v3.24.2
SEGMENTS AND GEOGRAPHIC REGIONS
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
SEGMENTS AND GEOGRAPHIC REGIONS SEGMENTS AND GEOGRAPHIC REGIONS
The Company's measure of profit/loss for segment reporting purposes is Operating EBITDA as this is the manner in which the Company's chief operating decision maker ("CODM") assesses performance and allocates resources. The Company defines Operating EBITDA as earnings (i.e., “Income from continuing operations before income taxes") before interest, depreciation, amortization, non-operating pension / OPEB benefits / charges, and foreign exchange gains / losses, excluding Future Reimbursable Indirect Costs, and adjusted for significant items. Reconciliations of these measures are provided on the following pages.

Historical Delrin® costs that were classified as discontinued operation in prior years included only direct operating expenses incurred by Delrin® prior to the November 1, 2023 divestiture. Indirect costs, such as those related to corporate and shared service functions previously allocated to the Delrin® Business, did not meet the criteria for discontinued operations and were reported within continuing operations in the respective prior years. A portion of these historical indirect costs included costs related to activities the Company is undertaking on behalf of Delrin®, and for which it is reimbursed (“Future Reimbursable Indirect Costs”). Future Reimbursable Indirect Costs are reported within continuing operations but are excluded from operating EBITDA as defined below. The remaining portion of these indirect costs are not subject to reimbursement (“Stranded Costs”). Stranded Costs are reported within continuing operations in Corporate & Other and are included within Operating EBITDA.

Segment InformationElectronics & IndustrialWater & ProtectionCorporate & OtherTotal
In millions
Three months ended June 30, 2024
Net sales$1,508 $1,391 $272 $3,171 
Operating EBITDA 1
$419 $344 $35 $798 
Equity in earnings of nonconsolidated affiliates$13 $8 $2 $23 
Three months ended June 30, 2023
Net sales$1,312 $1,494 $288 $3,094 
Operating EBITDA 1
$349 $368 $21 $738 
Equity in earnings of nonconsolidated affiliates$3 $11 $— $14 
Six months ended June 30, 2024
Net sales$2,873 $2,682 $547 $6,102 
Operating EBITDA 2
$793 $639 $48 $1,480 
Equity in earnings (losses) of nonconsolidated affiliates$23 $17 $(5)$35 
Six months ended June 30, 2023
Net sales$2,608 $2,943 $561 $6,112 
Operating EBITDA 2
$711 $712 $29 $1,452 
Equity in earnings of nonconsolidated affiliates$8 $21 $— $29 
1.Corporate & Other includes activities of the Retained Businesses.
2.A reconciliation of "Income from continuing operations, net of tax" to Operating EBITDA is provided below.
Reconciliation of "Income from continuing operations, net of tax" to Operating EBITDA for the Three Months Ended June 30, 2024 and 2023
Three Months Ended June 30,
In millions20242023
Income from continuing operations, net of tax $176 $269 
+Provision for income taxes on continuing operations120 87 
Income from continuing operations before income taxes$296 $356 
+Depreciation and amortization298 282 
-
Interest income 1
21 52 
+Interest expense 99 98 
-
Non-operating pension/OPEB benefit credits (costs) 1
3 (2)
-
Foreign exchange (losses) gains, net 1
(4)(28)
+Future reimbursable indirect costs— 2 
-Significant items charge(125)(22)
Operating EBITDA $798 $738 
1.Included in "Sundry income (expense) - net."

Reconciliation of "Income from continuing operations, net of tax" to Operating EBITDA for the Six Months Ended June 30, 2024 and 2023
Six Months Ended June 30,
In millions20242023
Income from continuing operations, net of tax $359 $542 
+Provision for income taxes on continuing operations204 170 
Income from continuing operations before income taxes$563 $712 
+Depreciation and amortization589 559 
-
Interest income 1
41 98 
+Interest expense 195 193 
-
Non-operating pension/OPEB benefit credits (costs) 1
10 (4)
-
Foreign exchange (losses) gains, net 1
— (48)
+Future reimbursable indirect costs— 4 
-Significant items charge(184)(30)
Operating EBITDA $1,480 $1,452 
1.Included in "Sundry income (expense) - net."
The following tables summarize the pre-tax impact of significant items by segment that are excluded from Operating EBITDA above:
Significant Items by Segment for the Three Months Ended June 30, 2024
Electronics & IndustrialWater & ProtectionCorporate & OtherTotal
In millions
Restructuring and asset related charges - net 1
$3 $(15)$4 $(8)
Inventory write-offs 2
— 1 — 1 
Acquisition, integration and separation costs 3
(3)— (2)(5)
Loss on debt extinguishment 4
— — (74)(74)
Interest rate swap mark-to-market loss 5
— — (39)(39)
Total$— $(14)$(111)$(125)
1. Includes restructuring actions and asset related charges. See Note 6 for additional information.
2. Reflects an adjustment to raw material inventory write-offs recorded in “Cost of Sales” in connection with restructuring actions related to plant line closures within the Water & Protection segment.
3. Acquisition, integration and separation costs related to the Spectrum Acquisition and the Intended Business Separations.
4. Reflects the loss on extinguishment of debt related to the partial redemption of an aggregate principal amount of the 2038 Notes. Refer to Note 13 for further details.
5. Includes the mark to market loss related to the 2022 Swaps and 2024 Swaps. Refer to Note 19 for further details.

Significant Items by Segment for the Three Months Ended June 30, 2023
Electronics & IndustrialWater & ProtectionCorporate & OtherTotal
In millions
Acquisition, integration and separation costs 1
$(6)$— $— $(6)
Restructuring and asset related charges - net 2
(13)1 (5)(17)
Gain on divestiture 3
— 1 — 1 
Total$(19)$2 $(5)$(22)
1. Acquisition, integration and separation costs related to the Spectrum Acquisition.
2. Includes restructuring actions and asset related charges. See Note 6 for additional information.
3. Reflected in "Sundry income (expense) - net."

Significant Items by Segment for the Six Months Ended June 30, 2024
Electronics & IndustrialWater & ProtectionCorporate & OtherTotal
In millions
Restructuring and asset related charges - net 1
$(5)$(37)$(5)$(47)
Inventory write-offs 2
— (24)— (24)
Acquisition, integration and separation costs 3
(6)— (2)(8)
Loss on debt extinguishment 4
— — (74)(74)
Interest rate swap mark-to-market loss 5
— — (39)(39)
Income tax items 6
— — 88 
Total$(11)$(61)$(112)$(184)
1. Includes restructuring actions and asset related charges. See Note 6 for additional information.
2. Reflects raw material inventory write-offs recorded in “Cost of Sales” in connection with restructuring actions related to plant line closures within the Water & Protection segment.
3. Acquisition, integration and separation costs related to the Spectrum Acquisition and the Intended Business Separations.
4. Reflects the loss on extinguishment of debt related to the partial redemption of an aggregate principal amount of the 2038 Notes. Refer to Note 13 for further details.
5. Includes the mark to market loss related to the 2022 Swaps and 2024 Swaps. Refer to Note 19 for further details.
6. Reflects the impact of an international tax audit.

Significant Items by Segment for the Six Months Ended June 30, 2023
Electronics & IndustrialWater & ProtectionCorporate & OtherTotal
In millions
Acquisition, integration and separation costs 1
$(6)$— $— $(6)
Restructuring and asset related charges - net 2
(22)1 (10)(31)
Gain on divestiture 3
7 1 (1)7 
Total$(21)$2 $(11)$(30)
1. Acquisition, integration and separation costs related to the Spectrum Acquisition.
2. Includes restructuring actions and asset related charges. See Note 6 for additional information.
3. Reflected in "Sundry income (expense) - net."