DuPont de Nemours Inc

NOTE 11 -NONCONSOLIDATED AFFILIATES

The Company's investments in affiliates 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 March 31, 2025 and December 31, 2024 is $762 million and $778 million, respectively.

Sales to nonconsolidated affiliates represented less than 2 percent of total net sales for the three months ended March 31, 2025 and 2024. Purchases from nonconsolidated affiliates represented approximately 2 percent and less than 3 percent of “Cost of sales” for the three months ended March 31, 2025 and 2024, respectively. The Company maintained an ownership interest inseven nonconsolidated affiliates at March 31, 2025.

Derby Equity Interest and Note Receivable

As a result of the Delrin® Divestiture, on November 1, 2023, the Company acquired a 19.9 percent non-controlling equity interest in Derby Group Holdings LLC, (“Derby”). As part of this transaction, DuPont received a note receivable of $350 million (the "Derby Note Receivable"). 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 months ended March 31, 2025 and 2024, the Company recorded a loss of $14 million and a loss of $7 million, respectively, in "Equity in earnings of nonconsolidated affiliates". The amounts related to the Derby equity interest are recorded within Corporate. These amounts include the impact of transaction costs incurred by Derby, depreciation and amortization expense from purchase accounting of approximately $12 million and $8 million, for the three months ended March 31, 2025 and 2024, respectively. The carrying values of the equity interest as of March 31, 2025 and December 31, 2024 were $98 million and $117 million, respectively.

For the three months ended March 31, 2025 and 2024, the Company recognized non-cash interest income on the Derby Note Receivable of $7 million and $6 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. The carrying values of the note receivable as of March 31, 2025 and December 31, 2024 were $260 million and $254 million, respectively.