.9 percent equity interest and the $350 million note receivable at fair values of $121 million and $224 million, respectively, which are recorded in "Investments and noncurrent receivables" in the interim Condensed Consolidated Balance Sheets. The fair value of the equity interest was determined using the enterprise value based on sales proceeds and a market approach primarily based on restricted stock studies. The fair value of the note receivable was determined using a market approach primarily based on current market interest rates for similar credit facilities and the duration of the note. The financial results of Derby, subsequent to the transaction date, are included in DuPont's interim Condensed Consolidated Financial Statements with a three-month lag, using the equity method of accounting and with intercompany profits eliminated in accordance with DuPont’s accounting policy. Refer to Note 11 for additional information.

The interim results of operations for the three months ended March 31, 2023, represent the Delrin® business unless otherwise indicated. The following table summarizes the interim results of operations of the M&M Divestitures which are presented as discontinued operations as summarized below:
In millionsThree Months Ended March 31, 2023
Net sales$147 
Cost of sales84 
Research and development expenses1 
Acquisition, integration and separation costs 1
54 
Sundry income (expense) - net 2 
Income from discontinued operations before income taxes$10 
Provision for income taxes on discontinued operations6 
Income from discontinued operations, net of tax$4 
Gain on sale, net of tax 2
$24 
Income from discontinued operations attributable to DuPont stockholders, net of tax$28 
1. Includes costs related to both the M&M Divestiture and the Delrin® Divestiture, which primarily consist of financial advisory, information technology, legal, accounting, consulting and other professional advisory fees.
2. Gain includes purchase price adjustments related to the M&M Divestiture.

14


Other Discontinued Operations Activity
The Company recorded a gain from discontinued operations, net of tax of $14 million and a loss of $8 million for the three months ended March 31, 2024 and 2023, respectively.

Discontinued operations activity consists of the following:
Income (Loss) from Discontinued Operations, Net of TaxThree Months Ended March 31,
In millions20242023
M&M Divestitures 1
$(6)$28 
MOU Activity 2
(9)(5)
Indemnification activity - environmental and legal 3
(5)(29)
Tax related matters 4
35  
Other(1)(2)
Income (loss) from discontinued operations, net of tax$14 $(8)
1.The three months ended March 31, 2024 primarily includes Acquisition, integration and separation costs.
2.Includes the activity for the binding Memorandum of Understanding (“MOU”) between Chemours, Corteva Inc ("Corteva"), E. I. du Pont de Nemours and Company ("EIDP") and the Company. Refer to Note 14 for additional information.
3.Primarily related to the DWDP Separation and Distribution Agreement and Letter Agreement between Corteva and EIDP. For additional information on these matters, refer to Note 14.
4.The three months ended March 31, 2024 includes tax indemnification activity associated with divested businesses.


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.

Effective as of January 1, 2024, Electronics & Industrial realigned certain product lines that comprise its business units (Industrial Solutions, Interconnect Solutions and Semiconductor Technologies) that are intended to optimize business operations across the segment leading to enhanced value for our customers and cost savings. The Net Trade Revenue by Segment and Business or Major Product Line table below has been recast for all periods presented to reflect the new structure. There was no change to total Electronics and Industrial segment net sales.
Net Trade Revenue by Segment and Business or Major Product LineThree Months Ended March 31,
In millions20242023
Industrial Solutions$448 $423 
Interconnect Solutions396 399 
Semiconductor Technologies521 474 
Electronics & Industrial$1,365 $1,296 
Safety Solutions$587 $676 
Shelter Solutions390 395 
Water Solutions314 378 
Water & Protection$1,291 $1,449 
Corporate & Other 1
$275 $273 
Total$2,931 $3,018 
1. Net sales within Corporate & Other reflect the Retained Businesses which include the Auto Adhesives & Fluids, MultibaseTM and Tedlar® businesses.

15


Net Trade Revenue by Geographic RegionThree Months Ended March 31,
In millions20242023
U.S. & Canada$1,053 $1,023 
EMEA 1
544 582 
Asia Pacific 2
1,216 1,293 
Latin America118 120 
Total$2,931 $3,018 
1.Europe, Middle East and Africa.
2.Net sales attributed to China/Hong Kong, for the three months ended March 31, 2024 and 2023 were $515 million and $525 million, respectively.

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 2024 and 2023 from amounts included in contract liabilities at the beginning of the period was insignificant.

Contract BalancesMarch 31, 2024December 31, 2023
In millions
Accounts and notes receivable - trade 1
$1,592 $1,543 
Deferred revenue - current 2
$1 $1 
Deferred revenue - noncurrent 3
$22 $22 
1.Included in "Accounts and notes receivable - net" in the interim Condensed Consolidated Balance Sheets.
2.Included in "Accrued and other current liabilities" in the interim Condensed Consolidated Balance Sheets.
3.Included in "Other noncurrent obligations" in the interim Condensed Consolidated Balance Sheets.


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NOTE 6 - RESTRUCTURING AND ASSET RELATED CHARGES - NET
The Company records restructuring liabilities that represent nonrecurring charges in connection with simplifying certain organizational structures and operations, including operations related to transformational projects such as divestitures and acquisitions. Charges for restructuring programs and asset related charges, which include asset impairments, were $39 million and $14 million for the three months ended March 31, 2024, and 2023. 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 $101 million at March 31, 2024 and $107 million at December 31, 2023, recorded in "Accrued and other current liabilities" in the interim Condensed Consolidated Balance Sheets. Raw Material inventory write-offs associated with restructuring programs are recorded to "Cost of Sales” in the interim Consolidated Statements of Operations. Restructuring activity primarily consists of the following programs:

2023-2024 Restructuring Program
In December 2023, the Company approved targeted restructuring actions to capture near-term cost reductions due to macroeconomic factors as well as to further simplify certain organizational structures following the Spectrum acquisition and Delrin® Divestiture (the "2023-2024 Restructuring Program"). The Company recorded pre-tax restructuring charges of $146 million inception-to-date, consisting of severance and related benefit costs of $103 million and asset related charges of $43 million. In connection with the 2023-2024 Restructuring Program, the Company recorded $25 million of raw material inventory write-offs in “Cost of Sales” within the interim Consolidated Statements of Operations related to plant line closures within the Water & Protection segment. The raw material was written down to salvage value as it was only utilizable on the closed lines which were based on outdated technology and has a limited third party resale market. Refer to Note 21 for significant items by segment.

The following table summarizes the charges incurred by segment related to the 2023-2024 Restructuring Program:
2023-2024 Restructuring Program Charges by SegmentThree Months Ended March 31, 2024
(In millions)
Electronics & Industrial$8 
Water & Protection 1
22 
Corporate & Other6 
Total$36 
1.Amount excludes raw materials inventory write-offs recorded during the three months ended March 31, 2024. Refer to Note 21 for additional information.

The following table summarizes the activities related to the 2023-2024 Restructuring Program:
2023-2024 Restructuring ProgramSeverance and Related Benefit CostAsset Related ChargesTotal
In millions
Reserve balance at December 31, 2023$79 $ $79 
Restructuring charges 1
23 13 36 
Charges against the reserve(2)(13)(15)
Cash payments(17) (17)
Reserve balance at March 31, 2024
$83 $ $83 
1.Amount excludes raw materials inventory write-offs recorded during the three months ended March 31, 2024 impacting the Water & Protection segment. Refer to Note 21 for additional information.

Total liabilities related to the 2023-2024 Restructuring Program were $83 million at March 31, 2024 and $79 million at December 31, 2023, respectively, recognized in "Accrued and other current liabilities" in the interim Condensed Consolidated Balance Sheets. The Company expects the program to be substantially complete by the end of 2024.

2022 Restructuring Program
In October 2022, the Company approved targeted restructuring actions to capture near-term cost reductions and to further simplify certain organizational structures following the M&M Divestitures (the "2022 Restructuring Program"). The Company recorded pre-tax restructuring charges of $99 million inception-to-date, consisting of severance and related benefit costs of $85 million and asset related charges of $14 million. The Company recorded pre-tax restructuring charges of $3 million, to Corporate & Other for the three months ended March 31, 2024.

Total liabilities related to the 2022 Restructuring Program were $18 million at March 31, 2024 and $27 million at December 31, 2023, respectively, recognized in "Accrued and other current liabilities" in the interim Condensed Consolidated Balance Sheets. Actions related to the 2022 Restructuring Program are substantially complete.
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NOTE 7 - SUPPLEMENTARY INFORMATION
Sundry Income (Expense) - NetThree Months Ended March 31,
In millions20242023
Non-operating pension and other post-employment benefit credits (costs)$7 $(2)
Interest income 1
20 46 
Net gain on divestiture and sales of other assets and investments2 6 
Foreign exchange gains (losses), net
4 (20)
Miscellaneous income (expense) - net5 (1)
Sundry income (expense) - net$38 $29 
1.The three months ended March 31, 2024 includes non-cash interest income of $6 million related to the $350 million Delrin® related party note receivable. Refer to Note 11 for additional information.

Cash, Cash Equivalents and Restricted Cash
At March 31, 2024 and December 31, 2023 the Company had $413 million and $411 million, respectively, within “Restricted cash and cash equivalents”. The majority of these balances are attributable to the Water District Settlement Fund. Additional information can be found in Note 14.

Accrued and Other Current Liabilities
"Accrued and other current liabilities" in the interim Condensed Consolidated Balance Sheets were $1,255 million at March 31, 2024 and $1,269 million at December 31, 2023. "Accrued and other current liabilities" at March 31, 2024 and December 31, 2023 includes approximately $408 million and $405 million, respectively, related to a settlement agreement further discussed in Note 14. Accrued payroll, which is a component of "Accrued and other current liabilities," was $197 million at March 31, 2024 and $250 million at December 31, 2023. No other component of "Accrued and other current liabilities" was more than 5 percent of total current liabilities at March 31, 2024 and at December 31, 2023.


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. The Company has ongoing federal, state, and international income tax audits in various jurisdictions and evaluates uncertain tax positions that may be challenged by local tax authorities. 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 interim 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 2024 was 31.5 percent, compared with an effective tax rate of 23.3 percent for the first quarter of 2023. The higher effective tax rate for the first quarter of 2024 was driven by the geographic mix of earnings offset by the U.S. taxation of foreign operations as well as certain one-time discrete tax expenses, including an international statutory tax assessment received for which the Company is indemnified.

Effective from 2024, the Organization for Economic Co-operation and Development’s ("OECD") Global Anti-Base Erosion ("GloBE") rules under Pillar Two have been enacted by the European Union and other countries in which the Company operates. The Company does not expect a resulting material change to the income tax provision for the year ended December 31, 2024. However, the Company expects the effective tax rate and cash tax payments could increase in future years.


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NOTE 9 - EARNINGS PER SHARE CALCULATIONS
The following tables provide earnings per share calculations for the three months ended March 31, 2024 and 2023:
Net Income for Earnings Per Share Calculations - Basic & DilutedThree Months Ended March 31,
In millions20242023
Income from continuing operations, net of tax$183 $273 
Net income from continuing operations attributable to noncontrolling interests8 8 
Income from continuing operations attributable to common stockholders$175 $265 
Income (loss) from discontinued operations attributable to common stockholders, net of tax$14 $(8)
Net income attributable to common stockholders$189 $257 
Earnings Per Share Calculations - BasicThree Months Ended March 31,
Dollars per share20242023
Earnings from continuing operations attributable to common stockholders$0.41 $0.58 
Earnings (loss) from discontinued operations, net of tax0.03 (0.02)
Earnings attributable to common stockholders 1
$0.45 $0.56 
Earnings Per Share Calculations - DilutedThree Months Ended March 31,
Dollars per share20242023
Earnings from continuing operations attributable to common stockholders$0.41 $0.58 
Earnings (loss) from discontinued operations, net of tax0.03 (0.02)
Earnings attributable to common stockholders 1
$0.45 $0.56 
Share Count Information
Three Months Ended March 31,
Shares in millions20242023
Weighted-average common shares - basic 422.8 458.8 
Plus dilutive effect of equity compensation plans 1.5 1.4 
Weighted-average common shares - diluted424.3 460.2 
Stock options, restricted stock units, and performance-based restricted stock units excluded from EPS calculations 2
2.7 2.3 
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.


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NOTE 10 - INVENTORIES
In millionsMarch 31, 2024December 31, 2023
Finished goods$1,227 $1,184 
Work in process
490 487 
Raw materials333 350 
Supplies125 126 
Total inventories$2,175 $2,147 


NOTE 11 - NONCONSOLIDATED AFFILIATES
The Company's investments in companies accounted for using the equity method ("nonconsolidated affiliates") are recorded in "Investments and noncurrent receivables" in the interim Condensed Consolidated Balance Sheets. The Company's net investment in nonconsolidated affiliates at March 31, 2024 and December 31, 2023 is $797 million and $788 million, respectively.

Sales to nonconsolidated affiliates represented less than 2 percent of total net sales for both the three months ended March 31, 2024, and 2023. Purchases from nonconsolidated affiliates represented less than 1 percent and 3 percent of “Cost of sales” for the three months ended March 31, 2024 and 2023, respectively. The Company maintained an ownership interest in seven nonconsolidated affiliates at March 31, 2024.

Derby Equity Interest
As a result of the Delrin® Divestiture, on November 1, 2023, the Company received a 19.9 percent non-controlling equity interest in Derby. The financial results of Derby, subsequent to the transaction date, are included in DuPont's Consolidated Financial Statements with a three-month lag, using the equity method of accounting and with intercompany profits eliminated in accordance with DuPont’s accounting policy. For the three months ended March 31, 2024, the Company recorded a loss of $7 million in "Equity in earnings of nonconsolidated affiliates" which includes the impact of approximately $8 million for transaction costs incurred by Derby and amortization expense from purchase accounting. As of March 31, 2024, the carrying values of the retained equity investment and note receivable were $117 million and $234 million, respectively.

For the three months ended March 31, 2024, Company recognized non-cash interest income on the Derby Note Receivable of $6 million, reported in "Sundry income (expense) - net" on the interim Consolidated Statement of Operations, and accreted to the carrying value of the note receivable.


20


NOTE 12 - GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in the carrying amounts of goodwill during the three months ended March 31, 2024 were as follows:
In millionsElectronics & IndustrialWater & ProtectionCorporate & OtherTotal
Balance at December 31, 2023$10,205 $5,900 $615 $16,720 
Currency translation adjustment(51)(59)(4)(114)
Goodwill recognized for Spectrum Acquisition7   7 
Balance at March 31, 2024
$10,161 $5,841 $611 $16,613 

The Company tests goodwill for impairment annually during the fourth quarter, or more frequently when events or changes in circumstances indicate that fair value is below carrying value.

Effective as of January 1, 2024, Electronics & Industrial realigned certain of its product lines making up its business lines (Industrial Solutions, Interconnect Solutions and Semiconductor Technologies). During the first quarter of 2024, the realignment of the businesses within Electronics & Industrial served as a triggering event requiring the Company to perform an impairment analysis related to goodwill carried by certain reporting units as of January 1, 2024, prior to the realignment. As part of the realignment, the Company assessed and re-defined certain reporting units effective January 1, 2024, including reallocation of goodwill on a relative fair value basis, as applicable, to reporting units impacted. Goodwill impairment analyses were then performed for reporting units impacted in the Electronics and Industrial segment and no impairments were identified. The fair value of each reporting unit tested was estimated using a combination of a discounted cash flow model and market approach. The Company’s assumptions in estimating fair value include projected revenue, gross margins, selling, administrative, research and development expenses (SARD), capital expenditures, the weighted average cost of capital, the terminal growth rates, and the tax rate for the income approach and projected EBITDA and derived multiples from comparable market transactions for the market approach.

In connection with the preparation of the full year 2023 financial statements, macroeconomic triggering events required the Company to perform an impairment analysis of the goodwill associated with its Protection reporting unit, within Water & Protection as of December 31, 2023. As a result of the analysis performed, the Company concluded that the carrying amount of the Protection reporting unit exceeded its fair value resulting in a non-cash goodwill impairment charge of $804 million, which was recorded within “Goodwill impairment charge” on the Consolidated Statements of Operations for the year ended December 31, 2023. This reporting unit remains at risk for future impairment due to the fair value now being equal to the carrying value as a result of the recorded impairment. Should macroeconomic conditions worsen, resulting in further recovery delays, or other events occur indicating that the estimated future cash flows of the reporting unit have further declined and the reporting unit is unable to meet or exceed its projections from 2024 and other future years, the Company may be required to record future non-cash impairment charges related to goodwill. As of March 31, 2024, the remaining carrying amount of goodwill within the Protection reporting unit was $4.8 billion.

Other Intangible Assets
The gross carrying amounts and accumulated amortization of other intangible assets by major class are as follows:
March 31, 2024December 31, 2023
In millionsGross Carrying AmountAccum AmortNetGross Carrying AmountAccum AmortNet
Intangible assets with finite lives:
  Developed technology$2,074 $(1,137)$937 $2,079 $(1,092)$987 
  Trademarks/tradenames925 (431)494 924 (414)510 
  Customer-related5,770 (2,392)3,378 5,815 (2,329)3,486 
  Other 28 (1)27 28 (1)27 
Total other intangible assets with finite lives$8,797 $(3,961)$4,836 $8,846 $(3,836)$5,010 
Intangible assets with indefinite lives:
  Trademarks/tradenames 804 — 804 804 — 804 
Total other intangible assets $804 $— $804 $804 $— $804 
Total$9,601 $(3,961)$5,640 $9,650 $(3,836)$5,814 

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The following table provides the net carrying value of other intangible assets by segment:
Net Intangibles by SegmentMarch 31, 2024December 31, 2023
In millions
Electronics & Industrial$3,419 $3,521 
Water & Protection2,138 2,206 
Corporate & Other83 87 
Total$5,640 $5,814 

Total estimated amortization expense for the remainder of 2024 and the five succeeding fiscal years is as follows:
Estimated Amortization Expense
In millions
Remainder of 2024$441 
2025$547 
2026$519 
2027$472 
2028$419 
2029$363 


NOTE 13 - SHORT-TERM BORROWINGS, LONG-TERM DEBT, AVAILABLE CREDIT FACILITIES AND OTHER OBLIGATIONS
A summary of DuPont's short-term borrowings, long-term debt and available credit facilities can be found in Note 15 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. If applicable, updates have been included in the respective section below.

Long-Term Debt
Long-term debt at March 31, 2024 and December 31, 2023 was $7,776 million and $7,800 million, respectively. Included in the long-term debt balance is a fair value hedging revaluation related to the Company's interest rate swap agreements. At March 31, 2024 and December 31, 2023 this balance was $84 million and $59 million, respectively. See Note 19 for additional information.

Uncommitted Credit Facilities and Outstanding Letters of Credit
Unused bank credit lines on uncommitted credit facilities were approximately $743 million at March 31, 2024. These lines are available to support short-term liquidity needs and general corporate purposes including letters of credit. Outstanding letters of credit were approximately $116 million at March 31, 2024. These letters of credit support commitments made in the ordinary course of business.

Revolving Credit Facilities
On May 10, 2023, the Company entered into a $1 billion 364-day revolving credit facility (the "364-Day Revolving Credit Facility"). There were no drawdowns of the facility during the three month period ended March 31, 2024.

Supplier Financing
The Company and certain of its designated suppliers, at their sole discretion, participate in a supplier financing program with a financial institution serving as an intermediary. Under this program, the Company agrees to pay the financial institution the stated amount of confirmed invoices from its designated suppliers on the same terms and on the original maturity dates of the confirmed invoices, which have a weighted average payment term of approximately 110 days. The Company does not pay any annual subscription or service fee to the financial institution, nor does the Company reimburse its suppliers for any costs they incur to participate in the program. The Company’s obligations are not impacted by the suppliers’ decision to participate in this program. The Company or the financial institution may terminate the agreement upon at least 30 days’ notice.

The amount of invoices outstanding confirmed as valid under the supplier financing programs as of March 31, 2024 and December 31, 2023 was $89 million and $97 million, respectively, and is recorded in “Accounts Payable” in the interim Condensed Consolidated Balance Sheets.


22


NOTE 14 - COMMITMENTS AND CONTINGENT LIABILITIES
Litigation, Environmental Matters, and Indemnifications
The Company and certain subsidiaries are involved in various lawsuits, claims and environmental actions that have arisen in the normal course of business with respect to product liability, patent infringement, governmental regulation, contract and commercial litigation, as well as possible obligations to investigate and mitigate the effects on the environment of the disposal or release of certain substances at various sites. In addition, in connection with divestitures and the related transactions, the Company from time to time has indemnified and has been indemnified by third parties against certain liabilities that may arise in connection with, among other things, business activities prior to the completion of the respective transactions. The term of these indemnifications, which typically pertain to environmental, tax and product liabilities, is generally indefinite. The Company records liabilities for ongoing and indemnification matters when the information available indicates that it is probable that a liability will be incurred and the amount of the loss can be reasonably estimated.

As of March 31, 2024, the Company has recorded indemnification assets of $26 million within "Accounts and notes receivable - net" and $284 million within "Deferred charges and other assets" and indemnification liabilities of $178 million within "Accrued and other current liabilities" and $238 million within "Other noncurrent obligations" within the interim Condensed Consolidated Balance Sheets. As of December 31, 2023, the Company has recorded indemnification assets of $21 million within "Accounts and notes receivable - net" and $242 million within "Deferred charges and other assets" and indemnified liabilities of $200 million within "Accrued and other current liabilities" and $263 million within "Other noncurrent obligations" within the interim Condensed Consolidated Balance Sheets.

The Company’s accruals for indemnification liabilities related to the binding Memorandum of Understanding (“MOU”) between Chemours, Corteva, EIDP and the Company and to the DowDuPont ("DWDP") Separation and Distribution Agreement and the Letter Agreement between the Company and Corteva (together the “Agreements”) discussed below, are included in the balances above. Additionally, as of March 31, 2024, the Company has recognized a liability of $408 million (including interest) related to the settlement agreement between Chemours, Corteva, EIDP and DuPont related to the aqueous film-forming foams multi-district litigation, as discussed below.

PFAS Stray Liabilities: Future Eligible PFAS Costs
On July 1, 2015, EIDP, a Corteva subsidiary since June 1, 2019, completed the separation of EIDP’s Performance Chemicals segment through the spin-off of Chemours to holders of EIDP common stock (the “Chemours Separation”). On June 1, 2019, the Company completed the separation of its agriculture business through the spin-off of Corteva, including Corteva’s subsidiary EIDP.

On January 22, 2021, the Company, Corteva, EIDP and Chemours entered into the MOU pursuant to which the parties have agreed to release certain claims that had been raised by Chemours including any claims arising out of or resulting from the process and manner in which EIDP structured or conducted the Chemours Separation, and any other claims that challenge the Chemours Separation or the assumption of Chemours Liabilities (as defined in the Chemours Separation Agreement) by Chemours and the allocation thereof, subject in each case to certain exceptions set forth in the MOU.

Pursuant to the MOU, the parties have agreed to share certain costs associated with potential future liabilities related to alleged historical releases of certain PFAS out of pre-July 1, 2015 conduct (“eligible PFAS costs”) until the earlier to occur of (i) December 31, 2040, (ii) the day on which the aggregate amount of Qualified Spend, as defined in the MOU, is equal to $4 billion or (iii) a termination in accordance with the terms of the MOU. PFAS refers to per- or polyfluoroalkyl substances, which include perfluorooctanoic acids and its ammonium salts (“PFOA”).

The parties have agreed that, during the term of this sharing arrangement, Qualified Spend up to $4 billion will be borne 50 percent by Chemours and 50 percent, up to a cap of $2 billion, by the Company and Corteva. The Company and Corteva will split their 50 percent of Qualified Spend in accordance with the Agreements; accordingly, the Company's portion of the $2 billion is approximately $1.4 billion. At March 31, 2024, the Company had paid Qualified Spend of approximately $175 million against its portion of the $2 billion cap. After the term of this arrangement, Chemours’ indemnification obligations under the Chemours Separation Agreement would continue unchanged.

In order to support and manage any potential future eligible PFAS costs, the parties also agreed to establish an escrow account, (the "MOU Escrow Account"). The MOU provides that (1) no later than each of September 30, 2021 and September 30, 2022, Chemours shall deposit $100 million and DuPont and Corteva shall together deposit $100 million in the aggregate into the MOU Escrow Account and (2) no later than September 30 of each subsequent year through and including 2028, Chemours shall deposit $50 million and DuPont and Corteva shall together deposit $50 million in the aggregate into the MOU Escrow Account. Subject to the terms and conditions set forth in the MOU, each party may be permitted to defer funding in any calendar year
23


beginning with 2022 through and including 2028. Additionally, if on December 31, 2028, the balance in the MOU Escrow Account (including interest) is less than $700 million, Chemours will make 50 percent of the deposits and DuPont and Corteva together will make 50 percent of the deposits necessary to restore the balance to $700 million. Such payments will be made in a series of consecutive annual equal installments commencing on September 30, 2029 pursuant to the replenishment terms set forth in the MOU.

Under the Agreements, Divested Operations and Businesses ("DDOB") liabilities of EIDP not allocated to or retained by Corteva or the Company are categorized as relating to either (i) PFAS Stray Liabilities, if they arise out of actions related to or resulting from the development, testing, manufacture or sale of PFAS; or (ii) Non-PFAS Stray Liabilities, (and together with PFAS Stray Liabilities, the “EIDP Stray Liabilities”).

The Agreements provide that the Company and Corteva will each bear a certain percentage of the Indemnifiable Losses, described below, rising from EIDP Stray Liabilities and that the percentage changes upon each company meeting its respective threshold of $150 million for PFAS Stray Liabilities and $200 million for EIDP Stray Liabilities. In addition, for certain Non-PFAS Liabilities, (“Specified Spend Non-PFAS Liabilities”), Corteva must spend specified amounts before costs associated with such matter will be considered Indemnifiable Losses.

The Agreements provide that the Company and Corteva each bear 50 percent of the first $300 million ($150 million) of total Indemnifiable Losses related to PFAS Stray Liabilities. In 2023, the companies met their respective $150 million threshold and as a result the Company bears 71 percent of Indemnifiable Losses related to PFAS Stray Liabilities and Corteva bears 29 percent. At March 31, 2024, DuPont has accrued for future Qualified Spend and Indemnifiable Losses related to PFAS Stray Liabilities accordingly.

The $150 million of Indemnifiable Losses incurred for PFAS Stray Liabilities has been credited against each company’s $200 million threshold. Corteva has met its $200 million threshold. As a result, until the Company meets its $200 million threshold, it is responsible for managing the Non-PFAS Stray Liabilities, excluding Specified Spend Non-PFAS Liabilities for which Corteva has not reached its specified spend amount, and is bearing all Indemnifiable Losses associated with such Non-PFAS Stray Liabilities. Thereafter, DuPont will bear 71 percent and Corteva will bear 29 percent of Indemnifiable Losses related to Non-PFAS Stray Liabilities. At March 31, 2024, the Company has accrued for future Indemnifiable Losses related to Non-PFAS Stray Liabilities, including Specified Spend Non-PFAS Liabilities, accordingly.

Indemnifiable Losses, as defined in the DWDP Separation and Distribution Agreement, include, among other things, attorneys’, accountants’, consultants’ and other professionals’ fees and expenses incurred in the investigation or defense of EIDP Stray Liabilities.

In connection with the MOU and the Agreements, the Company has recognized the following indemnification liabilities related to eligible PFAS costs:
Indemnification Related Liabilities Associated with the MOU
In millionsMarch 31, 2024December 31, 2023Balance Sheet Classification
Current indemnification liabilities$88 $87 
Accrued and other current liabilities
Long-term indemnification liabilities123 119 Other noncurrent obligations
Total indemnification liabilities accrued under the MOU 1
$211 $206 
1.As of March 31, 2024 and December 31, 2023, total indemnified liabilities accrued include $136 million and $139 million, respectively, related to Chemours environmental remediation activities at their site in Fayetteville, North Carolina under the Consent Order between Chemours and the North Carolina Department of Environmental Quality (the "NC DEQ"). This excludes amounts related to the Water District Settlement Agreement, as defined below.

In addition to the above, beginning the second quarter of 2023 and as of March 31, 2024, the Company has recognized a liability related to the Water District Settlement Agreement, defined below, between Chemours, Corteva, EIDP and DuPont related to the aqueous film-forming foams multi-district litigation. As of March 31, 2024, the liability recognized by the Company related to the Water District Settlement Agreement is $408 million, including interest.

Future charges associated with the MOU will be recognized over the term of the agreement as a component of income from discontinued operations to the extent liabilities become probable and estimable.

24


Under EIDP’s 2004 settlement of a West Virginia state court class action, Leach v.EIDP , members of the class have standing to pursue personal injury claims for just six health conditions that an expert panel appointed under the Leach settlement reported in 2012 had a “probable link” (as defined in the settlement) with PFOA: pregnancy-induced hypertension, including preeclampsia; kidney cancer; testicular cancer; thyroid disease; ulcerative colitis; and diagnosed high cholesterol. After the panel reported its findings, approximately 3,550 personal injury lawsuits filed in Ohio and West Virginia state and federal courts , were consolidated in multi-district litigation in the U.S. District Court for the Southern District of Ohio (“Ohio MDL”). In 2017, Chemours and EIDP settled the Ohio MDL for $670 million.

Post the 2017 settlement, approximately 100 additional cases were filed by Leach class members. EIDP and Chemours settled all but one these cases in 2021 for $83 million with each of the Company and EIDP contributing $27 million and Chemours contributing $29 million. The 2021 settlement was entered solely by way of compromise and settlement and is not in any way an admission of liability or fault by the Company, Corteva, EIDP or Chemours. The remaining case resulted in a jury verdict for the plaintiff. The Company paid its share in accordance with the Agreements and MOU in the fourth quarter 2023 after EIDP had exhausted its appeal rights. DuPont was not a named party in the Leach case or the Ohio MDL and it is not named as a defendant in the new cases being filed into the Ohio MDL.

In November 2023, DuPont, Chemours and Corteva reached a settlement agreement with the State of Ohio designed to benefit Ohio's natural resources and the people of the State of Ohio. Among other things, and subject to certain limitations and preservations, the settlement resolves the State's claims relating to releases of PFAS in or into the State from the companies' facilities and claims relating to the manufacture and sale of PFAS-containing products. The settlement also resolves the State's claims related to AFFF and is expected to be paid in 2024. As part of the settlement, the companies agreed to pay the State of Ohio a combined total of $110 million, 80 percent of which the State has allocated to restoration of natural resources related to operation of the Washington Works facility. Consistent with the MOU, DuPont's share of the settlement will be approximately $39 million, which is accrued for as of March 31, 2024.

In July 2021, Chemours, Corteva (for itself and EIDP) and DuPont reached a resolution with the State of Delaware for $50 million among other consideration, that avoids litigation and addresses potential natural resources damages from known historical and current releases by the companies in or affecting Delaware. In 2022, the companies paid the settlement consistent with the MOU, accordingly DuPont paid $12.5 million. The settlement provides for a potential Supplemental Payment to Delaware up to a total of $25 million, in the event certain conditions are met. As a result of the settlement agreement with the State of Ohio reached in November 2023, a Supplemental Payment is owed to the State of Delaware. The supplemental payment is to be paid subjected to the terms of the MOU. As a result, the Company has accrued approximately $9 million as of March 31, 2024 related to the Supplemental Payment.

As of March 31, 2024, there are various cases alleging damages due to PFAS which are discussed below. Such actions often include additional claims based on allegations that the transfer by EIDP of certain PFAS liabilities to Chemours resulted in a fraudulent conveyance or voidable transaction. With the exception of the fraudulent conveyance claims, which are excluded from the MOU, legal fees, expenses, costs, and any potential liabilities for eligible PFAS costs presented by the following matters will be shared as defined in the MOU between Chemours, EIDP, Corteva and DuPont.

Beginning in April 2019, several dozen lawsuits alleging damages from the use of PFAS-containing aqueous film-forming foams (“AFFF”) were filed against EIDP and Chemours, in additional to 3M and other AFFF manufacturers. The majority of these lawsuits were consolidated in a multi-district litigation (the “AFFF MDL”). The AFFF MDL is captioned In Re: Aqueous Film Forming Foams (AFFF) Products Liability Litigation and is pending in the United States District Court for the District of South Carolina, (the “Court”). Most of the actions in the AFFF MDL identify DuPont as a defendant due to fraudulent transfer claims related to the Chemours Separation and the DowDuPont separations. A portion of cases in the AFFF MDL were resolved by Chemours, Corteva, EIDP and DuPont as discussed below. DuPont has never made or sold AFFF, perfluorooctanesulfonic acid ("PFOS") or PFOS-containing products.

On June 30, 2023, Chemours, Corteva, EIDP and DuPont entered a definitive agreement to comprehensively resolve all PFAS-related claims of a defined class of U.S. public water systems, including but not limited to water systems that are part of the AFFF MDL related to the use of aqueous film-forming foam, (the “Water District Settlement Agreement”) for $1.185 billion in cash. In August 2023, the Court preliminarily approved the Water District Settlement Agreement. Subsequent to the approval, during the third quarter of 2023, Chemours, EIDP, Corteva and DuPont collectively contributed $1.185 billion to a Qualified Settlement Fund (the “Water District Settlement Fund”). In accordance with the MOU, Chemours contributed about 50 percent of the settlement amount (about $592 million), and DuPont (about $400 million) and Corteva (about $193 million) together contributed the remaining 50 percent. Each of Chemours, Corteva and DuPont used its respective MOU Escrow Account deposits to fund in part their respective contributions into the Water District Settlement Fund.

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DuPont had deposited an aggregate of $100 million into the MOU Escrow Account as of June 30, 2023. The $100 million aggregate deposit was used to fund in part DuPont's $400 million contribution to the Water District Settlement Fund. DuPont's $400 million contribution was made by way of a cash payment into the fund in the third quarter 2023. At March 31, 2024, DuPont has recorded a liability of about $408 million (including interest) in connection with the Water District Settlement Agreement, included in "Accrued and other current liabilities" within the interim Condensed Consolidated Balance Sheets. As of March 31, 2024, the $400 million deposited, plus interest, within the Water District Settlement Fund is reflected in "Restricted cash and cash equivalents - current" on the interim Condensed Consolidated Balance Sheets. The Company has presented these funds as restricted cash since their use is restricted under the Water District Settlement Agreement. DuPont's aggregate MOU escrow deposits of $100 million, excluding interest, at December 31, 2023 is reflected in "Restricted cash and cash equivalents - noncurrent" on the interim Condensed Consolidated Balance Sheets.

The Water District Settlement's defined class is composed of all Public Water Systems, as defined in 42 U.S.C § 300f, with a current detection of PFAS and all Public Water Systems that are currently required to monitor for PFAS under the EPA’s Fifth Unregulated Contaminant Monitoring Rule (“UCMR 5”) or other applicable federal or state law. The class does not include water systems owned and operated by a State or the United States government; small systems that have not detected PFAS and are not currently required to monitor for it under federal or state requirements; and, unless they otherwise request to be included, water systems in the lower Cape Fear River Basin of North Carolina. While it is reasonably possible that the excluded systems or claims could result in additional future lawsuits, claims, assessments or proceedings, it is not possible to predict the outcome of any such matters, and as such, the Company is unable to develop an estimate of a possible loss or range of losses, if any, at this time.

As part of the approval process, the Court established, among other things, a mechanism for class members to submit request to be excluded from the settlement. The Notice Administrator submitted a report on February 6, 2024 indicating that 924 of 14,167 entities on the list of potential class members submitted timely requests for exclusion. The Court issued a revised order during the first quarter 2024 extending the date by which water systems that elected to be excluded from the settlement could rejoin the class to March 15, 2024. The Notice Administrator has not issued an updated report. Therefore, the number of opt-outs is not final and is subject to a court ordered review process for compliance with the opt out process.

On February 8, 2024, the Court granted the plaintiffs’ motion for final approval of the Water District Settlement Agreement and final certification of settlement class. An appeal was filed on March 11, 2024 on behalf of one water district, and was still pending at March 31, 2024. On April 16, 2024, the water district filed a motion to dismiss its appeal which the Court granted on April 17, 2024. No additional appeals were filed during the appeal period and, accordingly, the entry of judgment became final in April 2024. The Company’s contribution, including interest, paid into the Water District Settlement Fund will be removed from restricted cash along with the associated accrued liability in the second quarter 2024 due to the judgment becoming final. In the non-water provider cases in the AFFF MDL, the parties have begun the discovery process for 25 bellwether personal injury cases.

There are also state attorneys general lawsuits against DuPont, outside of the AFFF MDL that make claims of environmental contamination by certain PFAS compounds distinct from AFFF. Generally, the states raise common law tort claims and seek economic impact damages for alleged harm to natural resources, punitive damages, present and future costs to clean up contamination from certain PFAS compounds, and to abate the alleged nuisance. Most of these actions include fraudulent transfer claims related to the Chemours Separation and the DowDuPont separations.

In April 2021, a historic DuPont Dutch subsidiary and the Dutch entities of Chemours and Corteva, received a civil summons filed before the Court of Rotterdam, the Netherlands, on behalf of four municipalities neighboring the Chemours Dordrecht facility. The municipalities are seeking liability declarations relating to the Dordrecht site’s current and historical PFAS operations and emissions. On September 27, 2023, the Court determined that the defendants were liable to the municipalities for (i) PFOA emissions between July 1, 1984 to March 1, 1998 and (ii) removal costs if deposited emissions on the municipalities' land infringes the applicable municipalities' property rights by an objective standard. Additional briefing is expected on this judgment and in accordance with local procedure, the Court will determine damages, if any, in a separate, subsequent proceeding.

In addition to the above matters, the Company is a named party in various other legal matters that make claims related to PFAS, for which the costs of litigation and future liabilities, if any, are eligible PFAS costs under the MOU and Indemnification Losses under the Agreements.

There are pending cases that make claims related to PFAS that have been filed against Chemours and Corteva/EIDP in which the Company is not a named party, but for which the costs of litigation and future liabilities, if any, are or may be eligible PFAS costs under the MOU and Indemnification Losses under the Agreements.
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While Management believes it has appropriately estimated the liability associated with eligible PFAS matters and Indemnifiable Losses as of the date of this report, it is reasonably possible that the Company could incur additional eligible PFAS costs and Indemnifiable Losses in excess of the amounts accrued. It is not possible to predict the outcome of any such matters due to various reasons including, among others, future actions and decisions, as well as factual and legal issues to be resolved in connection with PFAS matters. As such, at this time DuPont is unable to develop an estimate of a possible loss or range of losses, if any, above the liability accrued at March 31, 2024. It is possible that additional costs or losses could have a significant effect on the Company’s financial condition and/or cash flows in the period in which they occur; however, costs qualifying as Qualified Spend are limited by the terms of the MOU.

Other Litigation Matters
In addition to the matters described above, the Company is party to claims and lawsuits arising out of the normal course of business with respect to product liability, patent infringement, governmental regulation, contract and commercial litigation, and other actions. Certain of these actions may purport to be class actions and seek damages in very large amounts. As of March 31, 2024, the Company has liabilities of $20 million associated with these other litigation matters. It is the opinion of the Company’s management that the possibility is remote that the aggregate of all such other claims and lawsuits will have a material adverse impact on the interim results of operations, financial condition and cash flows of the Company. In accordance with its accounting policy for litigation matters, the Company will expense litigation defense costs as incurred, which could be significant to the Company’s financial condition and/or cash flows in the period.

Environmental Matters
Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on current law and existing technologies. At March 31, 2024, the Company had accrued obligations of $284 million for probable environmental remediation and restoration costs. These obligations are included in "Accrued and other current liabilities" and "Other noncurrent obligations" in the interim Condensed Consolidated Balance Sheets. It is reasonably possible that environmental remediation and restoration costs in excess of amounts accrued could have a material impact on the Company’s interim results of operations, financial condition and cash flows. Inherent uncertainties exist in these estimates primarily due to unknown conditions, changing governmental regulations and legal standards regarding liability, and emerging remediation technologies for handling site remediation and restoration.

The accrued environmental obligations includes the following:
Environmental Accrued Obligations
In millionsMarch 31, 2024December 31, 2023
Potential exposure above the amount accrued 1
Environmental remediation liabilities not subject to indemnity$45 $46 $101 
Environmental remediation indemnification Related Liabilities:
    Indemnifications related to Dow and Corteva 2
90 101 170 
    MOU related obligations (discussed above) 3
148 152 33 
 Other environmental indemnifications1 1 2 
Total environmental related liabilities$284 $300 $306 
1.The environmental accrual represents management’s best estimate of the costs for remediation and restoration with respect to environmental matters, although it is reasonably possible that the ultimate cost with respect to these particular matters could range above the amount accrued, as of March 31, 2024.
2.Pursuant to the DWDP Separation and Distribution Agreement and Letter Agreement, the Company is required to indemnify Dow and Corteva for certain Non-PFAS clean-up responsibilities and associated remediation costs.
3.The MOU related obligations include the Company's estimate of its liability under the MOU for remediation activities based on the current regulatory environment.


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NOTE 15 - OPERATING LEASES
The lease cost for operating leases were as follows:
Three Months Ended March 31,
In millions20242023
Operating lease costs$31 $29 

Operating cash flows from operating leases were $30 million and $27 million for the three months ended March 31, 2024 and 2023, respectively.

New operating lease assets and liabilities entered into during the three months ended March 31, 2024 and 2023, were $8 million and $18 million, respectively. Supplemental balance sheet information related to leases was as follows:
In millionsMarch 31, 2024December 31, 2023
Operating Leases
 
Operating lease right-of-use assets 1
$460 $484 
Current operating lease liabilities 2
93 97 
Noncurrent operating lease liabilities 3
368 390 
Total operating lease liabilities
$461 $487 
1.Included in "Deferred charges and other assets" in the interim Condensed Consolidated Balance Sheets.
2.Included in "Accrued and other current liabilities" in the interim Condensed Consolidated Balance Sheets.
3.Included in "Other noncurrent obligations" in the interim Condensed Consolidated Balance Sheets.

Operating lease right-of-use ("ROU") assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide the lessor’s implicit rate, the Company uses its incremental borrowing rate at the commencement date in determining the present value of lease payments.
Lease Term and Discount Rate for Operating LeasesMarch 31, 2024December 31, 2023
Weighted-average remaining lease term (years)8.48.5
Weighted average discount rate3.58 %3.55 %

Maturities of lease liabilities were as follows:
Maturity of Lease Liabilities at March 31, 2024
Operating Leases
In millions
Remainder of 2024$84 
202586 
202667 
202754 
202841 
2029 and thereafter205 
Total lease payments$537 
Less: Interest76 
Present value of lease liabilities$461 

The Company has leases in which it is the lessor. In connection with the 2021 sale of the N&B businesses and the M&M Divestitures, DuPont entered into leasing agreements with IFF and Celanese, whereby DuPont is leasing certain properties, including office spaces and R&D laboratories. These leases are classified as operating leases and lessor income and related expenses are not significant to the Company's interim Condensed Consolidated Balance Sheets or interim Consolidated Statement of Operations. Lease agreements where the Company is the lessor have final expirations through 2036.


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NOTE 16 - STOCKHOLDERS' EQUITY
Share Repurchase Program
In November 2022, DuPont’s Board of Directors approved a new share repurchase program authorizing the repurchase and retirement of up to $5 billion of common stock (the “$5B Share Buyback Program").

In the third quarter of 2023, DuPont entered into new accelerated share repurchase agreements with three financial counterparties to repurchase an aggregate of $2 billion of common stock ("$2B ASR Transaction"). DuPont paid an aggregate of $2 billion to the counterparties and received initial deliveries of 21.2 million shares in aggregate of DuPont common stock, which were retired immediately and recorded as a reduction to retained earnings of $1.6 billion. In the first quarter of 2024, the $2B ASR Transaction was completed. The settlement resulted in the delivery of 6.7 million additional shares of DuPont common stock, which were retired immediately and recorded as a reduction of retained earnings of $426 million. In total, the Company repurchased 27.9 million shares at an average price of $71.67 per share under the $2B ASR Transaction. The completion of the $2B ASR Transaction effectively completes the $5B Share Buyback Program and the Company's stock repurchase authorization.

In the first quarter 2024, the Company’s Board of Directors approved a new share repurchase program authorizing the repurchase and retirement of up to $1 billion of common stock (“the $1B Share Buyback Program”). Under the $1B Share Buyback Program, repurchases may be made from time to time on the open market at prevailing market prices or in privately negotiated transactions off market, including additional ASR agreements in accordance with applicable federal securities laws. The $1B Share Buyback Program terminates on June 30, 2025, unless extended or shortened by the Board of Directors. In the first quarter 2024, DuPont entered into an ASR agreement with one counterparty for the repurchase of $500 million of common stock ("Q1 2024 ASR Transaction"). DuPont paid an aggregate of $500 million to the counterparty and received initial deliveries of 6.0 million shares of DuPont common stock, which were retired immediately and recorded as a reduction of retained earnings of $400 million. The remaining $100 million was evaluated as an unsettled forward contract indexed to DuPont common stock, classified within stockholders' equity as of March 31, 2024.

Subsequent to quarter end, the Q1 2024 ASR Transaction was completed. The settlement resulted in the delivery of approximately 1 million additional shares of DuPont common stock, which were retired immediately and will be recorded as a reduction of retained earnings in the second quarter of 2024. In total, the Company repurchased 6.9 million shares at an average price of $71.96 per share under the Q1 2024 ASR Transaction.

The Inflation Reduction Act of 2022 introduced a 1 percent nondeductible excise tax imposed on the net value of certain stock repurchases. The net value is determined by the fair market value of the stock repurchased during the tax year, reduced by the fair market value of stock issued during the tax year. The Company recorded total excise tax of $8 million as a reduction to retained earnings for the three months ended March 31, 2024, reflected within stockholders' equity and a corresponding liability within "Accounts Payable" in our interim Condensed Consolidated Balance Sheets as of March 31, 2024.

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Accumulated Other Comprehensive Loss
The following table summarizes the activity related to each component of accumulated other comprehensive loss ("AOCL") for the three months ended March 31, 2024 and 2023:
Accumulated Other Comprehensive LossCumulative Translation AdjPension and OPEBDerivative InstrumentsTotal
In millions
2023
Balance at January 1, 2023$(968)$60 $117 $(791)
Other comprehensive income (loss) before reclassifications81 (1)(3)77 
Amounts reclassified from accumulated other comprehensive loss (3) (3)
Net other comprehensive income (loss)$81 $(4)$(3)$74 
Balance at March 31, 2023
$(887)$56 $114 $(717)
2024
Balance at January 1, 2024$(931)$(55)$76 $(910)
Other comprehensive (loss) income before reclassifications(237)(2)11 (228)
Amounts reclassified from accumulated other comprehensive loss  (1) (1)
Net other comprehensive (loss) income$(237)$(3)$11 $(229)
Balance at March 31, 2024
$(1,168)$(58)$87 $(1,139)
The tax effects on the net activity related to each component of other comprehensive loss were not significant for the three months ended March 31, 2024 and 2023.


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NOTE 17 - PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS
A summary of the Company's pension plans and other post-employment benefits can be found in Note 19 to the Consolidated Financial Statements included in the Company’s 2023 Annual Report.

The following sets forth the components of the Company's net periodic benefit costs (credits) for defined benefit pension plans:
Net Periodic Benefit Costs for All Significant Plans