DuPont de Nemours Inc

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.

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

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.

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.