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SEGMENTS AND GEOGRAPHIC REGIONS
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
SEGMENTS AND GEOGRAPHIC REGIONS SEGMENTS AND GEOGRAPHIC REGIONS
In the first quarter of 2020, in preparation for the Intended N&B Transaction, DuPont changed its management and reporting structure to realign costs associated with its polysaccharides pre-commercial activities from the Non-Core segment to the N&B segment. The reporting changes have been retrospectively reflected in the segment results for all periods presented.

Prior to April 1, 2019, the Company's measure of profit / loss for segment reporting purposes is pro forma Operating EBITDA as this is the manner in which the Company's chief operating decision maker ("CODM") assessed performance and allocates resources. The Company defines pro forma Operating EBITDA as pro forma earnings (i.e. pro forma "Income (loss) from continuing operations before income taxes") before interest, depreciation, amortization, non-operating pension / other post employment benefits (“OPEB”) / charges, and foreign exchange gains/losses, excluding the impact of costs historically allocated to the materials science and agriculture businesses that did not meet the criteria to be recorded as discontinued operations and adjusted for significant items. Effective April 1, 2019, the Company's measure of profit/loss for segment reporting purposes is Operating EBITDA as this is the manner in which the Company's chief operating decision maker ("CODM") assesses performance and allocates resources. The Company defines Operating EBITDA as earnings (i.e., “Income from continuing operations before income taxes") before interest, depreciation, amortization, non-operating pension / OPEB benefits / charges, and foreign exchange gains / losses, adjusted for significant items. Reconciliations of these measures are provided on the following pages.

Pro forma adjustments were determined in accordance with Article 11 of Regulation S-X. Pro forma financial information is based on the Consolidated Financial Statements of DuPont, adjusted to give effect to the impact of certain items directly attributable to the Distributions, and the Term Loan Facilities, the 2018 Senior Notes and the Funding CP Issuance (together, the "Financings"), including the use of proceeds from such Financings (collectively the "Transactions"). The historical consolidated financial information has been adjusted to give effect to pro forma events that are (1) directly attributable to the Transactions, (2) factually supportable and (3) with respect to the statements of operations, expected to have a continuing impact on the results. Events that are not expected to have a continuing impact on the combined results are excluded from the pro forma adjustments. Those pro forma adjustments include the impact of various supply agreements entered into in connection with the Dow Distribution ("supply agreements") and are adjustments to "Cost of sales." Pro forma Operating EBITDA for the six months ended June 30, 2019 has been adjusted to reflect the supply agreements if they had been effective January 1, 2018 as they are included in the measure of
profit/loss reviewed by the CODM in order to show meaningful comparability among periods while assessing performance and making resource allocation decisions. There were no pro forma adjustments for the three or six months ended June 30, 2020 and the three months ended June 30, 2019.

Segment Information
Elect. & Imaging
Nutrition & Biosciences
Transp. & Industrial
Safety & Const.
Non-Core
Corp.
Total
In millions
Three months ended June 30, 2020
 
 
 
 
 
 
 
Net sales
$
905

$
1,539

$
832

$
1,244

$
308

$
—

$
4,828

Operating EBITDA 1
$
277

$
418

$
49

$
349

$
93

$
(51
)
$
1,135

Equity in earnings of nonconsolidated affiliates
$
10

$
1

$
1

$
5

$
86

$
—

$
103

Three months ended June 30, 2019
 
 
 
 
 
 
 
Net sales
$
858

$
1,558

$
1,269

$
1,341

$
442

$
—

$
5,468

Operating EBITDA 1
$
246

$
386

$
357

$
382

$
104

$
(53
)
$
1,422

Equity in earnings of nonconsolidated affiliates 2
$
5

$
—

$
2

$
7

$
36

$
—

$
50

Six months ended June 30, 2020
 
 
 
 
 
 
 
Net sales
$
1,789

$
3,090

$
1,976

$
2,520

$
674

$
—

$
10,049

Operating EBITDA 1
$
530

$
803

$
357

$
717

$
135

$
(86
)
$
2,456

Equity in earnings of nonconsolidated affiliates
$
19

$
1

$
2

$
12

$
108

$
—

$
142

Six months ended June 30, 2019
 
 
 
 
 
 
 
Net sales
$
1,683

$
3,093

$
2,586

$
2,624

$
896

$
—

$
10,882

Pro forma operating EBITDA 1
$
534

$
735

$
730

$
756

$
202

$
(105
)
$
2,852

Equity in earnings of nonconsolidated affiliates 2
$
8

$
—

$
2

$
15

$
66

$
—

$
91


1.
A reconciliation of "Income (loss) from continuing operations, net of tax" to Operating EBITDA and pro forma Operating EBITDA, as applicable, is provided below.
2.
Represents equity in earnings (losses) of nonconsolidated affiliates included in pro forma Operating EBITDA, the Company's measure of profit/loss for segment reporting purposes, which excludes significant items. Accordingly, the Non-Core segment presented above excludes a restructuring charge of $1 million and $2 million for the three and six months ended June 30, 2019, respectively, which is presented in "Equity in earnings of nonconsolidated affiliates" in the Company's interim Consolidated Statements of Operations.

Reconciliation of "Income (loss) from continuing operations, net of tax" to Operating EBITDA for the Three Months Ended June 30, 2020 and 2019
Three Months Ended June 30,
In millions
2020
2019
Loss from continuing operations, net of tax
$
(2,471
)
$
(1,103
)
+ (Benefit from) provision for income taxes on continuing operations
(36
)
155

Loss from continuing operations before income taxes
$
(2,507
)
$
(948
)
+ Depreciation and amortization
774

507

- Interest income 1
2

9

+ Interest expense 2
181

165

- Non-operating pension/OPEB benefit 1
8

18

- Foreign exchange losses, net 1
(23
)
(17
)
- Significant items 3
(2,674
)
(1,708
)
Operating EBITDA
$
1,135

$
1,422

1. Included in "Sundry income (expense) - net."
2. The three months ended June 30, 2020 excludes N&B financing fee amortization. Refer to details of significant items below.
3. The significant items for the three months ended June 30, 2020 and 2019 are presented on an as reported basis.
Reconciliation of "Income (loss) from continuing operations, net of tax" to Operating EBITDA for the Six Months Ended June 30, 2020 and 2019
Six Months Ended June 30,
In millions
2020
2019
Loss from continuing operations, net of tax
$
(3,081
)
$
(1,177
)
+ Provision for (benefit from) income taxes on continuing operations
8

64

Loss from continuing operations before income taxes
$
(3,073
)
$
(1,113
)
+ Pro forma adjustments 1
—

122

+ Depreciation and amortization
1,546

1,034

- Interest income 2
4

49

+ Interest expense 3
354

345

- Non-operating pension/OPEB benefit 2
19

39

- Foreign exchange losses, net 2
(31
)
(78
)
+ Costs historically allocated to the materials science and agriculture businesses 4
—

256

- Significant items 5
(3,621
)
(2,218
)
Operating EBITDA 1
$
2,456

$
2,852


1. For the six months ended June 30, 2019, operating EBITDA is on a pro forma basis. The pro forma adjustment reflects the net pro forma impact of items directly attributable to the Transactions, as applicable.
2.
Included in "Sundry income (expense) - net."
3. The six months ended June 30, 2020 excludes N&B financing fee amortization. Refer to details of significant items below.
4. Costs previously allocated to the materials science and agriculture businesses that did not meet the definition of expenses related to discontinued operations in accordance with ASC 205.
5. The significant items for the six months ended June 30, 2020 are presented on an as reported basis. The significant items for the six months ended June 30, 2019 are presented on a pro forma basis.

The significant items for the three months ended June 30, 2020 and 2019 and the six months ended June 30, 2020, are presented on an as reported basis. The significant items for the six months ended June 30, 2019 are presented on a pro forma basis. The following tables summarize the pre-tax impact of significant items by segment that are excluded from Operating EBITDA and pro forma Operating EBITDA above:
Significant Items by Segment for the Three Months Ended June 30, 2020
Elect. & Imaging
Nutrition & Biosciences
Transp. & Industrial
Safety & Construction
Non-Core
Corporate
Total
In millions
Integration and separation costs 1
$
—

$
—

$
—

$
—

$
—

$
(145
)
$
(145
)
Restructuring and asset related credits (charges) - net 2
3

2

10

12

—

(25
)
2

Goodwill impairment charges 3
—

—

(2,498
)
—

—

—

(2,498
)
Asset impairment charges 3
—

—

(21
)
—

—

—

(21
)
N&B financing fee amortization 4
—

—

—

—

—

(12
)
(12
)
Total
$
3

$
2

$
(2,509
)
$
12

$
—

$
(182
)
$
(2,674
)

1. Integration and separation costs related to the post-Merger integration and the intended separation of the N&B Business.
2. Includes Board approved restructuring plans and asset related charges. See Note 5 for additional information.
3. See Note 11 for additional information.
4. Reflected in "Interest expense" and relates to the intended separation of the N&B Business.

Significant Items by Segment for the Three Months Ended June 30, 2019
Elect. & Imaging
Nutrition & Biosciences
Transp. & Industrial
Safety & Construction
Non-Core
Corporate
Total
In millions
Integration and separation costs 1
$
—

$
—

$
—

$
—

$
—

$
(347
)
$
(347
)
Restructuring and asset related charges - net 2
(7
)
(22
)
(12
)
(20
)
(1
)
(13
)
(75
)
Goodwill impairment charges 3
—

(933
)
—

—

(242
)
—

(1,175
)
Asset impairment charges 4
—

(63
)
—

—

—

—

(63
)
Income tax relates items 5
—

—

—

(48
)
—

—

(48
)
Total
$
(7
)
$
(1,018
)
$
(12
)
$
(68
)
$
(243
)
$
(360
)
$
(1,708
)

1.
Integration and separation costs related to the Merger, post-Merger integration and business separation activities.
2.
Includes Board approved restructuring plans and asset related charges. See Note 5 for additional information.
3. See Note 11 for additional information.
4. See Note 5 for additional information.
5. Charge included in "Sundry income (expense) - net" which reflects a reduction in gross proceeds from lower withholding taxes related to a prior year legal settlement.

Significant Items by Segment for the Six Months Ended June 30, 2020
Elect. & Imaging
Nutrition & Biosciences
Transp. & Industrial
Safety & Construction
Non-Core
Corporate
Total
In millions
Integration and separation costs 1
$
—

$
—

$
—

$
—

$
—

$
(342
)
$
(342
)
Restructuring and asset related charges - net 2
(1
)
(4
)
(15
)
(13
)
—

(99
)
(132
)
Goodwill impairment charges 3
—

—

(2,498
)
—

(533
)
—

(3,031
)
Asset impairment charges 3, 4
—

—

(21
)
—

(270
)
—

(291
)
Gain on divestiture 5
197

—

—

—

—

—

197

N&B financing fee amortization 6
—

—

—

—

—

(22
)
(22
)
Total
$
196

$
(4
)
$
(2,534
)
$
(13
)
$
(803
)
$
(463
)
$
(3,621
)

1. Integration and separation costs related to the post-Merger integration and the intended separation of the N&B Business.
2. Includes Board approved restructuring plans and asset related charges. See Note 5 for additional information.
3. See Note 11 for additional information.
4. See Note 5 for additional information.
5. Reflected in "Sundry income (expense) - net." Refer to Note 3 for additional information.
6. Reflected in "Interest expense" and relates to the intended separation of the N&B Business.

Significant Items by Segment for the Six Months Ended June 30, 2019
(Pro Forma)
Elect. & Imaging
Nutrition & Biosciences
Transp. & Industrial
Safety & Construction
Non-Core
Corporate
Total
In millions
Integration and separation costs 1
$
—

$
—

$
—

$
—

$
—

$
(785
)
$
(785
)
Restructuring and asset related charges - net 2
(7
)
(49
)
(12
)
(22
)
—

(57
)
(147
)
Goodwill impairment charges 3
—

(933
)
—

—

(242
)
—

(1,175
)
Asset impairment charges 4
—

(63
)
—

—

—

—

(63
)
Income tax relates item 5
—

—

—

(48
)
—

—

(48
)
Total
$
(7
)
$
(1,045
)
$
(12
)
$
(70
)
$
(242
)
$
(842
)
$
(2,218
)
1.
Integration and separation costs related to the Merger, post-Merger integration and business separation activities.
2.
Includes Board approved restructuring plans and asset related charges. See Note 5 for additional information.
3. See Note 11 for additional information.
4. See Note 5 for additional information.
5. Charge included in "Sundry income (expense) - net" which reflects a reduction in gross proceeds from lower withholding taxes related to a prior year legal settlement.