Qnity Electronics, Inc.

NOTE 12 -SHORT-TERM BORROWINGS, LONG-TERM DEBT, AND AVAILABLE CREDIT FACILITIES

A summary of Qnity's short-term borrowings, long-term debt and available credit facilities can be found in Note 14 to the Consolidated Financial Statements included in the Company's Annual Report. If applicable, updates have been included in the respective section below.

Short-term Borrowings

Long-term debt due within one year was $23 million and $24 million at March 31, 2026 and December 31, 2025, respectively. These balances are presented net of current portion of unamortized debt issuance cost and are recorded in "Short-term borrowings" in the interim Condensed Consolidated Balance Sheets.

Long-Term Debt

Long-term debt at March 31, 2026 and December 31, 2025 was $4,000 million and $4,003 million, respectively. The estimated fair value of the Company's long-term borrowings was determined using Level 2 inputs within the fair value hierarchy. Based on quoted market prices for the same or similar issues, or on current rates offered to the Company for debt of the same remaining maturities, the fair value of the Company's long-term borrowings, including long-term debt due within one year, was $4,099 million and $4,154 million at March 31, 2026 and December 31, 2025, respectively. As of March 31, 2026, the Company was in compliance with all applicable covenants included in the terms of its debt arrangements.

Committed Credit Facilities and Outstanding Letters of Credit

The Company's $1,250 million Senior Secured Revolving Facility matures October 2030. As of March 31, 2026, there wereno drawings on the facility, and outstanding letters of credit under the facility were approximately $12 million.

Uncommitted Credit Facilities and Outstanding Letters of Credit

Unused bank credit lines on uncommitted credit facilities were approximately $134 million at March 31, 2026. These lines are available to support short-term liquidity needs and general corporate purposes including letters of credit. Outstanding letters of credit and credit lines under these uncommitted credit facilities were approximately $24 million at March 31, 2026. These letters of credit support commitments made in the ordinary course of business.