DuPont de Nemours Inc

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 inseven 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.