SUPPLEMENTARY INFORMATION



Sundry Income - Net	Successor		Predecessor
(In millions)	For the Period September 1 through December 31, 2017		For the Period January 1 through August 31, 2017			For the Year Ended December 31, 2016			For the Year Ended December 31, 2015
Royalty income¹			$	84		$	170		$	138
Interest income	$	41	83			102			124
Equity in earnings of affiliates - net	1		55			99			49
Net gain on sales of businesses and other assets^2,3	16		205			435			92
Net exchange gains (losses)	8		(394		)	(106		)	30
Miscellaneous income and expenses - net⁴	24		133			7			257
Sundry income - net	$	90	$	166		$	707		$	690


^1.	In the Successor period, royalty income of $60 million is included in Net Sales.


^2.	Includes a pre-tax gain of $162 million ($86 million net of tax) for the period January 1 through August 31, 2017 related to the sale of global food safety diagnostics. See Note 4 for additional information.


^3.	Includes a pre-tax gain of $369 million ($214 million net of tax) for the year ended December 31, 2016 related to the sale of DuPont (Shenzhen) Manufacturing Limited. See Note 4 for additional information.


^4.	Miscellaneous income and expenses - net, includes interest items (in the Predecessor period only), gains (losses) on available for sale securities, gains related to litigation settlements, licensing income, gains on purchases, and other items.

The following table summarizes the impacts of the company's foreign currency hedging program on the company's results of operations. The company routinely uses foreign currency exchange contracts to offset its net exposures, by currency, related to the foreign currency-denominated monetary assets and liabilities. The objective of this program is to maintain an approximately balanced position in foreign currencies in order to minimize, on an after-tax basis, the effects of exchange rate changes on net monetary asset positions. The hedging program gains (losses) are largely taxable (tax deductible) in the United States (U.S.), whereas the offsetting exchange gains (losses) on the remeasurement of the net monetary asset positions are often not taxable (tax deductible) in their local jurisdictions. The net pre-tax exchange gains (losses) are recorded in sundry income - net and the related tax impact is recorded in provision for income taxes on continuing operations in the Consolidated Statements of Operations.



	Successor			Predecessor
(In millions)	For the Period September 1 through December 31, 2017			For the Period January 1 through August 31, 2017			For the Year Ended December 31, 2016			For the Year Ended December 31, 2015
Subsidiary Monetary Position (Loss) Gain
Pre-tax exchange (loss) gain	$	(83	)	$	37		$	198		$	(404	)
Local tax (expenses) benefits	(3		)	217			(126		)	(61		)
Net after-tax impact from subsidiary exchange (loss) gain	$	(86	)	$	254		$	72		$	(465	)

Hedging Program Gain (Loss)
Pre-tax exchange gain (loss)	$	91		$	(431	)	$	(304	)	$	434
Tax (expenses) benefits	(33		)	155			110			(157		)
Net after-tax impact from hedging program exchange gain (loss)	$	58		$	(276	)	$	(194	)	$	277

Total Exchange Gain (Loss)
Pre-tax exchange gain (loss)	$	8		$	(394	)	$	(106	)	$	30
Tax (expenses) benefits	(36		)	372			(16		)	(218		)
Net after-tax exchange (loss) gain	$	(28	)	$	(22	)	$	(122	)	$	(188	)

Other current assets

Other current assets includes approximately $558 million of restricted cash related to the Rabbi Trust as of December 31, 2017. See Note 16 for additional information.

Accrued and other current liabilities

Accrued and other current liabilities were $4,384 million at December 31, 2017 and $4,650 million at December 31, 2016. Deferred revenue and compensation and other employee-related costs, which are components of accrued and other current liabilities, were $2,014 million and $857 million at December 31, 2017, respectively and $2,217 million and $807 million at December 31, 2016, respectively. No other components of accrued and other current liabilities were more than 5 percent of total current liabilities.

Other noncurrent obligations

Other noncurrent obligations were $1,975 million at December 31, 2017 and $12,304 million at December 31, 2016. Accrued pension benefit costs and accrued other post employment benefit costs, which are components of other noncurrent obligations in the Predecessor period, were $8,092 million and $2,554 million at December 31, 2016, respectively. In the Successor period, accrued pension benefit costs and accrued other post employment benefit costs are included in the line item, pension and other post employment benefits - noncurrent in the Consolidated Balance Sheets. See Note 1 for discussion of reclassification adjustments. No other components of other noncurrent obligations were more than 5 percent of total liabilities.

Related Parties

Transactions with DowDuPont

DowDuPont relies on distributions and other intercompany transfers from DuPont and Dow to fund payment of its costs and expenses. In November 2017, DowDuPont’s Board of Directors declared a fourth quarter dividend per share of DowDuPont common stock payable on December 15, 2017 and authorized an initial $4,000 million share repurchase program to buy back shares of DowDuPont common stock. In the fourth quarter of 2017, DuPont declared and paid distributions in cash and in-kind to DowDuPont of $829 million, primarily to fund a portion of DowDuPont’s fourth quarter share repurchases and dividend payment.

In addition, at December 31, 2017, DuPont had a payable to DowDuPont of $354 million, included in accounts payable in the Consolidated Balance Sheets related to its estimated 2017 tax liability. See Note 7 for additional information.