v3.26.1
RELATIONSHIP WITH DUPONT
 3 Months Ended
Mar. 31, 2026
Related Party Transactions [Abstract]  
RELATIONSHIP WITH DUPONT RELATIONSHIP WITH DUPONT
Prior to the Separation, Qnity had been managed and operated in the normal course with other businesses of DuPont. Accordingly, certain shared costs had been allocated to Qnity and reflected as expenses in the stand-alone Consolidated Financial Statements. Management considers the allocation methodologies used to be reasonable and appropriate reflections of the pre-Separation expenses attributable to Qnity for purposes of the stand-alone financial statements. The expenses reflected in the Consolidated Financial Statements may not be indicative of expenses that will be incurred by Qnity in the future. All transactions with DuPont prior to the Separation approximate prices at cost.

Corporate Expense Allocations
Qnity’s Consolidated Statements of Operations for periods prior to the Separation included general corporate expenses of DuPont for services provided by DuPont for certain support functions that were provided on a centralized basis prior to the Separation. These costs were allocated using relevant allocation methods, primarily based on sales metrics.
Corporate expense allocations during the three months ended March 31, 2025 were recorded in the unaudited interim Consolidated Statements of Operations within the following captions:
In millionsThree months ended March 31, 2025
Selling, general and administrative expenses$53 
Cost of sales8 
Research and development expenses10 
Transformation, integration and other charges1
11 
Total corporate expense allocations$82 
1. Refer to Note 4 for additional information.

Parent Company Equity
Net transfers to Parent are included within Parent company net investment on the unaudited interim Consolidated Statements of Changes in Equity. The components of the net transfers to Parent are as follows:
In millionsThree Months Ended
 March 31, 2025
Cash pooling and general financing activities$33 
Less: Corporate cost allocations82
Less: Taxes deemed settled with Parent56
Total net transfers to Parent per unaudited interim Consolidated Statements of Changes in Equity$(105)
Stock-based compensation and other noncash transfers (to) from Parent1
Net transfers to Parent per unaudited interim Consolidated Statements of Cash Flows$(104)