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 June 30, 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)

Delaware	81-1224539
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 class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	DD	New 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 Filer	☑	Accelerated 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 417,495,113 shares of common stock, $0.01 par value, outstanding at July 29, 2024.

DuPont de Nemours, Inc.

QUARTERLY REPORT ON FORM 10-Q

For the quarterly period ended June 30, 2024

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION		PAGE
Item 1.	Consolidated Financial Statements (Unaudited)
	Consolidated Statements of Operations	6
	Consolidated Statements of Comprehensive Income	7
	Condensed Consolidated Balance Sheets	8
	Consolidated Statements of Cash Flows	9
	Consolidated Statements of Equity	10
	Notes to the Consolidated Financial Statements (Unaudited)	12
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	41
	Overview	41
	Results of Operations	43
	Segment Results	46
	Changes in Financial Condition	50
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	54
Item 4.	Controls and Procedures	54
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	55
Item 1A.	Risk Factors	56
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds and Purchases of Equity Securities	58
Item 4.	Mine Safety Disclosures	58
Item 5.	Other Information	58
Item 6.	Exhibits	59
SIGNATURES		60

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.

Overview

On May 22, 2024, DuPont announced a plan to separate the company into three distinct, publicly traded companies. Under the plan, DuPont would execute the proposed separations of its Electronics and Water businesses in a tax-free manner to its shareholders leaving DuPont to continue as a diversified industrial company following completion of the separations. DuPont expects to complete the separations within 18 to 24 months of the announcement date. The separation transactions will not require a shareholder vote and are subject to satisfaction of customary conditions, including final approval by DuPont's Board of Directors, receipt of tax opinion from counsel, the filing and effectiveness of Form 10 registration statements with the U.S. Securities and Exchange Commission, applicable regulatory approvals and satisfactory completion of financing. Please refer to the announcement and presentation materials from May 22, 2024, posted to the Investor section of www.dupont.com, for more information.

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 customers and cost savings. The Net Trade Revenue by Segment and Business or Major Product Line has been recast for all periods presented to reflect the new structure. The realignment did not result in changes to total Electronics and Industrial segment net sales.

On November 1, 2023, DuPont completed the divestiture of the Delrin® acetal homopolymer (H-POM) business to TJC LP, (the “Delrin® Divestiture”). The results of operations for the three months and six months ended June 30, 2023, present the financial results of the Delrin® Divestiture as discontinued operations. Unless otherwise indicated, the discussion of results, including the financial measures further discussed below, refers only to DuPont's Continuing Operations and does not include discussion of balances or activity of the Delrin® Divestiture.

FORWARD-LOOKING STATEMENTS

This document 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, "outlook,” “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 ability of DuPont to effect the separation transactions described above and to meet the conditions related thereto; (ii) the possibility that the separation transactions will not be completed within the anticipated time period or at all; (iii) the possibility that the separation transactions will not achieve their intended benefits; (iv) the impact of the separation transactions on DuPont’s businesses and the risk that the separations may be more difficult, time-consuming or costly than expected, including the impact on DuPont’s resources, systems, procedures and controls, diversion of management’s attention and the impact and possible disruption of existing relationships with customers, suppliers, employees and other business counterparties; (v) the possibility of disruption, including disputes, litigation or unanticipated costs, in connection with the separation transactions; (vi) the uncertainty of the expected financial performance of DuPont or the separated companies following completion of the separation transactions; (vii) negative effects of the announcement or pendency of the separation transactions on the market price of DuPont’s securities and/or on the financial performance of DuPont; (viii) the ability to achieve anticipated capital structures in connection with the separation transactions, including the future availability of credit and factors that may affect such availability; (ix) the ability to achieve anticipated credit ratings in connection with the separation transactions; (x) the ability to achieve anticipated tax treatments in connection with the separation transactions and completed and future, if any, divestitures, mergers, acquisitions and other portfolio changes and the impact of changes in relevant tax and other laws; (xi) risks and uncertainties related to the settlement agreement concerning PFAS liabilities reached June 2023 with plaintiff water utilities by Chemours, Corteva, EIDP and DuPont; (xii) risks and costs related to each of the parties respective performance

4

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; (xiii) indemnification of certain legacy liabilities; (xiv) the failure to realize expected benefits and effectively manage and achieve anticipated synergies and operational efficiencies in connection with the separation transactions and completed and future, if any, divestitures, mergers, acquisitions, and other portfolio management, productivity and infrastructure actions; (xv) the 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; (xvi) timing and recovery from demand declines in consumer-facing markets, including in China; (xvii) adverse changes in worldwide economic, political, regulatory, international trade, geopolitical, capital markets and other external conditions; and other factors beyond DuPont'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 its suppliers; (xviii) the ability to offset increases in cost of inputs, including raw materials, energy and logistics; (xix) the 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; (xx) the 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; (xxi) other risks to DuPont's business and operations, including the risk of impairment; (xxii) 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; and (xxiii) other risk factors 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.

5

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

DuPont de Nemours, Inc.

Consolidated Statements of Operations

	Three Months Ended June 30,				Six Months Ended June 30,
In millions, except per share amounts (Unaudited)	2024		2023		2024		2023
Net sales	$	3,171	$	3,094	$	6,102	$	6,112
Cost of sales	1,996		2,030		3,914		4,013
Research and development expenses	134		125		259		252
Selling, general and administrative expenses	418		358		802		698
Amortization of intangibles	151		146		300		293
Restructuring and asset related charges - net	8		17		47		31
Acquisition, integration and separation costs	5		6		8		6
Equity in earnings of nonconsolidated affiliates	23		14		35		29
Sundry income (expense) - net	(87)		28		(49)		57
Interest expense	99		98		195		193
Income from continuing operations before income taxes	$	296	$	356	$	563	$	712
Provision for income taxes on continuing operations	120		87		204		170
Income from continuing operations, net of tax	$	176	$	269	$	359	$	542
Income (loss) from discontinued operations, net of tax	9		(386)		23		(394)
Net income (loss)	$	185	$	(117)	$	382	$	148
Net income attributable to noncontrolling interests	7		14		15		22
Net income (loss) available for DuPont common stockholders	$	178	$	(131)	$	367	$	126
Per common share data:
Earnings per common share from continuing operations - basic	$	0.40	$	0.56	$	0.82	$	1.13
Earnings (loss) per common share from discontinued operations - basic	0.02		(0.84)		0.05		(0.86)
Earnings (loss) per common share - basic	$	0.43	$	(0.29)	$	0.87	$	0.27
Earnings per common share from continuing operations - diluted	$	0.40	$	0.55	0.82		1.13
Earnings (loss) per common share from discontinued operations - diluted	0.02		(0.84)		0.05		(0.86)
Earnings (loss) per common share - diluted	$	0.42	$	(0.28)	$	0.87	$	0.27
Weighted-average common shares outstanding - basic	417.8		459.2		420.3		459.0
Weighted-average common shares outstanding - diluted	419.3		460.3		421.6		460.2

See Notes to the Consolidated Financial Statements.

6

DuPont de Nemours, Inc.

Consolidated Statements of Comprehensive Income

	Three Months Ended June 30,				Six Months Ended June 30,
In millions (Unaudited)	2024		2023		2024		2023
Net income (loss)	$	185	$	(117)	$	382	$	148
Other comprehensive (loss) income, net of tax
Cumulative translation adjustments	(128)		(159)		(372)		(77)
Pension and other post-employment benefit plans	(23)		(6)		(26)		(10)
Derivative instruments	10		(18)		21		(21)
Total other comprehensive (loss)	$	(141)	$	(183)	$	(377)	$	(108)
Comprehensive income (loss)	$	44	$	(300)	$	5	$	40
Comprehensive income attributable to noncontrolling interests, net of tax	1		4		2		13
Comprehensive income (loss) attributable to DuPont	$	43	$	(304)	$	3	$	27

See Notes to the Consolidated Financial Statements.

7

DuPont de Nemours, Inc.

Condensed Consolidated Balance Sheets

In millions, except share amounts (Unaudited)	June 30, 2024		December 31, 2023
Assets
Current Assets
Cash and cash equivalents	$	1,503	$	2,392
Restricted cash and cash equivalents	6		411
Accounts and notes receivable - net	2,313		2,370
Inventories	2,164		2,147
Prepaid and other current assets	177		194
Total current assets	$	6,163	$	7,514
Property, plant and equipment - net of accumulated depreciation (June 30, 2024 - $5,047; December 31, 2023 - $4,841)	5,699		5,884
Other Assets
Goodwill	16,558		16,720
Other intangible assets	5,477		5,814
Investments and noncurrent receivables	1,112		1,071
Deferred income tax assets	281		312
Deferred charges and other assets	1,263		1,237
Total other assets	$	24,691	$	25,154
Total Assets	$	36,553	$	38,552
Liabilities and Equity
Current Liabilities
Accounts payable	1,655		1,675
Income taxes payable	158		154
Accrued and other current liabilities	973		1,269
Total current liabilities	$	2,786	$	3,098
Long-Term Debt	7,168		7,800
Other Noncurrent Liabilities
Deferred income tax liabilities	1,045		1,130
Pension and other post-employment benefits - noncurrent	536		565
Other noncurrent obligations	1,254		1,234
Total other noncurrent liabilities	$	2,835	$	2,929
Total Liabilities	$	12,789	$	13,827
Commitments and contingent liabilities
Stockholders' Equity
Common stock (authorized 1,666,666,667 shares of $0.01 par value each; issued 2024: 417,477,709 shares; 2023: 430,110,140 shares)	4		4
Additional paid-in capital	48,019		48,059
Accumulated deficit	(23,414)		(22,874)
Accumulated other comprehensive loss	(1,274)		(910)
Total DuPont stockholders' equity	$	23,335	$	24,279
Noncontrolling interests	429		446
Total equity	$	23,764	$	24,725
Total Liabilities and Equity	$	36,553	$	38,552

See Notes to the Consolidated Financial Statements.

8

DuPont de Nemours, Inc.

Consolidated Statements of Cash Flows

	Six Months Ended June 30,
In millions (Unaudited)	2024		2023
Operating Activities
Net income	$	382	$	148
Income (loss) from discontinued operations	23		(394)
Net income from continuing operations	$	359	$	542
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	589		559
Credit for deferred income tax and other tax related items	(65)		(25)
Earnings of nonconsolidated affiliates in excess of dividends received	(29)		(21)
Net periodic pension benefit costs	5		15
Periodic benefit plan contributions	(38)		(35)
Net gain on sales of assets, businesses and investments	(2)		(8)
Restructuring and asset related charges - net	47		31
Loss on debt extinguishment	74		—
Other net loss	77		70
Changes in assets and liabilities, net of effects of acquired and divested companies:
Accounts and notes receivable	(152)		86
Inventories	(45)		(35)
Accounts payable	124		(125)
Other assets and liabilities, net	76		(249)
Cash provided by operating activities - continuing operations	$	1,020	$	805
Investing Activities
Capital expenditures	(309)		(355)
Proceeds from sales of property and businesses, net of cash divested	5		—
Acquisitions of property and businesses, net of cash acquired	(8)		—
Purchases of investments	—		(32)
Proceeds from sales and maturities of investments	—		1,334
Other investing activities, net	10		4
Cash (used for) provided by investing activities - continuing operations	$	(302)	$	951
Financing Activities
Payments on long-term debt	(687)		—
Purchases of common stock and forward contracts	(500)		—
Proceeds from issuance of Company stock	18		12
Employee taxes paid for share-based payment arrangements	(24)		(24)
Distributions to noncontrolling interests	(20)		(34)
Dividends paid to stockholders	(317)		(330)
Other financing activities, net	(1)		(1)
Cash used for financing activities - continuing operations	$	(1,531)	$	(377)
Cash Flows from Discontinued Operations
Cash used for operations - discontinued operations	(439)		(107)
Cash used for investing activities - discontinued operations	—		(19)
Cash used in discontinued operations	$	(439)	$	(126)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(42)		(29)
(Decrease) increase in cash, cash equivalents and restricted cash	$	(1,294)	$	1,224
Cash, cash equivalents and restricted cash from continuing operations, beginning of period	2,803		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 period	1,509		4,996
Cash, cash equivalents and restricted cash from discontinued operations, end of period	—		—
Cash, cash equivalents and restricted cash at end of period	$	1,509	$	4,996

See Notes to the Consolidated Financial Statements.

9

DuPont de Nemours, Inc.

Consolidated Statements of Equity

For the three months ended June 30, 2024 and 2023

In millions (Unaudited)	Common Stock		Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comp Loss		Treasury Stock		Non-controlling Interests		Total Equity
Balance at March 31, 2023	$	5	$	48,256	$	(20,807)	$	(717)	$	—	$	424	$	27,161
Net (loss) income	—		—		(131)		—		—		14		(117)
Other comprehensive loss	—		—		—		(173)		—		(10)		(183)
Dividends ($0.72 per common share)	—		(330)		—		—		—		—		(330)
Stock-based compensation	—		19		—		—		—		—		19
Other	—		1		—		—		—		2		3
Balance at June 30, 2023	$	5	$	47,946	$	(20,938)	$	(890)	$	—	$	430	$	26,553
Balance at March 31, 2024	$	4	$	48,238	$	(23,519)	$	(1,139)	$	—	$	428	$	24,012
Net income	—		—		178		—		—		7		185
Other comprehensive loss	—		—		—		(135)		—		(6)		(141)
Dividends ($0.76 per common share)	—		(317)		—		—		—		—		(317)
Common stock issued/sold	—		13		—		—		—		—		13
Stock-based compensation	—		13		—		—		—		—		13
Excise tax on purchases of treasury stock	—		—		(1)		—		—		—		(1)
Retirement of treasury stock	—		—		(72)		—		72		—		—
Settlement of forward contracts for share repurchase	—		72		—		—		(72)		—		—
Balance at June 30, 2024	$	4	$	48,019	$	(23,414)	$	(1,274)	$	—	$	429	$	23,764

See Notes to the Consolidated Financial Statements.

10

DuPont de Nemours, Inc.

Consolidated Statements of Equity

For the six months ended June 30, 2024 and 2023

In millions (Unaudited)	Common Stock		Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comp Loss		Treasury Stock		Non-controlling Interests		Total Equity
Balance at December 31, 2022	$	5	$	48,420	$	(21,065)	$	(791)	$	—	$	448	$	27,017
Net income	—		—		126		—		—		22		148
Other comprehensive loss	—		—		—		(99)		—		(9)		(108)
Dividends ($1.08 per common share)	—		(495)		—		—		—		—		(495)
Common stock issued/sold	—		12		—		—		—		—		12
Stock-based compensation	—		10		—		—		—		—		10
Distributions to non-controlling interests	—		—		—		—		—		(34)		(34)
Other	—		(1)		1		—		—		3		3
Balance at June 30, 2023	$	5	$	47,946	$	(20,938)	$	(890)	$	—	$	430	$	26,553
Balance at December 31, 2023	$	4	$	48,059	$	(22,874)	$	(910)	$	—	$	446	$	24,725
Net income	—		—		367		—		—		15		382
Other comprehensive loss	—		—		—		(364)		—		(13)		(377)
Dividends ($1.14 per common share)	—		(476)		—		—		—		—		(476)
Common stock issued/sold	—		18		—		—		—		—		18
Stock-based compensation	—		20		—		—		—		—		20
Distributions to non-controlling interests	—		—		—		—		—		(20)		(20)
Purchases of treasury stock	—		—		—		—		(400)		—		(400)
Excise tax on purchases of treasury stock	—		—		(9)		—		—		—		(9)
Retirement of treasury stock	—		—		(898)		—		898		—		—
Forward contracts for share repurchase	—		(100)		—		—		—		—		(100)
Settlement of forward contracts for share repurchase	—		498		—		—		(498)		—		—
Other	—		—		—		—		—		1		1
Balance at June 30, 2024	$	4	$	48,019	$	(23,414)	$	(1,274)	$	—	$	429	$	23,764

See Notes to the Consolidated Financial Statements.

11

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Table of Contents

Note		Page
1	Summary of Significant Accounting Policies	13
2	Recent Accounting Guidance	13
3	Acquisitions	14
4	Divestitures	15
5	Revenue	16
6	Restructuring and Asset Related Charges - Net	17
7	Supplementary Information	19
8	Income Taxes	19
9	Earnings Per Share Calculations	20
10	Inventories	21
11	Nonconsolidated Affiliates	21
12	Goodwill and Other Intangible Assets	22
13	Short-Term Borrowings, Long-Term Debt, Available Credit Facilities and Other Obligations	24
14	Commitments and Contingent Liabilities	25
15	Operating Leases	30
16	Stockholders' Equity	31
17	Pension Plans and Other Post-Employment Benefits	33
18	Stock-Based Compensation	33
19	Financial Instruments	34
20	Fair Value Measurements	36
21	Segments and Geographic Regions	37
22	Subsequent Events	40

12

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.

Delrin® Divestitures

On November 1, 2023, the Company closed the sale of the Delrin® business to TJC LP ("TJC"), (the “Delrin® Divestiture”). See Note 4 for more information.

The interim Consolidated Statements of Operations for the three and six months ended June 30, 2023 and the interim Consolidated Statements of Cash Flows for the six months ended June 30, 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 refers only to DuPont's continuing operations and does not include discussion of balances or activity of the Delrin® Divestiture.

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 June 30, 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.

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NOTE 3 - ACQUISITIONS

Donatelle Plastics Acquisition

On July 28, 2024, DuPont completed the previously announced acquisition of the Donatelle Plastics company, a medical device company specializing in the design, development and manufacture of medical components and devices. See Note 22 for further discussion.

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 purchase accounting and purchase price allocation for Spectrum are substantially complete as of June 30, 2024. Subsequent to the second quarter the Company finalized the working capital settlements for an immaterial amount which will impact the residual goodwill recorded. The Company will finalize the fair values allocated to the assets acquired and liabilities assumed no later than one year from the date of the acquisition. The following table presents the provisional valuation of certain acquired assets and liabilities assumed based upon information known as of June 30, 2024:

Spectrum Assets Acquired and Liabilities Assumed on August 1, 2023	Estimated fair value as previously reported 1
(In millions)
Fair value of assets acquired
Cash and cash equivalents	$	31
Accounts and notes receivable	68
Inventories	52
Property, plant and equipment	125
Other intangible assets	916
Deferred charges and other assets	34
Total Assets Acquired	$	1,226
Fair value of liabilities assumed
Accounts payable	$	21
Income taxes payable	17
Deferred income tax liabilities	177
Other noncurrent liabilities	44
Total Liabilities Assumed	$	259
Goodwill	825
Total Consideration	$	1,792

1.No adjustments to the amounts previously reported in the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2024.

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.

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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 Delrin® Divestiture together with the divestiture of the majority of the historic Mobility & Materials segment (the "M&M Divestiture"), including the Engineering Polymers business line and select product lines within the Advanced Solutions and Performance Resins business lines, (collectively the "M&M Divestitures") represented a strategic shift that had a major impact on DuPont's operations and results.

The interim results of operations for the three and six months ended June 30, 2023, represent the Delrin® business unless otherwise indicated. The following table summarizes the interim results of operations of the Delrin® Divestiture which are presented as discontinued operations as summarized below:

In millions	Three Months Ended June 30, 2023		Six Months Ended June 30, 2023
Net sales	$	142	$	289
Cost of sales	92		176
Research and development expenses	1		2
Selling, general and administrative expenses	1		1
Acquisition, integration and separation costs 1	46		100
Sundry income (expense) - net	3		5
Income from discontinued operations before income taxes	$	5	$	15
Provision for income taxes on discontinued operations	1		7
Income from discontinued operations, net of tax	$	4	$	8
(Loss) gain on sale, net of tax 2	$	(2)	$	22
Income from discontinued operations attributable to DuPont stockholders, net of tax	$	2	$	30

1. Includes costs related to both the M&M Divestitures 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.

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Other Discontinued Operations Activity

The Company recorded a gain from discontinued operations, net of tax, of $9 million and a loss of $386 million for the three months ended June 30, 2024 and 2023, respectively, and a gain of $23 million and a loss of $394 million for the six months ended June 30, 2024 and 2023, respectively.

Discontinued operations activity consists of the following:

Income (Loss) from Discontinued Operations, Net of Tax	Three Months Ended June 30,				Six Months Ended June 30,
In millions	2024		2023		2024		2023
M&M Divestitures 1	$	(4)	$	2	$	(10)	$	30
MOU Activity 2	(8)		(371)		(17)		(376)
Indemnification activity - environmental and legal 3	—		(14)		(5)		(43)
Tax related matters 4	21		—		56		—
Other	—		(3)		(1)		(5)
Income (loss) from discontinued operations, net of tax	$	9	$	(386)	$	23	$	(394)

1.The three and six months ended June 30, 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 and six months ended June 30, 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 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 Line	Three Months Ended June 30,				Six Months Ended June 30,
In millions	2024		2023		2024		2023
Industrial Solutions	$	488	$	425	$	936	$	848
Interconnect Solutions	468		422		864		821
Semiconductor Technologies	552		465		1,073		939
Electronics & Industrial	$	1,508	$	1,312	$	2,873	$	2,608
Safety Solutions	$	613	$	683	$	1,200	$	1,359
Shelter Solutions	425		422		815		817
Water Solutions	353		389		667		767
Water & Protection	$	1,391	$	1,494	$	2,682	$	2,943
Corporate & Other 1	$	272	$	288	$	547	$	561
Total	$	3,171	$	3,094	$	6,102	$	6,112

1. Net sales within Corporate & Other reflect the Retained Businesses which include the Auto Adhesives & Fluids, MultibaseTM and Tedlar® businesses.

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Net Trade Revenue by Geographic Region	Three Months Ended June 30,				Six Months Ended June 30,
In millions	2024		2023		2024		2023
U.S. & Canada	$	1,127	$	1,045	$	2,180	$	2,068
EMEA 1	550		585		1,094		1,167
Asia Pacific 2	1,368		1,350		2,584		2,643
Latin America	126		114		244		234
Total	$	3,171	$	3,094	$	6,102	$	6,112

1.Europe, Middle East and Africa.

2.Net sales attributed to China/Hong Kong, for the three months ended June 30, 2024 and 2023 were $614 million and $581 million, respectively, while for the six months ended months ended June 30, 2024 and 2023 net sales attributed to China/Hong Kong were $1,129 million and $1,106 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 six months of 2024 and 2023 from amounts included in contract liabilities at the beginning of the period was insignificant.

Contract Balances	June 30, 2024		December 31, 2023
In millions
Accounts and notes receivable - trade 1	$	1,669	$	1,543
Deferred revenue - current 2	$	1	$	1
Deferred revenue - noncurrent 3	$	29	$	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.

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 $8 million and $17 million for the three months ended June 30, 2024, and 2023, and $47 million and $31 million for the six months ended June 30, 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 $71 million at June 30, 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 $155 million inception-to-date, consisting of severance and related benefit costs of $99 million and asset related charges of $56 million. In connection with the 2023-2024 Restructuring Program, the Company recorded $24 million of raw material inventory write-offs in “Cost of Sales” within the interim Consolidated Statements of Operations for the six months ended June 30, 2024 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.

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The following table summarizes the charges incurred by segment related to the 2023-2024 Restructuring Program:

2023-2024 Restructuring Program Charges by Segment	Three Months Ended June 30, 2024		Six Months Ended June 30, 2024
(In millions)
Electronics & Industrial	$	(5)	$	3
Water & Protection 1	15		37
Corporate & Other	(1)		5
Total	$	9	$	45

1.Amount excludes raw materials inventory write-offs recorded during 2024. Refer to Note 21 for additional information.

The following table summarizes the activities related to the 2023-2024 Restructuring Program:

2023-2024 Restructuring Program	Severance and Related Benefit Cost		Asset Related Charges		Total
In millions
Reserve balance at December 31, 2023	$	79	$	—	$	79
Restructuring charges 1	19		26		45
Charges against the reserve	(2)		(26)		(28)
Cash payments	(36)		—		(36)
Reserve balance at June 30, 2024	$	60	$	—	$	60

1.Amount excludes raw materials inventory write-offs recorded during 2024, impacting the Water & Protection segment. Refer to Note 21 for additional information.

Total liabilities related to the 2023-2024 Restructuring Program were $60 million at June 30, 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 $98 million inception-to-date, consisting of severance and related benefit costs of $84 million and asset related charges of $14 million. The Company recorded pre-tax restructuring benefits of $1 million and charges of $2 million, to Corporate & Other during the three and six months ended June 30, 2024, respectively.

Total liabilities related to the 2022 Restructuring Program were $11 million at June 30, 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) - Net	Three Months Ended June 30,				Six Months Ended June 30,
In millions	2024		2023		2024		2023
Non-operating pension and other post-employment benefit credits (costs)	$	3	$	(2)	$	10	$	(4)
Interest income 1	21		52		41		98
Net gain on divestiture and sales of other assets and investments	—		2		2		8
Foreign exchange gains (losses), net	(4)		(28)		—		(48)
Loss on debt extinguishment 2	(74)		—		(74)		—
Interest rate swap mark-to-market loss 3	(39)		—		(39)		—
Miscellaneous income (expense) - net	6		4		11		3
Sundry income (expense) - net	$	(87)	$	28	$	(49)	$	57

1.The three and six months ended June 30, 2024 includes non-cash interest income of $6 million and $12 million, respectively, related to the $350 million Delrin® related party note receivable. Refer to Note 11 for additional information.

2.Reflects the loss on the partial redemption of an aggregate principal amount of the 2038 Notes. Refer to Note 13 for further details.

3. Includes the mark to market loss related to the 2022 Swaps and 2024 Swaps. Refer to Note 19 for further details.

Cash, Cash Equivalents and Restricted Cash

At June 30, 2024 and December 31, 2023 the Company had $6 million and $411 million, respectively, within “Restricted cash and cash equivalents”. The majority of the balance as of December 31, 2023 is attributable to the Water District Settlement Fund. During the second quarter 2024, the judgment related to the Water District Settlement Fund became final and therefore $408 million was removed from "Restricted cash and cash equivalents”. 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 $973 million at June 30, 2024 and $1,269 million at December 31, 2023. "Accrued and other current liabilities" at December 31, 2023 includes approximately $405 million, respectively, related to the Water District Settlement Agreement further discussed in Note 14, the related balance at June 30, 2024 was zero. Accrued payroll, which is a component of "Accrued and other current liabilities," was $268 million at June 30, 2024 and $250 million at December 31, 2023. At June 30, 2024, "Accrued and other current liabilities" also includes $159 million of dividends payable; at December 31, 2023 the balance was not material. No other component of "Accrued and other current liabilities" was more than 5 percent of total current liabilities at June 30, 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 second quarter of 2024 was 40.5 percent, compared with an effective tax rate of 24.4 percent for the second quarter of 2023. For the first six months of 2024, the effective tax rate on continuing operations was 36.2 percent, compared with 23.9 percent for the first six months of 2023. The higher effective tax rates in 2024 thus far were driven by the geographic mix of earnings offset by the U.S. taxation of foreign operations as well as certain discrete tax expenses, including an international statutory tax settlement for which the Company is partially 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 current year ending 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 and six months ended June 30, 2024 and 2023:

Net Income for Earnings Per Share Calculations - Basic & Diluted	Three Months Ended June 30,				Six Months Ended June 30,
In millions	2024		2023		2024		2023
Income from continuing operations, net of tax	$	176	$	269	$	359	$	542
Net income from continuing operations attributable to noncontrolling interests	7		14		15		22
Income from continuing operations attributable to common stockholders	$	169	$	255	$	344	$	520
Income (loss) from discontinued operations attributable to common stockholders, net of tax	$	9	$	(386)	$	23	$	(394)
Net income (loss) attributable to common stockholders	$	178	$	(131)	$	367	$	126

Earnings Per Share Calculations - Basic	Three Months Ended June 30,				Six Months Ended June 30,
Dollars per share	2024		2023		2024		2023
Earnings from continuing operations attributable to common stockholders	$	0.40	$	0.56	$	0.82	$	1.13
Earnings (loss) from discontinued operations, net of tax	0.02		(0.84)		0.05		(0.86)
Earnings (loss) attributable to common stockholders 1	$	0.43	$	(0.29)	$	0.87	$	0.27

Earnings Per Share Calculations - Diluted	Three Months Ended June 30,				Six Months Ended June 30,
Dollars per share	2024		2023		2024		2023
Earnings from continuing operations attributable to common stockholders	$	0.40	$	0.55	$	0.82	$	1.13
Earnings (loss) from discontinued operations, net of tax	0.02		(0.84)		0.05		(0.86)
Earnings (loss) attributable to common stockholders 1	$	0.42	$	(0.28)	$	0.87	$	0.27

Share Count Information	Three Months Ended June 30,		Six Months Ended June 30,
Shares in millions	2024	2023	2024	2023
Weighted-average common shares - basic	417.8	459.2	420.3	459.0
Plus dilutive effect of equity compensation plans	1.5	1.1	1.3	1.2
Weighted-average common shares - diluted	419.3	460.3	421.6	460.2
Stock options, restricted stock units, and performance-based restricted stock units excluded from EPS calculations 2	1.1	3.0	2.1	2.6

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 millions	June 30, 2024		December 31, 2023
Finished goods	$	1,196	$	1,184
Work in process	504		487
Raw materials	336		350
Supplies	128		126
Total inventories	$	2,164	$	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 June 30, 2024 and December 31, 2023 is $818 million and $788 million, respectively.

Sales to nonconsolidated affiliates represented less than 2 percent of total net sales for the three and six months ended June 30, 2024 and approximately 2 percent for the three and six months ended June 30, 2023. Purchases from nonconsolidated affiliates represented less than 3 percent of “Cost of sales” for the three and six months ended June 30, 2024 and 2023. The Company maintained an ownership interest in seven nonconsolidated affiliates at June 30, 2024.

Derby Equity Interest

As a result of the Delrin® Divestiture, on November 1, 2023, the Company acquired 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 and six months ended June 30, 2024, the Company recorded income of $2 million and a loss of $5 million, respectively, 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. The carry values of the equity interest as of June 30, 2024 and December 31, 2023 were $118 million and $121 million, respectively. The carry values of the note receivable as of June 30, 2024 and December 31, 2023 were $240 million and $228 million, respectively.

For the three and six months ended June 30, 2024, Company recognized non-cash interest income on the Derby Note Receivable of $6 million and $12 million, respectively, reported in "Sundry income (expense) - net" on the interim Consolidated Statement of Operations, and accreted to the carrying value of the note receivable.

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NOTE 12 - GOODWILL AND OTHER INTANGIBLE ASSETS

The changes in the carrying amounts of goodwill during the six months ended June 30, 2024 were as follows:

In millions	Electronics & Industrial		Water & Protection		Corporate & Other		Total
Balance at December 31, 2023	$	10,205	$	5,900	$	615	$	16,720
Currency translation adjustment	(79)		(85)		(5)		(169)
Goodwill recognized for Spectrum Acquisition	7		—		—		7
Balance at June 30, 2024	$	10,133	$	5,815	$	610	$	16,558

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,