DuPont de Nemours, Inc 8-K, filed Feb 24, 2021
DuPont de Nemours, Inc. (DD)
8-K
2021-02-24
For: 2021-02-24
View Original
Added on
April 10, 2026
About this 8-K
DuPont de Nemours, Inc filed this 8-K on February 24, 2021.
Items reported
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 24, 2021
(Exact name of registrant as specified in its charter)
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(Registrant’s Telephone Number, Including Area Code)
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Section 7 - Regulation FD
Item 7.01 Regulation FD Disclosure.
On February 1, 2021, DuPont de Nemours, Inc. (“DuPont” or the “Company”) completed the separation and distribution of its Nutrition & Biosciences business (the “N&B Business”), and merger of Nutrition & Biosciences, Inc. (“N&B”), a DuPont subsidiary formed to hold the N&B Business, with a subsidiary of International Flavors & Fragrances Inc. (“IFF”). The distribution was effected through an exchange offer (the “Exchange Offer”) where, on the terms and subject to the conditions of the Exchange Offer, DuPont stockholders had the option to tender all, some or none of their shares of common stock, par value $0.01 per share, of DuPont (the “DuPont Common Stock”) for a number of shares of common stock, par value $0.01 per share, of N&B (the “N&B Common Stock”), and which resulted in all shares of N&B Common Stock being distributed to DuPont stockholders that participated in the Exchange Offer. The consummation of the Exchange Offer was followed by the merger of N&B with a wholly owned subsidiary of IFF, with N&B surviving the merger as a wholly owned subsidiary of IFF (the Exchange Offer together with the merger, the "N&B Transaction"). As a result of the N&B Transaction, the N&B Business is reported in the Company's historical results as discontinued operations for the periods presented.
2021 Segment Realignments
Effective February 1, 2021, immediately following the separation and distribution of the N&B Business, the Company made changes to its management and reporting structure (the “2021 Segment Realignments”). These changes include the following:
• Realignment of certain businesses from Transportation & Industrial to Electronics & Imaging;
• Dissolution of the Non-Core segment with the businesses to be divested and previously divested reflected in Corporate;
• Realignment of the remaining Non-Core businesses to Transportation & Industrial.
In addition, the following name changes occurred:
• Electronics & Imaging is renamed Electronics & Industrial;
• Transportation & Industrial is renamed Mobility & Materials;
• Safety & Construction is renamed Water & Protection.
The Company is providing, as an exhibit to this report, unaudited revised consolidated statements of operations for the years ended December 31, 2020, 2019 and 2018 as well as the three month periods ended March 31, 2020 and 2019, June 30, 2020 and 2019, September 30, 2020 and 2019, and December 31, 2020 and 2019, that reflect the N&B Business as discontinued operations. The Company is also providing select supplemental unaudited segment information for the periods noted above reflecting the 2021 Segment Realignments.
The information contained in this report, including Exhibit 99.1 attached hereto, is being furnished pursuant to Regulation FD in order to provide summary financial information and historical data that is used internally to review and assess performance and to provide meaningful comparability among periods. The supplemental information provides investors with data on a basis that is consistent with how management evaluates business results. The financial information contained in this report, including Exhibit 99.1 attached hereto, should be read in conjunction with the separate historical financial statements and accompanying notes contained in each of the Company’s Quarterly Reports on Form 10-Q for the interim periods included herein and Annual Report on Form 10-K for the year ended December 31, 2020 filed with the U.S. Securities and Exchange Commission ("SEC").
The information contained in this report, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) or otherwise subject to the liabilities of Section 18. Furthermore, the information contained in this report shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, or the Exchange Act.
Section 9 - Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Supplemental Revised Statements of Operations and Revised Segment Information adjusted to reflect the N&B Distribution and new segment structure, by quarter. | |||||
| 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL. | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
DUPONT DE NEMOURS, INC.
Registrant
Date: February 24, 2021
| By: | /s/ Michael G. Goss | |||||||||||||
| Name: | Michael G. Goss | |||||||||||||
| Title: | Vice President and Controller | |||||||||||||
EXHIBIT INDEX
| Exhibit No. | Description | ||||
| Supplemental Revised Statements of Operations and Revised Segment Information adjusted to reflect the N&B Distribution and new segment structure, by quarter. | |||||
| 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL. | ||||
Exhibit 99.1
Unaudited Revised Combined Statements of Operations and Historical Segment Information
On February 1, 2021, DuPont de Nemours, Inc. (“DuPont” or the “Company”) completed the previously announced separation of its Nutrition & Biosciences business (“N&B Business”) in a Reverse Morris Trust transaction through the distribution to its stockholders of Nutrition & Biosciences, Inc. (“N&B”), formed by DuPont as a wholly owned subsidiary to hold the N&B Business, followed by the merger of N&B with a wholly owned subsidiary of International Flavors & Fragrances (“IFF”), with N&B as the surviving corporation (the “Merger”). DuPont effected the distribution (the “N&B Distribution”) through an offer to exchange (the “Exchange Offer”) all shares of N&B common stock, par value $0.01 per share, owned by DuPont for outstanding shares of DuPont common stock, par value $0.01 per share (the “DuPont Common Stock”).
The following unaudited revised financial information and historical segment information for DuPont are derived from DuPont’s historical consolidated financial statements and accompanying notes adjusted to give effect to the separation of the N&B Business through the N&B Distribution, which is treated as discontinued operations in accordance with Financial Accounting Standards Board Accounting Standards Codification 205, “Presentation of Financial Statements” (“ASC 205”). The unaudited revised financial information reflects the Company’s current best estimate of its historical results. These amounts are considered preliminary, and as such, actual amounts could differ from these estimates. The unaudited revised financial information do not give effect to the reduction in outstanding shares of DuPont Common Stock as a result of the Exchange Offer.
For the twelve months ended December 31, 2019 and 2018 and the three months ended March 31, 2019, reportable segment information as well as reconciliations to total Company results are presented on a pro forma basis as this is a principle measure of results reviewed, evaluated and used by the Company’s chief operating decision maker (“CODM”) and management for meaningful comparability among periods. The unaudited pro forma financial information is derived from DuPont’s Consolidated Financial Statements and accompanying notes, adjusted to give effect to certain events directly attributable to the DWDP Distributions and DWDP Financings (as defined below).
Unaudited Pro Forma Financial Information
On April 1, 2019, the Company completed the separation of the materials science business through the spin-off of Dow Inc., (“Dow”) including Dow’s subsidiary The Dow Chemical Company (the “Dow Distribution”). On June 1, 2019, the Company completed the separation of the agriculture business through the spin-off of Corteva, Inc. (“Corteva”) including Corteva’s subsidiary E. I. du Pont de Nemours and Company (“EID”), (the “Corteva Distribution” and together with the Dow Distribution, the “DWDP Distributions”). In contemplation of the DWDP Distributions and to achieve the respective credit profiles of each of Dow, Corteva and the Company, in the fourth quarter of 2018, the Company borrowed $12.7 billion under the 2018 Senior Notes and entered the Term Loan Facilities with an aggregate principal amount of $3.0 billion. Additionally, DuPont issued approximately $1.4 billion in commercial paper in May 2019 in anticipation of the Corteva Distribution (the “Funding CP Issuance” together with the 2018 Senior Notes and the Term Loan Facilities, the "DWDP Financings"). The historical consolidated financial information has been adjusted to give effect to pro forma events that are (1) directly attributable to the DWDP Distributions and the DWDP Financings, (2) factually supportable and (3) with respect to the statements of operations, expected to have a continuing impact on the results. Events that are not expected to have a continuing impact on the combined results are excluded from the pro forma adjustments. Those pro forma adjustments include the impact of various supply agreements entered into in connection with the Dow Distribution ("supply agreements") and are adjustments to "Cost of sales." The impact of these supply agreements are reflected in pro forma Operating EBITDA for the periods noted above as they are included in the measure of profit/loss reviewed by the CODM in order to show meaningful comparability among periods while assessing performance and making resource allocation decisions. These pro forma adjustments were determined in accordance with Article 11 of Regulation S-X and give effect to the pro forma events as if they had been consummated on January 1, 2018.
The pro forma financial statements are presented for informational purposes only, and do not purport to represent what DuPont's results of operations or financial position would have been had the DWDP Transactions occurred on the dates indicated, nor do they purport to project the results of operations or financial position for any future period or as of any future date.
1
Non-GAAP Financial Measures
These supplemental financial schedules include information that does not conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are considered non-GAAP measures. Management uses these measures internally for planning, forecasting and evaluating the performance of the Company, including allocating resources. DuPont’s management believes these non-GAAP financial measures are useful to investors because they provide additional information related to the ongoing performance of DuPont to offer a more meaningful comparison related to future results of operations. These non-GAAP financial measures supplement disclosures prepared in accordance with U.S. GAAP, and should not be viewed as an alternative to U.S. GAAP. Furthermore, such non-GAAP measures may not be consistent with similar measures provided or used by other companies. Reconciliations for these non-GAAP measures to U.S. GAAP are provided herein and are defined below.
Adjusted earnings per common share from continuing operations - diluted ("Adjusted EPS"), is defined as earnings per common share from continuing operations - diluted, excluding the after-tax impact of significant items, the after-tax impact of amortization expense associated with intangibles acquired as part of the DWDP Merger and the after-tax impact of non-operating pension / other post employment benefits (“OPEB”) benefits / charges. Pro forma adjusted earnings per common share from continuing operations - diluted ("Pro forma adjusted EPS"), is defined as pro forma earnings per common share from continuing operations - diluted, excluding the after-tax impact of significant items, after-tax impact of amortization expense associated with intangibles acquired as part of the DWDP Merger, after-tax impact of non-operating pension / OPEB benefits / charges and the after-tax impact of costs historically allocated to the materials science and agriculture businesses that did not meet the criteria to be recorded as discontinued operations. Although amortization of EID intangibles acquired as part of the DWDP Merger is excluded from these non-GAAP measures, management believes it is important for investors to understand that such intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in amortization of additional intangible assets.
Operating EBITDA, is defined as earnings (i.e. income (loss) from continuing operations before income taxes) before interest, depreciation, amortization, non-operating pension / OPEB benefits / charges, and foreign exchange gains / losses, adjusted to exclude significant items. Pro forma operating EBITDA, is defined as earnings (i.e. pro forma income (loss) from continuing operations before income taxes) before interest, depreciation, amortization, non-operating pension / OPEB benefits / charges, and foreign exchange gains / losses, excluding the impact of costs historically allocated to the materials science and agriculture businesses that did not meet the criteria to be recorded as discontinued operations and adjusted to exclude significant items.
Significant items are items that arise outside the ordinary course of the Company’s business that management believes may cause misinterpretation of underlying business performance, both historical and future, based on a combination of some or all of the item’s size, unusual nature and infrequent occurrence. Management classifies as significant items certain costs and expenses associated with integration and separation activities related to transformational acquisitions and divestitures as they are considered unrelated to ongoing business performance.
2
DuPont de Nemours, Inc.
Summary of Revised Consolidated Statements of Operations (Unaudited)
| Year Ended | Three Months Ended | Year Ended | Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
| In millions, except per share amounts | Dec 31, 2020 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 1 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 1 | Dec 31, 2018 1 | ||||||||||||||||||||||||
| Net sales | $ | 14,338 | $ | 3,750 | $ | 3,629 | $ | 3,289 | $ | 3,670 | $ | 15,436 | $ | 3,746 | $ | 3,901 | $ | 3,910 | $ | 3,879 | $ | 16,378 | |||||||||||||
| Cost of sales | 9,508 | 2,474 | 2,417 | 2,298 | 2,319 | 10,042 | 2,439 | 2,523 | 2,471 | 2,609 | 11,177 | ||||||||||||||||||||||||
| Research and development expenses | 625 | 159 | 140 | 153 | 173 | 689 | 162 | 159 | 168 | 200 | 797 | ||||||||||||||||||||||||
| Selling, general and administrative expenses | 1,701 | 402 | 403 | 414 | 482 | 2,057 | 502 | 495 | 490 | 570 | 2,403 | ||||||||||||||||||||||||
| Amortization of intangibles | 696 | 169 | 172 | 177 | 178 | 701 | 172 | 172 | 177 | 180 | 733 | ||||||||||||||||||||||||
| Restructuring and asset related charges – net | 845 | 45 | 378 | 24 | 398 | 152 | 19 | 74 | 41 | 18 | 97 | ||||||||||||||||||||||||
| Goodwill impairment charges | 3,214 | — | 183 | 2,498 | 533 | 242 | — | — | 242 | — | — | ||||||||||||||||||||||||
| Integration and separation costs | 177 | 16 | 22 | 16 | 123 | 1,084 | 139 | 178 | 337 | 430 | 1,352 | ||||||||||||||||||||||||
| Equity in earnings of nonconsolidated affiliates | 187 | 17 | 29 | 102 | 39 | 85 | (47) | 43 | 49 | 40 | 448 | ||||||||||||||||||||||||
| Sundry income (expense) - net | 667 | 36 | 430 | (11) | 212 | 144 | 11 | 81 | (28) | 80 | 91 | ||||||||||||||||||||||||
| Interest expense | 672 | 155 | 165 | 181 | 171 | 696 | 175 | 176 | 165 | 180 | 683 | ||||||||||||||||||||||||
| (Loss) Income from continuing operations before income taxes | $ | (2,246) | $ | 383 | $ | 208 | $ | (2,381) | $ | (456) | $ | 2 | $ | 102 | $ | 248 | $ | (160) | $ | (188) | $ | (325) | |||||||||||||
| Provision for (Benefit from) income taxes on continuing operations | 160 | (64) | 122 | 8 | 94 | 29 | (26) | 26 | 121 | (92) | 13 | ||||||||||||||||||||||||
| (Loss) Income from continuing operations, net of tax | $ | (2,406) | $ | 447 | $ | 86 | $ | (2,389) | $ | (550) | $ | (27) | $ | 128 | $ | 222 | $ | (281) | $ | (96) | $ | (338) | |||||||||||||
| Net income from continuing operations attributable to noncontrolling interests | 28 | 8 | 7 | 7 | 6 | 29 | 11 | 5 | 9 | 4 | 39 | ||||||||||||||||||||||||
| Net (loss) income in from continuing operations available to DuPont common stockholders | $ | (2,434) | $ | 439 | $ | 79 | $ | (2,396) | $ | (556) | $ | (56) | $ | 117 | $ | 217 | $ | (290) | $ | (100) | $ | (377) | |||||||||||||
| Per common share data: | |||||||||||||||||||||||||||||||||||
Earnings per common share from continuing operations - basic 2 | $ | (3.31) | $ | 0.60 | $ | 0.11 | $ | (3.26) | $ | (0.75) | $ | (0.08) | $ | 0.16 | $ | 0.29 | $ | (0.39) | $ | (0.13) | $ | (0.51) | |||||||||||||
Earnings per common share from continuing operations - diluted 2 | $ | (3.31) | $ | 0.60 | $ | 0.11 | $ | (3.26) | $ | (0.75) | $ | (0.08) | $ | 0.16 | $ | 0.29 | $ | (0.39) | $ | (0.13) | $ | (0.51) | |||||||||||||
| Weighted-average common shares outstanding - basic | 735.5 | 734.6 | 734.4 | 734.3 | 738.6 | 746.3 | 740.7 | 745.5 | 749.0 | 750.0 | 767.0 | ||||||||||||||||||||||||
Weighted-average common shares outstanding - diluted | 735.5 | 735.4 | 734.9 | 734.3 | 738.6 | 746.3 | 742.0 | 747.7 | 749.0 | 750.0 | 767.0 | ||||||||||||||||||||||||
1.Statement of Operations for the years ended December 31, 2019 and 2018 and the three months ended March 31, 2019 are presented on a pro forma basis.
2.Earnings per common share from continuing operations for the year may not equal the sum of the quarterly pro forma earnings per common share from continuing operations amounts due to the change in average share calculations.
Refer to subsequent tables for reconciliations of historical consolidated statements of income to the unaudited pro forma statements of operations.
3
DuPont de Nemours, Inc.
Selected Revised Historical Segment Information (Unaudited)
The following table reflects the new segment structure of DuPont effective immediately following the N&B Distribution:
| Year Ended | Three Months Ended | Year Ended | Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
| In millions | Dec 31, 2020 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 1 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 1 | Dec 31, 2018 1 | ||||||||||||||||||||||||
| Net Sales | |||||||||||||||||||||||||||||||||||
| Electronics & Industrial | $ | 4,674 | $ | 1,235 | $ | 1,213 | $ | 1,111 | $ | 1,115 | $ | 4,446 | $ | 1,145 | $ | 1,158 | $ | 1,089 | $ | 1,054 | $ | 4,559 | |||||||||||||
| Water & Protection | 4,993 | 1,224 | 1,249 | 1,244 | 1,276 | 5,201 | 1,250 | 1,327 | 1,341 | 1,283 | 5,294 | ||||||||||||||||||||||||
| Mobility & Materials | 4,005 | 1,128 | 996 | 790 | 1,091 | 4,690 | 1,108 | 1,139 | 1,198 | 1,245 | 5,214 | ||||||||||||||||||||||||
Corporate 2 | 666 | 163 | 171 | 144 | 188 | 1,099 | 243 | 277 | 282 | 297 | 1,311 | ||||||||||||||||||||||||
| Total Net Sales | $ | 14,338 | $ | 3,750 | $ | 3,629 | $ | 3,289 | $ | 3,670 | $ | 15,436 | $ | 3,746 | $ | 3,901 | $ | 3,910 | $ | 3,879 | $ | 16,378 | |||||||||||||
| Operating EBITDA | |||||||||||||||||||||||||||||||||||
| Electronics & Industrial | $ | 1,468 | $ | 384 | $ | 421 | $ | 336 | $ | 327 | $ | 1,454 | $ | 347 | $ | 396 | $ | 329 | $ | 382 | $ | 1,584 | |||||||||||||
| Water & Protection | 1,313 | 303 | 314 | 339 | 357 | 1,370 | 298 | 340 | 369 | 363 | 1,222 | ||||||||||||||||||||||||
| Mobility & Materials | 588 | 236 | 160 | (23) | 215 | 954 | 202 | 208 | 270 | 274 | 1,105 | ||||||||||||||||||||||||
Corporate 2 | 70 | 8 | 11 | 43 | 8 | 366 | 190 | 76 | 49 | 51 | 482 | ||||||||||||||||||||||||
| Total Operating EBITDA (non-GAAP) | $ | 3,439 | $ | 931 | $ | 906 | $ | 695 | $ | 907 | $ | 4,144 | $ | 1,037 | $ | 1,020 | $ | 1,017 | $ | 1,070 | $ | 4,393 | |||||||||||||
| Equity in Earnings of Nonconsolidated Affiliates | |||||||||||||||||||||||||||||||||||
| Equity earnings (GAAP) | $ | 187 | $ | 17 | $ | 29 | $ | 102 | $ | 39 | $ | 85 | $ | (47) | $ | 43 | $ | 49 | $ | 40 | $ | 448 | |||||||||||||
Significant items included in equity earnings 3 | — | — | — | — | — | 228 | 225 | 1 | 1 | 1 | — | ||||||||||||||||||||||||
Equity earnings included in operating EBITDA (non-GAAP) 4 | $ | 187 | $ | 17 | $ | 29 | $ | 102 | $ | 39 | $ | 313 | $ | 178 | $ | 44 | $ | 50 | $ | 41 | $ | 448 | |||||||||||||
| Equity earnings included in operating EBITDA by segment | |||||||||||||||||||||||||||||||||||
| Electronics & Industrial | $ | 34 | $ | 7 | $ | 8 | $ | 10 | $ | 9 | $ | 24 | $ | 5 | $ | 11 | $ | 5 | $ | 3 | $ | 23 | |||||||||||||
| Water & Protection | 26 | 7 | 7 | 5 | 7 | 27 | 5 | 7 | 7 | 8 | 24 | ||||||||||||||||||||||||
| Mobility & Materials | 19 | 6 | 5 | 7 | 1 | 4 | — | 1 | 2 | 1 | (4) | ||||||||||||||||||||||||
Corporate 2 | 108 | (3) | 9 | 80 | 22 | 258 | 168 | 25 | 36 | 29 | 405 | ||||||||||||||||||||||||
| Total Equity earnings including in operating EBITDA (non-GAAP) | $ | 187 | $ | 17 | $ | 29 | $ | 102 | $ | 39 | $ | 313 | $ | 178 | $ | 44 | $ | 50 | $ | 41 | $ | 448 | |||||||||||||
1.Operating EBITDA is presented on a pro forma basis.
2.Corporate results reflect activity of to be divested and previously divested businesses.
3.The significant items presented above reflect $4 million of restructuring charges within the Mobility & Materials segment and $224 million related to a joint venture within Corporate which are presented in “Equity in earnings of nonconsolidated affiliates” in the Company’s Consolidated Statement of Operations.
4.Represents equity in earnings (losses) of nonconsolidated affiliates included in Operating EBITDA, the Company's measure of profit/loss for segment reporting purposes, which excludes significant items.
4
DuPont de Nemours, Inc.
Revised Disaggregation of Revenue
Historical Net Sales by Segment and Major Product Line (Unaudited)
In conjunction with the Segment Realignment effective February 1, 2021, DuPont made the following changes to its major product lines:
•Realigned certain product lines and renamed its Image Solutions product lines within Electronics & Industrial as Industrial Solutions;
•Renamed the Safety & Construction segment as Water & Protection;
•Realigned certain product lines and renamed its product lines within Mobility & Materials as Advanced Solutions, Engineering Polymers, and Performance Resins
| Year Ended | Three Months Ended | Year Ended | Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
| In millions | Dec 31, 2020 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | ||||||||||||||||||||||||
| Industrial Solutions | $ | 1,617 | $ | 428 | $ | 398 | $ | 379 | $ | 412 | $ | 1,646 | $ | 409 | $ | 413 | $ | 412 | $ | 412 | $ | 1,656 | |||||||||||||
| Interconnect Solutions | 1,280 | 370 | 370 | 274 | 266 | 1,187 | 328 | 339 | 282 | 238 | 1,174 | ||||||||||||||||||||||||
| Semiconductor Technologies | 1,777 | 437 | 445 | 458 | 437 | 1,613 | 408 | 406 | 395 | 404 | 1,729 | ||||||||||||||||||||||||
| Electronics & Industrial | $ | 4,674 | $ | 1,235 | $ | 1,213 | $ | 1,111 | $ | 1,115 | $ | 4,446 | $ | 1,145 | $ | 1,158 | $ | 1,089 | $ | 1,054 | $ | 4,559 | |||||||||||||
| Safety Solutions | $ | 2,291 | $ | 545 | $ | 534 | $ | 581 | $ | 631 | $ | 2,549 | $ | 597 | $ | 630 | $ | 657 | $ | 665 | $ | 2,483 | |||||||||||||
| Shelter Solutions | 1,426 | 375 | 387 | 316 | 348 | 1,535 | 369 | 411 | 398 | 357 | 1,796 | ||||||||||||||||||||||||
| Water Solutions | 1,276 | 304 | 328 | 347 | 297 | 1,117 | 284 | 286 | 286 | 261 | 1,015 | ||||||||||||||||||||||||
| Water & Protection | $ | 4,993 | $ | 1,224 | $ | 1,249 | $ | 1,244 | $ | 1,276 | $ | 5,201 | $ | 1,250 | $ | 1,327 | $ | 1,341 | $ | 1,283 | $ | 5,294 | |||||||||||||
| Advanced Solutions | $ | 1,184 | $ | 326 | $ | 303 | $ | 249 | $ | 306 | $ | 1,232 | $ | 297 | $ | 306 | $ | 317 | $ | 312 | $ | 1,373 | |||||||||||||
| Engineering Polymers | 1,853 | 514 | 460 | 360 | 519 | 2,320 | 548 | 559 | 588 | 625 | 2,532 | ||||||||||||||||||||||||
| Performance Resins | 968 | 288 | 233 | 181 | 266 | 1,138 | 263 | 274 | 293 | 308 | 1,309 | ||||||||||||||||||||||||
| Mobility & Materials | $ | 4,005 | $ | 1,128 | $ | 996 | $ | 790 | $ | 1,091 | $ | 4,690 | $ | 1,108 | $ | 1,139 | $ | 1,198 | $ | 1,245 | $ | 5,214 | |||||||||||||
Corporate 1 | $ | 666 | $ | 163 | $ | 171 | $ | 144 | $ | 188 | $ | 1,099 | $ | 243 | $ | 277 | $ | 282 | $ | 297 | $ | 1,311 | |||||||||||||
| Total | $ | 14,338 | $ | 3,750 | $ | 3,629 | $ | 3,289 | $ | 3,670 | $ | 15,436 | $ | 3,746 | $ | 3,901 | $ | 3,910 | $ | 3,879 | $ | 16,378 | |||||||||||||
1. Corporate net sales reflect activity of to be divested and previously divested businesses.
5
DuPont de Nemours, Inc.
Reconciliation of Revised Income from Continuing Operations, Net of Tax
to Revised Operating EBITDA (Unaudited)
| Year Ended | Three Months Ended | Year Ended | Three Months Ended | Year Ended | ||||||||||||||||||||||||||||||||||
| In millions | Dec 31, 2020 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 1 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 1 | Dec 31, 2018 1 | |||||||||||||||||||||||||||
| Income (loss) from continuing operations, net of tax (GAAP) | $ | (2,406) | $ | 447 | $ | 86 | $ | (2,389) | $ | (550) | $ | (27) | $ | 128 | $ | 222 | $ | (281) | $ | (96) | $ | (338) | ||||||||||||||||
| + | Provision for (Benefit from) income taxes on continuing operations | 160 | (64) | 122 | 8 | 94 | 29 | (26) | 26 | 121 | (92) | 13 | ||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | $ | (2,246) | $ | 383 | $ | 208 | $ | (2,381) | $ | (456) | $ | 2 | $ | 102 | $ | 248 | $ | (160) | $ | (188) | $ | (325) | ||||||||||||||||
| + | Depreciation and amortization | 1,373 | 334 | 345 | 349 | 345 | 1,402 | 332 | 345 | 354 | 371 | 1,539 | ||||||||||||||||||||||||||
| - | Interest income 2 | 12 | 4 | 4 | 2 | 2 | 56 | 6 | 1 | 9 | 40 | 40 | ||||||||||||||||||||||||||
| + | Interest expense | 672 | 155 | 165 | 181 | 171 | 696 | 175 | 176 | 165 | 180 | 683 | ||||||||||||||||||||||||||
| - | Non-operating pension/OPEB benefit | 30 | 7 | 4 | 8 | 11 | 72 | 14 | 21 | 17 | 20 | 91 | ||||||||||||||||||||||||||
| - | Foreign exchange gains (losses), net 2, 3 | (39) | (12) | (6) | (18) | (3) | (104) | (7) | (20) | (15) | (62) | (34) | ||||||||||||||||||||||||||
| + | Costs historically allocated to the materials science and agriculture businesses 4 | — | — | — | — | — | 256 | — | — | — | 256 | 1,044 | ||||||||||||||||||||||||||
| - | Adjusted significant items | (3,643) | (58) | (190) | (2,538) | (857) | (1,812) | (441) | (253) | (669) | (449) | (1,549) | ||||||||||||||||||||||||||
| Operating EBITDA (Non-GAAP) | $ | 3,439 | $ | 931 | $ | 906 | $ | 695 | $ | 907 | $ | 4,144 | $ | 1,037 | $ | 1,020 | $ | 1,017 | $ | 1,070 | $ | 4,393 | ||||||||||||||||
2. Included in “Sundry income (expense) - net"” in the unaudited pro forma statements of operations.
3. Excludes a $50 million pretax foreign exchange loss included in adjusted significant items, related to adjustments to foreign currency exchange contracts as a result of U.S. tax reform for the year ended December 31, 2018.
4. Costs previously allocated to the materials science and agriculture businesses that did not meet the definition of expenses related to discontinued operations in accordance with ASC 205.
DuPont de Nemours, Inc.
Revised Significant Items (Unaudited)
| Year Ended | Three Months Ended | Year Ended | Three Months Ended | Year Ended | ||||||||||||||||||||||||||||||||||
| In millions | Dec 31, 2020 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 1 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 1 | Dec 31, 2018 1 | |||||||||||||||||||||||||||
| Integration and separation costs | $ | (177) | $ | (16) | $ | (22) | $ | (16) | $ | (123) | $ | (1,084) | $ | (139) | $ | (178) | $ | (337) | $ | (430) | $ | (1,352) | ||||||||||||||||
| Restructuring and asset related charges - net | (184) | (45) | (8) | (3) | (128) | (156) | (20) | (75) | (42) | (19) | (97) | |||||||||||||||||||||||||||
| Goodwill impairment charges | (3,214) | — | (183) | (2,498) | (533) | (242) | — | — | (242) | — | — | |||||||||||||||||||||||||||
| Asset impairment charges | (661) | — | (370) | (21) | (270) | — | — | — | — | — | — | |||||||||||||||||||||||||||
| Net gain (loss) on divestitures and changes in joint venture ownership | 593 | 3 | 393 | — | 197 | (208) | (208) | — | — | — | (41) | |||||||||||||||||||||||||||
Merger-related inventory step-up amortization 2 | — | — | — | — | — | — | — | — | — | — | (9) | |||||||||||||||||||||||||||
Income tax related items 3 | — | — | — | — | — | (122) | (74) | — | (48) | — | (50) | |||||||||||||||||||||||||||
Total pretax significant items benefit (charge) 4 | $ | (3,643) | $ | (58) | $ | (190) | $ | (2,538) | $ | (857) | $ | (1,812) | $ | (441) | $ | (253) | $ | (669) | $ | (449) | $ | (1,549) | ||||||||||||||||
| + | Total tax impact of significant items benefit (charge) 5 | (29) | 2 | (66) | 7 | 28 | 343 | 87 | 60 | 100 | 96 | 247 | ||||||||||||||||||||||||||
| + | Tax only significant items benefit (charge) | 128 | 107 | 17 | (3) | 7 | 7 | 54 | — | (120) | 73 | (169) | ||||||||||||||||||||||||||
Total significant items benefit (charge), net of tax 6 | $ | (3,544) | $ | 51 | $ | (239) | $ | (2,534) | $ | (822) | $ | (1,462) | $ | (300) | $ | (193) | $ | (689) | $ | (280) | $ | (1,471) | ||||||||||||||||
1.Significant items are reflected on a pro forma basis.
2.Includes the fair value step-up in EID's inventories as a result of the DWDP Merger and the acquisition of FMC Corporation's Health and Nutrition business in November 2017.
3.Reflected in “Sundry income (expense) - net.”
4.Impact on “Income (loss) from continuing operations before income taxes.”
5.The income tax effect for each adjustment was calculated based on the statutory tax rate for the jurisdiction(s) in which the adjustment was taxable or deductible.
6.Impact on “Net (loss) income from continuing operations available for DuPont common stockholders.”
6
DuPont de Nemours, Inc.
Reconciliation of Revised Earnings (Loss) Per Common Share from Continuing Operations - Diluted
to Adjusted Earnings Per Common Share from Continuing Operations - Diluted (Unaudited)
| Year Ended | Three Months Ended | Year Ended | Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
| Pretax (in millions) | Dec 31, 2020 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 1 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 1 | Dec 31, 2018 1 | ||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes (GAAP) | $ | (2,246) | $ | 383 | $ | 208 | $ | (2,381) | $ | (456) | $ | 2 | $ | 102 | $ | 248 | $ | (160) | $ | (188) | $ | (325) | |||||||||||||
Less: Pretax significant items 2 | (3,643) | (58) | (190) | (2,538) | (857) | (1,812) | (441) | (253) | (669) | (449) | (1,549) | ||||||||||||||||||||||||
Less: Merger-related amortization of intangibles 1 | (501) | (122) | (125) | (125) | (129) | (506) | (127) | (126) | (126) | (127) | (518) | ||||||||||||||||||||||||
Less: Non-op pension / OPEB benefit 2 | 30 | 7 | 4 | 8 | 11 | 72 | 14 | 21 | 17 | 20 | 91 | ||||||||||||||||||||||||
Less: Costs historically allocated to the materials science and agriculture businesses 2 | — | — | — | — | — | (256) | — | — | — | (256) | (1,044) | ||||||||||||||||||||||||
| Adjusted results, before tax (non-GAAP) | $ | 1,868 | $ | 556 | $ | 519 | $ | 274 | $ | 519 | $ | 2,504 | $ | 656 | $ | 606 | $ | 618 | $ | 624 | $ | 2,695 | |||||||||||||
| Year Ended | Three Months Ended | Year Ended | Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
| Net of tax (in millions) | Dec 31, 2020 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 1 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 1 | Dec 31, 2018 1 | ||||||||||||||||||||||||
| Net income (loss) from continuing operations available to DuPont common stockholders (GAAP) | $ | (2,434) | $ | 439 | $ | 79 | $ | (2,396) | $ | (556) | $ | (56) | $ | 117 | $ | 217 | $ | (290) | $ | (100) | $ | (377) | |||||||||||||
Less: Significant items, net of tax 3 | (3,544) | 51 | (239) | (2,534) | (822) | (1,462) | (300) | (193) | (689) | (280) | (1,471) | ||||||||||||||||||||||||
Less: Merger-related amortization of intangibles, net of tax 3 | (389) | (98) | (94) | (97) | (100) | (401) | (100) | (99) | (101) | (101) | (412) | ||||||||||||||||||||||||
Less: Non-op pension / OPEB benefit, net of tax 3 | 24 | 7 | 3 | 6 | 8 | 65 | 12 | 18 | 19 | 16 | 76 | ||||||||||||||||||||||||
Less: Costs historically allocated to the materials science and agriculture businesses, net of tax 3 | — | — | — | — | — | (197) | — | — | — | (197) | (804) | ||||||||||||||||||||||||
| Adjusted results, net of tax (non-GAAP) | $ | 1,475 | $ | 479 | $ | 409 | $ | 229 | $ | 358 | $ | 1,939 | $ | 505 | $ | 491 | $ | 481 | $ | 462 | $ | 2,234 | |||||||||||||
Year Ended 4 | Three Months Ended | Year Ended 4 | Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
| Earnings per common share (“EPS”) from continuing operations - diluted | Dec 31, 2020 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 1 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 1 | Dec 31, 2018 1 | ||||||||||||||||||||||||
Earnings per common share from continuing operations - diluted (GAAP) | $ | (3.31) | $ | 0.60 | $ | 0.11 | $ | (3.26) | $ | (0.75) | $ | (0.08) | $ | 0.16 | $ | 0.29 | $ | (0.39) | $ | (0.13) | $ | (0.51) | |||||||||||||
Less: Significant items - diluted 5 | (4.82) | 0.07 | (0.33) | (3.45) | (1.11) | (1.96) | (0.40) | (0.26) | (0.92) | (0.38) | (1.92) | ||||||||||||||||||||||||
Less: Merger-related amortization of intangibles - diluted 5 | (0.53) | (0.13) | (0.12) | (0.13) | (0.13) | (0.54) | (0.14) | (0.13) | (0.14) | (0.13) | (0.54) | ||||||||||||||||||||||||
Less: Non-op pension / OPEB benefit - diluted 5 | 0.03 | 0.01 | — | 0.01 | 0.01 | 0.09 | 0.02 | 0.02 | 0.03 | 0.02 | 0.10 | ||||||||||||||||||||||||
Less: Costs historically allocated to the materials science and agriculture businesses - diluted 5 | — | — | — | — | — | (0.26) | — | — | — | (0.26) | (1.04) | ||||||||||||||||||||||||
| Adjusted earnings per common share from continuing operations - diluted (non-GAAP) | $ | 2.01 | $ | 0.65 | $ | 0.56 | $ | 0.31 | $ | 0.48 | $ | 2.59 | $ | 0.68 | $ | 0.66 | $ | 0.64 | $ | 0.62 | $ | 2.89 | |||||||||||||
1.Information for the year ended December 31, 2019 and 2018 and three months ended March 31, 2019 are reflected on a pro forma basis.
2.Impact on “Income (loss) from continuing operations before income taxes.”
3.Impact on “Income (loss) from continuing operations, net of tax.” The income tax effect for each adjustment was calculated based on the statutory tax rate for the jurisdiction(s) in which the adjustment was taxable or deductible.
4.Earnings per share amounts from continuing operations - diluted for the year may not equal the sum of the quarterly pro forma earnings per common share from continuing operations - diluted amounts due to the change in average share calculations.
5.Impact on earnings per common share from continuing operations - diluted.
7
DuPont de Nemours, Inc.
Unaudited Revised Consolidated Statement of Operations
For the Year Ended December 31, 2020
| DuPont | Distribution of N&B 1 | DuPont | |||||||||
| In millions, except per share amounts | As Reported | Revised | |||||||||
| Net sales | $ | 20,397 | $ | (6,059) | $ | 14,338 | |||||
| Cost of sales | 13,522 | (4,014) | 9,508 | ||||||||
| Research and development expenses | 860 | (235) | 625 | ||||||||
| Selling, general and administrative expenses | 2,235 | (534) | 1,701 | ||||||||
| Amortization of intangibles | 2,119 | (1,423) | 696 | ||||||||
| Restructuring and asset related charges - net | 849 | (4) | 845 | ||||||||
| Goodwill impairment charges | 3,214 | — | 3,214 | ||||||||
| Integration and separation costs | 594 | (417) | 177 | ||||||||
| Equity in earnings of nonconsolidated affiliates | 191 | (4) | 187 | ||||||||
| Sundry income (expense) - net | 675 | (8) | 667 | ||||||||
| Interest expense | 767 | (95) | 672 | ||||||||
| Loss from continuing operations before income taxes | (2,897) | 651 | (2,246) | ||||||||
| Provision for (benefit from) income taxes on continuing operations | (23) | 183 | 160 | ||||||||
| Loss from continuing operations, net of tax | (2,874) | 468 | (2,406) | ||||||||
| Net income from continuing operations attributable to noncontrolling interests | 28 | — | 28 | ||||||||
| Net loss from continuing operations attributable to DuPont common stockholders | $ | (2,902) | $ | 468 | $ | (2,434) | |||||
| Per common share data: | |||||||||||
| Earnings per common share from continuing operations - basic | $ | (3.95) | $ | (3.31) | |||||||
| Earnings per common share from continuing operations - diluted | $ | (3.95) | $ | (3.31) | |||||||
| Weighted-average common shares outstanding - basic | 735.5 | 735.5 | |||||||||
| Weighted-average common shares outstanding - diluted | 735.5 | 735.5 | |||||||||
1.Represents the distribution of the N&B Business in accordance with the discontinued operations guidance in ASC 205.
8
DuPont de Nemours, Inc.
Unaudited Revised Consolidated Statement of Operations
For the Three Months Ended December 31, 2020
| DuPont | Distribution of N&B 1 | DuPont | |||||||||
| In millions, except per share amounts | As Reported | Revised | |||||||||
| Net sales | $ | 5,252 | $ | (1,502) | $ | 3,750 | |||||
| Cost of sales | 3,521 | (1,047) | 2,474 | ||||||||
| Research and development expenses | 216 | (57) | 159 | ||||||||
| Selling, general and administrative expenses | 537 | (135) | 402 | ||||||||
| Amortization of intangibles | 528 | (359) | 169 | ||||||||
| Restructuring and asset related charges - net | 42 | 3 | 45 | ||||||||
| Integration and separation costs | 125 | (109) | 16 | ||||||||
| Equity in earnings of nonconsolidated affiliates | 19 | (2) | 17 | ||||||||
| Sundry income (expense) - net | 48 | (12) | 36 | ||||||||
| Interest expense | 194 | (39) | 155 | ||||||||
| Income from continuing operations before income taxes | 156 | 227 | 383 | ||||||||
| Benefit from income taxes on continuing operations | (123) | 59 | (64) | ||||||||
| Income from continuing operations, net of tax | 279 | 168 | 447 | ||||||||
| Net income from continuing operations attributable to noncontrolling interests | 8 | — | 8 | ||||||||
| Net income from continuing operations attributable to DuPont common stockholders | $ | 271 | $ | 168 | $ | 439 | |||||
| Per common share data: | |||||||||||
| Earnings per common share from continuing operations - basic | $ | 0.37 | $ | 0.60 | |||||||
| Earnings per common share from continuing operations - diluted | $ | 0.37 | $ | 0.60 | |||||||
| Weighted-average common shares outstanding - basic | 734.6 | 734.6 | |||||||||
| Weighted-average common shares outstanding - diluted | 735.4 | 735.4 | |||||||||
1. Represents the distribution of the N&B Business in accordance with the discontinued operations guidance in ASC 205.
9
DuPont de Nemours, Inc.
Unaudited Revised Consolidated Statement of Operations
For the Three Months Ended September 30, 2020
| DuPont | Distribution of N&B 1 | DuPont | |||||||||
| In millions, except per share amounts | As Reported | Revised | |||||||||
| Net sales | $ | 5,096 | $ | (1,467) | $ | 3,629 | |||||
| Cost of sales | 3,392 | (975) | 2,417 | ||||||||
| Research and development expenses | 199 | (59) | 140 | ||||||||
| Selling, general and administrative expenses | 524 | (121) | 403 | ||||||||
| Amortization of intangibles | 530 | (358) | 172 | ||||||||
| Restructuring and asset related charges - net | 384 | (6) | 378 | ||||||||
| Goodwill impairment charges | 183 | — | 183 | ||||||||
| Integration and separation costs | 127 | (105) | 22 | ||||||||
| Equity in earnings of nonconsolidated affiliates | 30 | (1) | 29 | ||||||||
| Sundry income (expense) - net | 430 | — | 430 | ||||||||
| Interest expense | 197 | (32) | 165 | ||||||||
| Income from continuing operations before income taxes | 20 | 188 | 208 | ||||||||
| Provision for income taxes on continuing operations | 92 | 30 | 122 | ||||||||
| Loss (Income) from continuing operations, net of tax | (72) | 158 | 86 | ||||||||
| Net income from continuing operations attributable to noncontrolling interests | 7 | — | 7 | ||||||||
| Net loss (income) from continuing operations attributable to DuPont common stockholders | $ | (79) | $ | 158 | $ | 79 | |||||
| Per common share data: | |||||||||||
| (Loss) Earnings per common share from continuing operations - basic | $ | (0.11) | $ | 0.11 | |||||||
| (Loss) Earnings per common share from continuing operations - diluted | $ | (0.11) | $ | 0.11 | |||||||
| Weighted-average common shares outstanding - basic | 734.4 | 734.4 | |||||||||
| Weighted-average common shares outstanding - diluted | 734.4 | 734.9 | |||||||||
1. Represents the distribution of the N&B Business in accordance with the discontinued operations guidance in ASC 205.
10
DuPont de Nemours, Inc.
Unaudited Revised Consolidated Statement of Operations
For the Three Months Ended June 30, 2020
| DuPont | Distribution of N&B 1 | DuPont | |||||||||
| In millions, except per share amounts | As Reported | Revised | |||||||||
| Net sales | $ | 4,828 | $ | (1,539) | $ | 3,289 | |||||
| Cost of sales | 3,291 | (993) | 2,298 | ||||||||
| Research and development expenses | 209 | (56) | 153 | ||||||||
| Selling, general and administrative expenses | 541 | (127) | 414 | ||||||||
| Amortization of intangibles | 528 | (351) | 177 | ||||||||
| Restructuring and asset related charges - net | 19 | 5 | 24 | ||||||||
| Goodwill impairment charges | 2,498 | — | 2,498 | ||||||||
| Integration and separation costs | 145 | (129) | 16 | ||||||||
| Equity in earnings of nonconsolidated affiliates | 103 | (1) | 102 | ||||||||
| Sundry income (expense) - net | (14) | 3 | (11) | ||||||||
| Interest expense | 193 | (12) | 181 | ||||||||
| Loss from continuing operations before income taxes | (2,507) | 126 | (2,381) | ||||||||
| (Benefit from) Provision for income taxes on continuing operations | (36) | 44 | 8 | ||||||||
| Loss from continuing operations, net of tax | (2,471) | 82 | (2,389) | ||||||||
| Net income from continuing operations attributable to noncontrolling interests | 7 | — | 7 | ||||||||
| Net loss from continuing operations attributable to DuPont common stockholders | $ | (2,478) | $ | 82 | $ | (2,396) | |||||
| Per common share data: | |||||||||||
| Loss per common share from continuing operations - basic | $ | (3.37) | $ | (3.26) | |||||||
| Loss per common share from continuing operations - diluted | $ | (3.37) | $ | (3.26) | |||||||
| Weighted-average common shares outstanding - basic | 734.3 | 734.3 | |||||||||
| Weighted-average common shares outstanding - diluted | 734.3 | 734.3 | |||||||||
1. Represents the distribution of the N&B Business in accordance with the discontinued operations guidance in ASC 205.
11
DuPont de Nemours, Inc.
Unaudited Revised Consolidated Statement of Operations
For the Three Months Ended March 31, 2020
| DuPont | Distribution of N&B 1 | DuPont | |||||||||
| In millions, except per share amounts | As Reported | Revised | |||||||||
| Net sales | $ | 5,221 | $ | (1,551) | $ | 3,670 | |||||
| Cost of sales | 3,318 | (999) | 2,319 | ||||||||
| Research and development expenses | 236 | (63) | 173 | ||||||||
| Selling, general and administrative expenses | 633 | (151) | 482 | ||||||||
| Amortization of intangibles | 533 | (355) | 178 | ||||||||
| Restructuring and asset related charges - net | 404 | (6) | 398 | ||||||||
| Goodwill impairment charges | 533 | — | 533 | ||||||||
| Integration and separation costs | 197 | (74) | 123 | ||||||||
| Equity in earnings of nonconsolidated affiliates | 39 | — | 39 | ||||||||
| Sundry income (expense) - net | 211 | 1 | 212 | ||||||||
| Interest expense | 183 | (12) | 171 | ||||||||
| Loss from continuing operations before income taxes | (566) | 110 | (456) | ||||||||
| Provision for income taxes on continuing operations | 44 | 50 | 94 | ||||||||
| Loss from continuing operations, net of tax | (610) | 60 | (550) | ||||||||
| Net income from continuing operations attributable to noncontrolling interests | 6 | — | 6 | ||||||||
| Net loss from continuing operations attributable to DuPont common stockholders | $ | (616) | $ | 60 | $ | (556) | |||||
| Per common share data: | |||||||||||
| Loss per common share from continuing operations - basic | $ | (0.83) | $ | (0.75) | |||||||
| Loss per common share from continuing operations - diluted | $ | (0.83) | $ | (0.75) | |||||||
| Weighted-average common shares outstanding - basic | 738.6 | 738.6 | |||||||||
| Weighted-average common shares outstanding - diluted | 738.6 | 738.6 | |||||||||
1. Represents the distribution of the N&B Business in accordance with the discontinued operations guidance in ASC 205.
12
DuPont de Nemours, Inc.
Unaudited Revised Pro Forma Consolidated Statement of Operations
For the Year Ended December 31, 2019
| DuPont | Distribution of N&B 1 | DuPont 2 | Separation and Distribution Pro Forma Adjustments 3 | DuPont | |||||||||||||||||||
| In millions, except per share amounts | As Reported | Revised | Pro Forma | ||||||||||||||||||||
| Net sales | $ | 21,512 | $ | (6,076) | $ | 15,436 | $ | — | $ | 15,436 | |||||||||||||
| Cost of sales | 14,056 | (4,030) | 10,026 | 16 | 10,042 | ||||||||||||||||||
| Research and development expenses | 955 | (266) | 689 | — | 689 | ||||||||||||||||||
| Selling, general and administrative expenses | 2,663 | (606) | 2,057 | — | 2,057 | ||||||||||||||||||
| Amortization of intangibles | 1,050 | (349) | 701 | — | 701 | ||||||||||||||||||
| Restructuring and asset related charges - net | 314 | (162) | 152 | — | 152 | ||||||||||||||||||
| Goodwill impairment charges | 1,175 | (933) | 242 | — | 242 | ||||||||||||||||||
| Integration and separation costs | 1,342 | (85) | 1,257 | (173) | 1,084 | ||||||||||||||||||
| Equity in earnings of nonconsolidated affiliates | 84 | 1 | 85 | — | 85 | ||||||||||||||||||
| Sundry income (expense) - net | 153 | (9) | 144 | — | 144 | ||||||||||||||||||
| Interest expense | 668 | (1) | 667 | 29 | 696 | ||||||||||||||||||
| (Loss) Income from continuing operations before income taxes | (474) | 348 | (126) | 128 | 2 | ||||||||||||||||||
| Provision for (benefit from) income taxes on continuing operations | 140 | (142) | (2) | 31 | 29 | ||||||||||||||||||
| Loss from continuing operations, net of tax | (614) | 490 | (124) | 97 | (27) | ||||||||||||||||||
| Net income from continuing operations attributable to noncontrolling interests | 30 | (1) | 29 | — | 29 | ||||||||||||||||||
| Net loss from continuing operations attributable to DuPont common stockholders | $ | (644) | $ | 491 | $ | (153) | $ | 97 | $ | (56) | |||||||||||||
| Per common share data: | |||||||||||||||||||||||
Loss per common share from continuing operations - basic 4 | $ | (0.86) | $ | (0.08) | |||||||||||||||||||
Loss per common share from continuing operations - diluted 4 | $ | (0.86) | $ | (0.08) | |||||||||||||||||||
| Weighted-average common shares outstanding - basic | 746.3 | 746.3 | |||||||||||||||||||||
| Weighted-average common shares outstanding - diluted | 746.3 | 746.3 | |||||||||||||||||||||
1. Represents the distribution of the N&B Business in accordance with the discontinued operations guidance in ASC 205.
2. Represents DuPont’s current best estimate of DuPont’s retrospectively revised historical consolidated statement of operations for the year ended December 31, 2019 reflecting the discontinued operations of its N&B Business. Actual results could differ from these estimates.
3. Certain pro forma adjustments were made to illustrate the estimated effects of the DWDP Transactions, assuming that the DWDP Transactions had occurred on January 1, 2018. The adjustments include the impact to "Cost of sales" of different pricing than historical intercompany and intracompany practices related to various supply agreements entered into with the Dow Distribution, adjustments to "Integration and separation costs" to eliminate one time transaction costs directly attributable to the DWDP Distributions, and adjustments to "Interest expense" to reflect the impact of the Financings.
4. Pro forma basic and diluted earnings per share is calculated by dividing pro forma net income available to DuPont common stockholders by pro forma weighted-average number of DuPont common shares outstanding. Pro forma net income available to DuPont common stockholders is reduced by $1 million of net income attributable to deferred stock awards, as these awards are considered participating securities due to DowDuPont’s practice of paying dividend equivalents on unvested shares.
13
DuPont de Nemours, Inc.
Unaudited Revised Consolidated Statement of Operations
For the Three Months Ended December 31, 2019
| DuPont | Distribution of N&B 1 | DuPont | |||||||||
| In millions, except per share amounts | As Reported | Revised | |||||||||
| Net sales | $ | 5,204 | $ | (1,458) | $ | 3,746 | |||||
| Cost of sales | 3,408 | (969) | 2,439 | ||||||||
| Research and development expenses | 231 | (69) | 162 | ||||||||
| Selling, general and administrative expenses | 650 | (148) | 502 | ||||||||
| Amortization of intangibles | 295 | (123) | 172 | ||||||||
| Restructuring and asset related charges - net | 24 | (5) | 19 | ||||||||
| Integration and separation costs | 193 | (54) | 139 | ||||||||
| Equity in earnings of nonconsolidated affiliates | (48) | 1 | (47) | ||||||||
| Sundry income (expense) - net | 9 | 2 | 11 | ||||||||
| Interest expense | 175 | — | 175 | ||||||||
| Income from continuing operations before income taxes | 189 | (87) | 102 | ||||||||
| Benefit from income taxes on continuing operations | (2) | (24) | (26) | ||||||||
| Income from continuing operations, net of tax | 191 | (63) | 128 | ||||||||
| Net income from continuing operations attributable to noncontrolling interests | 12 | (1) | 11 | ||||||||
| Net income from continuing operations attributable to DuPont common stockholders | $ | 179 | $ | (62) | $ | 117 | |||||
| Per common share data: | |||||||||||
| Earnings per common share from continuing operations - basic | $ | 0.24 | $ | 0.16 | |||||||
| Earnings per common share from continuing operations - diluted | $ | 0.24 | $ | 0.16 | |||||||
| Weighted-average common shares outstanding - basic | 740.7 | 740.7 | |||||||||
| Weighted-average common shares outstanding - diluted | 742.0 | 742.0 | |||||||||
1. Represents the distribution of the N&B Business in accordance with the discontinued operations guidance in ASC 205.
14
DuPont de Nemours, Inc.
Unaudited Revised Consolidated Statement of Operations
For the Three Months Ended September 30, 2019
| DuPont | Distribution of N&B 1 | DuPont | |||||||||
| In millions, except per share amounts | As Reported | Revised | |||||||||
| Net sales | $ | 5,426 | $ | (1,525) | $ | 3,901 | |||||
| Cost of sales | 3,531 | (1,008) | 2,523 | ||||||||
| Research and development expenses | 225 | (66) | 159 | ||||||||
| Selling, general and administrative expenses | 645 | (150) | 495 | ||||||||
| Amortization of intangibles | 247 | (75) | 172 | ||||||||
| Restructuring and asset related charges - net | 82 | (8) | 74 | ||||||||
| Integration and separation costs | 191 | (13) | 178 | ||||||||
| Equity in earnings of nonconsolidated affiliates | 43 | — | 43 | ||||||||
| Sundry income (expense) - net | 79 | 2 | 81 | ||||||||
| Interest expense | 177 | (1) | 176 | ||||||||
| Income from continuing operations before income taxes | 450 | (202) | 248 | ||||||||
| Provision for income taxes on continuing operations | 78 | (52) | 26 | ||||||||
| Income from continuing operations, net of tax | 372 | (150) | 222 | ||||||||
| Net income from continuing operations attributable to noncontrolling interests | 5 | — | 5 | ||||||||
| Net income from continuing operations attributable to DuPont common stockholders | $ | 367 | $ | (150) | $ | 217 | |||||
| Per common share data: | |||||||||||
| Earnings per common share from continuing operations - basic | $ | 0.49 | $ | 0.29 | |||||||
| Earnings per common share from continuing operations - diluted | $ | 0.49 | $ | 0.29 | |||||||
| Weighted-average common shares outstanding - basic | 745.5 | 745.5 | |||||||||
| Weighted-average common shares outstanding - diluted | 747.7 | 747.7 | |||||||||
1. Represents the distribution of the N&B Business in accordance with the discontinued operations guidance in ASC 205.
15
DuPont de Nemours, Inc.
Unaudited Revised Consolidated Statement of Operations
For the Three Months Ended June 30, 2019
| DuPont | Distribution of N&B 1 | DuPont | |||||||||
| In millions, except per share amounts | As Reported | Revised | |||||||||
| Net sales | $ | 5,468 | $ | (1,558) | $ | 3,910 | |||||
| Cost of sales | 3,496 | (1,025) | 2,471 | ||||||||
| Research and development expenses | 232 | (64) | 168 | ||||||||
| Selling, general and administrative expenses | 642 | (152) | 490 | ||||||||
| Amortization of intangibles | 252 | (75) | 177 | ||||||||
| Restructuring and asset related charges - net | 137 | (96) | 41 | ||||||||
| Goodwill impairment charges | 1,175 | (933) | 242 | ||||||||
| Integration and separation costs | 347 | (10) | 337 | ||||||||
| Equity in earnings of nonconsolidated affiliates | 49 | — | 49 | ||||||||
| Sundry income (expense) - net | (19) | (9) | (28) | ||||||||
| Interest expense | 165 | — | 165 | ||||||||
| Loss from continuing operations before income taxes | (948) | 788 | (160) | ||||||||
| Provision for income taxes on continuing operations | 155 | (34) | 121 | ||||||||
| Loss from continuing operations, net of tax | (1,103) | 822 | (281) | ||||||||
| Net income from continuing operations attributable to noncontrolling interests | 9 | — | 9 | ||||||||
| Net loss from continuing operations attributable to DuPont common stockholders | $ | (1,112) | $ | 822 | $ | (290) | |||||
| Per common share data: | |||||||||||
| Loss per common share from continuing operations - basic | $ | (1.48) | $ | (0.39) | |||||||
| Loss per common share from continuing operations - diluted | $ | (1.48) | $ | (0.39) | |||||||
| Weighted-average common shares outstanding - basic | 749.0 | 749.0 | |||||||||
| Weighted-average common shares outstanding - diluted | 749.0 | 749.0 | |||||||||
1. Represents the distribution of the N&B Business in accordance with the discontinued operations guidance in ASC 205.
16
DuPont de Nemours, Inc.
Unaudited Revised Pro Forma Consolidated Statement of Operations
For the Three Months Ended March 31, 2019
| DuPont | Distribution of N&B 1 | DuPont 2 | Separation and Distribution Pro Forma Adjustments 3 | DuPont | |||||||||||||||||||
| In millions, except per share amounts | As Reported | Revised | Pro Forma | ||||||||||||||||||||
| Net sales | $ | 5,414 | $ | (1,535) | $ | 3,879 | $ | — | $ | 3,879 | |||||||||||||
| Cost of sales | 3,621 | (1,028) | 2,593 | 16 | 2,609 | ||||||||||||||||||
| Research and development expenses | 267 | (67) | 200 | — | 200 | ||||||||||||||||||
| Selling, general and administrative expenses | 726 | (156) | 570 | — | 570 | ||||||||||||||||||
| Amortization of intangibles | 256 | (76) | 180 | — | 180 | ||||||||||||||||||
| Restructuring and asset related charges - net | 71 | (53) | 18 | — | 18 | ||||||||||||||||||
| Integration and separation costs | 611 | (8) | 603 | (173) | 430 | ||||||||||||||||||
| Equity in earnings of nonconsolidated affiliates | 40 | — | 40 | — | 40 | ||||||||||||||||||
| Sundry income (expense) - net | 84 | (4) | 80 | — | 80 | ||||||||||||||||||
| Interest expense | 151 | — | 151 | 29 | 180 | ||||||||||||||||||
| Loss from continuing operations before income taxes | (165) | (151) | (316) | 128 | (188) | ||||||||||||||||||
| Benefit from income taxes on continuing operations | (91) | (32) | (123) | 31 | (92) | ||||||||||||||||||
| Loss from continuing operations, net of tax | (74) | (119) | (193) | 97 | (96) | ||||||||||||||||||
| Net income from continuing operations attributable to noncontrolling interests | 4 | — | 4 | — | 4 | ||||||||||||||||||
| Net loss from continuing operations available to DuPont common stockholders | $ | (78) | $ | (119) | $ | (197) | $ | 97 | $ | (100) | |||||||||||||
| Per common share data: | |||||||||||||||||||||||
Loss per common share from continuing operations - basic 4 | $ | (0.11) | $ | (0.13) | |||||||||||||||||||
Loss per common share from continuing operations - diluted 4 | $ | (0.11) | $ | (0.13) | |||||||||||||||||||
| Weighted-average common shares outstanding - basic | 750.0 | 750.0 | |||||||||||||||||||||
| Weighted-average common shares outstanding - diluted | 750.0 | 750.0 | |||||||||||||||||||||
2. Represents DuPont’s current best estimate of DuPont’s retrospectively revised historical consolidated statement of operations for the three months ended March 31, 2019 the discontinued operations of its N&B Business. Actual results could differ from these estimates.
3. Certain pro forma adjustments were made to illustrate the estimated effects of the DWDP Transactions, assuming that the DWDP Transactions had occurred on January 1, 2018. The adjustments include the impact to "Cost of sales" of different pricing than historical intercompany and intracompany practices related to various supply agreements entered into with the Dow Distribution, adjustments to "Integration and separation costs" to eliminate one time transaction costs directly attributable to the DWDP Distributions, and adjustments to "Interest expense" to reflect the impact of the Financings.
4. Pro forma basic and diluted earnings per share is calculated by dividing pro forma net income available to DuPont common stockholders by pro forma weighted-average number of DuPont common shares outstanding. Pro forma net income available to DuPont common stockholders is reduced by $1 million of net income attributable to deferred stock awards, as these awards are considered participating securities due to DowDuPont’s practice of paying dividend equivalents on unvested shares.
17
DuPont de Nemours, Inc.
Unaudited Revised Pro Forma Consolidated Statement of Operations
For the Year Ended December 31, 2018
| DuPont | Distribution of N&B 1 | DuPont 2 | DWDP Pro Forma Adjustments 3 | DuPont | |||||||||||||||||||
| In millions, except per share amounts | As Reported | Revised | Pro Forma | ||||||||||||||||||||
| Net sales | $ | 22,594 | $ | (6,216) | $ | 16,378 | $ | — | $ | 16,378 | |||||||||||||
| Cost of sales | 15,302 | (4,179) | 11,123 | 54 | 11,177 | ||||||||||||||||||
| Research and development expenses | 1,070 | (273) | 797 | — | 797 | ||||||||||||||||||
| Selling, general and administrative expenses | 3,028 | (625) | 2,403 | — | 2,403 | ||||||||||||||||||
| Amortization of intangibles | 1,044 | (311) | 733 | — | 733 | ||||||||||||||||||
| Restructuring and asset related charges - net | 147 | (50) | 97 | — | 97 | ||||||||||||||||||
| Integration and separation costs | 1,887 | (42) | 1,845 | (493) | 1,352 | ||||||||||||||||||
| Equity in earnings of nonconsolidated affiliates | 447 | 1 | 448 | — | 448 | ||||||||||||||||||
| Sundry income (expense) - net | 92 | (1) | 91 | — | 91 | ||||||||||||||||||
| Interest expense | 55 | (1) | 54 | 629 | 683 | ||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 600 | (735) | (135) | (190) | (325) | ||||||||||||||||||
| Provision for (benefit from) income taxes on continuing operations | 195 | (145) | 50 | (37) | 13 | ||||||||||||||||||
| Income (loss) from continuing operations, net of tax | 405 | (590) | (185) | (153) | (338) | ||||||||||||||||||
| Net income from continuing operations attributable to noncontrolling interests | 39 | — | 39 | — | 39 | ||||||||||||||||||
| Net income (loss) from continuing operations attributable to DuPont common stockholders | $ | 366 | $ | (590) | $ | (224) | $ | (153) | $ | (377) | |||||||||||||
| Per common share data: | |||||||||||||||||||||||
Earnings per common share from continuing operations - basic 4 | $ | 0.46 | $ | (0.51) | |||||||||||||||||||
Earnings per common share from continuing operations - diluted 4 | $ | 0.45 | $ | (0.51) | |||||||||||||||||||
| Weighted-average common shares outstanding - basic | 767.0 | 767.0 | |||||||||||||||||||||
| Weighted-average common shares outstanding - diluted | 771.8 | 767.0 | |||||||||||||||||||||
2. Represents DuPont’s current best estimate of DuPont’s retrospectively revised historical consolidated statement of operations for the year ended December 31, 2018 reflecting the discontinued operations of its N&B Business. Actual results could differ from these estimates.
3. Certain pro forma adjustments were made to illustrate the estimated effects of the DWDP Transactions, assuming that the DWDP Transactions had occurred on January 1, 2018. The adjustments include the impact to "Cost of sales" of different pricing than historical intercompany and intracompany practices related to various supply agreements entered into with the Dow Distribution, adjustments to "Integration and separation costs" to eliminate one time transaction costs directly attributable to the DWDP Distributions, and adjustments to "Interest expense" to reflect the impact of the Financings.
4. Pro forma basic and diluted earnings per share is calculated by dividing pro forma net income available to DuPont common stockholders by pro forma weighted-average number of DuPont common shares outstanding. Pro forma net income available to DuPont common stockholders is reduced by $17 million of net income attributable to deferred stock awards, as these awards are considered participating securities due to DowDuPont’s practice of paying dividend equivalents on unvested shares.
18