On April 1, 2026, DuPont completed the Aramids Divestiture to Arclin, a portfolio company of an affiliate of TJC, in a transaction for gross consideration of $1.8 billion. In accordance with the transaction agreement, at the closing of the Aramids Divestiture DuPont received pre-tax cash proceeds of approximately $1.2 billion, subject to customary transaction adjustments, an interest bearing note receivable of $300 million, and acquired a common equity interest (the "Aramids Equity Consideration") of approximately 16 percent valued at $325 million in the New Arclin U.S. Holding Corp. ("Arclin"). Arclin will hold the Arclin global materials business and the Aramids Business.


	Three Months Ended March 31,
In millions	2026		2025
Net sales	$	349	$	336
Cost of sales	280		267
Research and development expenses	7		8
Selling, general and administrative expenses	9		17
Amortization of intangibles	—		16
Restructuring and asset related charges – net	4		2
Goodwill impairment charges	—		768
Acquisition, integration and separation costs	—		10
Equity in earnings of nonconsolidated affiliates	6		5
Sundry (expense) income – net	(3)		1
Loss from classification to held for sale	16		—
Income (loss) from discontinued operations before income taxes	$	36	$	(746)
Provision for income taxes on discontinued operations	2		8
Income (loss) from discontinued operations, net of tax	$	34	$	(754)

Income (loss) from discontinued operations attributable to DuPont stockholders	$	34	$	(754)

Assets and liabilities classified as held for sale are required to be recorded at the lower of carrying value or fair value less costs to sell. Included within the fair value estimate calculation was the $300 million note receivable at a fair value of $183 million, the $325 million Aramids Equity Consideration, and estimated cash proceeds of $1.2 billion, net of transaction adjustments. The fair value of the note receivable was determined using a market approach primarily based on current market interest rates for similar credit facilities and the duration of the note. The Aramids Equity Consideration fair value was determined using a contractually agreed-upon value per the transaction agreement. During the third quarter of 2025, in connection with the announcement of the Aramids Divestiture and due to the changes in facts and circumstances relevant to potential impairment triggers, the Company performed an impairment analysis on the Aramids Business' asset group. The Company determined that the estimated fair value of the Aramids Business, less costs to sell, was lower than its carrying value and recorded a loss from classification to held for sale and a corresponding valuation allowance that was later adjusted in the fourth quarter of 2025. In the first quarter of 2026, the Company further adjusted the estimated fair value, less costs to sell, of the Aramids Business and recorded an additional loss of $16 million as a result of changes in the carrying value of the Aramids Business and estimated costs to sell among others. A valuation allowance of $411 million and $406 million was recorded against the assets held for sale within "Assets of discontinued operations" in the interim Condensed Consolidated Balance Sheets at March 31, 2026 and December 31, 2025, respectively.


In millions	March 31, 2026		December 31, 2025
Assets
Cash and cash equivalents	$	1	$	3
Accounts and notes receivable – net	263		230
Inventories	459		453
Prepaid and other current assets	16		16
Property, plant and equipment – net	766		769

Other intangible assets	495		496
Investments and noncurrent receivables	177		201
Deferred income tax assets	8		4
Deferred charges and other assets	79		90
Valuation allowance to adjust assets to estimated fair value less costs to sell	(411)		(406)
Total assets of discontinued operations	$	1,853	$	1,856
Liabilities
Accounts payable	$	166	$	169
Income taxes payable	7		8
Accrued and other current liabilities	48		60

Deferred income tax liabilities	30		33
Pension and other post-employment benefits – noncurrent	7		5
Other noncurrent liabilities	41		39
Total liabilities of discontinued operations	$	299	$	314

On November 1, 2025, the Company completed the Electronics Separation. In connection with the Electronics Separation, Qnity paid a cash distribution to DuPont of approximately $4.1 billion. Certain internal distributions and reorganizations, as well as the Qnity Distribution on November 1, 2025, qualified as tax-free transactions under the applicable sections of the U.S. Internal Revenue Code. The Company has determined that the Electronics Separation represents a strategic shift that has had and will have a major effect on the Company’s operations and results.


	Three Months Ended March 31, 2025
In millions
Net sales	$	1,118
Cost of sales	584
Research and development expenses	79
Selling, general and administrative expenses	118
Amortization of intangibles	55
Restructuring and asset related charges – net	6
Acquisition, integration and separation costs	65
Equity in earnings of nonconsolidated affiliates	9


Income from discontinued operations before income taxes	$	220
Provision for income taxes on discontinued operations	93
Income from discontinued operations, net of tax	$	127
Income from discontinued operations attributable to noncontrolling interests	6
Income from discontinued operations attributable to DuPont stockholders	$	121

In connection with the Qnity Distribution, DuPont and/or certain of its affiliates entered into certain agreements with Qnity and/or certain of its affiliates that provide for the allocation of DuPont's assets, employees, liabilities and obligations among DuPont and Qnity and a framework for DuPont's relationship with Qnity following the Qnity Distribution, including each of the following:

•Electronics Separation and Distribution Agreement: The Electronics Separation and Distribution Agreement sets forth, among other things, the agreements between the Company and Qnity regarding the principal transactions necessary to effect the Qnity Distribution. It also sets forth other agreements that govern certain aspects of the Company’s and Qnity’s ongoing relationship after the completion of the Qnity Distribution.

•Employee Matters Agreement: The Employee Matters Agreement identifies employees and employee-related liabilities (and attributable assets) contractually allocated (either retained, transferred and accepted, or assigned and assumed, as applicable) to the Company and Qnity as part of the Qnity Distribution and describes when and how the relevant transfers and assignments occur or will occur.

•Intellectual Property Cross-License Agreement: The Intellectual Property Cross-License Agreement sets forth the terms and conditions pursuant to which the Company and Qnity may use, following the Qnity Distribution, certain patents, know-how (including trade secrets), copyrights and software contractually allocated to the other party under the Electronics Separation and Distribution Agreement in the conduct of their respective businesses and the natural evolutions thereof. The Company also licenses to Qnity certain engineering, safety, health and environmental standards that are contractually allocated to the Company under the Electronics Separation and Distribution Agreement and used by Qnity’s businesses as of the Qnity Distribution.

•Legacy Liabilities Assignment Agreement: The Legacy Liabilities Assignment Agreement provides that the Applicable Percentage (as defined in the Electronics Separation and Distribution Agreement) of any Legacy Liabilities (as defined in that certain Letter Agreement, dated as of June 1, 2019 (the "Letter Agreement"), by and between the Company (f/k/a DowDuPont Inc. ("DWDP")) and Corteva, Inc. (the “Corteva”) and any funding obligations of the Company under that certain Memorandum of Understanding, dated as of January 22, 2021 (the "MOU"), by and among the Company, Corteva, E. I. du Pont de Nemours ("EIDP") and Company and The Chemours Company

("Chemours"), including with respect to the funding of the escrow account thereunder, will be contractually allocated to Qnity (and for which Qnity will indemnify the Company). On December 2, 2025, the Company and Qnity determined and agreed, pursuant to the Electronics Separation and Distribution Agreement, that DuPont’s Applicable Percentage is 56 percent and Qnity’s is 44 percent. For more information on the Letter Agreement and the MOU, see the discussion in Note 13.

In connection with the Qnity Distribution, Qnity and DuPont agreed to indemnify one another against certain litigation, environmental, income tax, and other liabilities. At March 31, 2026, DuPont had recorded related indemnification assets of $147 million within "Accounts and notes receivable – net" and $261 million within "Deferred charges and other assets," and had accrued related indemnification liabilities of $198 million within "Accrued and other current liabilities" and $77 million within "Other noncurrent obligations" on the interim Condensed Consolidated Balance Sheets. At December 31, 2025, DuPont had recorded related indemnification assets of $159 million within "Accounts and notes receivable – net" and $248 million within "Deferred charges and other assets" and had accrued related indemnification liabilities of $199 million within "Accrued and other current liabilities" and $95 million within "Other noncurrent obligations" on the interim Condensed Consolidated Balance Sheets.

"Acquisition, integration and separation costs" within the interim Consolidated Statements of Operations primarily consist of financial advisory, information technology, legal, accounting, consulting, other professional advisory fees and other contractual transaction payments. The Company recorded $50 million in costs for the three months ended March 31, 2025, which were primarily related to preparations for the Electronics Separation.