DuPont de Nemours Inc

NOTE 15 -OPERATING LEASES

The lease cost for operating leases were as follows:

Operating cash flows from operating leases were $60 million and $55 million for the six months ended June 30, 2024 and 2023, respectively.

New operating lease assets and liabilities entered into during the six months ended June 30, 2024 and 2023, were $26 million and $78 million, respectively. Supplemental balance sheet information related to leases was as follows:

1. Included in "Deferred charges and other assets" 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.

Operating lease right-of-use ("ROU") assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide the lessor’s implicit rate, the Company uses its incremental borrowing rate at the commencement date in determining the present value of lease payments.

Maturities of lease liabilities were as follows:

The Company has leases in which it is the lessor. In connection with the 2021 sale of the N&B businesses and the M&M Divestitures, DuPont entered into leasing agreements with International Flavors & Fragrance Inc. (“IFF”) and Celanese, whereby DuPont is leasing certain properties, including office spaces and R&D laboratories. These leases are classified as operating leases and lessor income and related expenses are not significant to the Company's interim Condensed Consolidated Balance Sheets or interim Consolidated Statement of Operations. Lease agreements where the Company is the lessor have final expirations through 2036.