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."

2. The three months ended September 30, 2024 excludes interest rate swap basis amortization. Refer to details of significant items below.

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

2. The nine months ended September 30, 2024 excludes interest rate swap basis amortization. Refer to details of significant items below.

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

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

3. Reflects the amortization of an inventory step-up adjustment related the Donatelle Plastics Acquisition.

4. Reflects adjustment for inventory write-offs recorded in “Cost of Sales" in connection with restructuring actions. See Note 6 for additional information.

5. Includes the non-cash mark-to-market gain related to the 2022 Swaps and 2024 Swaps, net interest settlement loss related to the 2022 Swaps and $1 million of basis amortization on the 2022 Swaps. Refer to Note 19 for further details.

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

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

3. Reflects inventory write-offs recorded in “Cost of Sales” in connection with restructuring actions. See Note 6 for additional information.

4. Reflects the amortization of an inventory step-up adjustment related the Donatelle Plastics Acquisition.

5. 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.

6. Includes the non-cash mark-to-market gain related to the 2022 Swaps and 2024 Swaps, net interest settlement loss related to the 2022 Swaps and $1 million of basis amortization on the 2022 Swaps. Refer to Note 19 for further details.

7. Reflects the impact of an international tax audit.

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

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