DuPont de Nemours Inc

NOTE 21 -SEGMENTS AND GEOGRAPHIC REGIONS

The Company's measure of profit/loss for segment reporting purposes is Operating EBITDA as this is the manner in which the Company's chief operating decision maker ("CODM") assesses performance and allocates resources. The Company defines Operating EBITDA as earnings (i.e., “Income from continuing operations before income taxes") before interest, depreciation, amortization, non-operating pension / OPEB benefits / charges, and foreign exchange gains / losses, excluding Future Reimbursable Indirect Costs, and adjusted for significant items. Reconciliations of these measures are provided on the following pages.

Historical Delrin® costs that were classified as discontinued operation in prior years included only direct operating expenses incurred by Delrin® prior to the November 1, 2023 divestiture. Indirect costs, such as those related to corporate and shared service functions previously allocated to the Delrin® Business, did not meet the criteria for discontinued operations and were reported within continuing operations in the respective prior years. A portion of these historical indirect costs included costs related to activities the Company is undertaking on behalf of Delrin®, and for which it is reimbursed (“Future Reimbursable Indirect Costs”). Future Reimbursable Indirect Costs are reported within continuing operations but are excluded from operating EBITDA as defined below. The remaining portion of these indirect costs are not subject to reimbursement (“Stranded Costs”). Stranded Costs are reported within continuing operations in Corporate & Other and are included within Operating EBITDA.

1. Corporate & Other includes activities of the Retained Businesses.

2. A reconciliation of "Income from continuing operations, net of tax" to Operating EBITDA is provided below.

1. Included in "Sundry income (expense) - net."

1. Included in "Sundry income (expense) - net."

The following tables summarize the pre-tax impact of significant items by segment that are excluded from Operating EBITDA above:

1. Includes restructuring actions and asset related charges. See Note 6 for additional information.

2. Reflects an adjustment to raw material inventory write-offs recorded in “Cost of Sales” in connection with restructuring actions related to plant line closures within the Water & Protection segment.

3. Acquisition, integration and separation costs related to the Spectrum Acquisition and the Intended Business Separations.

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

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

1. Acquisition, integration and separation costs related to the Spectrum Acquisition.

2. Includes restructuring actions and asset related charges. See Note 6 for additional information.

3. Reflected in "Sundry income (expense) - net."

1. Includes restructuring actions and asset related charges. See Note 6 for additional information.

2. Reflects raw material inventory write-offs recorded in “Cost of Sales” in connection with restructuring actions related to plant line closures within the Water & Protection segment.

3. Acquisition, integration and separation costs related to the Spectrum Acquisition and the Intended Business Separations.

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

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

6. Reflects the impact of an international tax audit.

1. Acquisition, integration and separation costs related to the Spectrum Acquisition.

2. Includes restructuring actions and asset related charges. See Note 6 for additional information.

3. Reflected in "Sundry income (expense) - net."